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Ashford Trust Reports Second Quarter 2018 Results

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Ashford Trust Reports Second Quarter 2018 Results

Comparable RevPAR Increased 2.3% for all Hotels Not Under Renovation

Completed Refinancings of 56 Hotels for $2.3 Billion

Entered into an Enhanced Return Funding Program with Ashford Inc.

Completed Acquisition of Hilton Alexandria Old Town for $111 million

PR Newswire

DALLAS, Aug. 2, 2018 /PRNewswire/ -- Ashford Hospitality Trust, Inc. (NYSE:AHT) ("Ashford Trust" or the "Company") today reported financial results and performance measures for the second quarter ended June 30, 2018. The performance measurements for Occupancy, Average Daily Rate (ADR), Revenue Per Available Room (RevPAR), and Hotel EBITDA are comparable assuming each of the hotel properties in the Company's hotel portfolio as of June 30, 2018 were owned as of the beginning of each of the periods presented.  Unless otherwise stated, all reported results compare the second quarter ended June 30, 2018 with the second quarter ended June 30, 2017 (see discussion below).  The reconciliation of non-GAAP financial measures is included in the financial tables accompanying this press release.

STRATEGIC OVERVIEW

    • Opportunistic focus on upper upscale, full-service hotels
    • Targets moderate debt levels of approximately 55 - 60% net debt/gross assets
    • Highly-aligned management team and advisory structure
    • Attractive dividend yield of approximately 6.1%
    • Targets cash and cash equivalents at a level of 25 - 35% of total equity market capitalization for the purposes of:
        • working capital needs at property and corporate levels
        • hedging against a downturn in the economy or hotel fundamentals
        • being prepared to pursue accretive investments or stock buybacks as those opportunities arise

FINANCIAL AND OPERATING HIGHLIGHTS

  • Net loss attributable to common stockholders was $29.0 million or $0.30 per diluted share for the quarter
  • Comparable RevPAR for all hotels increased 1.6% to $137.53 during the quarter
  • Comparable RevPAR for all hotels not under renovation increased 2.3% to $134.36 during the quarter
  • Adjusted EBITDAre was $120.7 million for the quarter
  • Adjusted funds from operations (AFFO) was $0.42 per diluted share for the quarter
  • The Company's common stock is currently trading at an approximate 6.1% dividend yield
  • During the quarter, the Company entered into a new Enhanced Return Funding Program agreement with Ashford Inc.
  • During the quarter, the Company completed the acquisition of the 252-room Hilton Alexandria Old Town for $111 million
  • During the quarter, the Company refinanced eight mortgage loans on 56 hotels for $2.3 billion
  • During the quarter, the Company completed the sale of the SpringHill Suites Centreville for $7.5 million
  • During the quarter, the Company completed the sale of the Residence Inn Tampa Downtown for $24 million
  • Capex invested during the quarter was $53.7 million

ENHANCED RETURN FUNDING PROGRAM & HILTON ALEXANDRIA ACQUISITION

On June 26, 2018, the Company announced that it had entered into an Enhanced Return Funding Program ("ERFP") with Ashford Inc. (NYSE:AINC).  Subject to the terms of the two-year programmatic agreement, Ashford Inc. has committed to effectively fund amounts equal to 10% of the purchase price of Ashford Trust hotel acquisitions, up to an amount of $50 million in aggregate funding.  The Program has the potential to be upsized to $100 million based upon mutual agreement.   The Program is structured to significantly improve the 5-year internal rate of return for new hotel acquisitions at Ashford Trust.

On June 29, 2018, the Company completed the acquisition of the 252-room Hilton Alexandria Old Town located in Alexandria, Virginia, for total consideration of $111 million. The Hotel, with a trailing 12-month RevPAR of $161, opened in 2000, has 12,967 square feet of meeting space, and is well located near office and retail demand generators.

The purchase of the Hilton Alexandria Old Town is expected to be the Company's first hotel acquisition to benefit from the ERFP. In connection with this acquisition and subject to the terms of the ERFP, Ashford Inc. has committed to provide Ashford Trust with approximately $11.1 million of cash via the future purchase of hotel furniture, fixtures, and equipment at Ashford Trust properties. Concurrent with the completion of the acquisition, the Company financed the hotel with a $73.5 million non-recourse mortgage loan. The interest-only loan has a term of five years and bears interest at a rate of LIBOR + 2.45%. The property will continue to be operated as a Hilton under a management agreement with Hilton.

CAPITAL STRUCTURE

At June 30, 2018, the Company had total mortgage debt of $4.0 billion with a blended average interest rate of 5.5%.

On April 9, 2018, the Company announced that it had refinanced a mortgage loan, secured by 22 hotels, with an existing outstanding balance totaling approximately $972 million. The previous mortgage loan that was refinanced was the Highland Pool loan with a final maturity date in April 2021. The new loan totals $985 million, has a two-year initial term and five one-year extension options, subject to the satisfaction of certain conditions. The loan is interest only and provides for a floating interest rate of LIBOR + 3.20%. This refinancing is expected to result in annual interest savings of approximately $11 million as compared to the previous loan terms.

On June 15, 2018, the Company announced that it had refinanced seven mortgage loans, secured by 34 hotels, with existing outstanding balances totaling approximately $1.07 billion. The previous mortgage loans that were refinanced were the MIP Portfolio loan with a final maturity date in February 2019, the Morgan Stanley Pool A loan with a final maturity date in August 2019, the Morgan Stanley Pool B loan with a final maturity date in August 2019, the Marriott Memphis loan with a final maturity date in April 2020, the Lakeway Resort loan with a final maturity date in May 2020, the W Atlanta Downtown loan with a final maturity date in July 2020, and the JP Morgan 17-Pack loan with a final maturity date in October 2022.  The new financing is comprised of six separate mortgage loans with an average size of approximately $211.7 million that together total approximately $1.27 billion and each has a two-year initial term with five one-year extension options, subject to the satisfaction of certain conditions.  The loans bear interest at a combined weighted average rate of LIBOR + 3.83%, which is 74 basis points lower than the previous mortgage loans. After the closing of this financing, the weighted average maturity of the Company's debt is 6.1 years. The next hard debt maturity for the Company is in July 2019.

