Ashford Hospitality Trust (AHT) Q3 2024 earnings summary

Executive summary

• Over $310 million in hotel sales and $173 million raised from non-traded preferred stock since January, with proceeds used to pay down strategic financing by over $100 million to $82 million as of the call date.

• Amendment to strategic financing allows for a discounted exit fee if paid off by December 15, contingent on reducing the balance to $50 million or less by November 15; as of November 12, 2024, this threshold was met.

• October saw the highest monthly top-line growth of the year, with RevPAR up 4.6% year-over-year.

• Portfolio enhancements include imminent conversions of La Concha Hotel (Key West) and Le Pavillon Hotel (New Orleans) to Marriott brands, and the opening of Le Méridien Fort Worth Downtown, which is outperforming expectations.

• Corporate cost reductions, strategic portfolio turnover, and deleveraging are planned to improve profitability in 2025 and beyond.

Financial highlights

• Net loss attributable to common stockholders was $63.2 million, or $12.39 per diluted share, for Q3 2024.

• Adjusted EBITDAre was $52.4 million for the quarter; comparable hotel EBITDA was $70.4 million.

• Total hotel revenue for Q3 2024 was $276.0 million, down 19.3% year-over-year; comparable hotel revenue was flat at $271.7 million.

• $2.7 billion in loans at a blended average interest rate of 8%; 83% of debt is effectively fixed.

• Cash and cash equivalents at quarter-end were $119.7 million, with $114.3 million in restricted cash; net working capital stood at $160 million.

Outlook and guidance

• Confident in the ability to fully pay off strategic financing by year-end, with a viable path through asset sales and refinancings.

• Expect to see benefits from expense management initiatives in Q4 2024 and throughout 2025.

• No plans to reinstate a common dividend in 2024; preferred dividends continue.

• Strategic priorities for 2025 include addressing upcoming debt maturities, refinancing, and repositioning the portfolio.

• Company is in active discussions for multi-year extension of a $409.8 million mortgage loan; expects to finalize during the 90-day forbearance period.