DALLAS, June 21,
2022 /PRNewswire/ -- Ashford Hospitality Trust, Inc.
(NYSE: AHT) ("Ashford Trust" or the "Company") reported today
preliminary portfolio occupancy of 72% for the month of May with an
average daily rate ("ADR") of approximately $185 resulting in RevPAR of approximately
$132. This RevPAR result represents
an approximate increase of 74.9% versus May
2021 and an approximate decrease of 6.8% versus May 2019. Additionally, Hotel Net Income was
$18.9 million. Comparable Hotel
EBITDA was $36.9 million for the
month of May, an approximate 156% increase over May 2021's
Comparable Hotel EBITDA of $14.4
million.
Additionally, for the month of April, preliminary portfolio
occupancy was 74% with an ADR of approximately $182, resulting in RevPAR of approximately
$134. This RevPAR result represents
an approximate increase of 98.6% versus April 2021 and an approximate decrease of 6.7%
versus April 2019. Additionally,
Hotel Net Income was $18.4 million.
Comparable Hotel EBITDA was $36.4
million for the month of April, an approximate 250% increase
over April 2021's Comparable Hotel EBITDA of $10.4 million.
Ashford Trust continues to see solid improvement in its
operating performance with April and May Comparable Hotel EBITDA of
$73.3 million comparing to
$55.9 million Comparable Hotel EBITDA
for the entire first quarter 2022. Ashford Trust's hotel portfolio
also generated ample cash to cover debt service levels at the hotel
level for the month of June and did not require additional cash
from corporate.
"We're extremely pleased with Ashford Trust's improving second
quarter results," commented Rob
Hays, Ashford Trust's President and Chief Executive Officer.
"With high exposure to both transient leisure and business
customers, our high-quality, geographically diverse portfolio is
benefiting from increased demand and notable rate increases in many
key markets."
Mr. Hays added, "We are also seeing an acceleration of cash
flows at our group hotels and are extremely encouraged that our
larger Boston, Nashville, and Washington D.C. urban hotels are coming back
strong. For the two-month period of April and May, both the Hilton
Boston Back Bay and the Renaissance Nashville hotels had occupancy
levels of over 90% and both assets exceeded April and May 2019 RevPAR levels. Additionally, our
Marriott Gateway Crystal City, located within minutes of downtown
Washington D.C., had April and May
occupancy close to 85% while its RevPAR was down less than 10%
compared to the same time period in 2019." Mr. Hays concluded, "We
are pleased with the continuing positive momentum in our portfolio
and, looking ahead, we believe our portfolio remains
well-positioned to capitalize on the continuing recovery in the
lodging industry."
We use certain non-GAAP measures, in addition to the required
GAAP presentations, as we believe these measures improve the
understanding of our operational results and make comparisons of
operating results among peer real estate investment trusts more
meaningful. Non-GAAP financial measures, which should not be relied
upon as a substitute for GAAP measures, used in this press release
are Hotel EBITDA. Please refer to our most recently filed Annual
Report on Form 10-K for a more detailed description of how these
non-GAAP measures are calculated. The reconciliations of non-GAAP
measures to the closest GAAP measures are provided below and
provide further details of our results for the period being
reported.
The following tables are reconciliations of the Company's Hotel
EBITDA for the months of May 2022,
April 2022, May 2021 and April
2021:
ASHFORD HOSPITALITY
TRUST, INC. AND SUBSIDIARIES
RECONCILIATION OF NET INCOME (LOSS) TO HOTEL
EBITDA (in millions) (unaudited)
|
|
|
|
May
2022
|
|
April
2022
|
|
May
2021
|
|
April
2021
|
Net income
(loss)
|
|
$ 18.9
|
|
$
18.4
|
|
$ 16.4
|
|
$
(19.6)
|
Non-property
adjustments
|
|
—
|
|
—
|
|
(21.3)
|
|
10.2
|
Interest
expense
|
|
0.9
|
|
0.8
|
|
0.5
|
|
0.4
|
Amortization of loan
cost
|
|
0.1
|
|
0.1
|
|
0.1
|
|
0.1
|
Depreciation and
amortization
|
|
16.7
|
|
16.7
|
|
18.3
|
|
18.4
|
Non-hotel EBITDA
ownership expense
|
|
0.3
|
|
0.4
|
|
0.4
|
|
0.9
|
Comparable Hotel
EBITDA
|
|
$ 36.9
|
|
$
36.4
|
|
$ 14.4
|
|
$
10.4
|
The above comparable information assumes the 100 hotel
properties owned and included in the Company's operations at
May 31, 2022.