Subsequent to the end of the quarter, the Company repurchased approximately $56 million of junior mezzanine debt on one of the loan pools.  The junior mezzanine debt is priced at LIBOR + 9.00%. 

During the quarter, the Company completed the sale of the 136-room SpringHill Suites Centreville in Centreville, Virginia for $7.5 million.

On May 14, 2018, the Company announced it had completed the sale of the 109-room Residence Inn Tampa Downtown in Tampa, Florida for $24 million ($220,000 per key). The sales price represented a trailing twelve-month cap rate of 7.6% on net operating income and an 11.8x Hotel EBITDA multiple as of March 31, 2018. 

PORTFOLIO REVPAR

As of June 30, 2018, the portfolio consisted of 118 properties.  During the second quarter of 2018, 105 of the Company's hotels were not under renovation. The Company believes reporting its operating metrics for its hotels on a comparable total basis (all 118 hotels) and comparable not under renovation basis (105 hotels) is a measure that reflects a meaningful and focused comparison of the operating results in its portfolio.  Details of each category are provided in the tables attached to this release.

  • Comparable RevPAR increased 1.6% to $137.53 for all hotels on a 2.7% increase in ADR and a 1.1% decrease in occupancy
  • Comparable RevPAR increased 2.3% to $134.36 for hotels not under renovation on a 2.3% increase in ADR and a 0.0% change in occupancy

HOTEL EBITDA MARGINS AND QUARTERLY SEASONALITY TRENDS

The Company believes year-over-year Comparable Hotel EBITDA and Comparable Hotel EBITDA Margin comparisons are more meaningful to gauge the performance of the Company's hotels than sequential quarter-over-quarter comparisons.  Given the substantial seasonality in the Company's portfolio and its active capital recycling, to help investors better understand this seasonality, the Company provides quarterly detail on its Comparable Hotel EBITDA and Comparable Hotel EBITDA Margin for the current and certain prior-year periods based upon the number of hotels in the Company's portfolio as of the end of the current period.  As the Company's portfolio mix changes from time to time so will the seasonality for Comparable Hotel EBITDA and Comparable Hotel EBITDA Margin.  The details of the quarterly calculations for the previous four quarters for the 118 hotels are provided in the table attached to this release.

COMMON STOCK DIVIDEND

On June 5, 2018, the Company announced that its Board of Directors had declared a quarterly cash dividend of $0.12 per diluted share for the Company's common stock for the second quarter ending June 30, 2018, payable on July 16, 2018, to shareholders of record as of June 29, 2018.

"We continue to see the operational and value-added benefits from our high quality, diverse portfolio," commented Douglas A. Kessler, Ashford Trust's President and Chief Executive Officer. "Year-to-date, we have been able to complete several capital markets transactions that strengthened our balance sheet, extended our loan maturity schedule and reduced loan spreads. As for our transactions, we are pleased with the sale of two lower RevPAR select-service hotels at a combined cap rate below where we are currently trading.  As for acquisitions, we are enthusiastic about the Hilton Alexandria Old Town, as it is not only an accretive addition to our portfolio, but it is also the first transaction expected to benefit from the new Enhanced Return Funding Program with Ashford Inc. Looking ahead, we are very excited about this ERFP program and expect this funding arrangement will be a clear competitive advantage as we continue to look for opportunities to accretively grow our platform and increase stockholder value.

INVESTOR CONFERENCE CALL AND SIMULCAST

Ashford Hospitality Trust, Inc. will conduct a conference call on Friday August 3, 2018, at 11:00 a.m. ET.  The number to call for this interactive teleconference is (323) 794-2423.  A replay of the conference call will be available through Friday, August 10, 2018, by dialing (719) 457-0820 and entering the confirmation number, 6148262.

The Company will also provide an online simulcast and rebroadcast of its second quarter 2018 earnings release conference call.  The live broadcast of Ashford Hospitality Trust's quarterly conference call will be available online at the Company's web site, www.ahtreit.com on Friday, August 3, 2018, beginning at 11:00 a.m. ET.  The online replay will follow shortly after the call and continue for approximately one year.

Substantially all of our non-current assets consist of real estate investments secured by real estate.  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 supplemental measures of performance, which are not measures of operating performance under GAAP, to assist in evaluating a real estate company's operations. These supplemental measures include FFO, AFFO, EBITDA, EBITDAre, Adjusted EBITDAre, and Hotel EBITDA.  FFO and EBITDAre are computed in accordance with our interpretation of standards established by NAREIT, which may not be comparable to how these measures reported by other REITs that do not define the term in accordance with the current NAREIT definitions or that interpret the NAREIT definitions differently than us.  None of FFO, AFFO, EBITDA, EBITDAre, Adjusted EBITDAre, or Hotel EBITDA represents cash generated from operating activities as determined by GAAP and should not be considered as an alternative to a) GAAP net income (loss) as an indication of our financial performance or b) GAAP cash flows from operating activities as a measure of our liquidity, nor are such measures indicative of funds available to satisfy our cash needs, including our ability to make cash distributions.  However, management believes FFO, AFFO, EBITDA, EBITDAre, Adjusted EBITDAre, and Hotel EBITDA to be meaningful measures of a REIT's performance and should be considered along with, but not as an alternative to, net income and cash flow as a measure of our operating performance.

*  *  *  *  *

Ashford Hospitality Trust is a real estate investment trust (REIT) focused on investing opportunistically in the hospitality industry in upper upscale, full-service hotels.

Ashford has created an Ashford App for the hospitality REIT investor community.  The Ashford App is available for free download at Apple's App Store and the Google Play Store by searching "Ashford."

