Ashford Hospitality Tr Inc Stock Price, News & Analysis

Ashford Hospitality Trust (NYSE: AHT) has announced 'GRO AHT', a strategic initiative targeting $50 million in incremental EBITDA improvement, representing a 20% increase to run-rate corporate EBITDA. The plan focuses on three core pillars: G&A Reduction, Revenue Maximization, and Operational Efficiency.

The G&A Reduction includes cutting management compensation and reducing advisory fees. Revenue Maximization aims to grow room revenue market share by over 200 basis points in 2025. Operational Efficiency focuses on reducing costs through workforce adjustments, contract renegotiations, and energy-saving initiatives. The company also plans to pay off its Oaktree financing in early Q1.

Ashford Hospitality Trust (NYSE: AHT) has announced the completion of its Crowne Plaza La Concha Hotel conversion to the Autograph La Concha, joining Marriott's Autograph Collection®. The Key West property underwent a $35 million renovation, upgrading various facilities including the lobby, bar, restaurant, exterior, guestrooms, and converting the spa into premium roof-top suites.

Located on Duval Street in Old Town Key West, the 160-room hotel is expected to drive 20-30% premiums to pre-conversion RevPAR. The historic landmark hotel, which has hosted notable guests like Ernest Hemingway and Harry Truman, is strategically positioned near major attractions, shopping, and entertainment venues.

Ashford Hospitality Trust (NYSE: AHT) has announced a definitive agreement to sell the Courtyard Boston Downtown for $123.0 million ($390,500 per key). The 315-room hotel sale is expected to close in January 2025, subject to conditions.

When adjusted for anticipated capital expenditures, the sale represents a 5.9% capitalization rate on net operating income and 14.3x Hotel EBITDA for the trailing twelve months ended September 30, 2024. Without capital spend adjustments, these figures are 6.9% and 12.3x respectively.

The property generated $8.5 million in Hotel Net Operating Income and $10.0 million in Hotel EBITDA during this period, with a net loss of $1.8 million after accounting for interest expense and depreciation.

Ashford Hospitality Trust (NYSE: AHT) has announced the planned closure of its Series J and Series K non-traded preferred stock offering on March 31, 2025. The offering, launched in 2022, has successfully raised approximately $180.0 million in gross proceeds. CEO Stephen Zsigray highlighted that this offering provided substantial capital during challenging market conditions and cited the company's improved financial condition as a factor in the decision to close the offering. Ashford Trust operates as a REIT specializing in upper upscale, full-service hotels.

Ashford Hospitality Trust (NYSE: AHT) announced the conversion of its 226-room Le Pavillon Hotel in New Orleans to a Marriott's Tribute Portfolio property. The hotel recently completed a $19 million renovation, including extensive exterior work, restaurant upgrades, guestroom improvements, and a reimagined lobby bar called Bar 1803. Located in downtown New Orleans near the French Quarter, the historic hotel was built in 1907. The conversion was strategically timed ahead of Super Bowl LIX and Mardi Gras to position the property for a strong start to 2025.

Ashford Hospitality Trust (NYSE: AHT) has secured a 90-day forbearance period for its Morgan Stanley Pool loan, which covers 17 hotels and matured on November 9, 2024. The company is actively negotiating a multi-year extension of this loan and expects to finalize it during the forbearance period. Additionally, AHT has reduced its strategic financing balance to approximately $48.6 million and triggered an exit fee reduction. Management acknowledges the challenging environment while working on financing solutions to maximize shareholder value.

Ashford Hospitality Trust (NYSE: AHT) has refinanced its mortgage loan for the 703-room Marriott Crystal Gateway Hotel in Arlington, Virginia. The new non-recourse loan amounts to $121.5 million with a three-year initial term and two one-year extension options. The loan features interest-only payments at SOFR + 4.86%. The refinancing generated $31 million in excess proceeds, which will be used to reduce the Company's strategic financing. Combined with an additional planned paydown, this will bring the strategic financing balance below $50 million, triggering a reduced exit fee from 15.0% to 12.5% of the original loan balance through December 15, 2024.

Ashford Hospitality Trust (NYSE: AHT) has secured an amendment to its strategic financing, reducing the exit fee from 15.0% to 12.5% of the original loan balance through December 15, 2024, conditional on reducing the outstanding loan balance to $50 million or less by November 15, 2024. The company has made significant progress in its debt reduction plan through asset sales of $311 million, refinancing of the Renaissance Nashville hotel generating $17 million in excess proceeds, and raising approximately $173 million through non-traded preferred capital. The current outstanding balance on the strategic financing is approximately $82 million, representing a 59% reduction from the original principal.

Ashford Hospitality Trust (NYSE: AHT) has completed a 1-for-10 reverse stock split effective October 25, 2024. The split reduced outstanding common shares from approximately 55.2 million to 5.5 million shares. Trading on a split-adjusted basis will commence on October 28, 2024, on the NYSE under the same symbol 'AHT' but with a new CUSIP number. The company also executed a similar 1-for-10 reverse split of Ashford Hospitality Partnership units, reducing them from 2.1 million to approximately 200,000 units.