EX-99.1 2 a15-10905_1ex99d1.htm EX-99.1

Exhibit 99.1

 

NEWS RELEASE

 

 

 

Contact:

Deric Eubanks   

Elise Chittick

Scott Eckstein

 

Chief Financial Officer

Investor Relations

Financial Relations Board

 

(972) 490-9600  

(972) 778-9487

(212) 827-3766

 

ASHFORD TRUST REPORTS FIRST QUARTER 2015 RESULTS

8.5% RevPAR Increase for All Hotels for the First Quarter

Hotel EBITDA Margin Increase of 163 basis points for All Hotels

Adjusted EBITDA Increased 12.3%

Adjusted Funds From Operations per Share Increased 20%

Completes Buyout of Remaining JV Interest in Highland Portfolio

 

DALLAS, May 7, 2015 —Ashford Hospitality Trust, Inc. (NYSE: AHT) (“the Company” or “Ashford Trust”) today reported financial results and performance measures for the first quarter ended March 31, 2015.  The performance measurements for Occupancy, Average Daily Rate (ADR), Revenue Per Available Room (RevPAR), and Hotel Operating Profit (or Hotel EBITDA) are pro forma.  Unless otherwise stated, all reported results compare the first quarter ended March 31, 2015, with the first quarter ended March 31, 2014 (see discussion below).  The reconciliation of non-GAAP financial measures is included in the financial tables accompanying this press release.

 

FINANCIAL AND OPERATING HIGHLIGHTS

 

·                  RevPAR for all Ashford Trust hotels increased 8.5% during the quarter

·                  RevPAR for all Ashford Trust hotels not under renovation increased 9.9% during the quarter

·                  Hotel EBITDA increased 12.7% for all hotels

·                  Hotel EBITDA Margin increased 163 basis points for all hotels

·                  Hotel EBITDA flow-through was 55% for all hotels

·                  Adjusted EBITDA increased $9.8 million or 12.3%

·                  Net income attributable to common stockholders for the Company was $313.0 million, or $3.12 per diluted share, compared with net loss attributable to common stockholders of $10.9 million, or $0.13 per diluted share, in the prior-year quarter

·                  Adjusted funds from operations (AFFO) for the Company was $0.30 per diluted share for the quarter as compared with $0.25 from the prior-year quarter representing an increase of 20%

·                  On January 5, 2015, the Company announced it had refinanced two mortgage loans with an outstanding balance of approximately $354 million with new loans totaling $478 million resulting in over $100 million of excess proceeds after closing costs and reserves

·                  On January 30, 2015, the Company announced it had priced a follow-on public offering of 9,500,000 shares of common stock at $10.65 per share.  The underwriter subsequently exercised its option in part and purchased an additional 1,029,450 shares from the Company.  In total, the Company issued 10,529,450 shares of common stock at $10.65 per share for net proceeds of $111.1 million.

·                  On February 9, 2015, the Company announced it had closed on the acquisition of the 168-room Lakeway Resort & Spa in Austin, TX for total consideration of $33.5 million ($199,000 per key)

·                  Subsequent to quarter end, on April 17, 2015, the Company closed a $25.1 million mortgage loan for the property

 

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AHT Reports First Quarter Results

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May 7, 2015

 

·                  On February 26, 2015, the Company announced it had closed on the acquisition of the 232-room Marriott Memphis East hotel for total consideration of $43.5 million ($187,500 per key)

·                  The Company closed a $33.3 million mortgage loan for the property on March 25, 2015

·                  On March 9, 2015, the Company announced it had completed the acquisition of the remaining 28.26% ownership interest in the Highland Hospitality Portfolio from its joint venture partner, a value add fund managed by Prudential Real Estate Investors

·                  In connection with the transaction, the Company refinanced 24 of the 28 hotels in the Highland Portfolio with a new $1.07 billion non-recourse mortgage loan

·                  On March 11, 2015, the Company completed the sale of the 112-room Hampton Inn Terre Haute in Terre Haute, IN for $7.9 million ($70,500 per key)

·                  Subsequent to the end of the quarter, on April 29, 2015, the Company closed on the acquisition of the 124-room Hampton Inn & Suites in Gainesville, FL for total consideration of $25.3 million ($204,000 per key)

 

CAPITAL EXPENDITURES

 

·                  Capex invested in the quarter was $35.3 million

 

CAPITAL STRUCTURE

 

At March 31, 2015, the Company had total assets of $4.8 billion in continuing operations including the Highland Hospitality Portfolio which is now consolidated.  As of March 31, 2015, the Company had $3.4 billion of mortgage debt in continuing operations.  Ashford Trust’s total combined debt had a blended average interest rate of 4.99%.

 

On January 5, 2015, the Company announced it had refinanced two mortgage loans with an existing outstanding balance of approximately $354 million.  The two previous mortgage loans that were refinanced include: a $211 million Goldman Sachs Floater loan with a final maturity date in November 2017; and a $143 million Merrill Lynch 1 loan with a final maturity date in July 2015.  The new loans total $478 million and resulted in excess net proceeds of over $100 million after closing costs and reserves.

 

On January 30, 2015, the Company announced it had priced a follow-on public offering of 9,500,000 shares of common stock at $10.65 per share.  Settlement of the offering occurred on February 4, 2015, generating total net proceeds of $100.2 million.  The underwriter subsequently exercised its option in part and purchased an additional 1,029,450 shares from the Company.  In total, the Company issued 10,529,450 shares of common stock at $10.65 per share for net proceeds of $111.1 million.

 

On February 9, 2015, the Company announced it had closed on the acquisition of the 168-room Lakeway Resort & Spa for total consideration of $33.5 million ($199,000 per key), which represents an estimated forward 12-month cap rate of 8.7% on net operating income and an estimated 9.5x forward EBITDA multiple.  Subsequent to the acquisition’s completion, on April 17, 2015, the Company closed a $25.1 million mortgage loan on the property.  The new loan is interest only and provides for a floating interest rate of LIBOR + 5.10%.

 

On February 26, 2015, the Company announced it had closed on the acquisition of the 232-room Marriott Memphis East hotel for total consideration of $43.5 million ($187,500 per key), which represents an estimated forward 12-month cap rate of 8.6% on net operating income and an estimated 10.3x forward EBITDA multiple.  Subsequent to the acquisition’s completion, on March 25, 2015, the Company closed a $33.3 million mortgage loan on the property.  The new loan is interest only and provides for a floating interest rate of LIBOR + 4.95%.

 

On March 9, 2015, the Company announced it had completed the acquisition of the remaining 28.26% ownership interest in the Highland Hospitality Portfolio from its joint venture partner, a value add fund managed by Prudential Real Estate

 

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AHT Reports First Quarter Results

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May 7, 2015

 

Investors, for a purchase price of $250.1 million (total transaction value of $1.735 billion or $215,000 per key) which was paid in cash and funded by the concurrent refinancing of 24 hotels in the portfolio as well as proceeds from the Company’s recent equity offering.  The 28-hotel Highland Hospitality Portfolio includes 19 full-service hotels and 9 select-service hotels with a concentration in major brands such as Hilton, Marriott, Hyatt and Starwood.  The new $1.07 billion non-recourse mortgage loan on the 24 hotels in the portfolio is interest only and provides for a floating interest rate of LIBOR + 4.39%.  The financing resulted in excess net proceeds of approximately $200 million after closing costs and reserves including the return to the Company of reserves held by the previous lender.