Certain statements and assumptions in this press release contain or are based upon "forward-looking" information and are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.  Forward looking statements in this press release may include, among others, statements about the Company's strategy and future plans.  These forward-looking statements are subject to risks and uncertainties.  When we use the words "will likely result," "may," "anticipate," "estimate," "should," "expect," "believe," "intend," or similar expressions, we intend to identify forward-looking statements.  Such statements are subject to numerous assumptions and uncertainties, many of which are outside Ashford Trust's control.

These forward-looking statements are subject to known and unknown risks and uncertainties, which could cause actual results to differ materially from those anticipated, including, without limitation:  general volatility of the capital markets and the market price of our common stock; changes in our business or investment strategy; availability, terms and deployment of capital; availability of qualified personnel; changes in our industry and the market in which we operate, interest rates or the general economy; our ability to successfully complete and integrate acquisitions, and manage our planned growth, and the degree and nature of our competition.  These and other risk factors are more fully discussed in Ashford Trust's filings with the Securities and Exchange Commission.  EBITDA is defined as net income before interest, taxes, depreciation and amortization.  EBITDA yield is defined as trailing twelve month EBITDA divided by the purchase price.  A capitalization rate is determined by dividing the property's annual net operating income by the purchase price.  Net operating income is the property's funds from operations minus a capital expense reserve of either 4% or 5% of gross revenues.  Hotel EBITDA flow-through is the change in Hotel EBITDA divided by the change in total revenues.  Hotel EBITDA Margin is Hotel EBITDA divided by total revenues.  Funds from operations ("FFO"), as defined by the White Paper on FFO approved by the Board of Governors of the National Association of Real Estate Investment Trusts ("NAREIT") in April 2002, represents net income (loss) computed in accordance with generally accepted accounting principles ("GAAP"), excluding gains (or losses) from sales of properties and extraordinary items as defined by GAAP, plus depreciation and amortization of real estate assets, and net of adjustments for the portion of these items related to unconsolidated entities and joint ventures.  EBITDAre and Adjusted EBITDAre are non-GAAP financial measures. The Company computes EBITDAre in accordance with standards established by the National Association of Real Estate Investment Trusts, or NAREIT, which may not be comparable to EBITDAre  reported by other REITs that do not compute EBITDAre in accordance with the NAREIT definition, or that interpret the NAREIT definition differently than the Company does. The White Paper on EBITDAre approved by the Board of Governors of NAREIT in September 2017 defines EBITDAre as net income (loss) (computed in accordance with GAAP), plus interest expense, plus income tax expense, plus depreciation and amortization, plus (minus) losses and gains on the disposition of depreciated property, plus impairment write-downs of depreciated property and investments in unconsolidated joint ventures, plus adjustments to reflect the entity's share of EBITDAre of unconsolidated affiliates.

The forward-looking statements included in this press release are only made as of the date of this press release.  Investors should not place undue reliance on these forward-looking statements.  We are not obligated to publicly update or revise any forward-looking statements, whether as a result of new information, future events or circumstances, changes in expectations or otherwise.

 

ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except share amounts)

(unaudited)



June 30,
 2018


December 31,
2017

ASSETS




Investments in hotel properties, net

$

4,109,720



$

4,035,915


Cash and cash equivalents

417,359



354,805


Restricted cash

135,419



116,787


Marketable securities

24,072



26,926


Accounts receivable, net of allowance of $540 and $770, respectively

57,852



44,257


Inventories

4,277



4,244


Investment in Ashford Inc.

1,293



437


Investment in OpenKey

2,911



2,518


Deferred costs, net

2,746



2,777


Prepaid expenses

23,052



19,269


Derivative assets

3,209



2,010


Other assets

18,993



14,152


Intangible asset, net

9,884



9,943


Due from third-party hotel managers

20,860



17,387


Assets held for sale



18,423


Total assets

$

4,831,647



$

4,669,850






LIABILITIES AND EQUITY




Liabilities:




Indebtedness, net

$

3,948,020



$

3,696,300


Accounts payable and accrued expenses

141,986



132,401


Dividends and distributions payable

27,240



25,045


Due to Ashford Inc., net

17,748



15,146


Due to related party, net

388



1,067


Due to third-party hotel managers

2,454



2,431


Intangible liabilities, net

15,661



15,839


Other liabilities

19,708



18,376


Liabilities associated with assets held for sale



13,977


Total liabilities

4,173,205



3,920,582






Redeemable noncontrolling interests in operating partnership

146,249



116,122


Equity:




Preferred stock, $0.01 par value, 50,000,000 shares authorized :




Series D Cumulative Preferred Stock 2,389,393 shares issued and outstanding at June 30, 2018 and December 31, 2017

24



24


Series F Cumulative Preferred Stock 4,800,000 shares issued and outstanding at June 30, 2018 and December 31, 2017

48



48


Series G Cumulative Preferred Stock 6,200,000 shares issued and outstanding at June 30, 2018 and December 31, 2017

62



62


Series H Cumulative Preferred Stock 3,800,000 shares issued and outstanding at June 30, 2018 and December 31, 2017

38



38


Series I Cumulative Preferred Stock 5,400,000 shares issued and outstanding at June 30, 2018 and December 31, 2017

54



54


Common stock, $0.01 par value, 400,000,000 shares authorized, 98,612,117 and 97,409,113 shares issued and outstanding at
   June 30, 2018 and December 31, 2017, respectively

986



974


Additional paid-in capital

1,793,869



1,784,997


Accumulated deficit

(1,283,516)



(1,153,697)


Total shareholders' equity of the Company

511,565



632,500


Noncontrolling interests in consolidated entities

628



646


Total equity

512,193



633,146


Total liabilities and equity

$

4,831,647



$

4,669,850



 

 

ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

(unaudited)