Ashford Hospitality Trust is a real estate investment trust
(REIT) focused on investing predominantly in upper upscale,
full-service hotels.
The preliminary estimated results for the months ended
May 31, 2022 and April 30, 2022 included in this release, which
are the responsibility of management, were prepared by the
Company's management in connection with the preparation of the
Company's financial statements and are based upon preliminary hotel
operating results and a number of subjective judgements and
assumptions. Additional items that may require adjustments to the
Company's preliminary estimated financial information may be
identified and could result in material changes to the Company's
preliminary estimated results. The Company's closing procedures for
the months ended May 31, 2022 and
April 30, 2022 are not yet complete
and, as a result, the Company's final results upon completion of
the closing procedures may vary from the preliminary estimates set
forth above. The Company's independent registered public accounting
firm, BDO USA, LLP, has not
audited, reviewed, compiled or performed any procedures with
respect to the preliminary estimated financial information, nor
have they expressed any opinion or any other form of assurance on
such information or its achievability, and assume no responsibility
for, and disclaim any association with, such preliminary estimated
financial information. Further, these preliminary estimated results
are not a comprehensive statement or estimate of the Company's
financial condition or operating results for the months ended
May 31, 2022 and April 30, 2022. These preliminary estimated
results should not be viewed as a substitute for complete quarterly
financial statements prepared in accordance with generally accepted
accounting principles ("GAAP") or as a measure of the Company's
performance. In addition, the preliminary estimated financial
information is not necessarily indicative of the results to be
achieved for any future period. Accordingly, investors are
cautioned not to place undue reliance on this preliminary estimated
financial information. See the information below under the heading
"Forward-Looking Statements" and "Risk Factors" and "Management's
Discussion of Financial Condition and Results of Operations" in the
Company's Annual Report on Form 10-K for the year ended
December 31, 2021.
Forward-Looking Statements
Certain statements and assumptions in this press release
contain or are based upon "forward-looking" information and are
being made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements in this press release include, among others, statements
about the Company's strategy and future plans. These
forward-looking statements are subject to risks and uncertainties.
When we use the words "will likely result," "may," "anticipate,"
"estimate," "should," "expect," "believe," "intend," or similar
expressions, we intend to identify forward-looking statements. Such
statements are subject to numerous assumptions and uncertainties,
many of which are outside Ashford Trust's control.
These forward-looking statements are subject to known and
unknown risks and uncertainties, which could cause actual results
to differ materially from those anticipated, including, without
limitation: the impact of COVID-19, and the rate of adoption and
efficacy of vaccines to prevent COVID-19, on our business and
investment strategy; our ability to repay, refinance, or
restructure our debt and the debt of certain of our subsidiaries;
anticipated or expected purchases or sales of assets; our projected
operating results; completion of any pending transactions; our
understanding of our competition; market trends; projected capital
expenditures; the impact of technology on our operations and
business; general volatility of the capital markets and the market
price of our common stock and preferred stock; availability, terms
and deployment of capital; availability of qualified personnel;
changes in our industry and the markets in which we operate,
interest rates or the general economy; and the degree and nature of
our competition. These and other risk factors are more fully
discussed in Ashford Trust's filings with the Securities and
Exchange Commission.
The forward-looking statements included in this press release
are only made as of the date of this press release. Such
forward-looking statements are based on our beliefs, assumptions,
and expectations of our future performance taking into account all
information currently known to us. These beliefs, assumptions, and
expectations can change as a result of many potential events or
factors, not all of which are known to us. If a change occurs, our
business, financial condition, liquidity, results of operations,
plans, and other objectives may vary materially from those
expressed in our forward-looking statements. You should carefully
consider these risks when you make an investment decision
concerning our securities. Investors should not place undue
reliance on these forward-looking statements. The Company can give
no assurance that these forward-looking statements will be attained
or that any deviation will not occur. We are not obligated to
publicly update or revise any forward-looking statements, whether
as a result of new information, future events or circumstances,
changes in expectations, or otherwise, except to the extent
required by law.
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SOURCE Ashford Hospitality Trust, Inc.