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ASHFORD HOSPITALITY TRUST ANNOUNCES PRELIMINARY FOURTH QUARTER AND YEAR END RESULTS FOR 2023

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Ashford Hospitality Trust, Inc. (AHT) reported a preliminary net loss for the fourth quarter and full year ended December 31, 2023, with an increase in Comparable RevPAR of 1.5%. Adjusted EBITDAre and Adjusted FFO estimates were also provided. The Company uses non-GAAP measures to enhance operational result understanding. Final results for the fourth quarter will be released on February 28, 2024.
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The reported preliminary financial results from Ashford Hospitality Trust, Inc. indicate a net loss for both the fourth quarter and the full year of 2023. The range of net loss attributable to common stockholders suggests a significant financial setback for the company. However, the Adjusted EBITDAre shows a more positive outlook, with a substantial increase over the year, which could be a sign of underlying operational strength despite the net losses.

From a financial analysis perspective, the Adjusted Funds From Operations (AFFO) available to common stockholders and OP unitholders turning positive for the full year, after a negative fourth quarter, is noteworthy. AFFO is a key metric for real estate investment trusts (REITs) as it provides a clearer picture of the trust's operational performance by excluding gains or losses on sales of properties and adding back depreciation. This positive AFFO could signal an improved cash flow situation, which is critical for the REIT's ability to maintain or increase dividend payments – a primary concern for investors in this sector.

Looking at the broader hotel and hospitality industry, the slight increase in January Comparable RevPAR (Revenue Per Available Room) of 1.5% over the prior year is a modest indicator of recovery. RevPAR is a crucial metric in the hospitality industry as it measures a hotel's ability to fill its available rooms at an average rate. An increase in RevPAR typically suggests either improved occupancy rates, higher room rates, or a combination of both. It's an important signal for market analysts as it can reflect the health of the travel and hospitality sector, which has been significantly impacted by economic cycles and consumer discretionary spending.

Given Ashford Hospitality Trust's focus on upper upscale, full-service hotels, these preliminary results may reflect broader trends in the luxury travel segment. The segment's performance can be influenced by factors such as corporate travel budgets, tourism rates and economic conditions. Understanding these trends is critical for stakeholders and potential investors to gauge the company's potential for rebound and growth within the context of the industry's recovery trajectory.

It is important to consider the legal and regulatory context in which these financial figures are being reported. The company emphasizes that the results are preliminary and subject to change upon finalization of their financial statements. This caution is in line with regulatory requirements for accurate and timely disclosure of financial information. Investors should be aware that these numbers could be adjusted, which may impact their investment decisions.

Additionally, the company's reliance on non-GAAP financial measures, such as Adjusted EBITDAre and Adjusted FFO, while common in the industry, requires careful scrutiny. The reconciliation of these non-GAAP measures to GAAP metrics is a regulatory requirement to ensure transparency and comparability across companies. Stakeholders should review these reconciliations to understand the adjustments made and the reasons behind them, as they provide additional context to the company's operational and financial performance.

January Comparable RevPAR Increased 1.5% Over the Prior Year 

DALLAS, Feb. 15, 2024 /PRNewswire/ -- Ashford Hospitality Trust, Inc. (NYSE: AHT) ("Ashford Trust" or the "Company") today announced its preliminary expectations for net loss attributable to common stockholders, Adjusted EBITDAre, and Adjusted FFO for the fourth quarter and full year ended December 31, 2023. 

The Company reported today a preliminary estimated range of net loss attributable to common stockholders of approximately $(32.3) million to $(30.3) million or $(0.93) to $(0.87) per share, a preliminary estimated range of Adjusted EBITDAre of $61.6 million to $63.6 million, and a preliminary estimated range of Adjusted FFO available to common stockholders and OP unitholders of $(14.2) million to $(12.2) million for the fourth quarter ended December 31, 2023.

Additionally, for the year ended December 31, 2023, the Company reported a preliminary estimated range of net loss attributable to common stockholders of approximately $(194.7) million to $(192.7) million or $(5.64) to $(5.58) per share, a preliminary estimated range of Adjusted EBITDAre of $323.5 million to $325.5 million, and a preliminary estimated range of Adjusted FFO available to common stockholders and OP unitholders of $25.4 million to $27.4 million. Final results for the fourth quarter ended December 31, 2023 will be released on February 28, 2024, as previously announced.

We use certain non-GAAP measures, in addition to the required GAAP presentations, as we believe these measures improve the understanding of our operational results and make comparisons of operating results among peer real estate investment trusts more meaningful. Non-GAAP financial measures used in this press release, which should not be relied upon as a substitute for GAAP measures, are FFO, AFFO, EBITDA, EBITDAre and Adjusted EBITDAre. Please refer to our most recently filed Annual Report on Form 10-K for a more detailed description of how these non-GAAP measures are calculated. The reconciliations of non-GAAP measures to the closest GAAP measures are provided below and provide further details of our results for the periods being reported.

