AHT-PH — Ashford Hospitality Trust, Inc.

Summary of Ashford Hospitality Trust, Inc. Q4 2025 Earnings Call

1. Key Financial Results and Metrics:

• Net Loss: Q4 net loss attributable to common stockholders was $131.1 million ($23.83 per diluted share); full-year loss was $82.5 million ($17.54 per diluted share).
• AFFO: Q4 AFFO per diluted share was negative $2.21; full-year AFFO was negative $4.84.
• Adjusted EBITDAre: Q4 reported $45.2 million; full-year total was $235.9 million.
• Debt: Total loans amounted to $2.6 billion with a blended average interest rate of 7.9%. Approximately 77% of the debt is floating rate.
• Cash Position: Ended Q4 with $112.9 million in cash and cash equivalents and $107.6 million in restricted cash.

2. Strategic Updates and Business Highlights:

• Comparable Hotel Performance: Comparable hotel EBITDA grew by 6.2%, and RevPAR increased by 3% year-over-year.
• Property Conversions: Successful conversions of Crowne Plaza La Concha to Autograph and La Pavion Hotel to Tribute Portfolio are expected to yield RevPAR premiums of 10% to 20%.
• GrowAHT Initiatives: The company is implementing strategies to enhance operational efficiency and profitability, with a focus on ancillary revenue streams.
• Recent Transactions: Completed the sale of the Courtyard Boston Downtown for $123 million and closed on a $580 million refinancing.

3. Forward Guidance and Outlook:

• 2025 Expectations: The company anticipates continued growth in group room revenue, with a 5% increase already noted for 2025 bookings.
• Capital Expenditures: Planned expenditures between $95 million and $115 million for renovations and enhancements across various properties.
• Dividend Policy: No common dividend is expected to be reinstated in 2025.

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

• Net Losses: The significant net losses indicate ongoing financial challenges.
• Floating Rate Exposure: Increased floating rate exposure due to interest rate caps expiring and SOFR fluctuations could pose risks if interest rates rise.
• Market Conditions: While there is optimism about the transaction environment, there remains a bid-ask spread in some markets, indicating potential challenges in achieving optimal sale prices.

5. Notable Q&A Insights:

• GrowAHT Initiatives: Over half of the GrowAHT initiatives are fully rolled out, showing immediate positive impacts on performance, particularly in December.
• Conversion Performance: Both converted properties are outperforming expectations, with La Pavion showing a RevPAR exceeding $900 during the Super Bowl period.
• Transaction Environment: Improved financing conditions are expected to enhance transaction activity, though the company will remain disciplined in asset sales.
• Interest Rate Strategy: The company prefers a mix of fixed and floating rates, indicating a strategic approach to manage interest rate exposure while maintaining flexibility.

Overall, while Ashford Hospitality Trust is experiencing growth in certain areas and has strategic initiatives in place, it faces significant financial losses and risks related to its debt structure and market conditions.