Core Viewpoint - Ashford Inc. announces the planned retirement of Chief Financial Officer Deric Eubanks after a 23-year career, effective March 31, 2026, with a commitment to ensure a smooth transition until June 30, 2026 [1] Group 1: Leadership Transition - Deric Eubanks will step down as CFO and Treasurer, continuing as Senior Managing Director to assist with financial and transitional matters until June 30, 2026 [1] - Justin Coe, the current Chief Accounting Officer, will take over as Principal Financial Officer of the Company and its advised REITs after Eubanks' departure [1] Group 2: Contributions and Commitment - Monty Bennett, Chairman of Ashford, highlights Eubanks' integral role since the launch of Ashford Hospitality Trust in 2003 and his unwavering commitment to the company's strategic processes [1] - Eubanks expresses pride in the team's accomplishments and emphasizes his focus on supporting the sale process for Braemar and ongoing asset dispositions at Ashford Trust until his retirement [1]

Core Viewpoint - Ashford Hospitality Trust mourns the loss of board member Davinder "Sonny" Sra, who passed away on February 25, 2026, highlighting his significant contributions to the company and the hospitality industry [1]. Group 1: Company Overview - Ashford Hospitality Trust, Inc. is a real estate investment trust (REIT) primarily focused on investing in upper upscale, full-service hotels [1]. Group 2: Board Member Contributions - Sonny Sra joined the Ashford Hospitality Trust Board of Directors in July 2023 as an independent director, bringing 25 years of operational hospitality experience [1]. - His institutional knowledge and efforts were crucial in guiding the company through challenging times in the hospitality sector [1]. - The executive chairman, Monty Bennett, emphasized Sra's unmatched passion for the industry and his positive impact on colleagues and the organization [1].

Group 1 - The article discusses the investment strategies led by Rida Morwa, focusing on high-yield investments with a targeted safe yield of over 9% [1] - The service provided by the Investing Group High Dividend Opportunities includes a model portfolio with buy/sell alerts, preferred and baby bond portfolios, and regular market updates [1] - The philosophy of the service emphasizes community and education, advocating that investors should not invest alone [1] Group 2 - The article mentions that the contributors to High Dividend Opportunities include analysts with extensive experience in investment and commercial banking [1] - It highlights that recommendations made by the service are closely monitored, with exclusive buy and sell alerts for members [3] - The article clarifies that past performance does not guarantee future results, and no specific investment advice is provided [4]

PresentationI would now like to turn the call over to Allison Beach, Director of Public Relations. Please go ahead.Good morning, ladies and gentlemen, and thank you for standing by. My name is Kelvin, and I will be your conference operator today. At this time, I would like to welcome everyone to the Ashford Hospitality Trust Fourth Quarter 2025 Results Conference Call. [Operator Instructions]Allison BeachDirector of Public Relations Good morning, and welcome to today's conference call to review results for ...

Financial Data and Key Metrics Changes - For Q4 2025, the company reported a net loss attributable to common stockholders of $78.3 million, or $12.33 per diluted share, compared to a full year net loss of $215 million, or $35.99 per diluted share [12] - Adjusted EBITDA for Q4 was $40.4 million and $221.3 million for the full year [12] - The company ended Q4 with $2.6 billion in loans at a blended average interest rate of 7.7%, with approximately 5% fixed and 95% floating [12][13] Business Line Data and Key Metrics Changes - Comparable hotel RevPAR decreased by 1.8% in Q4 2025, primarily due to a federal government shutdown impacting demand [16] - Full year total revenue increased by 0.8%, driven by a 12.9% growth in other revenue [17] - Hotel EBITDA increased by 2.4% for the full year, with EBITDA margin expanding by over 40 basis points [17][20] Market Data and Key Metrics Changes - Government room nights declined by 27.9% in Q4 2025, significantly affecting performance in Washington, D.C., which represents over 14% of the total key count [16] - Group revenue for the full year declined by 1.1%, but excluding Washington, D.C., it increased by 1.6% [18] - The company anticipates strong group demand in 2026, supported by events like the Super Bowl and the FIFA World Cup [19][20] Company Strategy and Development Direction - The company formed a special committee to explore strategic alternatives to maximize shareholder value, including potential transactions [5] - Opportunistic dispositions will remain a core strategy in 2026, with 18 additional hotels currently being marketed or negotiated for sale [10] - The GRO AHT initiative aims to improve hotel EBITDA and overall portfolio profitability through diversified revenue generation and operational efficiency [21] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing pressures in the lodging industry, including negative RevPAR growth and margin compression, but noted positive growth in comparable total revenues and hotel EBITDA [6][7] - The company expects continued focus on performance and strategic low cap rate dispositions to strengthen the portfolio and pursue growth opportunities [11] - Management remains optimistic about the portfolio's outlook, driven by operational improvements and upcoming events [25] Other Important Information - The company completed the sale of six hotels generating approximately $145 million in proceeds, which were primarily used to pay down mortgage debt [9] - The company invested approximately $71 million in capital expenditures in 2025 and anticipates spending between $90 million and $110 million in 2026 [24] Q&A Session Summary Question: What are the expectations for group demand in 2026? - Management indicated that group demand is gaining momentum, with group room revenue pacing ahead 1% in Q1 and 3.3% in Q2 of 2026 compared to the prior year [19] Question: How is the company addressing the challenges posed by the government shutdown? - Management noted that the shutdown had a significant impact on demand, particularly in Washington, D.C., but emphasized the overall positive performance for the full year [16] Question: What is the strategy for capital expenditures moving forward? - The company plans to continue investing in capital expenditures, with a focus on enhancing competitive positioning through renovations and brand conversions [24]