 

On March 11, 2015, the Company completed the sale of the 112-room Hampton Inn Terre Haute in Terre Haute, IN for $7.9 million ($70,500 per key). The sale, including anticipated capital expenditures, represented a trailing 12-month cap rate of 7.0% on net operating income and a trailing 14.4x EBITDA multiple.

 

On April 29, 2015, the Company closed on the acquisition of the 124-room Hampton Inn & Suites in Gainesville, FL for total consideration of $25.3 million ($204,000 per key), which represents an estimated  forward 12-month cap rate of 9.1% on net operating income and an estimated 9.9x forward EBITDA multiple.

 

PORTFOLIO REVPAR

 

As of March 31, 2015, the Ashford Trust Portfolio consisted of direct hotel investments with 116 properties classified in continuing operations.  During the first quarter of 2015, 107 of the Ashford Trust Portfolio hotels included in continuing operations were not under renovation.  The Company believes reporting its operating metrics for the Ashford Trust Portfolio hotels in continuing operations on a pro forma total basis (all 116 hotels) and pro forma not under renovation basis (107 hotels) is a measure that reflects a meaningful and focused comparison of the operating results in its portfolio.  Details of each category are provided in the tables attached to this release.

 

·                  Pro forma RevPAR increased 8.5% to $110.69 for all hotels on a 5.5% increase in ADR and a 2.8% increase in occupancy

·                  Pro forma RevPAR increased 9.9% to $111.77 for hotels not under renovation on a 5.9% increase in ADR and a 3.8% increase in occupancy

 

HOTEL EBITDA MARGINS AND QUARTERLY SEASONALITY TRENDS

 

The Company believes year-over-year Hotel EBITDA and Hotel EBITDA Margin comparisons are more meaningful to gauge the performance of the Company’s hotels than sequential quarter-over-quarter comparisons.  Given the substantial seasonality in the Company’s portfolio and its active capital recycling, to help investors better understand this seasonality, the Company provides quarterly detail on its Hotel EBITDA and Hotel EBITDA Margin for the current and certain prior-year periods based upon the number of hotels in the Ashford Trust Portfolio as of the end of the current period.  As the Company’s portfolio mix changes from time to time so will the seasonality for Pro forma Hotel EBITDA and Pro forma Hotel EBITDA Margin.  The details of the quarterly calculations for the previous four quarters for the 116 Ashford Trust hotels are provided in the table attached to this release.

 

ASHFORD HOSPITALITY SELECT

 

On January 29, 2015, the Company announced a plan to form Ashford Hospitality Select (“Ashford Select”), a new privately-held company dedicated to investing primarily in premium-branded select-service hotels, including extended stay hotels in the U.S.  Ashford Select will be advised by Ashford Inc.  Upon the launch of this platform, Ashford Trust’s investment strategy will be revised to focus on full-service, premium-branded upscale, and upper-upscale hotels primarily located in major markets with RevPAR less than twice the national average.  Management is currently speaking with potential capital partners about this strategy and will either have Ashford Trust pursue the strategy itself and distribute the Ashford Select platform when it has reached

 

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AHT Reports First Quarter Results

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May 7, 2015

 

scale, or Ashford Trust will team up with a capital source to purchase select-service assets and then distribute the Ashford Select platform.

 

COMMON STOCK DIVIDEND

 

On March 13, 2015, the Company announced that its Board of Directors had declared a quarterly cash dividend of $0.12 per diluted share for the Company’s common stock for the first quarter ending March 31, 2015, payable on April 15, 2015, to shareholders of record as of March 31, 2015.

 

“The first quarter of 2015 was another period of solid RevPAR and EBITDA growth for Ashford Trust driven largely by the continued success of our robust revenue initiatives.  With the revenue initiatives solidly in place and the positive industry fundamentals we are experiencing, we expect to be able to continue to drive solid results from these assets,” commented Monty J. Bennett, Ashford Trust’s Chairman and Chief Executive Officer.  “Our management team remains very active in the market and took advantage of opportunities to complete several strategic acquisitions as well as over $1.6 billion of financings during the quarter.  We will continue to seek and pursue these types of opportunities to capitalize on favorable market dynamics to accretively add value to our portfolio.”

 

INVESTOR CONFERENCE CALL AND SIMULCAST

 

Ashford Hospitality Trust, Inc. will conduct a conference call on Friday, May 8, 2015, at 11:00 a.m. ET.  The number to call for this interactive teleconference is (719) 325-2464.  A replay of the conference call will be available through Friday, May 15, 2015, by dialing (719) 457-0820 and entering the confirmation number, 6009183.

 

The Company will also provide an online simulcast and rebroadcast of its first quarter 2015 earnings release conference call.  The live broadcast of Ashford Hospitality Trust’s quarterly conference call will be available online at the Company’s web site, www.ahtreit.com on Friday, May 8, 2015, beginning at 11:00 a.m. ET.  The online replay will follow shortly after the call and continue for approximately one year.

 

Substantially all of our non-current assets consist of real estate investments and debt investments secured by real estate.  Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time.  Since real estate values instead have historically risen or fallen with market conditions, most industry investors consider supplemental measures of performance, which are not measures of operating performance under GAAP, to assist in evaluating a real estate company’s operations. These supplemental measures include FFO, AFFO, EBITDA, and Hotel Operating Profit.  FFO is computed in accordance with our interpretation of standards established by NAREIT, which may not be comparable to FFO reported by other REITs that do not define the term in accordance with the current NAREIT definition or that interpret the NAREIT definition differently than us.  Neither FFO, AFFO, EBITDA, nor Hotel Operating Profit represents cash generated from operating activities as determined by GAAP and should not be considered as an alternative to a) GAAP net income (loss) as an indication of our financial performance or b) GAAP cash flows from operating activities as a measure of our liquidity, nor are such measures indicative of funds available to satisfy our cash needs, including our ability to make cash distributions.  However, management believes FFO, AFFO, EBITDA, and Hotel Operating Profit to be meaningful measures of a REIT’s performance and should be considered along with, but not as an alternative to, net income and cash flow as a measure of our operating performance.

 

*  *  *  *  *

 

Ashford Hospitality Trust is a real estate investment trust (REIT) focused on investing opportunistically in the hospitality industry across all segments and at all levels of the capital structure primarily within the United States.

 

Follow Chairman and CEO Monty Bennett on Twitter at www.twitter.com/MBennettAshford or

 

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AHT Reports First Quarter Results

Page 5

May 7, 2015

 

@MBennettAshford.

 

Ashford has created an Ashford App for the hospitality REIT investor community.  The Ashford App is available for free download at Apple’s App Store and the Google Play Store by searching “Ashford.”

