Core Viewpoint - Ashford Hospitality Trust, Inc. has formed a Special Committee to explore strategic alternatives aimed at maximizing shareholder value, including potential transactions [1][2]. Company Overview - Ashford Hospitality Trust is a real estate investment trust (REIT) that primarily invests in upper upscale, full-service hotels [3]. Strategic Actions - The company has successfully executed a plan to drive significant EBITDA growth, strategically sell assets, and strengthen its balance sheet [2]. - The Board of Directors has expressed frustration over the disparity between the value of the underlying portfolio and the market value of its common stock, prompting the formation of the Special Committee to address this issue [2]. Financial Decisions - In conjunction with the formation of the Special Committee, the company has terminated the current offering of its Series L and M Non-Traded Preferred Stock and suspended redemptions for all outstanding non-traded preferred stock [2].

Core Viewpoint - Ashford Hospitality Trust has signed definitive agreements to sell three hotels, expecting to generate approximately $69.5 million in gross proceeds, which will enhance cash flow and reduce future capital expenditures [1][2]. Group 1: Sale Details - The sale of Le Pavillon, a 226-room hotel in New Orleans, is priced at $42.5 million, equating to $188,000 per key, with a capitalization rate of 2.6% based on net operating income [3]. - The Embassy Suites by Hilton Austin Arboretum and Embassy Suites by Hilton Houston Near the Galleria, totaling 300 rooms, are being sold for $27.0 million, or $90,000 per key, with expected completion in January 2026 [4]. - Adjusted for anticipated capital expenditures of $14.5 million, the combined sale price represents a 2.2% capitalization rate on net operating income [5]. Group 2: Financial Impact - The company anticipates more than $2 million in annual cash flow improvement and $14.5 million in future capital expenditure savings following the sales [1][2]. - The majority of the proceeds from the sales will be used to retire mortgage debt, thereby improving cash flow after debt service and eliminating significant future capital expenditure obligations [2]. Group 3: Company Overview - Ashford Hospitality Trust is a real estate investment trust (REIT) focused on investing predominantly in upper upscale, full-service hotels [6].

