Morgan Stanley Investment Banking Pitch Book
Q1 2016
.
Project Roosevelt
Retire $28.2MM of mortgage debt on
Hudson and Delano to meet 7.5% debt
yield requirement
Q2-Q4 2016
.Q2 2016 - No longer manage Shore Club
starting Q2 2016 and receive $2.9MM
termination fees
• Q2 2016 - No longer manage Mondrian
South Beach and received $1.0MM
termination fee. Only receive licensing fees
going forward
• Q3 2016 - No longer manage Morgans
starting Q3 2016 and receive $3.5MM
termination fees
Key Assumptions
.
Q4 2016 - No longer manage Royalton
starting Q4 2016 and receive $3.5MM
termination fees
Q4 2016
• The current preferred dividend rate of 10%
increases to 20% in October 2016
Q1 2017
1Q 2019
Retire $28.5MM of mortgage debt on
Hudson and Delano to meet 7.75% debt
yield requirement
Refinance $393MM of mortgage on
Hudson and Delano at 2% transaction cost
Notes
1. Includes management fees on owned assets
2. Excludes termination fees
3. Extension fees associated with the Hudson and Delano
mortgage, 0.25% of outstanding balance. 2019 represents
refinancing the $393MM outstanding loan balance at 2%
cost
Morgan Stanley
MONROE SELECTED INFORMATION
Financial Estimates and Key Assumptions
Monroe - Key Financials
(SMM, unless otherwise noted)
Revenue
Hudson
Delano
Caft
Owned Hotels Revenue
Food & Beverage (MB Vegas, Sanderson, St Martins Lane FB)
Total Revenue from Current Contracts
Signed Pipeline Contracts
Lost Contracts (Mgmt & Termination Fees) (Excluded from EBITDA Starting 2016)
Less: Intercompany Payment
Total Revenue
Growth-%
Major Expense Line Items - Does not represent all expenses of Monroe
Operating Expenses at Owned Hotels
Food & Beverage (MB Vegas, Sanderson, St Martins Lane FB)
Management Company G&A
Public Company G&A
EBITDAR
Hudson
Delano
Caft-EBITDAR
Owned Hotels EBITDAR
Cift Rent
Hudson Lease Rent
Owned Hotel EBITDA
Food & Beverage- After MB Rent & Profit Sharing
Management Company EBITDA Incl. Pipeline
Corporate G&A
Adj. EBITDA)
Margin-%
Adj. EBITDAR
Adj. EBITDA
Plus: Lost Contracts (Mgmt & Termination Fees)
Less Interest
Less Capex
Plus TLG Sale
Debt Yield Payments
Debt Extension Fees & Loan Costs
Restructuring, Development and Disposal costs
Plus / (Less) Other Cash Flows
Levered Cash Flow
Source Management Projections
2015A
80.8
47.7
45,6
174.0
32.5
17.8
3.1
(7.0)
220.4
(2.0%)
(132.7)
(29.5)
(15.7)
(4.2)
16.3
17.9
72
41.3
(7.6)
(0.5)
33.3
3.0
5.2
(4.2)
37.2
17%
45.3
37.2
(31.3)
(7.1)
30.8
-
(72)
10.2
32.4
2016E
84.5
48.2
47.9
180.6
24.9
17.5
12.6
(7.3)
228.3
3.6%
(139.8)
(21.9)
(14.1)
(3.0)
16.3
17.5
7.1
40.9
(7.6)
(0.5)
32.8
3.0
3.4
(3.0)
36.2
16%
44.3
36.2
12.6
(29.5)
(6.4)
(1.0)
(28.2)
(1.4)
(1.0)
(5.3)
(23.8)
2017E
87.6
49.4
50.0
187.0
25.6
18.1
22
(7.6)
225.3
(1.3%)
(143.1)
(22.4)
(15.7)
(3.1)
18.2
17.8
7.9
43.9
(7.6)
(0.5)
35.8
3.3
4.5
(3.1)
40.5
18%
48.6
40.5
(26.1)
(6.6)
(28.5)
(1.1)
(1.0)
(2.8)
(25.6)
Strictly Confidential
2018E
91.4
50.8
51.3
193.6
26.4
18.7
3.4
(7.8)
234.2
4.0%
(146.9)
(23.0)
(16.2)
(3.2)
20.3
18.3
8.0
46.6
(7.6)
(0.5)
38.6
3.4
5.9
(3.2)
44.6
19%
52.7
44.6
(26.1)
(6.8)
(1.0)
(1.0)
(2.8)
7.0
2019E
94.8
52.4
51.8
199.0
27.2
19.2
6.8
(8.0)
244.2
4.3%
(150.5)
(23.7)
(16.7)
(3.3)
22.1
18.9
7.5
48.5
(7.8)
(0.5)
40.2
3.5
9.4
(3.3)
49.8
20%
58.0
49.8
(26.1)
(7.0)
(7.9)
(1.0)
(2.1)
5.7
15-19 CAGR
4.1%
2.4%
3.2%
3.4%
(4.3%)
2.0%
2.6%
3,2%
(5.4%)
1.6%
(6.0%)
7.9%
1.4%
1.0%
4.0%
0.6%
4.8%
4.3%
16.1%
(6.0%)
7.6%
6.4%
7.6%
7View entire presentation