 

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.  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:  general volatility of the capital markets and the market price of our common stock; changes in our business or investment strategy; availability, terms and deployment of capital; availability of qualified personnel; changes in our industry and the market in which we operate, interest rates or the general economy; the degree and nature of our competition; and the satisfaction of conditions to, or the completion of, the proposed launch of Ashford Select.  These and other risk factors are more fully discussed in Ashford Trust’s filings with the Securities and Exchange Commission.  EBITDA is defined as net income before interest, taxes, depreciation and amortization.  EBITDA yield is defined as trailing twelve month EBITDA divided by the purchase price.  A capitalization rate is determined by dividing the property’s annual net operating income by the purchase price.  Net operating income is the property’s funds from operations minus a capital expense reserve of either 4% or 5% of gross revenues.  Hotel EBITDA flow-through is the change in Hotel EBITDA divided by the change in total revenues.  Hotel EBITDA Margin is Hotel EBITDA divided by total revenues.  Funds from operations (“FFO”), as defined by the White Paper on FFO approved by the Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”) in April 2002, represents net income (loss) computed in accordance with generally accepted accounting principles (“GAAP”), excluding gains (or losses) from sales of properties and extraordinary items as defined by GAAP, plus depreciation and amortization of real estate assets, and net of adjustments for the portion of these items related to unconsolidated entities and joint ventures.

 

The forward-looking statements included in this press release are only made as of the date of this press release.  Investors should not place undue reliance on these forward-looking statements.  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.

 

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ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except share amounts)

(unaudited)

 

 

 

March 31,

 

December 31,

 

 

 

2015

 

2014

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

Cash and cash equivalents

 

$

355,727

 

$

215,063

 

Marketable securities

 

72,427

 

63,217

 

Total cash, cash equivalents and marketable securities

 

428,154

 

278,280

 

Investments in hotel properties, net

 

3,953,983

 

2,128,611

 

Restricted cash

 

143,043

 

85,830

 

Accounts receivable, net of allowance of $417 and $241, respectively

 

52,512

 

22,399

 

Inventories

 

4,188

 

2,104

 

Note receivable, net of allowance of $7,416 and $7,522, respectively

 

3,599

 

3,553

 

Investment in Highland JV

 

—

 

144,784

 

Investment in Ashford Prime

 

54,613

 

54,907

 

Investment in Ashford Inc.

 

4,358

 

7,099

 

Deferred costs, net

 

36,514

 

12,588

 

Prepaid expenses

 

22,757

 

7,017

 

Derivative assets, net

 

917

 

182

 

Other assets

 

7,969

 

17,116

 

Intangible assets, net

 

15,045

 

—

 

Due from Ashford Prime, net

 

335

 

896

 

Due from affiliates

 

—

 

3,473

 

Due from related party, net

 

1,922

 

—

 

Due from third-party hotel managers

 

39,047

 

12,241

 

Total assets

 

$

4,768,956

 

$

2,781,080

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

Liabilities:

 

 

 

 

 

Indebtedness

 

$

3,387,623

 

$

1,954,103

 

Accounts payable and accrued expenses

 

131,890

 

71,118

 

Dividends payable

 

23,346

 

21,889

 

Unfavorable management contract liabilities

 

4,836

 

5,330

 

Due to Ashford Inc., net

 

9,120

 

8,202

 

Due to related party, net

 

—

 

1,867

 

Due to third-party hotel managers

 

1,529

 

1,640

 

Intangible liabilities, net

 

27,262

 

—

 

Liabilities associated with marketable securities and other

 

12,771

 

6,201

 

Other liabilities

 

6,923

 

1,233

 

Total liabilities

 

3,605,300

 

2,071,583

 

 

 

 

 

 

 

Redeemable noncontrolling interests in operating partnership

 

165,590

 

177,064

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

Preferred stock, $0.01 par value, 50,000,000 shares authorized:

 

 

 

 

 

Series A Cumulative Preferred Stock, 1,657,206 shares issued and outstanding at March 31, 2015 and December 31, 2014

 

17

 

17

 

Series D Cumulative Preferred Stock, 9,468,706 shares issued and outstanding at March 31, 2015 and December 31, 2014

 

95

 

95

 

Series E Cumulative Preferred Stock, 4,630,000 shares issued and outstanding at March 31, 2015 and December 31, 2014

 

46

 

46

 

Common stock, $0.01 par value, 200,000,000 shares authorized, 124,896,765 shares issued, 101,078,531 and 89,439,624 shares outstanding at March 31, 2015 and December 31, 2014, respectively

 

1,249

 

1,249

 

Additional paid-in capital

 

1,801,656

 

1,706,274

 

Accumulated deficit

 

(696,787

)

(1,050,323

)

Treasury stock, at cost, 23,818,234 and 35,457,141 shares at March 31, 2015 and December 31, 2014, respectively

 

(108,985

)

(125,725

)

Total stockholders’ equity of the Company

 

997,291

 

531,633

 

Noncontrolling interest in consolidated entities

 

775

 

800

 

Total equity

 

998,066

 

532,433

 

Total liabilities and equity

 

$

4,768,956

 

$

2,781,080

 

 

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ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

(unaudited)

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2015

 

2014

 

 

 

 

 

 

 

REVENUE

 

 

 

 

 

Rooms

 

$

200,990

 

$

156,997

 

Food and beverage

 

39,553

 

28,239

 

Other

 

8,832

 

6,366

 

Total hotel revenue

 

249,375

 

191,602

 

Advisory services revenue

 

—

 

2,194

 

Other

 

860

 

1,065

 

Total revenue

 

250,235

 

194,861

 

 

 

 

 

 

 

EXPENSES

 

 

 

 

 

Hotel operating expenses

 

 

 

 

 

Rooms

 

43,153

 

34,754

 

Food and beverage

 

26,280

 

19,323

 

Other expenses

 

74,782

 

58,274

 

Management fees

 

9,657

 

7,742

 

Total hotel operating expenses

 

153,872

 

120,093

 

Property taxes, insurance and other

 

11,594

 

9,589

 

Depreciation and amortization

 

37,864

 

26,152

 

Impairment charges

 

(106

)

(101

)

Transaction costs

 

499

 

—

 

Advisory services fee:

 

 

 

 

 

Base advisory fee

 

8,011

 

—

 

Advisory service fee - other services

 

1,385

 

—

 

Non-cash stock/unit-based compensation

 

171

 

—

 

Corporate, general and administrative:

 

 

 

 

 

Non-cash stock/unit-based compensation

 

—

 

4,488

 

Other general and administrative

 

4,840

 

8,247

 

Total operating expenses

 

218,130

 

168,468

 

OPERATING INCOME

 

32,105

 

26,393

 

Equity in loss of unconsolidated entities

 

(6,622

)

(3,498

)

Interest income

 

16

 

6

 

Gain on acquisition of Highland JV

 

381,835

 

—

 

Other income

 

4,330

 

1,277

 

Interest expense

 

(31,629

)

(26,462

)

Amortization of premiums and loan costs

 

(3,006

)

(1,913

)

Write-off of loan costs and exit fees

 

(4,767

)

(2,028

)

Unrealized gain (loss) on marketable securities

 

(1,802

)

1

 

Unrealized loss on derivatives

 

(1,698

)

(347

)

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

 

368,762

 

(6,571

)

Income tax expense

 

(825

)

(216

)

INCOME (LOSS) FROM CONTINUING OPERATIONS

 

367,937

 

(6,787

)

Income from discontinued operations

 

—

 

4

 

Gain (loss) on sale of hotel properties, net of tax

 

(1,130

)

3,491

 

NET INCOME (LOSS)

 

366,807

 

