Core Viewpoint - Ashford Hospitality Trust, Inc. has declared multiple dividends for its preferred stock series for the second quarter ending June 30, 2025, with payments scheduled for July 15, 2025 [1][2][3][4][5][6][7]. Dividend Announcements - The Board declared a dividend of $0.5281 per diluted share for the 8.45% Series D Cumulative Preferred Stock [1]. - A dividend of $0.4609 per diluted share was declared for both the 7.375% Series F and Series G Cumulative Preferred Stocks [2]. - The 7.50% Series H and Series I Cumulative Preferred Stocks will each receive a dividend of $0.46875 per diluted share [3]. - For the Series J Redeemable Preferred Stock, a monthly cash dividend of $0.16667 per share will be paid on three separate dates: May 15, June 16, and July 15, 2025 [4]. - The Series K Redeemable Preferred Stock has multiple CUSIPs with dividends of $0.17500, $0.17292, and $0.17083 per share scheduled for payment on the same dates as the Series J [5][6][7]. Share Information - As of March 31, 2025, there were 7,677,717 shares of Series J Redeemable Preferred Stock and 759,086 shares of Series K Redeemable Preferred Stock issued and outstanding [8].

Financial Position - As of December 31, 2024, the company owned 69 hotel properties with a total of 17,051 rooms and held interests in four additional properties representing 405 rooms[20]. - The company reported cash and cash equivalents of $112.9 million and restricted cash of $107.6 million as of December 31, 2024[24]. - The company has a deficit in stockholders' equity of approximately $419.2 million as of December 31, 2024, and has not generated current earnings from which a dividend can be paid since December 31, 2015[35]. - As of December 31, 2024, the company's outstanding indebtedness is approximately $2.7 billion, including about $2.5 billion in variable interest rate debt[92]. - The company did not pay dividends on its common stock in fiscal year 2024 and does not expect to pay dividends for the foreseeable future[59]. Investment Strategy - The company’s investment strategy focuses on upper upscale full-service hotels with revenue per available room (RevPAR) generally less than twice the U.S. national average[25]. - The company’s strategy includes the acquisition of hotel properties that are expected to be accretive to its portfolio and the disposition of non-core hotel properties[26]. - The company plans to pursue capital market activities and implement strategies to enhance long-term stockholder value, including accessing cost-effective capital through non-traded preferred securities[26]. - The company intends to selectively pursue debt financing on individual properties and debt investments to meet working capital needs and distribution requirements[33]. - Competition for hotel acquisitions is intense, which may limit suitable investment opportunities and increase costs[80]. Operational Management - The company is advised by Ashford LLC, which manages all hotel properties in its portfolio under management contracts[18]. - The company has management agreements with Remington Hospitality for 50 out of 69 hotel properties, relying on third-party managers for operations[75]. - The company has a master hotel management agreement with Remington Hospitality, which requires independent directors to approve any changes to management, potentially limiting flexibility[137]. - The company relies on Ashford LLC and its affiliates for advisory services, with approximately 101 full-time employees providing these services[41]. Competitive Landscape - The company’s principal competitors include other hotel operating companies and alternative accommodations such as home-sharing services[40]. - The hotel industry is highly competitive, with the company facing competition from other hotels and services such as home sharing companies[58]. - The performance of the lodging industry is closely linked to the general economy, with upscale and upper upscale hotels being more susceptible to revenue decreases during economic downturns[54]. Regulatory and Compliance Risks - The company believes its properties are in compliance with all material federal, state, and local ordinances regarding hazardous or toxic substances[45]. - The company must comply with franchisor standards, and failure to do so could result in loss of franchise licenses, adversely affecting operations[70]. - Changes in laws and regulations could adversely affect the company's operations and financial condition, with unpredictable impacts[89]. - The company generally does not require borrowers to obtain environmental insurance, increasing potential exposure to environmental liabilities[172]. Financial Risks - Higher interest rates have negatively impacted the company, increasing interest costs on variable-rate debt and reducing cash available for distributions[94]. - The company may incur additional debt for future hotel acquisitions and capital improvements, which could increase financial risks[95]. - The company faces risks from joint ventures due to lack of sole decision-making authority and reliance on co-venturers' financial conditions[65]. - The leveraged capital structure of hospitality entities increases exposure to adverse economic factors, potentially leading to defaults and capital loss[147]. Cybersecurity and Technology Risks - The company is increasingly dependent on information technology, facing risks from cyber-attacks and evolving privacy regulations[85]. - The company has experienced a cyber incident that resulted in potential exposure of personal information, highlighting increased privacy and information security risks[86]. Environmental and Natural Disaster Risks - Severe weather conditions and natural disasters pose risks to the company's properties, potentially leading to property damage and reduced guest visits[90]. - The presence of hazardous substances or mold in properties could lead to liability and costly remediation efforts[175]. Tax and REIT Compliance - The company must distribute at least 90% of REIT taxable income, limiting retained earnings for acquisitions and growth[78]. - The company may face penalties if transactions with TRS lessees are not conducted on arm's-length terms, potentially leading to a 100% excise tax[190]. - The company must ensure that hotel management companies qualify as "eligible independent contractors" to maintain REIT status, with ownership limits set at 35%[194]. - The company may face a 100% tax on net income from prohibited transactions, which could limit property disposals[207]. Market and Economic Risks - The health of the worldwide travel industry significantly impacts the company's financial performance, with economic downturns leading to decreased travel expenditures[104]. - The cyclical nature of the lodging industry may cause fluctuations in operating performance, with adverse changes potentially resulting in returns below expectations[112]. - The hotel business is seasonal, leading to fluctuations in financial condition and operating results, potentially requiring short-term borrowings to maintain distributions[111].

