EX-99.2 3 ahtbostonbackbaydispoprofo.htm EX-99.2 Document
EXHIBIT 99.2
On April 9, 2024, Ashford Hospitality Trust, Inc. (“Ashford Trust” or the “Company”) completed the sale of the 144-room Hilton Boston Back Bay located in Boston, Massachusetts (“Hilton Back Bay”) for $167.0 million in cash, net of selling expenses. Additionally, the Company repaid approximately $98.0 million on the mortgage loan secured by the Hilton Back Bay.
The following unaudited pro forma financial information of the Company, as of and for the year ended December 31, 2023 has been prepared for informational purposes only and does not purport to be indicative of what would have resulted had the disposition occurred on the date indicated or what may result in the future. The unaudited pro forma consolidated balance sheet assumes the disposition closed on December 31, 2023. The unaudited pro forma consolidated statements of operations for the year ended December 31, 2023, assumes the disposition closed on January 1, 2023. The unaudited pro forma financial information of the Company reflects the removal of the assets and liabilities of the Hilton Back Bay and its results of operations, which contains a non-recurring loss associated with the disposition of the hotel property. The pro forma loss and the related tax effects resulting from the disposition of the Hilton Back Bay are preliminary. Therefore, the actual results may differ from the amounts reflected in the pro forma financial statements. There are no other non-recurring items associated with the transaction.


ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
December 31, 2023
(in thousands, except share and per share amounts) 
Ashford Trust Consolidated
Historical (A)		Hilton Back Bay (B)AdjustmentsAshford Trust
Consolidated
Pro Forma
ASSETS
Investments in hotel properties, net ($122,938 attributable to VIEs).$2,951,932 $167,119 $— $2,784,813 
Cash and cash equivalents ($2,363 attributable to VIEs)165,231 1,746 166,950 (C) (i)235,014 
2,579 (C) (i)
(98,000)(C) (ii)
Restricted cash ($17,346 attributable to VIEs)146,079 3,695 — 142,384 
Accounts receivable, net of allowance ($271 attributable to VIEs)45,521 526 — 44,995 
Inventories3,679 80 — 3,599 
Notes receivable, net7,369 — — 7,369 
Investments in unconsolidated entities9,960 — 9,960 
Deferred costs, net ($218 attributable to VIEs)1,808 12 (12)(C) (i)1,784 
Prepaid expenses ($651 attributable to VIEs)12,806 320 — 12,486 
Derivative assets13,696 — — 13,696 
Operating lease right-of-use assets44,047 — — 44,047 
Other assets($1,433 attributable to VIEs)25,309 8 — 25,301 
Intangible assets797 — — 797 
Due from third-party hotel managers21,664 — — 21,664 
Assets held for sale12,383 — — 12,383 
Total assets$3,462,281 $173,506 $71,517 $3,360,292 
LIABILITIES AND EQUITY/DEFICIT
Liabilities:
Indebtedness, net ($70,073 attributable to VIEs)$3,396,071 $97,063 $(97,063)(C) (ii)$3,201,945 
Finance lease liability18,469 — — 18,469 
Other finance liability ($26,858 attributable to VIEs)26,858 — — 26,858 
Accounts payable and accrued expenses ($14,405 attributable to VIEs)129,323 2,898 — 126,425 
Accrued interest payable ($241 attributable to VIEs)27,009 781 — 26,228 
Dividends and distributions payable3,566 — — 3,566 
Due to Ashford Inc., net ($1,396 attributable to VIEs)13,261 — — 13,261 
Due to related parties, net ($123 attributable to VIEs)5,874 117 — 5,757 
Due to third-party hotel managers ($110 attributable to VIEs)1,193 — — 1,193 
Intangible liabilities, net2,017 — — 2,017 
Operating lease liabilities44,765 — — 44,765 
Other liabilities3,499 — — 3,499 
Liabilities related to assets held for sale14,653 — — 14,653 
Total liabilities3,686,558 100,859 (97,063)3,488,636 
Commitments and contingencies
Redeemable noncontrolling interests in operating partnership22,007 — — 22,007 
Series J Redeemable Preferred Stock, $0.01 par value, 3,475,318 shares issued and outstanding at December 31, 202379,975 — — 79,975 
Series K Redeemable Preferred Stock, $0.01 par value, 194,193 shares issued and outstanding at December 31, 20234,783 — — 4,783 
Equity (deficit):
Preferred stock, $0.01 par value, 50,000,000 shares authorized:
Series D Cumulative Preferred Stock, 1,159,927 shares issued and outstanding at December 31, 202312 — — 12 
Series F Cumulative Preferred Stock, 1,251,044 shares issued and outstanding at December 31, 202311 — — 11 
Series G Cumulative Preferred Stock, 1,531,996 shares issued and outstanding at December 31, 202315 — — 15 
Series H Cumulative Preferred Stock, 1,170,325 shares issued and outstanding at December 31, 202312 — — 12 
Series I Cumulative Preferred Stock, 1,160,923 shares issued and outstanding at December 31, 202312 — — 12 
Common stock, $0.01 par value, 400,000,000 shares authorized, 37,422,056 shares issued and outstanding at December 31, 2023374 — — 374 
Additional paid-in capital2,382,975 72,647 167,119 (C) (i)2,480,026 
2,579 (C) (i)
Accumulated deficit(2,729,312)— (181)(C) (i)(2,730,430)
(937)(C) (ii)
Total stockholders’ equity (deficit) of the Company(345,901)72,647 168,580 (249,968)
Noncontrolling interest in consolidated entities14,859 — — 14,859 
Total equity (deficit)(331,042)72,647 168,580 (235,109)
Total liabilities and equity/deficit$3,462,281 $173,506 $71,517 $3,360,292 
See accompanying notes.