(3,292

)

Loss from consolidated entities attributable to noncontrolling interest

 

25

 

27

 

Net (income) loss attributable to redeemable noncontrolling interests in operating partnership

 

(45,336

)

877

 

NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY

 

321,496

 

(2,388

)

Preferred dividends

 

(8,490

)

(8,490

)

NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS

 

$

313,006

 

$

(10,878

)

 

 

 

 

 

 

INCOME (LOSS) PER SHARE — BASIC AND DILUTED

 

 

 

 

 

Basic:

 

 

 

 

 

Income (loss) from continuing operations attributable to common stockholders

 

$

3.25

 

$

(0.13

)

Income from discontinued operations attributable to common stockholders

 

—

 

—

 

Net income (loss) attributable to common stockholders

 

$

3.25

 

$

(0.13

)

Weighted average common shares outstanding — basic

 

95,539

 

81,690

 

 

 

 

 

 

 

Diluted:

 

 

 

 

 

Income (loss) from continuing operations attributable to common stockholders

 

$

3.12

 

$

(0.13

)

Income from discontinued operations attributable to common stockholders

 

—

 

—

 

Net income (loss) attributable to common stockholders

 

$

3.12

 

$

(0.13

)

Weighted average common shares outstanding — diluted

 

113,912

 

81,690

 

 

 

 

 

 

 

Dividends declared per common share:

 

$

0.12

 

$

0.12

 

 

 

 

 

 

 

Amounts attributable to common stockholders:

 

 

 

 

 

Net income (loss) attributable to the Company

 

$

321,496

 

$

(2,391

)

Income from discontinued operations, net of tax

 

—

 

3

 

Preferred dividends

 

(8,490

)

(8,490

)

Net income (loss) attributable to common stockholders

 

$

313,006

 

$

(10,878

)

 

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ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) TO EBITDA AND ADJUSTED EBITDA

(in thousands)

(unaudited)

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2015

 

2014

 

 

 

 

 

 

 

Net income (loss)

 

$

366,807

 

$

(3,292

)

Loss from consolidated entities attributable to noncontrolling interest

 

25

 

27

 

Net (income) loss attributable to redeemable noncontrolling interests in operating partnership

 

(45,336

)

877

 

Net income (loss) attributable to the Company

 

321,496

 

(2,388

)

Interest income

 

(16

)

(6

)

Interest expense and amortization of premiums and loan costs

 

34,606

 

28,491

 

Depreciation and amortization

 

37,820

 

26,191

 

Income tax expense

 

825

 

228

 

Net income (loss) attributable to redeemable noncontrolling interests in operating partnership

 

45,336

 

(877

)

Equity in loss of unconsolidated entities

 

6,622

 

3,498

 

Company’s portion of EBITDA of Ashford Inc.

 

(2,278

)

—

 

Company’s portion of EBITDA of Ashford Prime

 

2,910

 

2,534

 

Company’s portion of EBITDA of Highland JV

 

11,982

 

20,575

 

EBITDA

 

459,303

 

78,246

 

Amortization of unfavorable management contract liabilities

 

(494

)

(494

)

Impairment charges

 

(106

)

(101

)

Gain on sale of hotel properties

 

(380,705

)

(3,503

)

Write-off of loan costs and exit fees

 

4,767

 

2,028

 

Other income (1)

 

(4,330

)

(1,277

)

Transaction, acquisition and management conversion costs

 

499

 

—

 

Transaction costs related to spin-offs

 

3,425

 

—

 

Legal judgment

 

24

 

—

 

Unrealized (gain) loss on marketable securities

 

1,802

 

(1

)

Unrealized loss on derivatives

 

1,698

 

347

 

Dead deal costs

 

55

 

—

 

Non-cash stock/unit-based compensation

 

171

 

4,488

 

Company’s portion of adjustments to EBITDA of Ashford Inc.

 

3,324

 

—

 

Company’s portion of adjustments to EBITDA of Ashford Prime

 

(82

)

314

 

Company’s portion of adjustments to EBITDA of Highland JV

 

—

 

(506

)

Adjusted EBITDA

 

$

89,351

 

$

79,541

 

 

(1)         Other income, primarily consisting of net realized gain/loss on marketable securities in both periods, is excluded from Adjusted EBITDA.

 

RECONCILIATION OF NET INCOME (LOSS) TO FUNDS FROM OPERATIONS (“FFO”) AND ADJUSTED FFO

(in thousands, except per share amounts)

(unaudited)

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2015

 

2014

 

 

 

 

 

 

 

Net income (loss)

 

$

366,807

 

$

(3,292

)

Loss from consolidated entities attributable to noncontrolling interest

 

25

 

27

 

Net (income) loss attributable to redeemable noncontrolling interests in operating partnership

 

(45,336

)

877

 

Preferred dividends

 

(8,490

)

(8,490

)

Net income (loss) attributable to common stockholders

 

313,006

 

(10,878

)

Depreciation and amortization on real estate

 

37,820

 

26,105

 

Gain on sale of hotel properties

 

(380,705

)

(3,503

)

Net income (loss) attributable to redeemable noncontrolling interests in operating partnership

 

45,336

 

(877

)

Equity in loss of unconsolidated entities

 

6,622

 

3,498

 

Company’s portion of FFO of Ashford Inc.

 

(2,747

)

—

 

Company’s portion of FFO of Ashford Prime

 

1,452

 

785

 

Company’s portion of FFO of Highland JV

 

3,791

 

8,851

 

FFO available to common stockholders

 

24,575

 

23,981

 

Write-off of loan costs and exit fees

 

4,767

 

2,028

 

Impairment charges

 

(106

)

(101

)

Other income (1) 

 

(4,330

)

(1,277

)

Legal judgment

 

24

 

—

 

Transaction, acquisition and management conversion costs

 

499

 

—

 

Transaction costs related to spin-offs

 

3,425

 

—

 

Unrealized (gain) loss on marketable securities

 

1,802

 

(1

)

Unrealized loss on derivatives

 

1,698

 

347

 

Dead deal costs

 

55

 

—

 

Company’s portion of adjustments to FFO of Ashford Inc.

 

1,744

 

—

 

Company’s portion of adjustments to FFO of Ashford Prime

 

(148

)

321

 

Company’s portion of adjustments to FFO of Highland JV

 

—

 

(506

)

Adjusted FFO available to common stockholders

 

$

34,005

 

$

24,792

 

Adjusted FFO per diluted share available to common stockholders

 

$

0.30

 

$

0.25

 

Weighted average diluted shares

 

114,344

 

101,149

 

 

(1)         Other income, primarily consisting of net realized gain/loss on marketable securities in both periods, is excluded from Adjusted FFO.