Three Months Ended


Six Months Ended


June 30,


June 30,


2018


2017


2018


2017

REVENUE








Rooms

$

309,381



$

311,205



$

580,074



$

587,910


Food and beverage

60,429



63,842



115,473



126,692


Other

18,558



14,948



34,049



28,714


Total hotel revenue

388,368



389,995



729,596



743,316


Other

796



675



1,775



1,063


Total revenue

389,164



390,670



731,371



744,379


EXPENSES








Hotel operating expenses








Rooms

64,214



65,034



123,300



124,907


Food and beverage

40,156



42,276



78,621



84,446


Other expenses

116,254



113,824



222,637



225,557


Management fees

14,371



14,247



27,108



27,073


Total hotel operating expenses

234,995



235,381



451,666



461,983


Property taxes, insurance and other

20,230



18,766



38,589



37,099


Depreciation and amortization

64,566



60,547



127,613



125,245


Impairment charges

19





1,679




Transaction costs

9



8



11



11


Advisory services fee:








Base advisory fee

8,873



8,639



17,488



17,355


Reimbursable expenses

1,997



2,637



3,526



4,159


Non-cash stock/unit-based compensation

8,939



2,953



15,685



3,356


Incentive fee

3,270





3,457




Corporate, general and administrative:








Non-cash stock/unit-based compensation

536



565



536



565


Other general and administrative

2,695



2,689



4,824



7,859


Total operating expenses

346,129



332,185



665,074



657,632


OPERATING INCOME (LOSS)

43,035



58,485



66,297



86,747


Equity in earnings (loss) of unconsolidated entities

1,170



(2,138)



582



(2,901)


Interest income

883



546



1,629



754


Gain (loss) on sale of hotel properties

412



14,092



403



14,009


Other income (expense), net

206



(146)



282



(3,266)


Interest expense, net of premium amortization

(52,716)



(51,931)



(105,006)



(101,890)


Amortization of loan costs

(5,490)



(3,025)



(7,943)



(8,371)


Write-off of premiums, loan costs and exit fees

(5,694)



(1,575)



(7,744)



(1,629)


Unrealized gain (loss) on marketable securities

(268)



(531)



(826)



(3,877)


Unrealized gain (loss) on derivatives

(1,916)



(1,743)



(1,587)



(325)


INCOME (LOSS) BEFORE INCOME TAXES

(20,378)



12,034



(53,913)



(20,749)


Income tax benefit (expense)

(2,973)



(1,606)



(2,087)



(760)


NET INCOME (LOSS)

(23,351)



10,428



(56,000)



(21,509)


(Income) loss from consolidated entities attributable to noncontrolling interest

(20)



(13)



18



18


Net (income) loss attributable to redeemable noncontrolling interests in operating partnership

5,065



(231)



11,405



6,262


NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY

(18,306)



10,184



(44,577)



(15,229)


Preferred dividends

(10,644)



(10,956)



(21,288)



(21,912)


NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS

$

(28,950)



$

(772)



$

(65,865)



$

(37,141)










INCOME (LOSS) PER SHARE – BASIC AND DILUTED








Basic:








Net income (loss) attributable to common stockholders

$

(0.30)



$

(0.01)



$

(0.69)



$

(0.40)


Weighted average common shares outstanding – basic

96,889



95,320



96,137



95,086


Diluted:








Net income (loss) attributable to common stockholders

$

(0.30)



$

(0.01)



$

(0.69)



$

(0.40)


Weighted average common shares outstanding – diluted

96,889



95,320



96,137



95,086


Dividends declared per common share:

$

0.12



$

0.12



$

0.24



$

0.24



 

 

ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) TO EBITDA, EBITDAre AND ADJUSTED EBITDAre

(in thousands)

(unaudited)



Three Months Ended


Six Months Ended


June 30,


June 30,


2018


2017


2018


2017

Net income (loss)

$

(23,351)



$

10,428



$

(56,000)



$

(21,509)


Interest income

(883)



(546)



(1,629)



(754)


Interest expense and amortization of premiums and loan costs, net

58,206



54,956



112,949



110,261


Depreciation and amortization

64,566



60,547



127,613



125,245


Income tax expense (benefit)

2,973



1,606



2,087



760


Equity in (earnings) loss of unconsolidated entities

(1,170)



2,138



(582)



2,901


Company's portion of EBITDA of unconsolidated entities

3,429



596



2,305



88


EBITDA

103,770



129,725



186,743



216,992


Impairment charges on real estate

19





1,679




(Gain) loss on sale of hotel properties

(412)



(14,092)



(403)



(14,009)


EBITDAre

103,377



115,633



188,019



202,983


Amortization of unfavorable contract liabilities

(39)



(404)



(78)



(788)


Uninsured hurricane related costs

(17)





(228)




Write-off of premiums, loan costs and exit fees

5,694



1,575



7,744



1,629


Other (income) expense, net

(206)



146



(282)



3,266


Transaction, acquisition and management conversion costs

121



892



205



3,568


Legal judgment and related legal costs

161



263



927



4,064


Unrealized (gain) loss on marketable securities

268



531



826



3,877


Unrealized (gain) loss on derivatives

1,916



1,743



1,587



325


Dead deal costs

3





3



4


Software implementation costs



1,034





1,034


Non-cash stock/unit-based compensation

9,801



3,710



16,803



4,138


Company's portion of (gain) loss of investment in securities investment fund







(52)


Company's portion of adjustments to EBITDA of unconsolidated entities

(341)



505



2,191



2,389


Adjusted EBITDAre

$

120,738



$

125,628



$

217,717



$

226,437


 

 

ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) TO FUNDS FROM OPERATIONS ("FFO") AND ADJUSTED FFO

(in thousands, except per share amounts)

(unaudited)



Three Months Ended


Six Months Ended


June 30,


June 30,


2018


2017


2018


2017

Net income (loss)

$

(23,351)



$

10,428



$

(56,000)



$

(21,509)


(Income) loss from consolidated entities attributable to noncontrolling interest

(20)



(13)



18



18


Net (income) loss attributable to redeemable noncontrolling interests in operating partnership

5,065



(231)



11,405



6,262


Preferred dividends

(10,644)



(10,956)



(21,288)



(21,912)


Net income (loss) attributable to common stockholders

(28,950)