The following tables are reconciliations of the Company's preliminary estimated GAAP net income (loss) to the Company's preliminary estimated EBITDA, EBITDAre, Adjusted EBITDAre, FFO and Adjusted FFO:

 

ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

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

(in millions)

(unaudited)

 


Three Months Ended
December 31, 2023


Year Ended
December 31, 2023


Low End


High End


Low End


High End

Net income (loss)

$     (30.8)


$     (28.8)


$   (181.7)


$   (179.7)

Interest expense and amortization of discounts and loan costs, net

95.7


95.7


366.1


366.1

Depreciation and amortization

46.8


46.8


187.8


187.8

Income tax expense (benefit)

(1.5)


(1.5)


0.9


0.9

Equity in (earnings) loss of unconsolidated entities

0.4


0.4


1.1


1.1

Company's portion of EBITDA of unconsolidated entities

(0.1)


(0.1)


0.2


0.2

EBITDA

110.5


112.5


374.4


376.4

(Gain) loss on disposition of assets and hotel properties

(4.0)


(4.0)


(11.5)


(11.5)

EBITDAre

106.5


108.5


362.9


364.9

Amortization of unfavorable contract liabilities




Transaction and conversion costs

1.5


1.5


3.9


3.9

Write-off of premiums, loan costs and exit fees

0.8


0.8


3.5


3.5

Realized and unrealized (gain) loss on derivatives

6.7


6.7


2.2


2.2

Stock/unit-based compensation

(0.3)


(0.3)


4.0


4.0

Legal, advisory and settlement costs

0.3


0.3


1.2


1.2

Other (income) expense, net



(0.3)


(0.3)

(Gain) loss on insurance settlements

(0.5)


(0.5)


(0.5)


(0.5)

(Gain) loss on extinguishment of debt

(53.4)


(53.4)


(53.4)


(53.4)

Company's portion of adjustments to EBITDAre of unconsolidated entities




Adjusted EBITDAre

$       61.6


$       63.6


$     323.5


$     325.5

 

ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) TO FFO AND ADJUSTED FFO

(in millions)

(unaudited)

 


Three Months Ended
December 31, 2023


Year Ended
December 31, 2023


Low End


High End


Low End


High End

Net income (loss)

$       (30.8)


$       (28.8)


$    (181.7)


$    (179.7)

(Income) loss attributable to noncontrolling interest in consolidated entities




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

0.4


0.4


2.2


2.2

Preferred dividends

(4.6)


(4.6)


(15.9)


(15.9)

Deemed dividends on redeemable preferred stock

(0.7)


(0.7)


(2.7)


(2.7)

Gain (loss) on extinguishment of preferred stock

3.4


3.4


3.4


3.4

Net income (loss) attributable to common stockholders

(32.3)


(30.3)


(194.7)


(192.7)

Depreciation and amortization on real estate

46.8


46.8


187.8


187.8

(Gain) loss on disposition of assets and hotel properties

(4.0)


(4.0)


(11.5)


(11.5)

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

(0.4)


(0.4)


(2.2)


(2.2)

Equity in (earnings) loss of unconsolidated entities

0.4


0.4


1.1


1.1

Company's portion of FFO of unconsolidated entities

(0.3)


(0.3)


(0.7)


(0.7)

FFO available to common stockholders and OP unitholders

10.2


12.2


(20.2)


(18.2)

Deemed dividends on redeemable preferred stock

0.7


0.7


2.7


2.7

(Gain) loss on extinguishment of preferred stock

(3.4)


(3.4)


(3.4)


(3.4)

Transaction and conversion costs

1.5


1.5


3.9


3.9

Write-off of premiums, loan costs and exit fees

0.8


0.8


3.5


3.5

Unrealized (gain) loss on derivatives

16.8


16.8


44.0


44.0

Stock/unit-based compensation

(0.3)


(0.3)


4.0


4.0

Legal, advisory and settlement costs

0.3


0.3


1.2


1.2

Other (income) expense, net



(0.3)


(0.3)

Amortization of credit facility exit fee

4.8


4.8


18.6


18.6

Amortization of loan costs

3.1


3.1


12.7


12.7

Advisory services incentive fee




(Gain) loss on insurance settlements

(0.5)


(0.5)


(0.5)


(0.5)

(Gain) loss on extinguishment of debt

(53.4)


(53.4)


(53.4)


(53.4)