 

- MORE -

 


 

ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

SUMMARY OF INDEBTEDNESS

MARCH 31, 2015

(dollars in thousands)

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Proforma

 

Proforma

 

 

 

 

 

 

 

Fixed-Rate

 

Floating-Rate

 

Total

 

TTM Hotel

 

TTM EBITDA

 

Indebtedness

 

Maturity

 

Interest Rate

 

Debt

 

Debt

 

Debt

 

EBITDA

 

Debt Yield

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

UBS 2 - 8 hotels

 

December 2015

 

5.70%

 

$

92,203

 

$

—

 

$

92,203

 

$

12,791

 

13.9

%

Merrill 2 - 5 hotels

 

February 2016

 

5.53%

 

104,692

 

—

 

104,692

 

19,883

 

19.0

%

Merrill 7 - 5 hotels

 

February 2016

 

5.53%

 

75,207

 

—

 

75,207

 

13,368

 

17.8

%

Morgan Stanley MIP - 5 hotels

 

February 2016

 

LIBOR + 4.75%

 

—

 

200,000

(1)

200,000

 

21,444

 

10.7

%

Morgan Stanley Pool A - 7 hotels

 

August 2016

 

LIBOR + 4.35%

 

—

 

301,000

(2)

301,000

 

31,460

 

10.5

%

Morgan Stanley Pool B - 5 hotels

 

August 2016

 

LIBOR + 4.38%

 

—

 

62,900

(2)

62,900

 

6,732

 

10.7

%

JPM Chase - 1 hotel

 

August 2016

 

LIBOR + 4.20%

 

—

 

37,500

(2)

37,500

 

5,857

 

15.6

%

BAML Pool 1 & 2 - 8 hotels

 

January 2017

 

LIBOR + 4.95%

 

 

 

376,800

(3) (4)

376,800

 

40,253

 

10.7

%

Cantor Commercial Real Estate - 1 hotel

 

April 2017

 

LIBOR + 4.95%

 

 

 

33,300

(5)

33,300

 

3,953

 

11.9

%

Column Financial - 24 hotels

 

April 2017

 

LIBOR + 4.39%

 

 

 

1,070,560

(6)

1,070,560

 

106,093

 

9.9

%

Wachovia 1 - 5 hotels

 

April 2017

 

5.95%

 

111,463

 

—

 

111,463

 

15,868

 

14.2

%

Wachovia 2 - 7 hotels

 

April 2017

 

5.95%

 

121,940

 

—

 

121,940

 

15,570

 

12.8

%

Wachovia 5 - 5 hotels

 

April 2017

 

5.95%

 

100,188

 

—

 

100,188

 

13,563

 

13.5

%

Wachovia 6 - 5 hotels

 

April 2017

 

5.95%

 

152,447

 

—

 

152,447

 

16,773

 

11.0

%

Morgan Stanley Boston Back Bay - 1 hotel

 

January 2018

 

4.38%

 

99,343

 

—

 

99,343

 

14,724

 

14.8

%

Morgan Stanley Princeton/Nashville - 2 hotels

 

January 2018

 

4.44%

 

108,646

 

—

 

108,646

 

23,035

 

21.2

%

Omni American Bank - 1 hotel

 

July 2019

 

LIBOR + 3.75% (7)

 

—

 

5,524

 

5,524

 

837

 

15.2

%

GACC Gateway - 1 hotel

 

November 2020

 

6.26%

 

99,509

 

—

 

99,509

 

15,395

 

15.5

%

GACC Jacksonville RI - 1 hotel

 

January 2024

 

5.49%

 

10,636

 

—

 

10,636

 

1,516

 

14.3

%

GACC Manchester RI - 1 hotel

 

January 2024

 

5.49%

 

7,288

 

—

 

7,288

 

1,173

 

16.1

%

Key Bank Manchester CY - 1 hotel

 

May 2024

 

4.99%

 

6,819

 

—

 

6,819

 

933

 

13.7

%

Morgan Stanley Pool C1 - 3 hotels

 

August 2024

 

5.20%

 

67,520

 

—

 

67,520

 

8,372

 

12.4

%

Morgan Stanley Pool C2 - 2 hotels

 

August 2024

 

4.85%

 

12,500

 

—

 

12,500

 

1,990

 

15.9

%

Morgan Stanley Pool C3 - 3 hotels

 

August 2024

 

4.90%

 

24,980

 

—

 

24,980

 

3,120

 

12.5

%

BAML Pool 3 - 3 hotels

 

February 2025

 

4.45%

 

54,813

(3)

 

 

54,813

 

8,038

 

14.7

%

BAML Pool 4 - 2 hotels

 

February 2025

 

4.45%

 

24,461

(3)

 

 

24,461

 

3,068

 

12.5

%

BAML Pool 5 - 2 hotels

 

February 2025

 

4.45%

 

21,192

(3)

 

 

21,192

 

2,835

 

13.4

%

Unencumbered hotels

 

 

 

 

 

—

 

—

 

—

 

3,085

 

N/A

 

 

 

 

 

 

 

$

1,295,847

 

$

2,087,584

 

$

3,383,431

 

$

411,729

 

12.2

%

Percentage

 

 

 

 

 

38.3

%

61.7

%

100.0

%

 

 

 

 

Weighted average interest rate

 

 

 

 

 

5.45

%

4.70

%

4.99

%

 

 

 

 

 

All indebtedness is non-recourse.

(1) This mortgage loan has three one-year extension options beginning February 2016, subject to satisfaction of certain conditions. The interest rate is subject to a LIBOR floor of 0.20%.

(2) This mortgage loan has three one-year extension options beginning August 2016, subject to satisfaction of certain conditions.

(3) On January 2, 2015, we refinanced our $145.3 million loan due July 2015 and our $211.0 million loan due November 2015 with a $376.8 million loan due January 2017 with an interest rate of LIBOR + 4.95%, a $54.8 million loan due February 2025 with a fixed interest rate of 4.45%, a $24.5 million loan due February 2025 with a fixed interest rate of 4.45%, and a $21.2 million loan due February 2025 with a fixed interest rate of 4.45%.

(4) This mortgage loan has three one-year extension options beginning January 2017, subject to satisfaction of certain conditions.

(5) This mortgage loan has three one-year extension options beginning April 2017, subject to satisfaction of certain conditions.

(6) On March 6, 2015, we refinanced our $907.5 million loan due March 2015 with a $1,070.6 million loan due April 2017 with four one-year extension options.  The new loan provides for an interest rate of LIBOR + 4.39%.

(7) The interest rate on this mortgage loan which closed in July 2014 is subject to a LIBOR floor of 0.25% and changes to a 4.00% fixed rate after 18 months.

 

- MORE -

 


 

ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

INDEBTEDNESS BY MATURITY ASSUMING EXTENSION OPTIONS ARE EXERCISED

MARCH 31, 2015

(in thousands)

(unaudited)

 

 

 

2015

 

2016

 

2017

 

2018

 

2019

 

Thereafter

 

Total

 

UBS 2 - 8 hotels

 

$

90,680

 

$

—

 

$

—

 

$

—

 

$

—

 

$

—

 

$

90,680

 

Merrill 2 - 5 hotels

 

—

 

101,741

 

—

 

—

 

—

 

—

 

101,741

 

Merrill 7 - 5 hotels

 

—

 

73,086

 

—

 

—

 

—

 

—

 

73,086

 

Wachovia 1 - 5 hotels

 

—

 

—

 

107,351

 

—

 

—

 

—

 

107,351

 

Wachovia 2 - 7 hotels

 

—

 

—

 

117,441

 

—

 

—

 

—

 

117,441

 

Wachovia 5 - 5 hotels

 

—

 

—

 

96,491

 

—

 

—

 

—

 

96,491

 

Wachovia 6 - 5 hotels

 

—

 