(772)



(65,865)



(37,141)


Depreciation and amortization on real estate

64,509



60,487



127,498



125,122


Gain (loss) on sale of hotel properties

(412)



(14,092)



(403)



(14,009)


Net income (loss) attributable to redeemable noncontrolling interests in operating partnership

(5,065)



231



(11,405)



(6,262)


Equity in (earnings) loss of unconsolidated entities

(1,170)



2,138



(582)



2,953


Impairment charges on real estate

19





1,679




Company's portion of FFO of unconsolidated entities

2,427



(2,139)



655



(2,973)


FFO available to common stockholders and OP unitholders

31,358



45,853



51,577



67,690


Write-off of premiums, loan costs and exit fees

5,694



1,575



7,744



1,629


Uninsured hurricane related costs

(17)





(228)




Other (income) expense, net

(206)



146



(282)



3,266


Transaction, acquisition and management conversion costs

121



892



205



3,568


Legal judgment and related legal costs

161



263



927



4,064


Unrealized (gain) loss on marketable securities

268



531



826



3,877


Unrealized (gain) loss on derivatives

1,916



1,743



1,587



325


Dead deal costs

3





3



4


Software implementation costs



1,034





1,034


Non-cash stock/unit-based compensation

9,801



3,710



16,803



4,138


Company's portion of (gain) loss of investment in securities investment fund







(52)


Company's portion of adjustments to FFO of unconsolidated entities

(341)



3,003



2,191



4,887


Adjusted FFO available to common stockholders and OP unitholders

$

48,758



$

58,750



$

81,353



$

94,430


Adjusted FFO per diluted share available to common stockholders and OP unitholders

$

0.42



$

0.52



$

0.71



$

0.84


Weighted average diluted shares

115,754



113,257



114,849



112,915



 

 

ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

SUMMARY OF INDEBTEDNESS

JUNE 30, 2018

(dollars in thousands)

(unaudited)


Indebtedness


Maturity


Interest Rate


Fixed-
Rate
Debt


Floating-
Rate
Debt


Total
Debt


Comparable
TTM
Hotel
EBITDA (5)


Comparable
TTM
EBITDA
Debt Yield

Morgan Stanley Ann Arbor - 1 hotel


July 2018


LIBOR + 4.15%


$



$

35,200


(1)

$

35,200



$

3,583



10.2

%

Morgan Stanley - 8 hotels


July 2018


LIBOR + 4.09%




144,000


(1)

144,000



11,636



8.1

%

NorthStar HGI Wisconsin Dells - 1 hotel


August 2018


LIBOR + 4.95%




12,000


(2)

12,000



1,047



8.7

%

BAML Le Pavillon - 1 hotel


June 2019


LIBOR + 5.10%




43,750


(3)

43,750



2,461



5.6

%

Omni American Bank Ashton - 1 hotel


July 2019


4.00%


5,283





5,283



1,134



21.5

%

Morgan Stanley Pool - 17 hotels


November 2019


LIBOR + 3.00%




427,000


(4)

427,000



50,821



11.9

%

JPMorgan Chase - 8 hotels


February 2020


LIBOR + 2.92%




395,000


(4)

395,000



46,674



11.8

%

BAML Highland Pool - 21 hotels


April 2020


LIBOR + 3.20%




962,575


(4)

962,575



105,370



10.9

%

BAML Indigo Atlanta - 1 hotel


May 2020


LIBOR + 2.90%




16,100


(2)

16,100



2,348



14.6

%

KEYS Pool A - 7 hotels


June 2020


LIBOR + 3.65%




180,720


(4)

180,720



21,658



12.0

%

KEYS Pool B - 7 hotels


June 2020


LIBOR + 3.39%




174,400


(4)

174,400



21,492



12.3

%

KEYS Pool C - 5 hotels


June 2020


LIBOR + 3.73%




221,040


(4)

221,040



25,906



11.7

%

KEYS Pool D - 5 hotels


June 2020


LIBOR + 4.02%




262,640


(4)

262,640



28,430



10.8

%

KEYS Pool E - 5 hotels


June 2020


LIBOR + 4.36%




216,320


(4)

216,320



24,023



11.1

%

KEYS Pool F - 5 hotels


June 2020


LIBOR + 3.68%




215,120


(4)

215,120



24,303



11.3

%

GACC Gateway - 1 hotel


November 2020


6.26%


94,326





94,326



14,560



15.4

%

Aareal Princeton/Nashville - 2 hotels


June 2022


LIBOR + 3.00%




174,211



174,211



27,181



15.6

%

Prudential Boston Back Bay - 1 hotel


November 2022


LIBOR + 2.00%




97,000



97,000



13,361



13.8

%

Deutsche Bank W Minneapolis - 1 hotel


May 2023


5.46%


53,319





53,319



6,481



12.2

%

Aareal Hilton Alexandria - 1 hotel


June 2023


LIBOR + 2.45%




73,450



73,450



9,119



12.4

%

GACC Manchester RI - 1 hotel


January 2024


5.49%


6,942





6,942



1,360



19.6

%

GACC Jacksonville RI - 1 hotel


January 2024


5.49%


10,131





10,131



739



7.3

%

Key Bank Manchester CY - 1 hotel


May 2024


4.99%


6,472





6,472



1,021



15.8

%

Morgan Stanley Pool C1 - 3 hotels


August 2024


5.20%


65,725





65,725



8,866



13.5

%

Morgan Stanley Pool C2 - 2 hotels


August 2024


4.85%


12,144





12,144



1,931



15.9

%

Morgan Stanley Pool C3 - 3 hotels


August 2024


4.90%


24,276





24,276



3,677



15.1

%

BAML Pool 5 - 2 hotels


February 2025


4.45%


20,022





20,022



2,590



12.9

%

BAML Pool 3 - 3 hotels


February 2025


4.45%


51,790





51,790



7,426



14.3

%

Unencumbered hotels












2,303



N/A


Total






$

350,430



$

3,650,526



$

4,000,956



$

471,501



11.8

%

Percentage






8.8

%


91.2

%


100.0

%





Weighted average interest rate






5.33

%


5.47

%


5.46

%






All indebtedness is non-recourse.



