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About Ashford Hospitality Trust, Inc. (AHT)
Ashford Hospitality Trust, Inc. (NYSE: AHT) is a self-advised real estate investment trust (REIT) specializing in the hospitality sector. The company focuses on acquiring, owning, and managing upper-upscale and full-service hotels across the United States. Operating through its wholly-owned subsidiary, Ashford Hospitality Limited Partnership, AHT leverages its expertise to invest across all levels of the capital structure, from direct real estate acquisitions to securities and debt instruments. Its portfolio includes properties operating under renowned brands such as Marriott, Hilton, Hyatt, and Sheraton, strategically positioned in key markets to maximize revenue potential.
Core Business Model
Ashford Hospitality Trust generates revenue through three primary streams:
- Room Revenue: The largest contributor, derived from guest stays across its portfolio of hotels.
- Food and Beverage Revenue: Income from on-site restaurants, bars, and catering services.
- Other Revenue: Ancillary services such as parking, spa operations, and event hosting.
The company actively enhances its portfolio through strategic renovations, brand conversions, and asset repositioning. Recent examples include the transformation of properties like the La Concha Hotel into a Marriott Autograph Collection property, aimed at driving higher revenue per available room (RevPAR) and attracting premium clientele.
Strategic Initiatives and Market Positioning
Ashford Hospitality Trust has undertaken several initiatives to strengthen its financial position and operational efficiency. The GRO AHT strategy, launched in late 2024, focuses on three core pillars: G&A Reduction, Revenue Maximization, and Operational Efficiency. This initiative is expected to generate an incremental $50 million in annual EBITDA, positioning the company for sustainable growth.
Additionally, AHT has prioritized deleveraging its balance sheet by divesting non-core assets and reducing corporate-level debt. These efforts, combined with its focus on high-quality, geographically diverse properties, reinforce its competitive edge in a fragmented market.
Competitive Landscape
Operating within the highly competitive hospitality REIT sector, Ashford faces competition from other hotel-focused REITs and independent operators. However, its emphasis on value-add strategies, such as property renovations and brand upgrades, sets it apart. By targeting assets with RevPAR below twice the U.S. average, AHT capitalizes on opportunities to enhance asset performance and shareholder value.
Challenges and Opportunities
Like many REITs, Ashford Hospitality Trust navigates challenges such as cyclical demand, economic fluctuations, and rising operational costs. However, its strategic initiatives, combined with a focus on ancillary revenue growth and operational efficiency, position the company to capitalize on industry tailwinds, including limited supply growth and recovering travel demand.
Conclusion
With a robust portfolio, strategic focus on operational efficiency, and commitment to enhancing shareholder value, Ashford Hospitality Trust, Inc. stands as a key player in the U.S. hospitality REIT market. Its proactive approach to asset management and financial discipline underscores its potential for long-term growth and resilience in a dynamic industry landscape.
Ashford Hospitality Trust (AHT) announced the declaration of cash dividends for its Series D, F, G, H, and I cumulative preferred stock, covering unpaid dividends from June 2020 to September 2021. The dividends are as follows: $3.1686 per Series D share, $2.7654 per Series F and G, and $2.8125 per Series H and I, payable on December 10, 2021. Additionally, for the fourth quarter ending December 31, 2021, dividends of $0.5281, $0.4609, $0.46875 per share will be paid on January 14, 2022. Shareholders are encouraged to note the record date of December 31, 2021.
Ashford Hospitality Trust (AHT) reported preliminary results for October 2021, marking a portfolio occupancy of 63.7% and an average daily rate (ADR) of $167, yielding a RevPAR of $106. This represents a 12% increase from September 2021 but a 27% decrease from October 2019. Hotel Net Income stood at $9.8 million, with Comparable Hotel EBITDA at $28.4 million, up 67% compared to September 2021. The company cites strong leisure demand as a key driver for improved performance.
Ashford Hospitality Trust (AHT) has successfully refinanced its mortgage loan for the Marriott Gateway Crystal City, totaling $86.0 million. This non-recourse loan has a three-year term with two possible one-year extensions and features a floating interest rate of LIBOR + 4.65%. The refinancing addresses the company's only debt maturity in 2021, ensuring liquidity through the initial funding of $84.0 million and $2.0 million for potential debt service support. The next maturity is not until June 2023, securing financial stability for Ashford Trust.
Ashford Hospitality Trust (AHT) announced an amendment to its financing agreement with Oaktree Capital Management. The amendment extends Oaktree's $250 million delayed draw commitment to June 2024, contingent on the repayment of a $200 million term loan before June 2023. Additionally, the exit fee terms were modified, allowing Oaktree to choose between warrants or cash upon loan repayment. CEO Rob Hays stated this amendment improves financial flexibility and liquidity.
Ashford Hospitality Trust (NYSE: AHT) will ring the NYSE Opening Bell on October 13, 2021, during its 2021 Investor & Analyst Day. The event will be broadcast live at 9:30 a.m. ET. As a real estate investment trust (REIT), Ashford Trust focuses primarily on upper upscale, full-service hotels. The company highlighted its ongoing strategies while emphasizing potential risks, including the impacts of COVID-19 and regulatory investigations. Investors are advised to consider these factors when evaluating the company's future performance.
Ashford Hospitality Trust (NYSE: AHT) will host an Investor & Analyst Day on October 12, 2021, in New York City at the Park Lane Hotel. Investors and analysts can join the event via a live webcast available on the company’s website, with a replay accessible for one year after. Interested parties are encouraged to contact Investor Relations for attendance details. Ashford Trust focuses on investing primarily in upper upscale, full-service hotels, navigating various market risks and uncertainties that may affect its strategies.
Ashford Hospitality Trust (AHT) reported a preliminary portfolio occupancy of 59.7% for September 2021 and an average daily rate (ADR) of approximately $158, resulting in a RevPAR of about $94. This RevPAR shows a significant increase of 145.0% from September 2020, though it is down 28.2% from September 2019. For the third quarter, AHT anticipates an occupancy of 62.8% with an ADR of $156 and a RevPAR of approximately $98, reflecting a 165.7% increase compared to Q3 2020 but a 25.6% decrease compared to Q3 2019.
Ashford Hospitality Trust (AHT) announced the release of its third-quarter earnings results for the period ending September 30, 2021. The earnings release will be available after market close on October 26, 2021. A conference call to discuss the results will take place on October 27, 2021, at 11:00 a.m. ET, with details to be accessed via their website or by phone. Ashford Trust specializes in investments primarily in upper upscale, full-service hotels.
Ashford Hospitality Trust (NYSE: AHT) reported an August portfolio occupancy of 61.3%, with an average daily rate (ADR) of $153.69 and a revenue per available room (RevPAR) of $94.16. This RevPAR reflects an 11% decrease from July and a 27% decrease from August 2019. Hotel Net Income stood at $0.9 million, while comparable Hotel EBITDA decreased by 30% from July to $18.6 million, and by 44% from August 2019's $33.3 million. The decline was attributed to a rise in COVID-19 cases, though demand for weekend leisure travel remains strong.
Ashford Hospitality Trust (NYSE: AHT) announced the successful refinancing of its mortgage loan for the 390-room Hilton Boston Back Bay, maturing in November 2022. The $98 million non-recourse loan has a four-year term, with a floating interest rate of LIBOR + 3.80% and quarterly amortization of $500,000 in the extension term. This refinancing reflects proactive management of the company's balance sheet, positioning the trust favorably for economic recovery. The deal was facilitated by real estate advisory firm Robert Douglas.
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