—

 

146,823

 

—

 

—

 

—

 

146,823

 

Morgan Stanley Boston Back Bay - 1 hotel

 

—

 

—

 

—

 

94,226

 

—

 

—

 

94,226

 

Morgan Stanley Princeton/Nashville - 2 hotels

 

—

 

—

 

—

 

103,106

 

—

 

—

 

103,106

 

Omni American Bank - 1 hotel

 

—

 

—

 

—

 

—

 

5,168

 

—

 

5,168

 

Morgan Stanley MIP - 5 hotels

 

—

 

—

 

—

 

—

 

200,000

 

—

 

200,000

 

Morgan Stanley Pool A - 7 hotels

 

—

 

—

 

—

 

—

 

301,000

 

—

 

301,000

 

Morgan Stanley Pool B - 5 hotels

 

—

 

—

 

—

 

—

 

62,900

 

—

 

62,900

 

GACC Gateway - 1 hotel

 

—

 

—

 

—

 

—

 

—

 

89,886

 

89,886

 

GACC Jacksonville RI - 1 hotel

 

—

 

—

 

—

 

—

 

—

 

9,036

 

9,036

 

GACC Manchester RI - 1 hotel

 

—

 

—

 

—

 

—

 

—

 

6,191

 

6,191

 

Key Bank Manchester CY - 1 hotel

 

—

 

—

 

—

 

—

 

—

 

5,671

 

5,671

 

Morgan Stanley Pool C - 8 hotels

 

—

 

—

 

—

 

—

 

—

 

90,889

 

90,889

 

JPM Chase - 1 hotel

 

—

 

—

 

—

 

—

 

—

 

37,500

 

37,500

 

BAML Pool 1 & 2 - 8 hotels

 

—

 

—

 

—

 

—

 

—

 

376,800

 

376,800

 

BAML Pool 3 - 3 hotels

 

—

 

—

 

—

 

—

 

—

 

44,160

 

44,160

 

BAML Pool 4 - 2 hotels

 

—

 

—

 

—

 

—

 

—

 

19,707

 

19,707

 

BAML Pool 5 - 2 hotels

 

—

 

—

 

—

 

—

 

—

 

17,073

 

17,073

 

Cantor Commercial Real Estate - 1 hotel

 

—

 

—

 

—

 

—

 

—

 

33,300

 

33,300

 

Column Financial - 24 hotels

 

—

 

—

 

—

 

—

 

—

 

1,070,560

 

1,070,560

 

Principal due in future periods

 

$

90,680

 

$

174,827

 

$

468,106

 

$

197,332

 

$

569,068

 

$

1,800,773

 

$

3,300,786

 

Scheduled amortization payments remaining

 

15,470

 

16,714

 

15,109

 

5,651

 

5,920

 

23,781

 

82,645

 

Total indebtedness

 

$

106,150

 

$

191,541

 

$

483,215

 

$

202,983

 

$

574,988

 

$

1,824,554

 

$

3,383,431

 

 

- MORE -

 


 

ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

KEY PERFORMANCE INDICATORS - PRO FORMA

(unaudited)

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2015

 

2014

 

% Variance

 

 

 

 

 

 

 

 

 

ALL HOTELS:

 

 

 

 

 

 

 

Room revenues (in thousands)

 

$

254,843

 

$

234,955

 

8.46

%

RevPAR

 

$

110.69

 

$

102.04

 

8.48

%

Occupancy

 

75.09

%

73.06

%

2.78

%

ADR

 

$

147.40

 

$

139.68

 

5.53

%

 

NOTES:

(1)         The above pro forma table assumes the 116 hotel properties included in the Company’s operations at March 31, 2015 were owned as of the beginning of each of the periods presented.

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2015

 

2014

 

% Variance

 

 

 

 

 

 

 

 

 

ALL HOTELS NOT UNDER RENOVATION:

 

 

 

 

 

 

 

Room revenues (in thousands)

 

$

231,922

 

$

211,091

 

9.87

%

RevPAR

 

$

111.77

 

$

101.72

 

9.88

%

Occupancy

 

76.45

%

73.65

%

3.80

%

ADR

 

$

146.20

 

$

138.12

 

5.85

%

 

NOTES:

(1)         The above pro forma table assumes the 107 hotel properties included in the Company’s operations at March 31, 2015, but not under renovation for the three months ended March 31, 2015, were owned as of the beginning of each of the periods presented.

 

(2)         Excluded Hotels Under Renovation:

Courtyard Boston Downtown, Crowne Plaza Beverly Hills, Embassy Suites Flagstaff, Hilton Minneapolis, Hilton Parsippany, Hyatt Regency Savannah, Marriott Bridgewater, Sheraton Bucks County, Westin Princeton

 

- MORE -

 


 

ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

PRO FORMA HOTEL OPERATING PROFIT MARGIN

(unaudited)

 

THE FOLLOWING PRO FORMA EBITDA MARGIN TABLE REFLECTS THE 116 HOTELS INCLUDEDIN THE COMPANY’S OPERATIONS AS IF THESE HOTELS WERE OWNED AT THEBEGINNING OF THE FIRST COMPARATIVE REPORTING PERIOD.

 

 

 

116 Trust

 

 

 

Properties

 

HOTEL OPERATING PROFIT (HOTEL EBITDA) MARGIN:

 

 

 

 

 

 

 

1st Quarter 2015

 

32.03

%

1st Quarter 2014

 

30.40

%

Variance

 

1.63

%

 

 

 

 

HOTEL OPERATING PROFIT (HOTEL EBITDA) MARGIN VARIANCE BREAKDOWN:

 

 

 

 

 

 

 

Rooms

 

0.30

%

Food & Beverage and Other Departmental

 

0.63

%

Administrative & General

 

0.20

%

Sales & Marketing

 

0.13

%

Hospitality

 

-0.01

%

Repair & Maintenance

 

0.09

%

Energy

 

0.25

%

Franchise Fee

 

-0.02

%

Management Fee

 

0.00

%

Incentive Management Fee

 

-0.17

%

Insurance

 

0.02

%

Property Taxes

 

0.12

%

Other Taxes

 

0.01

%

Leases/Other

 

0.08

%

Total

 

1.63

%

 

- MORE -

 


 

ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

PRO FORMA HOTEL OPERATING PROFIT

(dollars in thousands)

(unaudited)

 

ALL HOTELS:

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2015

 

2014

 

% Variance

 

REVENUE

 

 

 

 

 

 

 

Rooms

 

$

254,843

 

$

234,955

 

8.5

%

Food and beverage

 

60,366

 

60,084

 

0.5

%

Other

 

11,234

 

10,074

 

11.5

%

Total hotel revenue

 

326,443

 

305,113

 

7.0

%

 

 

 

 

 

 

 

 

EXPENSES

 

 

 

 

 

 

 

Rooms

 

55,318

 

52,605

 

5.2

%

Food and beverage

 

40,130

 

39,718

 

1.0

%

Other direct

 

4,981

 

4,368

 

14.0

%

Indirect

 

91,730

 

87,896

 

4.4

%

Management fees, includes base and incentive fees

 

13,861

 

12,461

 

11.2

%

Total hotel operating expenses

 

206,020

 

197,048

 

4.6

%

Property taxes, insurance, and other

 

15,878

 

15,308

 

3.7

%

HOTEL OPERATING PROFIT (Hotel EBITDA)

 

104,545

 

92,757

 

12.7

%

Hotel EBITDA Margin

 

32.03

%

30.40

%

1.63

%

 

 

 

 

 

 

 

 

Minority interest in earnings of consolidated joint ventures

 

55

 

39

 

41.0

%

HOTEL OPERATING PROFIT (Hotel EBITDA), excluding minority interest in joint ventures

 

$

104,490

 

$

92,718

 

12.7

%

 

NOTES:

(1)         The above pro forma table assumes the 116 hotel properties included in the Company’s operations at March 31, 2015 were owned as of the beginning of each of the periods presented.