Financial Performance - Total revenue for the three months ended September 30, 2025, was $266.1 million, a decrease of $10.5 million (3.8%) compared to $276.6 million in the same period of 2024 [261]. - Total hotel expenses for the three months ended September 30, 2025, were $193.3 million, a slight decrease of $1.6 million (0.8%) from $194.8 million in 2024 [261]. - Net loss attributable to the Company for the three months ended September 30, 2025, was $60.1 million, compared to a net loss of $57.9 million in the same period of 2024, reflecting a change of $2.2 million [265]. - For the nine months ended September 30, 2025, total revenue was $845.4 million, a decrease of $51.6 million (5.8%) from $896.9 million in 2024 [261]. - The Company reported an operating income of $12.2 million for the three months ended September 30, 2025, down from $20.2 million in 2024, a decrease of $7.9 million [261]. - EBITDA for the nine months ended September 30, 2025, was $221.7 million, a decrease from $428.4 million in the same period of 2024 [359]. - Adjusted EBITDAre for the nine months ended September 30, 2025, was $180.9 million, compared to $190.9 million for the same period in 2024 [359]. - Net income for the three months ended September 30, 2025, was $(62,725) thousand, compared to $(59,128) thousand for the same period in 2024, indicating a year-over-year decline of approximately 4.4% [362]. - Funds from Operations (FFO) available to common stockholders and OP unitholders for the nine months ended September 30, 2025, was $(98,464) thousand, compared to $(86,022) thousand for the same period in 2024, reflecting a decrease of about 14.4% [362]. - Adjusted FFO available to common stockholders and OP unitholders for the three months ended September 30, 2025, was $(17,617) thousand, compared to $(8,793) thousand for the same period in 2024, representing a decline of approximately 100% [362]. Revenue Breakdown - Rooms revenue from hotel properties decreased by $11.0 million, or 5.2%, to $201.9 million in the 2025 quarter compared to the 2024 quarter, primarily due to a decrease from hotel dispositions and comparable hotel properties [266]. - Food and beverage revenue decreased by $462,000, or 1.0%, to $45.9 million in the 2025 quarter, mainly due to a decrease in sales from hotel dispositions [267]. - Other hotel revenue increased by $1.2 million, or 7.0%, to $17.8 million in the 2025 quarter, driven by increases from comparable hotel properties and the Le Méridien Opening [268]. - Rooms revenue decreased by $50.4 million, or 7.3%, to $635.4 million in the 2025 period compared to the 2024 period, primarily due to decreases from hotel dispositions and properties in receivership [292]. - Food and beverage revenue decreased by $3.2 million, or 2.0%, to $155.8 million in the 2025 period, mainly due to decreases from hotel dispositions [293]. Operational Metrics - RevPAR for the three months ended September 30, 2025, was $127.75, down from $132.05 in 2024, indicating a decrease of 2.0% [262]. - Occupancy rate for the three months ended September 30, 2025, was 70.93%, slightly up from 70.82% in 2024 [262]. - ADR for the three months ended September 30, 2025, was $180.10, down from $186.44 in 2024, reflecting a decrease of 3.6% [262]. - The company is focusing on owning predominantly full-service hotels in the upper upscale segment in domestic markets with RevPAR generally less than twice the national average [236]. Asset Management - As of September 30, 2025, the company's portfolio consisted of 69 consolidated operating hotel properties, totaling 16,821 rooms, plus one additional property with 188 rooms through a 29.3% investment [235]. - The company sold the 150-room Residence Inn San Diego Sorrento Mesa for $42.0 million [253]. - The company entered into an agreement to sell two Embassy Suites properties for a combined purchase price of $27.0 million, with a nonrefundable deposit of $1.0 million paid on November 11, 2025 [256]. - The company recognized a gain of $133.9 million from the derecognition of hotel properties associated with the KEYS Pool A and KEYS Pool B loans [328]. - The company owns a total of 2,800 rooms across various Embassy Suites and Hilton Garden Inn properties, all of which are 100% owned [363]. - The company has a total of 13 hotel properties listed, all categorized under full-service and select-service types [363]. Debt and Financing - The company has a total indebtedness of $2.7 billion, with $2.5 billion being variable-rate debt [368]. - The company refinanced the mortgage loan for the Renaissance Hotel in Nashville, Tennessee, with a new balance of $218.1 million and a floating interest rate of SOFR + 2.26% [252]. - The company executed an Amended and Restated Master Line of Credit Promissory Note allowing it to draw up to $40 million in cash through November 15, 2026, at an annual interest rate of 10.0% [254]. - The company closed on a $580 million refinancing secured by 16 hotels, with a two-year term and a floating interest rate of SOFR + 4.37% [330][331]. - The company extended its Morgan Stanley Pool mortgage loan secured by 17 hotels, with a current balance of $409.8 million and a maturity date extended to March 2026 [334]. - Interest expense and amortization of discounts and loan costs decreased by $8.8 million, or 4.2%, to $200.4 million in 2025, mainly due to lower cash interest expense [306]. Impairment and Charges - Impairment charges were $18.4 million in the 2025 quarter, related to the New Orleans Le Pavillon Hotel due to reduced estimated future cash flows [273]. - The company reported impairment charges on real estate amounting to $19.8 million for the nine months ended September 30, 2025 [359]. - The company reported impairment charges on real estate of $18,374 thousand for the three months ended September 30, 2025 [362]. Advisory and Management - The company is advised by Ashford LLC, which manages all hotel properties in its portfolio [237]. - The company aims to preserve capital and maintain significant cash liquidity while pursuing acquisitions that are expected to be accretive to its portfolio [239]. - The company has a stock repurchase program approved for up to $200 million, with no shares repurchased to date [340]. Cash Flow and Liquidity - As of September 30, 2025, the company held cash and cash equivalents of $81.9 million and restricted cash of $166.9 million [316]. - For the nine months ended September 30, 2025, net cash flows used in operating activities were $3.2 million, a decrease from $37.7 million used in the same period in 2024 [345]. - Net cash flows provided by investing activities for the nine months ended September 30, 2025, were $133.1 million, primarily from $159.2 million in net proceeds from asset dispositions [346]. - For the nine months ended September 30, 2025, net cash flows used in financing activities were $101.6 million, primarily due to $635.0 million in debt repayments [349]. Future Outlook - The company continues to focus on full-service offerings, which represent a majority of the hotel types listed [364]. - Future growth may be supported by ongoing market expansion and potential acquisitions in high-demand areas [364]. - The company’s operational strategy emphasizes maintaining high occupancy rates across its owned properties [364].

Group 1 - The conference call is focused on reviewing the third quarter results for Ashford Hospitality Trust for 2025 and providing updates on recent developments [1] - Key executives participating in the call include Stephen Zsigray (President and CEO), Deric Eubanks (CFO), and Chris Nixon (Executive VP and Head of Asset Management) [1] Group 2 - The call includes forward-looking statements that are subject to various assumptions and uncertainties, which may lead to actual results differing from expectations [2] - The company emphasizes that these forward-looking statements are made under the safe harbor provisions of federal securities regulations [2]