(1)

This mortgage loan has three one-year extension options, subject to satisfaction of certain conditions. The second one-year extension period began in July 2018.



(2)

This mortgage loan has two one-year extension options, subject to satisfaction of certain conditions.



(3)

This mortgage loan has three one-year extension options, subject to satisfaction of certain conditions. The second one-year extension period began in June 2018.



(4)

This mortgage loan has five one-year extension options, subject to satisfaction of certain conditions.



(5)

See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.

 

 

ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

INDEBTEDNESS BY MATURITY ASSUMING EXTENSION OPTIONS ARE EXERCISED

JUNE 30, 2018

(dollars in thousands)

(unaudited)




2018


2019


2020


2021


2022


Thereafter


Total

Omni American Bank Ashton - 1 hotel


$



$

5,168



$



$



$



$



$

5,168


BAML Le Pavillon - 1 hotel






43,750









43,750


Morgan Stanley - 8 hotels






144,000









144,000


Morgan Stanley Ann Arbor - 1 hotel






35,200









35,200


NorthStar HGI Wisconsin Dells - 1 hotel






12,000









12,000


GACC Gateway - 1 hotel






89,886









89,886


BAML Indigo Atlanta - 1 hotel










15,470





15,470


Aareal Princeton/Nashville - 2 hotels










168,211





168,211


Prudential Boston Back Bay - 1 hotel










97,000





97,000


Deutsche Bank W Minneapolis - 1 hotel












48,182



48,182


Aareal Hilton Alexandria - 1 hotel












73,450



73,450


GACC Jacksonville RI - 1 hotel












9,036



9,036


GACC Manchester RI - 1 hotel












6,191



6,191


Key Bank Manchester CY - 1 hotel












5,671



5,671


Morgan Stanley Pool C1 - 3 hotels












58,612



58,612


Morgan Stanley Pool C2 - 2 hotels












10,755



10,755


Morgan Stanley Pool C3 - 3 hotels












21,522



21,522


Morgan Stanley Pool - 17 hotels












427,000



427,000


JPMorgan Chase - 8 hotels












395,000



395,000


BAML Pool 3 - 3 hotels












44,413



44,413


BAML Pool 5 - 2 hotels












17,073



17,073


BAML Highland Pool - 21 hotels












962,575



962,575


KEYS Pool A - 7 hotels












180,720



180,720


KEYS Pool B - 7 hotels












174,400



174,400


KEYS Pool C - 5 hotels












221,040



221,040


KEYS Pool D - 5 hotels












262,640



262,640


KEYS Pool E - 5 hotels












216,320



216,320


KEYS Pool F - 5 hotels












215,120



215,120


Principal due in future periods


$



$

5,168



$

324,836



$



$

280,681



$

3,349,720



$

3,960,405


Scheduled amortization payments remaining


2,848



6,554



8,035



8,170



6,805



8,139



40,551


Total indebtedness


$

2,848



$

11,722



$

332,871



$

8,170



$

287,486



$

3,357,859



$

4,000,956


 

 

ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

KEY PERFORMANCE INDICATORS

(unaudited)


ALL HOTELS:




Three Months Ended June 30,



Actual


Non-
comparable
Adjustments


Comparable


Actual


Non-
comparable
Adjustments


Comparable


Actual


Comparable



2018


2018


2018


2017


2017


2017


% Variance


% Variance


Rooms revenue (in thousands)

$

308,199



$

3,722



$

311,921



$

309,651



$

(2,487)



$

307,164



(0.47)

%


1.55

%


RevPAR

$

136.73



$

266.63



$

137.53



$

133.24



$

(44.56)



$

135.42



2.62

%


1.56

%


Occupancy

80.77

%


101.98

%


80.90

%


81.47

%


(68.18)

%


81.79

%


(0.86)

%


(1.10)

%


ADR

$

169.29



$

261.44



$

170.00



$

163.55



$

(65.36)



$

165.56



3.51

%


2.68

%



ALL HOTELS:




Six Months Ended June 30,



Actual


Non-
comparable
Adjustments


Comparable


Actual


Non-
comparable
Adjustments


Comparable


Actual


Comparable



2018


2018


2018


2017


2017


2017


% Variance


% Variance


Rooms revenue (in thousands)

$

577,500



$

4,258



$

581,758



$

585,038



$

(7,224)



$

577,814



(1.29)

%


0.68

%


RevPAR

$

128.22



$

546.51



$

128.94



$

125.95



$

(54.14)



$

128.07



1.80

%


0.68

%


Occupancy

77.36

%


165.83

%


77.51

%


78.01

%


(64.65)

%


78.41

%


(0.83)

%


(1.14)

%


ADR

$

165.75



$

329.56



$

166.35



$

161.45



$

(83.74)



$

163.34



2.66

%


1.84

%



NOTES:



(1)

The above comparable information assumes the 118 hotel properties owned and included in the Company's operations at June 30, 2018, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period.



(2)

The above information does not reflect the operations of Orlando WorldQuest Resort.