 

ALL HOTELS NOT UNDER RENOVATION:

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2015

 

2014

 

% Variance

 

REVENUE

 

 

 

 

 

 

 

Rooms

 

$

231,922

 

$

211,091

 

9.9

%

Food and beverage

 

52,429

 

50,708

 

3.4

%

Other

 

10,079

 

8,712

 

15.7

%

Total hotel revenue

 

294,430

 

270,511

 

8.8

%

 

 

 

 

 

 

 

 

EXPENSES

 

 

 

 

 

 

 

Rooms

 

50,046

 

47,222

 

6.0

%

Food and beverage

 

34,685

 

33,700

 

2.9

%

Other direct

 

4,677

 

4,035

 

15.9

%

Indirect

 

81,390

 

77,509

 

5.0

%

Management fees, includes base and incentive fees

 

12,737

 

11,135

 

14.4

%

Total hotel operating expenses

 

183,535

 

173,601

 

5.7

%

Property taxes, insurance, and other

 

13,919

 

13,481

 

3.2

%

HOTEL OPERATING PROFIT (Hotel EBITDA)

 

96,976

 

83,429

 

16.2

%

Hotel EBITDA Margin

 

32.94

%

30.84

%

2.10

%

 

 

 

 

 

 

 

 

Minority interest in earnings of consolidated joint ventures

 

55

 

39

 

41.0

%

HOTEL OPERATING PROFIT (Hotel EBITDA), excluding minority interest in joint ventures

 

$

96,921

 

$

83,390

 

16.2

%

 

NOTES:

(1)         The above pro forma table assumes the 107 hotel properties included in the Company’s operations at March 31, 2015, but not under renovation for the three months ended March 31, 2015, were owned as of the beginning of each of the periods presented.

 

(2)         Excluded Hotels Under Renovation: Courtyard Boston Downtown, Crowne Plaza Beverly Hills, Embassy Suites Flagstaff, Hilton Minneapolis, Hilton Parsippany, Hyatt Regency Savannah, Marriott Bridgewater, Sheraton Bucks County, Westin Princeton

 

- MORE -

 


 

ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

PRO FORMA HOTEL REVENUE & EBITDA FOR TRAILING TWELVE MONTHS

(dollars in thousands)

(unaudited)

 

THE FOLLOWING PRO FORMA SEASONALITY TABLE REFLECTS THE 116 HOTELS INCLUDED IN THE COMPANY’S OPERATIONS AS IF THESE HOTELS WERE OWNED AT THE BEGINNING OF THE FIRST COMPARATIVE REPORTING PERIOD.

 

 

 

2015

 

2014

 

2014

 

2014

 

 

 

 

 

1st Quarter

 

4th Quarter

 

3rd Quarter

 

2nd Quarter

 

TTM

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Hotel Revenue

 

$

326,442

 

$

305,457

 

$

323,827

 

$

340,620

 

$

1,296,346

 

Hotel EBITDA

 

$

104,545

 

$

90,156

 

$

100,654

 

$

115,631

 

$

410,987

 

Hotel EBITDA Margin

 

32.03

%

29.52

%

31.08

%

33.95

%

31.70

%

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA % of Total TTM

 

25.4

%

21.9

%

24.5

%

28.1

%

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

JV Interests in EBITDA

 

$

55

 

$

74

 

$

105

 

$

83

 

$

316

 

 

- MORE -

 


 

ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

PRO FORMA HOTEL REVPAR BY MARKET

(unaudited)

 

 

 

 

 

 

 

Three Months Ended

 

 

 

Number of

 

Number of

 

March 31,

 

Region

 

Hotels

 

Rooms

 

2015

 

2014

 

% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

Atlanta, GA Area

 

9

 

1,693

 

$

109.06

 

$

96.21

 

13.4

%

Boston, MA Area

 

2

 

705

 

$

130.95

 

$

103.16

 

26.9

%

Dallas / Ft. Worth Area

 

7

 

1,518

 

$

114.96

 

$

105.65

 

8.8

%

Houston, TX Area

 

3

 

692

 

$

112.36

 

$

111.17

 

1.1

%

Los Angeles, CA Metro Area

 

8

 

1,901

 

$

117.25

 

$

113.95

 

2.9

%

Miami, FL Metro Area

 

3

 

584

 

$

181.28

 

$

160.89

 

12.7

%

Minneapolis - St. Paul, MN-WI Area

 

2

 

520

 

$

85.25

 

$

87.07

 

-2.1

%

New York / New Jersey Metro Area

 

7

 

1,887

 

$

93.66

 

$

95.40

 

-1.8

%

Orlando, FL Area

 

6

 

1,834

 

$

109.71

 

$

97.50

 

12.5

%

Philadelphia, PA Area

 

3

 

648

 

$

72.67

 

$

80.94

 

-10.2

%

San Diego, CA Area

 

2

 

410

 

$

104.70

 

$

93.59

 

11.9

%

San Francisco - Oakland, CA Metro Area

 

6

 

1,368

 

$

138.49

 

$

112.77

 

22.8

%

Tampa, FL Area

 

3

 

680

 

$

128.82

 

$

122.16

 

5.5

%

Other Areas

 

45

 

8,673

 

$

104.62

 

$

95.83

 

9.2

%

 

 

 

 

 

 

 

 

 

 

 

 

Total Portfolio

 

116

 

25,579

 

$

110.69

 

$

102.04

 

8.5

%

 

NOTES:

(1)         The above pro forma table presents the 116 hotel properties included in the Company’s operations at March 31, 2015 as if these hotels were owned as of the beginning of each of the periods presented.