Financial Data and Key Metrics Changes - The company reported a net loss attributable to common stockholders of $69 million, or $11.35 per diluted share for Q3 2025 [10] - Adjusted EBITDA RE for the quarter was $45.4 million, with a year-to-date decline in corporate-adjusted EBITDA RE of just $10.1 million despite a $65.5 million decline in total hotel revenue [6][10] - Cash and cash equivalents at the end of the quarter were $81.9 million, with restricted cash increasing by $12 million from the previous quarter [10] Business Line Data and Key Metrics Changes - Comparable hotel EBITDA grew by 2% year-over-year, while comparable hotel RevPAR decreased by 1.5% [12] - Total revenue increased by 0.2% compared to the prior year period, with ancillary revenue streams growing by approximately $1.7 million [12][16] - The company achieved a hotel EBITDA margin expansion of 46 basis points compared to the prior year period [12][16] Market Data and Key Metrics Changes - Government room nights declined approximately 18.8% during the third quarter compared to the prior year period [13] - Excluding the Washington, D.C. market, comparable hotel RevPAR was down only 0.3%, outperforming the broader U.S. upper-upscale segment [14] - Group room revenue decreased 0.4% compared to the prior year period, but increased 1.3% when excluding the Washington, D.C. market [14] Company Strategy and Development Direction - The company is focused on its GROW-AHT initiative aimed at driving $50 million in run-rate EBITDA improvement through enhanced property-level performance and cost-saving measures [5][6] - Strategic dispositions are ongoing, with recent sales generating a blended cap rate of 5.3% on trailing 12-month net operating income [8] - The company anticipates benefiting from potential interest rate cuts, with each 25 basis point cut expected to save over $6 million in annual interest expense [9] Management's Comments on Operating Environment and Future Outlook - Management expressed satisfaction with the resilient operating performance despite economic headwinds affecting RevPAR and margins [5] - The company expects strong group demand in 2026, supported by events like the FIFA World Cup, with 42% of its portfolio located in host cities [15][16] - Management remains focused on driving performance and enhancing long-term shareholder value through disciplined capital investment strategies [22] Other Important Information - The company does not anticipate reinstating a common dividend in 2025, while preferred dividends are being paid [11] - The consolidated portfolio consisted of 70 hotels with 16,876 net rooms as of September 30, 2025 [11] Q&A Session Summary - No specific questions or answers were documented in the provided content, indicating a lack of engagement during the Q&A segment [23][24]

Core Insights - Ashford Hospitality Trust (AHT) reported a quarterly loss of $2.85 per share, significantly worse than the Zacks Consensus Estimate of a loss of $1.14, and compared to a loss of $1.71 per share a year ago [1] - The company posted revenues of $266.06 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 2.83% and down from $276.6 million year-over-year [2] - The stock has underperformed, losing about 35.1% since the beginning of the year, while the S&P 500 gained 16.5% [3] Financial Performance - The quarterly report represents an FFO surprise of -150.00%, with the actual FFO being $0.78 per share compared to an expected $1.83 per share, resulting in a surprise of -57.38% [1][2] - The current consensus FFO estimate for the upcoming quarter is -$3.54 on revenues of $267.9 million, and -$3.83 on revenues of $1.12 billion for the current fiscal year [7] Market Outlook - The sustainability of the stock's price movement will depend on management's commentary during the earnings call and future FFO expectations [3][4] - The Zacks Industry Rank indicates that the REIT and Equity Trust - Other sector is currently in the top 35% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] Estimate Revisions - The estimate revisions trend for Ashford Hospitality Trust was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] - Empirical research shows a strong correlation between near-term stock movements and trends in estimate revisions, which can be tracked by investors [5]