NOTES TO UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
(A)Represents the historical consolidated balance sheet of Ashford Trust as of December 31, 2023, as reported in its Annual Report on Form 10-K for the year ended December 31, 2023, filed on March 14, 2024.
(B)Represents the removal of the historical balance sheet of the Hilton Back Bay as of December 31, 2023.
(C)Represents adjustments for Ashford Trust’s disposition of the Hilton Back Bay as of December 31, 2023, which includes: (i) an adjustment for the cash consideration received of $167.0 million, net of selling expenses and cash received for hotel net working capital; and (ii) the cash paid to repay the mortgage loan secured by the Hilton Back Bay.


ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
Year Ended December 31, 2023
(in thousands, except share and per share amounts)
Ashford Trust Consolidated
Historical (A)		Hilton Back Bay (B)AdjustmentsAshford Trust
Consolidated
Pro Forma
REVENUE
Rooms$1,059,155 $37,619 $— $1,021,536 
Food and beverage232,829 3,858 — 228,971 
Other hotel revenue72,748 4,286 — 68,462 
Total hotel revenue1,364,732 45,763 — 1,318,969 
Other2,801 — — 2,801 
Total revenue1,367,533 45,763 — 1,321,770 
EXPENSES
Hotel operating expenses:
Rooms249,434 7,955 — 241,479 
Food and beverage161,300 3,585 — 157,715 
Other expenses464,058 13,226 — 450,832 
Management fees50,645 1,366 — 49,279 
Total hotel expenses925,437 26,132 — 899,305 
Property taxes, insurance and other70,226 3,200 — 67,026 
Depreciation and amortization187,807 4,689 — 183,118 
Advisory services fee48,927 — — 48,927 
Corporate, general and administrative16,181 — — 16,181 
Total operating expenses1,248,578 34,021 — 1,214,557 
Gain (loss) on consolidation of VIE and disposition of assets11,488 — (181)(C) (i)11,307 
OPERATING INCOME (LOSS)130,443 11,742 (181)118,520 
Equity in earnings (loss) of unconsolidated entities(1,134)— (1,134)
Interest income8,978 — — 8,978 
Other income (expense)310 — — 310 
Interest expense and amortization of discounts and loan costs(366,148)(9,450)— (356,698)
Write-off of premiums, loan costs and exit fees(3,469)— (937)(C) (ii)(4,406)
Gain (loss) on extinguishment of debt53,386 — — 53,386 
Realized and unrealized gain (loss) on derivatives(2,200)— — (2,200)
INCOME (LOSS) BEFORE INCOME TAXES(179,834)2,292 (1,118)(183,244)
Income tax (expense) benefit(900)— — (900)
NET INCOME (LOSS)(180,734)2,292 (1,118)(184,144)
(Income) loss attributable to noncontrolling interest in consolidated entities6 — — 6 
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership2,239 — 43 (C) (iii)2,282 
NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY(178,489)2,292 (1,075)(181,856)
Preferred dividends(15,921)— — (15,921)
Deemed dividends on redeemable preferred stock(2,673)— — (2,673)
Gain (loss) on extinguishment of preferred stock3,390 — — 3,390 
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS$(193,693)$2,292 $(1,075)$(197,060)
INCOME (LOSS) PER SHARE - BASIC:
Net income (loss) attributable to common stockholders$(5.61)$(5.71)
Weighted average common shares outstanding—basic34,523 34,523 
INCOME (LOSS) PER SHARE - DILUTED:
Net income (loss) attributable to common stockholders$(5.61)$(5.71)
Weighted average common shares outstanding—diluted34,523 34,523 

See accompanying notes.


NOTES TO UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(A)Represents the historical consolidated statement of operations of Ashford Trust for the year ended December 31, 2023, as reported in its Annual Report on Form 10-K for the year ended December 31, 2023, filed on March 14, 2024.
(B)Represents the removal of the historical consolidated statements of operations of the Hilton Back Bay for the year ended December 31, 2023.
(C)Represents adjustments for the Company’s sale of the Hilton Back Bay, which includes: (i) the estimated non-recurring loss on the disposition of the Hilton Back Bay for the year ended December 31, 2023; (ii) an adjustment for the write-off of deferred loan costs, and (iii) the net (income) loss allocated to redeemable noncontrolling interests in operating partnership related to the disposition of the Hilton Back Bay, including the estimated non-recurring loss for the year ended December 31, 2023, based on an ownership percentage of 1.27% for the year ended December 31, 2023. There is no estimated tax effect of the hotel no longer being part of the consolidated group for the year ended December 31, 2023. The pro forma loss resulting from the disposition of the Hilton Back Bay is preliminary. The actual results may differ from the amounts reflected in the pro forma financial statements.