 

ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

PRO FORMA HOTEL OPERATING PROFIT (HOTEL EBITDA) BY MARKET

(unaudited)

 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

 

 

 

March 31,

 

Region

 

Number of
Hotels

 

Number of
Rooms

 

2015

 

% of
Total

 

2014

 

% of
Total

 

% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Atlanta, GA Area

 

9

 

1,693

 

$

6,456

 

6.2

%

$

5,847

 

6.3

%

10.4

%

Boston, MA Area

 

2

 

705

 

2,514

 

2.4

%

1,320

 

1.4

%

90.5

%

Dallas / Ft. Worth Area

 

7

 

1,518

 

7,551

 

7.2

%

6,310

 

6.8

%

19.7

%

Houston, TX Area

 

3

 

692

 

3,622

 

3.5

%

3,447

 

3.7

%

5.1

%

Los Angeles, CA Metro Area

 

8

 

1,901

 

9,134

 

8.7

%

8,917

 

9.6

%

2.4

%

Miami, FL Metro Area

 

3

 

584

 

5,055

 

4.8

%

4,390

 

4.7

%

15.1

%

Minneapolis - St. Paul, MN-WI Area

 

2

 

520

 

1,476

 

1.4

%

1,612

 

1.7

%

-8.4

%

New York / New Jersey Metro Area

 

7

 

1,887

 

5,500

 

5.3

%

6,548

 

7.1

%

-16.0

%

Orlando, FL Area

 

6

 

1,834

 

7,476

 

7.2

%

6,259

 

6.7

%

19.4

%

Philadelphia, PA Area

 

3

 

648

 

769

 

0.7

%

1,193

 

1.3

%

-35.5

%

San Diego, CA Area

 

2

 

410

 

1,455

 

1.4

%

1,150

 

1.2

%

26.5

%

San Francisco - Oakland, CA Metro Area

 

6

 

1,368

 

7,653

 

7.3

%

5,353

 

5.8

%

43.0

%

Tampa, FL Area

 

3

 

680

 

3,898

 

3.7

%

3,573

 

3.9

%

9.1

%

Washington DC - MD - VA Area

 

10

 

2,466

 

9,314

 

8.9

%

8,980

 

9.7

%

3.7

%

Other Areas

 

45

 

8,673

 

32,675

 

31.3

%

27,856

 

30.0

%

17.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Portfolio

 

116

 

25,579

 

$

104,549

 

100.0

%

$

92,757

 

100.0

%

12.7

%

 

NOTES:

(1)         The above pro forma table presents the 116 hotel properties included in the Company’s operations at March 31, 2015 as if these hotels were owned as of the beginning of each of the periods presented.

 

- MORE -

 


 

ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

TOTAL ENTERPRISE VALUE

MARCH 31, 2015

(in thousands except share price)

(unaudited)

 

 

 

March 31,

 

 

 

2015

 

End of quarter diluted shares outstanding

 

101,079

 

Partnership units outstanding (common share equivalents)*

 

18,860

 

Combined diluted shares and partnership units outstanding

 

119,939

 

Common stock price at quarter end

 

$

9.62

 

Market capitalization at quarter end

 

$

1,153,810

 

Series A preferred stock

 

$

41,430

 

Series D preferred stock

 

$

236,718

 

Series E preferred stock

 

$

115,750

 

Debt on balance sheet date

 

$

3,383,431

 

Joint venture partner’s share of consolidated debt

 

$

(2,116

)

Net working capital (see below)

 

$

(663,969

)

Total enterprise value (TEV)

 

$

4,265,054

 

 

 

 

 

Ashford Prime Investment:

 

 

 

Partnership units owned at end of quarter

 

4,978

 

Common stock price at quarter end

 

$

16.77

 

Market value of Ashford Prime investment

 

$

83,479

 

 

 

 

 

Ashford Inc. Investment:

 

 

 

Common stock owned at end of quarter

 

598

 

Common stock price at quarter end

 

$

118.76

 

Market value of Ashford Inc. investment

 

$

71,038

 

 

 

 

 

Cash & cash equivalents

 

$

355,641

 

Marketable securities, net

 

60,159

 

Restricted cash

 

142,811

 

Accounts receivable, net

 

52,490

 

Prepaid expenses

 

22,734

 

Due from affiliates, net

 

(6,771

)

Due from 3rd party hotel managers, net

 

37,524

 

Market value of Ashford Prime investment

 

83,479

 

Market value of Ashford Inc. investment

 

71,038

 

Total current assets

 

$

819,104

 

 

 

 

 

Accounts payable, net & accrued expenses

 

$

131,789

 

Dividends payable

 

23,346

 

Total current liabilities

 

$

155,135

 

 

 

 

 

Net working capital**

 

$

663,969

 

 

* Total units outstanding = 20.35 million; Impacted by current conversion factor.

** Calculation only includes the Company’s 85% interest in the Interstate joint venture.

 

- MORE -

 


 

ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

ANTICIPATED CAPITAL EXPENDITURES CALENDAR (a)

 

 

 

 

 

2015

 

 

 

 

 

1st Quarter

 

2nd Quarter

 

3rd Quarter

 

4th Quarter

 

 

 

Rooms

 

Actual

 

Estimated

 

Estimated

 

Estimated

 

Hilton Parsippany

 

354

 

x

 

x

 

x

 

x

 

Courtyard Boston Downtown

 

315

 

x

 

x

 

x

 

 

 

Crowne Plaza Beverly Hills

 

258

 

x

 

x

 

x

 

 

 

Hilton Minneapolis

 

300

 

x

 

x

 

x

 

 

 

Embassy Suites Flagstaff

 

119

 

x

 

x

 

 

 

 

 

Sheraton Bucks County

 

186

 

x

 

x

 

 

 

 

 

Westin Princeton

 

296

 

x

 

x

 

 

 

 

 

Hyatt Regency Savannah

 

351

 

x

 

x

 

 

 

 

 

Marriott Bridgewater

 

347

 

x

 

 

 

 

 

 

 

Residence Inn Las Vegas

 

256

 

 

 

x

 

x

 

x

 

Courtyard Palm Desert

 

151

 

 

 

x

 

x

 

 

 

Courtyard Scottsdale

 

180

 

 

 

x

 

x

 

 

 

Embassy Suites Palm Beach Gardens

 

160

 

 

 

x

 

x

 

 

 

Hampton Inn Parsippany

 

152

 

 

 

x

 

x

 

 

 

Hilton Santa Fe

 

158

 

 

 

x

 

x

 

 

 

Hilton St Petersburg

 

333

 

 

 

x

 

x

 

 

 

Historic Inns of Annapolis

 

124

 

 

 

x

 

x

 

 

 

Residence Inn Hartford

 

96

 

 

 

x

 

x

 

 

 

Sheraton Minnetonka

 

220

 

 

 

x

 

x

 

 

 

SpringHill Suites BWI

 

133

 

 

 

x

 

x

 

 

 

Courtyard Alpharetta

 

154

 

 

 

 

 

x

 

x

 

Courtyard Overland Park

 

168

 

 

 

 

 

x

 

x

 

Fairfield Inn Lake Buena Vista

 

388

 

 

 

 

 

x

 

x

 

Courtyard Foothill Ranch Irvine

 

156

 

 

 

 

 

 

 

x

 

Courtyard Oakland Airport

 

156

 

 

 

 

 

 

 

x

 

Embassy Suites Austin

 

150

 

 

 

 

 

 

 

x

 

Embassy Suites Dulles

 

150

 

 

 

 

 

 

 

x

 

Embassy Suites Houston

 

150

 

 

 

 

 

 

 

x

 

Hilton Fort Worth

 

294

 

 

 

 

 

 

 

x

 

Renaissance Nashville

 

673

 

 

 

 

 

 

 

x

 

Residence Inn Evansville

 

78

 

 

 

 

 

 

 

x

 

Residence Inn Fairfax

 

159

 

 

 

 

 

 

 

x

 

SpringHill Suites Gaithersburg

 

162

 

 

 

 

 

 

 

x

 

The Churchill

 

173

 

 

 

 

 

 

 

x

 

 

(a) Only hotels which have had or are expected to have significant capital expenditures that could result in displacement in 2015 are included in this table.