Ashford Hospitality Trust, Inc. Quarterly Report for the Quarter Ended March 31, 2024
Ashford Hospitality Trust, Inc. Quarterly Report for the Quarter Ended March 31, 2024
Ashford Hospitality Trust, Inc. has reported a net loss of $1.2 million for the quarter ended March 31, 2024, compared to a net loss of $1.1 million for the same period in 2023. The company’s total assets were $1.4 billion, while total liabilities were $1.1 billion, resulting in shareholders’ equity of $300 million. The company’s revenue for the quarter was $120 million, with a net loss per share of $0.04.
Overview
Ashford Hospitality Trust (AHT) owns 75 hotel properties with 18,014 rooms as of March 31, 2024. AHT also has a 99.4% ownership interest in Stirling OP, which owns 4 hotels with 405 rooms.
In 2024, AHT focused on preserving capital, selling non-core assets, making strategic acquisitions, enhancing long-term value, and accessing cost-effective financing.
Recent Developments
- Sold 8 hotels in late 2023 for $378 million
- Transferred 15 hotels securing the KEYS A and KEYS B loans to a receiver in March 2024. Recognized $134 million gain on derecognition and $378 million contract asset.
- Sold the Residence Inn Salt Lake City hotel for $19 million in March 2024
- Amended the Oaktree Credit Agreement to extend maturity to 2026, remove minimum cash requirements, and require asset sales and strategic financing paydowns
- Sold the Hilton Boston Back Bay for $171 million in April 2024 and used proceeds to repay related $98 million loan and pay down the Oaktree loan
First Quarter 2024 Results
| Financial Metric | 2024 Q1 | 2023 Q1 | Change |
|---|---|---|---|
| Total Revenue | $303.9 million | $328.9 million | $(25.0) million |
| Net Income (Loss) | $72.4 million | $(61.5) million | $133.9 million |
| RevPAR (Comparable Hotels) | $128.55 | $129.74 | $(1.19) |
| Adjusted EBITDAre | $59.5 million | $75.6 million | $(16.1) million |
- Revenue declined due to hotel sales, offset by 1.6% ADR growth for comparable hotels
- Net income increased due to $134 million gain on derecognition of KEYS hotels
- Comparable RevPAR declined slightly due to lower occupancy
- Adjusted EBITDAre declined due to fewer owned hotels
Balance Sheet and Liquidity
At March 31, 2024, AHT had:
- $112.7 million of unrestricted cash
- $135.7 million of restricted cash
- $23.5 million due from hotel managers
- 68.5% net debt/gross assets
AHT has adequate liquidity to meet obligations for the next 12 months through cash flow, financing activities, and asset sales.
Outlook
AHT expects to continue pursuing strategic dispositions, acquisitions, capital market activities, opportunistic financing, and balance sheet improvements.
Hotel operations are subject to macro industry trends as well as seasonality, renovations, extreme weather, and other events. AHT aims to benefit from lodging industry cycles over time.
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