AHT-PD — Ashford Hospitality Trust, Inc.

Summary of AHT-PD Q4 2025 Earnings Call

1. Key Financial Results and Metrics:

• Q4 2025 Results:
  • Net loss attributable to common stockholders: $131.1 million ($23.83 per diluted share).
  • Full year net loss: $82.5 million ($17.54 per diluted share).
  • AFFO per diluted share: Q4 - negative $2.21; Full year - negative $4.84.
  • Adjusted EBITDAre: $45.2 million for Q4; $235.9 million for the full year.
  • Cash and cash equivalents: $112.9 million; restricted cash: $107.6 million.
  • Total loans: $2.6 billion with a blended average interest rate of 7.9%.

2. Strategic Updates and Business Highlights:

• Comparable hotel EBITDA grew by 6.2%, with total revenue growth outpacing RevPAR growth.
• Successful conversion of properties, including the Crowne Plaza La Concha to Autograph Collection and La Pavion to Tribute Portfolio, with expected RevPAR premiums of 10% to 20%.
• Strong performance in group bookings with a 5% increase in group room revenue for Q4.
• Implementation of the GrowAHT initiative is showing early benefits, contributing to a 12% increase in hotel EBITDA in December.
• Capital expenditures planned between $95 million and $115 million for 2025 to enhance portfolio quality.

3. Forward Guidance and Outlook:

• Management is optimistic about 2025, expecting continued growth in group business and ancillary revenue initiatives.
• The company does not anticipate reinstating common dividends in 2025 but continues to pay preferred dividends.
• Ongoing focus on operational efficiency and margin expansion through strategic initiatives.

4. Bad News, Challenges, or Points of Concern:

• Significant net losses reported for both Q4 and the full year raise concerns about profitability.
• High exposure to floating interest rates (77% of loans) may present risks if interest rates rise further.
• The market for transactions remains challenging with bid-ask spreads, indicating potential difficulties in asset sales.
• Some properties are experiencing softening occupancy rates, particularly in Key West.

5. Notable Q&A Insights:

• Management confirmed that over half of the GrowAHT initiatives are fully rolled out, with positive impacts already visible in performance metrics.
• Conversions are outperforming expectations, particularly in RevPAR, with La Pavion showing strong early results.
• The transaction environment is improving, with expectations for a better year in 2025, although the company will remain disciplined in asset sales.
• Floating rate exposure has increased due to interest rate caps expiring, with management indicating a preference for a mix of fixed and floating rates moving forward.

Overall, while Ashford Hospitality Trust reported significant losses, there are positive indicators in revenue growth, strategic initiatives, and a cautiously optimistic outlook for 2025. However, challenges related to interest rates and market conditions remain.