ALL HOTELS
     NOT UNDER RENOVATION:



Three Months Ended June 30,



Actual


Non-
comparable
Adjustments


Comparable


Actual


Non-
comparable
Adjustments


Comparable


Actual


Comparable



2018


2018


2018


2017


2017


2017


% Variance


% Variance


Rooms revenue (in thousands)

$

250,505



$

3,722



$

254,227



$

251,039



$

(2,487)



$

248,552



(0.21)

%


2.28

%


RevPAR

$

133.38



$

266.63



$

134.36



$

128.84



$

(44.56)



$

131.33



3.52

%


2.31

%


Occupancy

81.21

%


101.98

%


81.36

%


80.98

%


(68.18)

%


81.36

%


0.28

%


%


ADR

$

164.24



$

261.44



$

165.14



$

159.10



$

(65.36)



$

161.42



3.23

%


2.31

%



ALL HOTELS
     NOT UNDER RENOVATION:



Six Months Ended June 30,



Actual


Non-
comparable
Adjustments


Comparable


Actual


Non-
comparable
Adjustments


Comparable


Actual


Comparable



2018


2018


2018


2017


2017


2017


% Variance


% Variance


Rooms revenue (in thousands)

$

469,162



$

4,258



$

473,420



$

471,718



$

(7,224)



$

464,494



(0.54)

%


1.92

%


RevPAR

$

124.91



$

546.51



$

125.78



$

121.02



$

(54.14)



$

123.39



3.21

%


1.94

%


Occupancy

77.84

%


165.83

%


78.02

%


77.32

%


(64.65)

%


77.77

%


0.67

%


0.32

%


ADR

$

160.46



$

329.56



$

161.21



$

156.51



$

(83.74)



$

158.66



2.52

%


1.61

%


NOTES:



(1)

The above comparable information assumes the 105 hotel properties owned and included in the Company's operations at June 30, 2018, and not under renovation during the three months ended June 30, 2018, were owned as of the beginning of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period.



(2)

The above information does not reflect the operations of Orlando WorldQuest Resort.



(3)

Excluded Hotels Under Renovation:


Courtyard Gaithersburg, Embassy Suites Philadelphia, Embassy Suites Santa Clara Silicon Valley, Hampton Inn Suites Phoenix Airport, Hilton St. Petersburg Bayfront, Hilton Tampa Westshore, Hotel Indigo Atlanta Midtown, Marriott Crystal Gateway, Renaissance Nashville, Residence Inn Jacksonville, Residence Inn Orlando Sea World, Ritz Carlton Atlanta, Westin Princeton


 

 

ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

HOTEL EBITDA

(dollars in thousands)

(unaudited)


ALL HOTELS:

Three Months Ended


Six Months Ended


June 30,


June 30,


2018


2017


% Variance


2018


2017


% Variance

Total hotel revenue

$

386,834



$

388,047



(0.31)

%


$

726,298



$

739,645



(1.80)

%

Non-comparable adjustments

5,301



(2,152)





7,054



(7,907)




Comparable total hotel revenue

$

392,135



$

385,895



1.62

%


$

733,352



$

731,738



0.22

%













Hotel EBITDA

$

136,792



$

138,477



(1.22)

%


$

245,406



$

251,950



(2.60)

%

Non-comparable adjustments

2,795



973





3,765



859




Comparable hotel EBITDA

$

139,587



$

139,450



0.10

%


$

249,171



$

252,809



(1.44)

%

Hotel EBITDA margin

35.36

%


35.69

%


(0.33)

%


33.79

%


34.06

%


(0.27)

%

Comparable hotel EBITDA margin

35.60

%


36.14

%


(0.54)

%


33.98

%


34.55

%


(0.57)

%













Hotel EBITDA adjustments attributable to consolidated noncontrolling interests

$

108



$

104



3.56

%


$

157



$

168



(6.53)

%

Hotel EBITDA attributable to the Company and OP unitholders

$

136,684



$

138,373



(1.22)

%


$

245,249



$

251,783



(2.59)

%

Comparable hotel EBITDA attributable to the Company and OP unitholders

$

139,479



$

139,346



0.10

%


$

249,014



$

252,641



(1.44)

%


NOTES:


(1) The above comparable information assumes the 118 hotel properties owned and included in the Company's operations at June 30, 2018, were owned as of the beginning of each of the
      periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the
      period.


(2) The above information does not reflect the operations of Orlando WorldQuest Resort.


(3) See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.



ALL HOTELS
     NOT UNDER RENOVATION:

Three Months Ended


Six Months Ended

June 30,


June 30,


2018


2017


% Variance


2018


2017


% Variance

Total hotel revenue

$

310,080



$

308,457



0.53

%


$

582,526



$

585,049



(0.43)

%

Non-comparable adjustments

5,301



(2,152)





7,054



(7,907)




Comparable total hotel revenue

$

315,381



$

306,305



2.96

%


$

589,580



$

577,142



2.15

%













Hotel EBITDA

$

112,442



$

111,967



0.42

%


$

200,760



$

200,369



0.20

%

Non-comparable adjustments

2,795



907





3,765



798




Comparable hotel EBITDA

$

115,238



$

112,874



2.09

%


$

204,526



$

201,168



1.67

%

Hotel EBITDA margin

36.26

%


36.30

%


(0.04)

%


34.46

%


34.25

%


0.21

%

Comparable hotel EBITDA margin

36.54

%


36.85

%


(0.31)

%


34.69

%


34.86

%


(0.17)

%













Hotel EBITDA adjustments attributable to consolidated noncontrolling interests

$

108



$

104



3.56

%


$

157



$

168



(6.53)

%

Hotel EBITDA attributable to the Company and OP unitholders

$

112,334



$

111,862



0.42

%


$

200,603



$

200,201



0.20

%

Comparable hotel EBITDA attributable to the Company and OP unitholders

$

115,130



$

112,770



2.09

%


$

204,369



$

201,000



1.68

%


NOTES:


(1) The above comparable information assumes the 105 hotel properties owned and included in the Company's operations at June 30, 2018, and not under renovation during the three months
      ended June 30, 2018, were owned as of the beginning of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the
      period offset by results from hotel properties sold during the period.


(2) The above information does not reflect the operations of Orlando WorldQuest Resort.


(3) See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.