Default interest and late fess

5.2


5.2


12.6


12.6

Company's portion of adjustments to FFO of unconsolidated entities




Adjusted FFO available to common stockholders and OP unitholders

$       (14.2)


$       (12.2)


$        25.4


$        27.4

Weighted average diluted shares

37.0


37.0


36.7


36.7

 

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

The preliminary estimated results for the fourth quarter ended December 31, 2023 included in this release, which are the responsibility of management, were prepared by the Company's management in connection with the preparation of the Company's financial statements and are based upon preliminary hotel operating results, preliminary corporate level expenses, and a number of subjective judgements and assumptions. Additional items that may require adjustments to the Company's preliminary estimated financial information may be identified and could result in material changes to the Company's preliminary estimated results. The Company has provided ranges, rather than specific amounts, for the preliminary estimated results described above, primarily because the Company's closing procedures for the fourth quarter ended December 31, 2023 are not yet complete and, as a result, the Company's final results upon completion of the closing procedures may vary from the preliminary estimates set forth above. The Company's independent registered public accounting firm, BDO USA, LLP, has not audited, reviewed, compiled or performed any procedures with respect to the preliminary estimated financial information, nor have they expressed any opinion or any other form of assurance on such information or its achievability, and assume no responsibility for, and disclaim any association with, such preliminary estimated financial information. Further, these preliminary estimated results are not a comprehensive statement or estimate of the Company's financial condition or operating results for the fourth quarter ended December 31, 2023. These preliminary estimated results should not be viewed as a substitute for complete quarterly financial statements prepared in accordance with generally accepted accounting principles ("GAAP") or as a measure of the Company's performance. In addition, the preliminary estimated financial information is not necessarily indicative of the results to be achieved for any future period. Accordingly, investors are cautioned not to place undue reliance on this preliminary estimated financial information. See the information below under the heading "Forward-Looking Statements" and "Risk Factors" and "Management's Discussion of Financial Condition and Results of Operations" in the Company's Annual Report on Form 10-K for the year ended December 31, 2022.

Forward-Looking Statements

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 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: our ability to repay, refinance, or restructure our debt and the debt of certain of our subsidiaries; anticipated or expected purchases or sales of assets; our projected operating results; completion of any pending transactions; our understanding of our competition; market trends; projected capital expenditures; the impact of technology on our operations and business; general volatility of the capital markets and the market price of our common stock and preferred stock; availability, terms and deployment of capital; availability of qualified personnel; changes in our industry and the markets in which we operate, interest rates or the general economy; 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.

The forward-looking statements included in this press release are only made as of the date of this press release. Such forward-looking statements are based on our beliefs, assumptions, and expectations of our future performance taking into account all information currently known to us. These beliefs, assumptions, and expectations can change as a result of many potential events or factors, not all of which are known to us. If a change occurs, our business, financial condition, liquidity, results of operations, plans, and other objectives may vary materially from those expressed in our forward-looking statements. You should carefully consider these risks when you make an investment decision concerning our securities. Investors should not place undue reliance on these forward-looking statements. The Company can give no assurance that these forward-looking statements will be attained or that any deviation will not occur. 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, except to the extent required by law.

Cision View original content:https://www.prnewswire.com/news-releases/ashford-hospitality-trust-announces-preliminary-fourth-quarter-and-year-end-results-for-2023-302063009.html

SOURCE Ashford Hospitality Trust, Inc.

FAQ

What were Ashford Hospitality Trust's (AHT) preliminary net loss estimates for the fourth quarter and full year ended December 31, 2023?

Ashford Hospitality Trust reported a preliminary estimated range of net loss attributable to common stockholders of approximately $(32.3) million to $(30.3) million or $(0.93) to $(0.87) per share for the fourth quarter and $(194.7) million to $(192.7) million or $(5.64) to $(5.58) per share for the full year.

What was the range for Adjusted EBITDAre for Ashford Hospitality Trust (AHT) for the fourth quarter and full year ended December 31, 2023?

The preliminary estimated range of Adjusted EBITDAre was $61.6 million to $63.6 million for the fourth quarter and $323.5 million to $325.5 million for the full year.

When will the final results for the fourth quarter ended December 31, 2023 be released?

The final results for the fourth quarter ended December 31, 2023 will be released on February 28, 2024, as previously announced by Ashford Hospitality Trust.

What non-GAAP financial measures does Ashford Hospitality Trust (AHT) use?

Ashford Hospitality Trust uses non-GAAP financial measures such as FFO, AFFO, EBITDA, EBITDAre, and Adjusted EBITDAre to improve operational result understanding and comparability.

What is the focus of Ashford Hospitality Trust (AHT) as a real estate investment trust (REIT)?

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

Ashford Hospitality Trust, Inc.

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