EX-99.1 2 ahtoneoceandispoproformas.htm EX-99.1 Document
EXHIBIT 99.2
On June 27, 2024, Ashford Hospitality Trust, Inc. (“Ashford Trust” or the “Company”) completed the sale of the 193-room One Ocean Resort & Spa located in Atlantic Beach, Florida (“One Ocean”) for $85.6 million in cash, net of selling expenses. Additionally, the Company repaid approximately $66.2 million on the mortgage loan of which One Ocean was one of five hotels securing the mortgage loan.
The following unaudited pro forma financial information of the Company, as of and for the three months ended March 31, 2024 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 March 31, 2024. The unaudited pro forma consolidated statements of operations for the year ended December 31, 2023, and the three months ended March 31, 2024, 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 One Ocean and its results of operations, which contains a non-recurring gain associated with the disposition of the hotel property. The pro forma gain resulting from the disposition of One Ocean is 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
March 31, 2024
(in thousands, except share and per share amounts) 
Ashford Trust Consolidated
Historical (A)		One Ocean (B)AdjustmentsAshford Trust
Consolidated
Pro Forma
ASSETS
Investments in hotel properties, net ($129,063 attributable to VIEs).$2,538,470 $14,490 $— $2,523,980 
Contract asset378,160 — — 378,160 
Cash and cash equivalents ($3,675 attributable to VIEs)111,065 1,374 85,340 (C) (i)129,541 
752 (C) (i)
(66,242)(C) (ii)
Restricted cash ($9,600 attributable to VIEs)132,949 1,352 — 131,597 
Accounts receivable, net of allowance ($218 attributable to VIEs)56,041 848 — 55,193 
Inventories ($4 attributable to VIEs)3,754 152 — 3,602 
Notes receivable, net9,642 — — 9,642 
Investments in unconsolidated entities9,426 — — 9,426 
Deferred costs, net ($206 attributable to VIEs)1,750 — — 1,750 
Prepaid expenses ($867 attributable to VIEs)22,133 457 — 21,676 
Derivative assets12,398 — — 12,398 
Operating lease right-of-use assets43,975 — — 43,975 
Other assets ($1,645 attributable to VIEs)18,948 387 — 18,561 
Intangible assets797 — — 797 
Due from third-party hotel managers23,531 — — 23,531 
Assets held for sale176,178 — — 176,178 
Total assets$3,539,217 $19,060 $19,850 $3,540,007 
LIABILITIES AND EQUITY/DEFICIT
Liabilities:
Indebtedness, net ($70,546 attributable to VIEs)$2,934,894 $51,987 $(14,255)(C) (ii)$2,868,652 
Debt associated with hotels in receivership355,120 — — 355,120 
Finance lease liability18,387 — — 18,387 
Other finance liability ($26,908 attributable to VIEs)26,908 — — 26,908 
Accounts payable and accrued expenses ($12,582 attributable to VIEs)130,613 3,572 — 127,041 
Accrued interest payable ($520 attributable to VIEs)12,511 234 — 12,277 
Accrued interest associated with hotels in receivership23,040 — — 23,040 
Dividends and distributions payable ($1 attributable to VIEs)3,651 — — 3,651 
Due to Ashford Inc., net ($3,553 attributable to VIEs)9,732 109 — 9,623 
Due to related parties, net ($48 attributable to VIEs)2,003 (97)— 2,100 
Due to third-party hotel managers ($122 attributable to VIEs)1,487 — — 1,487 
Intangible liabilities, net2,005 — — 2,005 
Operating lease liabilities44,661 — — 44,661 
Other liabilities3,443 — — 3,443 
Liabilities related to assets held for sale101,720 — — 101,720 
Total liabilities3,670,175 55,805 (14,255)3,600,115 
Commitments and contingencies
Redeemable noncontrolling interests in operating partnership22,300 — — 22,300 
Series J Redeemable Preferred Stock, $0.01 par value, 4,353,135 shares issued and outstanding at March 31, 2024100,192 — — 100,192 
Series K Redeemable Preferred Stock, $0.01 par value, 262,060 shares issued and outstanding at March 31, 20246,434 — — 6,434 
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 March 31, 202412 — — 12 
Series F Cumulative Preferred Stock, 1,104,344 shares issued and outstanding at March 31, 202411 — — 11 
Series G Cumulative Preferred Stock, 1,531,996 shares issued and outstanding at March 31, 202415 — — 15 
Series H Cumulative Preferred Stock, 1,099,325 shares issued and outstanding at March 31, 202411 — — 11 
Series I Cumulative Preferred Stock, 1,143,923 shares issued and outstanding at March 31, 202411 — — 11 
Common stock, $0.01 par value, 400,000,000 shares authorized, 40,167,334 shares issued and outstanding at March 31, 2024402 — — 402 
Additional paid-in capital2,383,814 (36,745)14,490 (C) (i)2,383,814 
752 (C) (i)
(51,987)(C) (ii)
Accumulated deficit(2,661,080)— 70,850 (C) (i)(2,590,230)
Total stockholders’ equity (deficit) of the Company(276,804)(36,745)34,105 (205,954)
Noncontrolling interest in consolidated entities16,920 — — 16,920 
Total equity (deficit)(259,884)(36,745)34,105 (189,034)
Total liabilities and equity/deficit$3,539,217 $19,060 $19,850 $3,540,007 
See accompanying notes.