Financial Performance - Comparable RevPAR for all hotels decreased 1.5% to $128 during the quarter, driven by a 2.2% decrease in Comparable ADR and a 0.7% increase in Comparable Occupancy[5]. - Net loss attributable to common stockholders was $(69.0) million or $(11.35) per diluted share for the quarter[5]. - Adjusted EBITDAre was $45.4 million for the quarter, while Comparable Hotel EBITDA was $68.9 million, reflecting a growth rate of 2.0% over the prior year quarter[5]. - Total hotel revenue for the three months ended September 30, 2025, was $265.676 million, a decrease of 4.9% compared to $276.018 million for the same period in 2024[25]. - Net income attributable to common stockholders for the three months ended September 30, 2025, was a loss of $69.001 million, compared to a loss of $63.151 million in the same period of 2024[25]. - Operating income for the nine months ended September 30, 2025, was $123.047 million, down from $308.167 million for the same period in 2024[25]. - Net income for the three months ended September 30, 2025, was a loss of $62.725 million, compared to a loss of $59.128 million for the same period in 2024[27]. - EBITDA for the three months ended September 30, 2025, was $44.983 million, down from $56.502 million in the prior year, representing a decrease of approximately 20.5%[27]. - Funds from Operations (FFO) available to common stockholders for the three months ended September 30, 2025, was a loss of $43.973 million, compared to a loss of $37.150 million in 2024[29]. - Adjusted FFO per diluted share available to common stockholders for the nine months ended September 30, 2025, was $(3.13), compared to $(2.32) in the same period of 2024[29]. - Total hotel revenue for Q3 2025 was $265.675 million, a decrease of 3.75% compared to $276.019 million in Q3 2024[44]. - Hotel net income for Q3 2025 was $26.634 million, down 18.50% from $32.678 million in Q3 2024[44]. - Comparable hotel net income decreased by 59.94% to $11.115 million in Q3 2025 from $27.745 million in Q3 2024[44]. - Total hotel revenue for the nine months ended September 30, 2025, was $844.271 million, a decrease of 5.68% from $895.074 million in the same period of 2024[44]. - Hotel net income for Q3 2025 was $26,634,000, compared to $57,561,000 in Q2 2025, reflecting a decrease of about 54%[50]. - Total hotel EBITDA including amounts attributable to noncontrolling interest for Q3 2025 was $68,740,000, compared to $92,279,000 in Q2 2025[82]. Cash and Debt Management - The Company ended the quarter with cash and cash equivalents of $81.9 million and restricted cash of $166.9 million[5]. - Total loans amounted to $2.6 billion with a blended average interest rate of 8.0%, with approximately 95% of the debt being floating[6]. - The company reported a total of $140.793 million in current maturity of fixed-rate debt as of September 30, 2025[31]. - Total indebtedness as of September 30, 2025, was $2.645 billion, with a weighted average interest rate of 8.03%[31]. - The company’s net working capital is reported at $(144,269,000), indicating a negative liquidity position[73]. - Interest expense associated with hotels in receivership for the nine months ended September 30, 2025, was $29.632 million, slightly down from $29.615 million in 2024[29]. - Interest expense for the nine months ended September 30, 2025, was $211.064 million, up from $235.246 million in the same period of 2024, showing a decrease of approximately 10.3%[96]. - Interest income for the nine months ended September 30, 2025, was $(1,116,000), which may affect overall profitability[106]. Asset Management and Impairment - The company reported impairment charges of $18.374 million for the three months ended September 30, 2025, compared to no impairment charges in the same period of 2024[25]. - Total assets decreased to $3.008 billion as of September 30, 2025, down from $3.161 billion as of December 31, 2024, representing a decline of 4.8%[22]. - Total liabilities decreased to $3.308 billion as of September 30, 2025, compared to $3.373 billion as of December 31, 2024, a reduction of 1.9%[22]. - The accumulated deficit increased to $2.950 billion as of September 30, 2025, from $2.812 billion as of December 31, 2024[22]. - Total stockholders' equity (deficit) was $(548.738) million as of September 30, 2025, compared to $(419.237) million as of December 31, 2024[22]. Operational Efficiency and Initiatives - The "GRO AHT" initiative aims to drive outsized EBITDA growth through G&A Reduction, Revenue Maximization, and Operational Efficiency[4]. - The company continues to focus on market expansion and optimizing hotel performance across various regions[58]. - The company is focusing on market expansion and improving operational efficiency to enhance future performance[61]. - Future outlook includes continued focus on market expansion and potential acquisitions to enhance portfolio performance and revenue growth[111]. Regional Performance - The company operates 70 hotel properties as of September 30, 2025, which were included in the comparable information[50]. - In the Atlanta, GA area, RevPAR increased by 1.4% to $134.35 from $132.52 in the same period last year[54]. - The New York/New Jersey metro area saw a significant RevPAR increase of 10.7%, reaching $116.83 compared to $105.56 in 2024[54]. - The Philadelphia, PA area experienced a RevPAR increase of 13.2%, with figures rising to $133.67 from $118.04[54]. - The San Diego, CA area reported a RevPAR decline of 12.7%, dropping to $157.32 from $180.15[54]. - The Miami, FL metro area achieved a RevPAR of $177.53, reflecting a 3.8% increase compared to $170.98 in the previous year[56]. - The Houston, TX area reported a RevPAR of $112.33, which is a 5.4% increase from $106.58 in 2024[56]. - The Atlanta, GA area reported hotel EBITDA of $14,904,000 for 2025, representing 6.2% of the total, with a year-over-year increase of 11.0% from $13,223,000 in 2024[69]. - The Washington D.C. - MD - VA area reported hotel EBITDA of $38,716,000, which is 16.2% of the total, showing a decrease of 5.0% from $40,750,000 in 2024[69]. Future Outlook - The company anticipates benefiting from short-term interest rates coming down due to its high percentage of floating-rate debt[13]. - The anticipated capital expenditures for 2025 include significant investments in hotels, with a total of 4 projects expected to incur capital expenditures in the fourth quarter[76]. - Future outlook indicates a focus on improving hotel EBITDA and managing interest expenses effectively[79].

Group 1 - The article does not provide any specific content related to a company or industry [1]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Group 1 - The article does not provide any specific content related to a company or industry [1]