Financial Data and Key Metrics Changes - For Q4 2025, the company reported a net loss attributable to common stockholders of $78.3 million, or $12.33 per diluted share, compared to a full year net loss of $215 million, or $35.99 per diluted share [12] - Adjusted EBITDA for Q4 was $40.4 million and $221.3 million for the full year [12] - The company ended Q4 with $2.6 billion in loans at a blended average interest rate of 7.7%, with approximately 5% fixed and 95% floating [12][13] Business Line Data and Key Metrics Changes - Comparable hotel RevPAR decreased by 1.8% in Q4 2025, largely due to a federal government shutdown impacting demand [15] - Full year total revenue increased by 0.8%, driven by a 12.9% growth in other revenue [17] - Hotel EBITDA increased by 2.4% for the full year, with EBITDA margin expanding by over 40 basis points [17][20] Market Data and Key Metrics Changes - Government room nights declined by 27.9% in Q4 2025, significantly affecting performance, especially in Washington, D.C., which represents over 14% of the total key count [16] - Group revenue for the full year declined by 1.1%, but excluding Washington, D.C., group room revenue increased by 1.6% [18] - The company anticipates strong group demand in 2026, supported by events like the Super Bowl and the FIFA World Cup [19][20] Company Strategy and Development Direction - The company formed a special committee to evaluate strategic alternatives to maximize shareholder value, including potential transactions [6] - Opportunistic dispositions will remain a core strategy in 2026, with ongoing sales of additional assets to improve leverage and cash flow [10] - The GRO AHT initiative aims to enhance hotel EBITDA and overall portfolio profitability through diversified revenue generation and operational efficiency [21] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing pressures in the lodging industry, including negative RevPAR growth and margin compression, but noted positive growth in comparable total revenues and hotel EBITDA for the full year [7][20] - The company expects continued focus on performance and strategic dispositions to result in a stronger portfolio and future growth opportunities [11] - Management expressed optimism about the portfolio's outlook, driven by operational improvements and upcoming events [24] Other Important Information - The company completed the sale of six hotels generating approximately $145 million in proceeds, which were primarily used to pay down mortgage debt [9] - Recent agreements to sell additional properties are expected to save $45 million in anticipated capital expenditures [9] Q&A Session Summary - No specific questions or answers were provided in the content, thus this section is not applicable.

