ASHFORD HOSPITALITY TRUST ANNOUNCES PRELIMINARY SECOND QUARTER 2024 RESULTS

Rhea-AI Summary

Ashford Hospitality Trust (NYSE: AHT) has announced its preliminary results for Q2 2024. The company reported an occupancy rate of approximately 75%, with an average daily rate (ADR) of $200, resulting in a Revenue Per Available Room (RevPAR) of $150. This marks a 1.4% increase in comparable RevPAR compared to Q2 2023. April 2024 saw a 3.0% increase in comparable RevPAR year-over-year, May 2024 had a 1.4% rise, while June 2024 experienced a slight 0.1% dip. Additionally, Ashford Trust has raised $139 million through the issuance of 5,206,397 shares of its Series J and 357,933 shares of its Series K non-traded preferred stock.

Positive

• Occupancy rate of approximately 75%
• Average Daily Rate (ADR) of $200
• RevPAR of $150, showing a 1.4% increase compared to Q2 2023
• 3.0% increase in comparable RevPAR in April 2024 year-over-year
• Raised $139 million through non-traded preferred equity issuance

Negative

• June 2024 RevPAR decreased by 0.1% compared to June 2023

Insights

Financial Analyst

The occupancy rate of 75% and an average daily rate (ADR) of $200 are notable metrics for Ashford Hospitality Trust in Q2 2024. These figures lead to a Revenue Per Available Room (RevPAR) of $150, showing a modest increase compared to the same period last year. While the 1.4% year-over-year increase in RevPAR is positive, it is relatively small, indicating sluggish growth. Additionally, the monthly breakdown shows variability, with a noteworthy 0.1% decrease in June 2024 compared to June 2023. This variability suggests potential seasonal trends or other external factors impacting monthly performance. Overall, while there's a positive trend, the growth rate is slow, which might be a concern for investors seeking more dynamic gains.

The company's non-traded preferred equity offering has raised a substantial $139 million. This capital inflow indicates strong investor interest and provides the company with additional liquidity to potentially expand or refurbish properties. However, the reliance on non-traded preferred stock may signal a need for more traditional equity or debt financing avenues. Preferred equity can be attractive to investors due to its fixed dividend, but it also represents an obligation for the company, which could impact future cash flows.

Market Research Analyst

The revPAR metric is critical within the hotel industry, as it combines both occupancy and ADR to provide a holistic view of performance. The slight year-over-year increase of 1.4% indicates that Ashford Trust is managing to maintain its revenue streams despite potential market challenges. However, the month-to-month fluctuations, particularly the 0.1% decline in June, could indicate market saturation or increased competition.

Taking a closer look at the preferred equity offering, raising approximately $139 million in gross proceeds, this points towards a strategic move to bolster financial stability and fund future projects. It's essential to note that non-traded preferred equity often appeals to investors looking for higher yields and less liquidity compared to common equity. This move likely reflects confidence in the company's long-term strategy and a commitment to providing consistent returns to its investors. However, retail investors should understand the implications of preferred equity on their own positions, particularly in terms of dividend obligations and potential dilution.

DALLAS, July 8, 2024 /PRNewswire/ -- Ashford Hospitality Trust, Inc. (NYSE: AHT) ("Ashford Trust" or the "Company") reported today that the Company expects to report Occupancy of approximately 75% for the second quarter of 2024 with Average Daily Rate of approximately $200 resulting in RevPAR of approximately $150. This Comparable RevPAR reflects an approximate increase of 1.4% compared to the second quarter of 2023. 

Additionally, for the month of April 2024, Comparable RevPAR increased approximately 3.0% versus April 2023. For the month of May 2024, Comparable RevPAR increased approximately 1.4% versus May 2023. For the month of June 2024, Comparable RevPAR decreased approximately 0.1% versus June 2023.  

Further, as previously announced, the Company commenced the offering of its Non-Traded Preferred Equity during the third quarter of 2022. Through June 30, 2024, the Company has 5,206,397 shares of its Series J non-traded preferred stock outstanding and 357,933 shares of its Series K non-traded preferred stock outstanding raising approximately $139 million of gross proceeds.

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

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.

View original content:https://www.prnewswire.com/news-releases/ashford-hospitality-trust-announces-preliminary-second-quarter-2024-results-302190725.html

SOURCE Ashford Hospitality Trust, Inc.

FAQ

What is the occupancy rate reported by Ashford Hospitality Trust for Q2 2024?

Ashford Hospitality Trust reported an occupancy rate of approximately 75% for the second quarter of 2024.

What was the Average Daily Rate (ADR) for Ashford Hospitality Trust in Q2 2024?

The Average Daily Rate (ADR) reported by Ashford Hospitality Trust for Q2 2024 was $200.

How much did Ashford Hospitality Trust's RevPAR increase in Q2 2024 compared to Q2 2023?

Ashford Hospitality Trust's RevPAR increased by approximately 1.4% in Q2 2024 compared to Q2 2023.

What was the RevPAR for Ashford Hospitality Trust in Q2 2024?

The RevPAR for Ashford Hospitality Trust in Q2 2024 was approximately $150.

How much did Ashford Hospitality Trust raise through its non-traded preferred equity offering?

Ashford Hospitality Trust raised approximately $139 million through its non-traded preferred equity offering.

What was the change in comparable RevPAR for Ashford Hospitality Trust in April 2024?

Ashford Hospitality Trust reported a 3.0% increase in comparable RevPAR for April 2024 compared to April 2023.

How did Ashford Hospitality Trust's comparable RevPAR perform in June 2024?

Ashford Hospitality Trust's comparable RevPAR decreased by approximately 0.1% in June 2024 compared to June 2023.