 IRVING, Texas, Aug. 10, 2020 GLOBE NEWSWIRE -- CorePoint Lodging Inc. NYSE: CPLG CorePoint or the Company, a pure play select-service hotel owner strategically focused on the midscale and upper-midscale segments, today reported operational and financial results for the second quarter ended June 30, 2020. Second Quarter 2020 and Subsequent Highlights Net loss of 107 million, or 1.89 loss per fully diluted share, including the impact of a non-cash GAAP impairment charge of 52 million Comparable RevPAR of 24.15, a decrease of 62.5 from the same period in 2019 with 838 basis points of RevPAR Index market share gain Adjusted EBITDAre of 8 million Adjusted FFO attributable to common stockholders of 18 million, or 0.31 per fully diluted share All of the Companys 230 hotels are currently open and operational Hotel room demand increased each month on a sequential basis, resulting in an increase of comparable occupancy from 20.9 in April to 37.9 in May to 50.4 in June The Company amended its Revolving Credit Facility to extend the maturity date to May 2021 and eliminate certain financial covenants through the extended maturity date The Company exercised its first extension option on its CMBS Facility to extend the maturity date to June 2021, with borrower options to further extend the maturity date for four successive terms of one year each Sold 7 non-core hotels for a combined gross sales price of approximately 29 million during the quarter Subsequent to quarter end, sold 10 non-core hotels for a combined gross sales price of approximately 51 million, resulting in a total of 40 non-core hotels sold during 2020 for a combined gross sales price of approximately 180 million and a total of 84 non-core hotels sold since March 2019 for a combined gross sales price of approximately 357 million An additional 19 hotels are under contract with qualified buyers, expected to generate approximately 84 million of gross proceeds, and expected to close by the end of the first quarter of 2021, subject to market and other conditionsThe acceleration in rooms demand within our portfolio that we cited in late May has continued with a positive impact on revenue, EBITDA and significantly reduced monthly cash burn, noted Keith Cline, President and Chief Executive Officer of CorePoint. We believe this recent performance indicates how well our portfolio of select-service hotels predominately focused on the midscale segments is positioned to capture the current levels of transient room demand, including leisure travel and the associated demand for many of our drive-to destination hotels.While our hotel operations have been dramatically impacted by the COVID-19 pandemic along with the rest of the lodging industry, and the lodging environment is likely to experience some uncertainty in the months ahead, we are encouraged by the early signs of recovery that we are seeing in our portfolio. With these improving trends and continued implementation of aggressive capital preservation and cost saving mitigation efforts at both the property and corporate level, we achieved a positive hotel level EBITDA of approximately 3 million for the month of June, which brought us very close to a monthly break-even for the total company.Mr. Cline added, The successful execution of our real estate strategy continues to be a proven value creator for us. Since the beginning of May, we have closed on the sale of 17 hotels for gross proceeds of 80 million at attractive valuations. These non-core dispositions have resulted in a significant pay down of debt and, over the long term, we believe they will help us transform the portfolio to 105 core hotels located primarily in the top 50 MSAs. Selected Statistical and Financial Data Unaudited, in millions, except RevPAR and ADR Three Months Ended June 30, Six Months Ended June 30, 2020 2019 Change 2020 2019 Change Net loss 107 19 463.2 128 46 178.3 Total revenues72 219 67.1 218 427 48.9 Adjusted EBITDAre8 46 117.4 2 89 97.8 Adjusted FFO attributable to common stockholders 18 29 162.1 14 53 126.4 Comparable Occupancy 136.4 70.9 3,450 bps 45.2 68.5 2,330 bps Comparable ADR 166.30 90.92 27.1 80.68 93.22 13.5 Comparable RevPAR 124.15 64.42 62.5 36.49 63.82 42.8 Comparable Hotel Adjusted EBITDAre margin 1 7.7 25.3 3,300 bps 5.9 25.9 2,000 bps ___ 1 Comparable Hotels includes 233 hotels of the total 240 hotels owned as of June 30, 2020. Second Quarter 2020 Financial and Operating ResultsThe Company reported net loss of 107 million, or 1.89 loss per fully diluted share, for the quarter ended June 30, 2020, compared to net loss of 19 million, or 0.32 loss per fully diluted share, for the quarter ended June 30, 2019. Decreases