(4) Excluded Hotels Under Renovation:

      Courtyard Gaithersburg, Embassy Suites Philadelphia, Embassy Suites Santa Clara Silicon Valley, Hampton Inn Suites Phoenix Airport, Hilton St. Petersburg Bayfront, Hilton Tampa

      Westshore, Hotel Indigo Atlanta Midtown, Marriott Crystal Gateway, Renaissance Nashville, Residence Inn Jacksonville, Residence Inn Orlando Sea World, Ritz Carlton Atlanta, Westin
      Princeton

 

 

ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

HOTEL REVENUE & EBITDA FOR TRAILING TWELVE MONTHS

(dollars in thousands)

(unaudited)



Actual


Non-
comparable
Adjustments


Comparable


Actual


Non-
comparable
Adjustments


Comparable


Actual


Non-
comparable
Adjustments


Comparable


Actual


Non-
comparable
Adjustments


Comparable


2018


2018


2018


2018


2018


2018


2017


2017


2017


2017


2017


2017


2nd Quarter


2nd Quarter


2nd Quarter


1st Quarter


1st Quarter


1st Quarter


4th Quarter


4th Quarter


4th Quarter


3rd Quarter


3rd Quarter


3rd Quarter

Total hotel revenue

$

386,834



$

5,301



$

392,135



$

339,465



$

1,752



$

341,217



$

339,160



$

2,271



$

341,431



$

350,958



$

2,036



$

352,994


Hotel EBITDA

$

136,792



$

2,795



$

139,587



$

108,614



$

970



$

109,584



$

106,630



$

494



$

107,124



$

113,302



$

1,904



$

115,206


Hotel EBITDA margin

35.36

%




35.60

%


32.00

%




32.12

%


31.44

%




31.38

%


32.28

%




32.64

%

























EBITDA % of total TTM

29.4

%




29.6

%


23.3

%




23.2

%


22.9

%




22.7

%


24.4

%




24.5

%

























JV interests in EBITDA

$

108



$



$

108



$

49



$



$

49



$

85



$



$

85



$

116



$



$

116



























Actual


Non-
comparable
Adjustments


Comparable




















2018


2018


2018




















TTM


TTM


TTM



















Total hotel revenue

$

1,416,417



$

11,360



$

1,427,777




















Hotel EBITDA

$

465,338



$

6,163



$

471,501




















Hotel EBITDA margin

32.85

%




33.02

%











































EBITDA % of total TTM

100.0

%




100.0

%











































JV interests in EBITDA

$

358



$



$

358






















NOTES:



(1)

The above comparable information assumes the 118 hotel properties owned and included in the Company's operations at June 30, 2018, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period.



(2)

The above information does not reflect the operations of Orlando WorldQuest Resort.



(3)

See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.

 

 

ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

HOTEL REVPAR BY MARKET

(unaudited)







Three Months Ended June 30,


Number of
Hotels


Number of
Rooms


Actual


Non-comparable
Adjustments


Comparable


Actual


Non-comparable
Adjustments


Comparable


Actual


Comparable




2018


2018


2018


2017


2017


2017


% Variance


% Variance

Atlanta, GA Area

9



1,425



$

131.32



$



$

131.32



$

119.59



$

(88.28)



$

130.23



9.8

%


0.8

%

Boston, MA Area

3



915



211.45





211.45



220.29





220.29



(4.0)

%


(4.0)

%

Dallas / Ft. Worth, TX Area

7



1,518



119.69





119.69



113.59





113.59



5.4

%


5.4

%

Houston, TX Area

3



692



115.12





115.12



111.54





111.54



3.2

%


3.2

%

Los Angeles, CA Metro Area

6



1,619



135.72





135.72



133.54





133.54



1.6

%


1.6

%

Miami, FL Metro Area

3



587



130.07





130.07



121.75





121.75



6.8

%


6.8

%

Minneapolis - St. Paul, MN-WI Area

4



809



128.42





128.42



131.08





131.08



(2.0)

%


(2.0)

%

Nashville, TN Area

1



673



233.80





233.80



229.74





229.74



1.8

%


1.8

%

New York / New Jersey Metro Area

6



1,741



130.73





130.73



126.10





126.10



3.7

%


3.7

%

Orlando, FL Area

3



734



107.49





107.49



115.42





115.42



(6.9)

%


(6.9)

%

Philadelphia, PA Area

3



648



115.02





115.02



115.27





115.27



(0.2)

%


(0.2)

%

San Diego, CA Area

2



410



129.27





129.27



128.79





128.79



0.4

%


0.4

%

San Francisco - Oakland, CA Metro Area

6



1,369



171.79





171.79



161.48





161.48



6.4

%


6.4

%

Tampa, FL Area

2



571



108.22



(139.64)



105.65



110.87



(118.49)



109.41



(2.4)

%


(3.4)

%

Washington D.C. - MD - VA Area

9



2,424



175.53



236.99



180.62



169.43



335.93



177.41



3.6

%


1.8

%

Other Areas

51



8,795



120.77





120.77



118.28



(78.20)



118.90



2.1

%


1.6

%

Total Portfolio

118



24,930



$

136.73



$

266.63



$

137.53



$

133.24



$

(44.56)



$

135.42



2.6

%


1.6

%


NOTES:


(1)

The above comparable information assumes the 118 hotel properties owned and included in the Company's operations at June 30, 2018, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period.



(2)

The above information does not reflect the operations of Orlando WorldQuest Resort.



(3)

See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.

 

 

ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

HOTEL EBITDA BY MARKET

(in thousands)

(unaudited)







Three Months Ended June 30,


Number of
Hotels


Number of
Rooms


Actual


Non-
comparable
Adjustments


Comparable


% of Total


Actual


Non-
comparable
Adjustments


Comparable


% of Total


Actual


Comparable




2018


2018


2018



2017


2017


2017



% Variance


% Variance

Atlanta, GA Area

9



1,425



$

6,073



$

(26)



$

6,047



4.3

%


$

7,733



$

(1,155)



$

6,578



4.8

%


(21.5)

%


(8.1)

%

Boston, MA Area

3



915



8,478





8,478



6.1

%


9,750



5



9,755



7.0

%


(13.0)

%


(13.1)

%

Dallas / Ft. Worth, TX Area

7



1,518



7,327





7,327



5.2

%


6,776



30



6,806



4.9

%


8.1

%


7.7

%

Houston, TX Area

3



692



3,114