ASHFORD HOSPITALITY TRUST ANNOUNCES PRELIMINARY THIRD QUARTER 2024 RESULTS

Rhea-AI Summary

Ashford Hospitality Trust (NYSE: AHT) has released its preliminary third quarter 2024 results. The company expects to report an Occupancy rate of approximately 71%, with an Average Daily Rate of approximately $187, resulting in a RevPAR of approximately $132. This represents a 1.6% decrease in Comparable RevPAR compared to Q3 2023.

Monthly RevPAR changes were reported as follows:

• July 2024: +0.3% vs July 2023
• August 2024: -2.1% vs August 2023
• September 2024: -3.0% vs September 2023

Additionally, AHT's Non-Traded Preferred Equity offering, initiated in Q3 2022, has raised approximately $167 million in gross proceeds as of September 30, 2024. The company has 6,158,835 shares of Series J and 526,708 shares of Series K non-traded preferred stock outstanding.

Positive

• Raised approximately $167 million in gross proceeds from Non-Traded Preferred Equity offering
• Slight increase in RevPAR for July 2024 compared to previous year

Negative

• Overall 1.6% decrease in Comparable RevPAR for Q3 2024 compared to Q3 2023
• RevPAR decreases in August and September 2024 compared to previous year

Insights

Financial Analyst

The preliminary Q3 2024 results for Ashford Hospitality Trust reveal a mixed performance. The company reported an occupancy rate of 71% and an Average Daily Rate (ADR) of $187, resulting in Revenue Per Available Room (RevPAR) of $132. However, this represents a 1.6% decrease in Comparable RevPAR year-over-year.

The monthly breakdown shows a concerning trend: while July saw a slight 0.3% increase, August and September experienced declines of 2.1% and 3.0% respectively. This suggests a weakening performance as the quarter progressed, which could be a red flag for investors.

On a positive note, AHT's non-traded preferred equity offering has shown success, with approximately $167 million in gross proceeds raised. This additional capital could provide financial flexibility, but it's important to monitor how effectively the company deploys these funds to address the RevPAR decline.

Market Research Analyst

The hospitality sector is facing challenges, as evidenced by AHT's performance. The 1.6% RevPAR decrease suggests a softening demand in the upper upscale, full-service hotel segment. This could be indicative of broader economic pressures affecting business and leisure travel.

The progressive monthly decline in RevPAR is particularly concerning, potentially signaling a trend that could extend into Q4 and beyond. Investors should closely monitor industry-wide trends and economic indicators to gauge whether this is a company-specific issue or a sector-wide challenge.

The success of the non-traded preferred equity offering ($167 million raised) demonstrates investor confidence in AHT's long-term prospects. However, with a market cap of only $35.3 million, the significant amount raised through preferred stock could indicate a high level of leverage, which may be concerning in a potentially weakening market.

DALLAS, Oct. 7, 2024 /PRNewswire/ -- Ashford Hospitality Trust, Inc. (NYSE: AHT) ("Ashford Trust" or the "Company") reported today that the Company expects to report Occupancy of approximately 71% for the third quarter of 2024 with Average Daily Rate of approximately $187 resulting in RevPAR of approximately $132.  This Comparable RevPAR reflects an approximate decrease of 1.6% compared to the third quarter of 2023. 

Additionally, for the month of July 2024, Comparable RevPAR increased approximately 0.3% versus July 2023. For the month of August 2024, Comparable RevPAR decreased approximately 2.1% versus August 2023. For the month of September 2024, Comparable RevPAR decreased approximately 3.0% versus September 2023.  

Further, as previously announced, the Company commenced the offering of its Non-Traded Preferred Equity during the third quarter of 2022.  As of September 30, 2024, the Company has 6,158,835 shares of its Series J non-traded preferred stock outstanding and 526,708 shares of its Series K non-traded preferred stock outstanding and has raised approximately $167 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.

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SOURCE Ashford Hospitality Trust, Inc.

FAQ

What was Ashford Hospitality Trust's (AHT) RevPAR for Q3 2024?

Ashford Hospitality Trust expects to report a RevPAR of approximately $132 for the third quarter of 2024.

How did AHT's Q3 2024 RevPAR compare to the same period in 2023?

AHT's Comparable RevPAR for Q3 2024 decreased by approximately 1.6% compared to Q3 2023.

What was the occupancy rate for Ashford Hospitality Trust in Q3 2024?

Ashford Hospitality Trust expects to report an occupancy rate of approximately 71% for the third quarter of 2024.

How much has AHT raised through its Non-Traded Preferred Equity offering as of September 30, 2024?

As of September 30, 2024, AHT has raised approximately $167 million in gross proceeds through its Non-Traded Preferred Equity offering.