in year-over-year revenues were partially offset by lower operating and other expenses. The current year period includes a non-cash GAAP impairment charge of 52 million.Comparable RevPAR for the second quarter of 2020 decreased 62.5 over the same period of 2019 with 838 basis points of RevPAR Index market share gains. The decline in comparable RevPAR was driven by a 27.1 decrease in comparable ADR and 3,450 bps decrease in comparable occupancy. The decline in occupancy was primarily driven by a significant reduction in hotel demand resulting from the impact of the COVID-19 pandemic. Top performing markets included Sacramento, California, Phoenix, Arizona, and Tampa-St. Petersburg, Florida.Adjusted EBITDAre for the second quarter of 2020 was 8 million as compared to 46 million for the same period in 2019. The year-over-year decrease was primarily due to decreases in rooms revenue, including due to the impact of sold hotels and a reduction in room demand due to the COVID-19 pandemic.Operations Update and Measures to Mitigate Impact of COVID-19Due to the operational and financial impact from the COVID-19 pandemic and requirements from state and local government and public health authorities, CorePoint, along with its third-party manager, temporarily did not accept transient guests or most other reservations at 30 of the Companys hotels in order to minimize ongoing operating expenses and conserve cash. As of today, the Company has resumed operations at all of these locations.During the second quarter of 2020, hotel room demand increased each month on a sequential basis, resulting in an increase of comparable occupancy from 20.9 in April to 50.4 in June. The following table summarizes select operating statistics for the months of April, May, and June of 2020: Comparable Occupancy Comparable ADR Comparable RevPAR April 202020.9 65.30 13.66 May 202037.9 64.75 24.52 June 202050.4 67.91 34.25 The Company continues to implement the following measures to control costs and preserve capital to mitigate the ongoing operational and financial impact from the COVID-19 pandemic: Reducing staffing levels, eliminating non-essential amenity offerings, minimizing spending at all hotels, and closing sections and or floors at some hotels to maximize efficiencies. Deferring all non-essential capital investments and expenditures for the balance of 2020, with the exception of life safety and critical operational needs. Implementing cost containment measures with respect to all other corporate spending. Related to Board and executive compensation, CorePoints Board of Directors will be paid their board fees for the remainder of 2020 in the form of deferred stock units and Mr. Cline has agreed to take a portion of his compensation for the remainder of 2020 in the form of restricted stock in lieu of cash. Dispositions Since CorePoint commenced its initial non-core disposition program of 78 hotels in March 2019, 65 of these hotels have been successfully sold for a combined gross sales price of approximately 263 million and an additional 6 of these hotels are under contract with qualified buyers, expected to generate approximately 19 million of gross proceeds. The Companys expanded non-core disposition program includes an additional phase two group of 132 hotels. Of the phase two hotels, 19 have been successfully sold for a combined gross sales price of approximately 94 million and an additional 13 phase two hotels are under contract with qualified buyers, expected to generate approximately 65 million in gross proceeds. There can be no assurance as to the timing of any future sales or whether such sales will be completed at all. The company is unable to forecast at this time whether there will be any impact from the COVID-19 pandemic on the timing of or gross proceeds from asset sales.Hotel Disposition Summary in millions: Phase 1 Phase 2 Total Total number of non-core hotels:78 132 210 Full year 2019: Number of hotels sold43 1 44 Gross proceeds173 4 177 Portion of net proceeds used to repay debt111 3 114 First quarter 2020: Number of hotels sold17 6 23 Gross proceeds72 28 100 Portion of net proceeds used to repay debt37 13 50 Second quarter 2020: Number of hotels sold2 5 7 Gross proceeds7 22 29 Portion of net proceeds used to repay debt6 14 20 Third quarter 2020 to date: Number of hotels sold3 7 10 Gross proceeds11 40 51 Portion of net proceeds used to repay debt9 35 44 Capital Investments The Company invested approximately 5 million in the second quarter of 2020 in capital improvements. Excluding hurricane restoration costs, the Company invested approximately 3 million in capital improvements for the second quarter of 2020. 