NOTES TO UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
(A)Represents the historical consolidated balance sheet of Ashford Trust as of March 31, 2024, as reported in its Quarterly Report on Form 10-Q, filed on May 9, 2024.
(B)Represents the removal of the historical balance sheet of One Ocean as of March 31, 2024.
(C)Represents adjustments for Ashford Trust’s disposition of One Ocean as of March 31, 2024, which includes: (i) an adjustment for the cash consideration received of $85.6 million, net of selling expenses and cash received for hotel net working capital; and (ii) the cash paid to repay a portion of the the mortgage loan in part in an amount that exceeded the amount allocated to One Ocean.


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)		One Ocean (B)AdjustmentsAshford Trust
Consolidated
Pro Forma
REVENUE
Rooms$1,059,155 $12,631 $— $1,046,524 
Food and beverage232,829 6,919 — 225,910 
Other hotel revenue72,748 3,267 — 69,481 
Total hotel revenue1,364,732 22,817 — 1,341,915 
Other2,801 — — 2,801 
Total revenue1,367,533 22,817 — 1,344,716 
EXPENSES
Hotel operating expenses:
Rooms249,434 3,025 — 246,409 
Food and beverage161,300 4,392 — 156,908 
Other expenses464,058 6,007 — 458,051 
Management fees50,645 674 — 49,971 
Total hotel expenses925,437 14,098 — 911,339 
Property taxes, insurance and other70,226 1,153 — 69,073 
Depreciation and amortization187,807 1,665 — 186,142 
Advisory services fee48,927 — — 48,927 
Corporate, general and administrative16,181 — — 16,181 
Total operating expenses1,248,578 16,916 — 1,231,662 
Gain (loss) on consolidation of VIE and disposition of assets11,488 — 70,850 (C) (i)82,338 
OPERATING INCOME (LOSS)130,443 5,901 70,850 195,392 
Equity in earnings (loss) of unconsolidated entities(1,134)— — (1,134)
Interest income8,978 — — 8,978 
Other income (expense)310 — — 310 
Interest expense and amortization of discounts and loan costs(366,148)(5,088)— (361,060)
Write-off of premiums, loan costs and exit fees(3,469)— — (3,469)
Gain (loss) on extinguishment of debt53,386 — — 53,386 
Realized and unrealized gain (loss) on derivatives(2,200)— — (2,200)
INCOME (LOSS) BEFORE INCOME TAXES(179,834)813 70,850 (109,797)
Income tax (expense) benefit(900)— — (900)
NET INCOME (LOSS)(180,734)813 70,850 (110,697)
(Income) loss attributable to noncontrolling interest in consolidated entities6 — — 6 
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership2,239 — (889)(C) (ii)1,350 
NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY(178,489)813 69,961 (109,341)
Preferred dividends(15,921)— — (15,921)
Deemed dividends on redeemable preferred stock(2,673)— — (2,673)
Gain (loss) on extinguishment of preferred stock3,390 — — 3,390 
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS$(193,693)$813 $69,961 $(124,545)
INCOME (LOSS) PER SHARE - BASIC:
Net income (loss) attributable to common stockholders$(5.61)$(3.61)
Weighted average common shares outstanding—basic34,523 34,523 
INCOME (LOSS) PER SHARE - DILUTED:
Net income (loss) attributable to common stockholders$(5.61)$(3.61)
Weighted average common shares outstanding—diluted34,523 34,523 

See accompanying notes.


ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
Three Months Ended March 31, 2024
(in thousands, except share and per share amounts)
Ashford Trust Consolidated
Historical (A)		Hotel Group (B)AdjustmentsAshford Trust
Consolidated
Pro Forma
REVENUE
Rooms$229,207 $2,946 $— $226,261 
Food and beverage57,358 1,871 — 55,487 
Other hotel revenue16,692 807 — 15,885 
Total hotel revenue303,257 5,624 — 297,633 
Other639 — — 639 
Total revenue303,896 5,624 — 298,272 
EXPENSES
Hotel operating expenses:
Rooms54,680 680 — 54,000 
Food and beverage37,831 1,125 — 36,706 
Other expenses106,826 1,494 — 105,332 
Management fees11,550 165 — 11,385 
Total hotel expenses210,887 3,464 — 207,423 
Property taxes, insurance and other17,364 313 — 17,051 
Depreciation and amortization40,544 277 — 40,267 
Advisory services fee15,201 — — 15,201 
Corporate, general and administrative8,272 — — 8,272 
Total operating expenses292,268 4,054 — 288,214 
Gain (loss) on disposition of assets and hotel properties6,956 — — 6,956 
Gain (loss) on derecognition of assets133,909 — — 133,909 
OPERATING INCOME (LOSS)152,493 1,570 — 150,923 
Equity in earnings (loss) of unconsolidated entities(534)— — (534)
Interest income1,984 — — 1,984 
Other income (expense)36 — — 36 
Interest expense and amortization of discounts and loan costs(73,961)(1,252)— (72,709)
Interest expense associated with hotels in receivership(12,098)— — (12,098)
Write-off of premiums, loan costs and exit fees(18)— — (18)
Gain (loss) on extinguishment of debt45 — — 45 
Realized and unrealized gain (loss) on derivatives4,761 — — 4,761 
INCOME (LOSS) BEFORE INCOME TAXES72,708 318 — 72,390 
Income tax (expense) benefit(303)— — (303)
NET INCOME (LOSS)72,405 318 — 72,087 
(Income) loss attributable to noncontrolling interest in consolidated entities9 — — 9 
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership(853)— 4 (C) (ii)(849)
NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY71,561 318 4 71,247 
Preferred dividends(5,011)— — (5,011)
Deemed dividends on redeemable preferred stock(682)— — (682)
Gain (loss) on extinguishment of preferred stock1,573 — — 1,573 
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS$67,441 $318 $4 $67,127 
Income (loss) per share – basic:
Income (loss) attributable to common stockholders$1.74 $1.74 
Weighted average common shares outstanding—basic38,458 38,458 
Income (loss) per share – diluted:
Income (loss) attributable to common stockholders$0.60 $0.60 
Weighted average common shares outstanding—diluted116,729 116,729 

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 and the historical consolidated statement of operations of Ashford Trust for the three months ended March 31, 2024, as reported in its Quarterly Report on Form 10-Q, filed on May 9, 2024.
(B)Represents the removal of the historical consolidated statements of operations of One Ocean for the year ended December 31, 2023, and the three months ended March 31, 2024.
(C)Represents adjustments for the Company’s sale of One Ocean, which includes: (i) the estimated non-recurring gain on the disposition of One Ocean for the year ended December 31, 2023 and (ii) the net (income) loss allocated to redeemable noncontrolling interests in operating partnership related to the disposition of One Ocean, including the estimated non-recurring gain for the year ended December 31, 2023, based on an ownership percentage of 1.27% for the year ended December 31, 2023 and 1.25% for the three months ended March 31, 2024. There is no estimated tax effect of the hotel no longer being part of the consolidated group for the year ended December 31, 2023 and the three months ended March 31, 2024. The pro forma gain resulting from the disposition of One Ocean is preliminary. The actual results may differ from the amounts reflected in the pro forma financial statements.