Financial Performance - Net loss attributable to common stockholders for the fourth quarter was $(78.3) million or $(12.33) per diluted share[6] - For the full year 2025, net loss attributable to common stockholders was $(215.0) million or $(35.99) per diluted share[6] - Net income for Q4 2025 was a loss of $70,797 thousand, compared to a loss of $129,099 thousand in Q4 2024, indicating a 45% improvement year-over-year[25] - Net income for the year ended December 31, 2025, reached $157.653 million, showing a significant increase compared to the previous year[97] - Total net income for the year ended December 31, 2025, was $157,653,000, compared to $166,667,000 for the year ended December 31, 2024, reflecting a decrease of about 5.4%[87] Revenue and Occupancy - Comparable RevPAR for all hotels decreased 1.8% to $123 during the fourth quarter, driven by a 2.6% decrease in Comparable ADR and a 0.8% increase in Comparable Occupancy[6] - Total hotel revenue decreased to $258.6 million in Q4 2025 from $275.1 million in Q4 2024, a decline of 6.5%[23] - Rooms revenue for the year ended December 31, 2025, was $803,075,000, a decrease of 7.21% compared to 2024[36] - RevPAR for the year ended December 31, 2025, was $132.28, reflecting a decrease of 0.89% compared to 2024[36] - Occupancy rate for the year ended December 31, 2025, was 70.39%, an increase of 0.86% compared to 2024[36] EBITDA and Adjusted Metrics - Adjusted EBITDAre for the fourth quarter was $40.4 million[6] - EBITDA for the year ended December 31, 2025, was $249,793 thousand, down from $410,519 thousand in 2024, representing a 39% decline[25] - Comparable hotel EBITDA for Q4 2025 was $62,661,000, a decrease of 4.02% from $65,286 in Q4 2024[42] - Comparable hotel EBITDA for the same period was $75.015 million, reflecting a strong performance across various regions[99] Assets and Liabilities - Total assets decreased to $2.83 billion as of December 31, 2025, down from $3.16 billion in 2024, a reduction of 10.4%[21] - Total liabilities decreased to $3.21 billion in 2025 from $3.37 billion in 2024, a decline of 4.8%[21] - Indebtedness, net, was $2.53 billion as of December 31, 2025, compared to $2.63 billion in 2024, a decrease of 3.0%[21] Capital Expenditures and Investments - CapEx invested during the fourth quarter was $25.7 million, and $71.2 million for the full year[6][12] - The anticipated capital expenditures for 2025 include significant investments in various hotels, with a total of 9 projects planned across different quarters[76] Strategic Initiatives - The Company formed a Special Committee to evaluate strategic alternatives to maximize shareholder value, including potential transactions[7][12] - The Company signed agreements to sell three hotels, expected to generate approximately $69.5 million in gross proceeds, leading to an anticipated annual cash flow improvement of over $2 million[9] Dividends - The company did not pay a dividend on its common stock for the fourth quarter ended December 31, 2025[10] - The company declared no dividends per common share for the year ended December 31, 2025[23] Regional Performance - The total portfolio consists of 68 hotels with 16,633 rooms, generating a RevPAR of $122.71, which is a decrease of 2.3% compared to the previous year[53] - The Dallas/Ft. Worth area saw a significant RevPAR increase of 12.8% to $117.84, up from $104.51 in the previous year[53] - The Philadelphia area saw a substantial increase in revenue of 147.0%, reaching $751,000 in 2025 from $304,000 in 2024[66] Interest and Financing - Total loans as of December 31, 2025, amounted to $2.6 billion with a blended average interest rate of 7.7%, with approximately 95% being floating-rate[8] - Interest expense for the year ended December 31, 2025, totaled $11,976,000, compared to $305,361,000 in 2024, indicating a significant reduction[87] - The SOFR rate was 3.69% as of December 31, 2025[30] Impairment and Adjustments - The company reported impairment charges of $67.6 million for the year ended December 31, 2025, compared to $59.3 million in 2024[23] - Non-property adjustments for the year ended December 31, 2025, were $(14,626,000), compared to $(27,513,000) in 2024, showing an improvement[87]

Core Viewpoint - Ashford Hospitality Trust is experiencing strong buyer demand and significant market activity across its portfolio, with strategic sales aimed at deleveraging and improving cash flow [1] Group 1: Strategic Transactions - The company has entered into agreements to sell two properties and has closed on two previously disclosed transactions, indicating robust buyer interest [1] - The sale of La Posada de Santa Fe Resort & Spa is for $57.5 million, equating to $364,000 per key, with a projected capitalization rate of 5.9% after accounting for $18 million in capital expenditures [1] - The Hilton St. Petersburg Bayfront is under agreement for $96 million, or $288,000 per key, with a capitalization rate of 5.5% after anticipated capital expenditures of $23 million [1] Group 2: Closed Transactions - The company has successfully closed sales of Embassy Suites by Hilton Houston Near the Galleria and Embassy Suites by Hilton Austin Arboretum, generating $27 million in gross proceeds, or $90,000 per key [1] - These closed transactions are expected to improve annual cash flow by over $2 million and save $55.5 million in future capital expenditures based on current mortgage interest rates [1] Group 3: Company Strategy - The proceeds from these transactions are primarily aimed at retiring debt, which positions the company for long-term value creation [1] - The company emphasizes that strategic sales are a core component of its plan to reduce leverage and improve cash flow through interest expense and capital expenditure relief [1]

Group 1 - The article discusses an opportunity for investors in Ashford Hospitality Trust, Inc. to participate in a fraud investigation led by the Schall Law Firm [1] Group 2 - The investigation is focused on potential fraudulent activities within Ashford Hospitality Trust, which may have implications for its investors [1] - The Schall Law Firm is actively seeking investors who may have been affected by the alleged fraud to join the investigation [1]

Core Viewpoint - Pomerantz LLP is investigating potential securities fraud or unlawful business practices involving Ashford Hospitality Trust, Inc. and its officers or directors [1]. Group 1: Company Actions - On January 13, 2026, Ashford announced the extension of its Highland mortgage loan secured by 18 hotels and suspended preferred dividends to maintain liquidity while evaluating strategic alternatives [3]. - Following the announcement, Ashford's stock price decreased by $0.35 per share, or 8.1%, closing at $3.97 per share on the same day [3]. Group 2: Legal Context - Pomerantz LLP is recognized for its expertise in corporate, securities, and antitrust class litigation, having a long history of fighting for victims of securities fraud and corporate misconduct [4].