Core Points - Ashford Hospitality Trust, Inc. will release its first quarter results for the period ending March 31, 2025, after market close on May 6, 2025 [1][2] - A conference call to discuss the earnings will be held on May 7, 2025, at 11:00 a.m. ET, with a call-in number provided for participants [2] - The conference call will be available for live broadcast on the company's website, and a replay will be accessible for approximately one year [3] Company Overview - Ashford Hospitality Trust is a real estate investment trust (REIT) that primarily invests in upper upscale, full-service hotels [3]

Core Insights - Ashford Hospitality Trust is implementing strategic cost reductions through its property manager Remington to enhance Hotel EBITDA, aiming for a $50 million annual run-rate EBITDA improvement [1][2][3] - The expense reductions are projected to generate over $11 million in incremental Hotel EBITDA, contributing to a total of over $30 million per year in incremental EBITDA from various initiatives [2][3] - The company's strategic vision focuses on optimizing performance and creating long-term shareholder value, with ongoing partnerships with property managers and advisors [3][4]

Core Viewpoint - Ashford Hospitality Trust is implementing cost-saving measures to enhance EBITDA and improve financial performance as part of its "GRO AHT" initiative, aiming for a $50 million annual run-rate EBITDA improvement [1][2]. Group 1: Cost-Saving Measures - The company has reduced legal spend, accounting and consulting fees, subscriptions and dues, general office expenses, and consolidated bank fees, expecting over $4 million in annual savings from these initiatives [2]. - Combined with previously announced initiatives, these reductions are projected to deliver more than $18 million in incremental EBITDA [2]. Group 2: Strategic Initiatives - Ashford Hospitality Trust continues to collaborate with property managers and Ashford Inc. on various initiatives under the "GRO AHT" strategy, with further updates to be provided as the plan progresses [3]. - The company focuses on investing predominantly in upper-upscale, full-service hotels as part of its real estate investment trust (REIT) strategy [3].

Core Points - Ashford Hospitality Trust has approved significant reductions in board and management compensation as part of its "GRO AHT" initiative aimed at improving shareholder value and achieving $50 million in annual run-rate EBITDA improvement [1][4] - The compensation for board members has been reduced by 50%, and the board size has decreased from nine to seven members, with executive management's incentive awards also reduced by over 50% [2] - The company anticipates that these changes will generate more than $11 million in incremental EBITDA, contributing to its financial discipline and operational efficiency [2] - Alongside these changes, the implementation of ancillary revenue initiatives is expected to yield an additional $14 million in incremental EBITDA towards the $50 million target [3] - The strategic vision of the company focuses on optimizing performance, enhancing financial results, and creating long-term shareholder value [4] - Ashford Hospitality Trust primarily invests in upper-upscale, full-service hotels as a real estate investment trust (REIT) [5]

Financial Data and Key Metrics Changes - For Q4 2024, the company reported a net loss attributable to common stockholders of $131.1 million or $23.83 per diluted share, compared to a net loss of $82.5 million or $17.54 per diluted share for the full year [24] - Adjusted EBITDAre for Q4 was $45.2 million and $235.9 million for the full year [24] - The company ended the quarter with cash and cash equivalents of $112.9 million and restricted cash of $107.6 million [31] Business Line Data and Key Metrics Changes - Comparable RevPAR growth was 3.1% for Q4, with total revenue growth of 4.6% and hotel EBITDA growth of 6.2% [8] - Group room revenue increased by 5% over the prior year period, with a notable 22% increase at Embassy Suites Crystal City [35][38] - The La Concha Hotel conversion is expected to achieve a 20% to 30% RevPAR premium, while La Pavillion Hotel is already exceeding expectations with over 45% year-over-year revenue growth in January [11][13] Market Data and Key Metrics Changes - The company noted strong demand across key markets, with group dynamics and corporate transient demand improving [35] - The transaction environment is showing signs of improvement, with a 6.9% trailing cap rate indicating the intrinsic value of the portfolio [16] Company Strategy and Development Direction - The company is focused on the "Grow AHT" initiative aimed at driving EBITDA growth and improving shareholder value through G&A reduction, revenue maximization, and operational efficiency [18][21] - The company plans to execute several capital expenditures in 2025, with an expected spend between $95 million and $115 million to enhance the portfolio [53] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the increasingly attractive industry fundamentals and limited supply growth in the coming years [22] - The company is confident in its ability to unlock additional value and enhance shareholder returns through disciplined cost control and aggressive revenue strategies [21][50] Other Important Information - The company completed a one-for-ten reverse stock split, resulting in approximately 5.8 million fully diluted shares outstanding [33] - The Series J and Series K non-traded preferred stock offering is expected to close on March 31, 2025, having raised approximately $195 million since its launch [33] Q&A Session Summary Question: Can you quantify the benefits seen from the Grow initiative and the ramp period? - Management indicated that more than half of the initiatives are fully rolled out, with positive impacts already observed, and they remain optimistic about continued performance improvements throughout 2025 [56][57] Question: Are the converted assets stabilized, and what are the opportunities for further conversions? - Management noted that both converted hotels are outperforming expectations, with La Pavillion showing strong performance even after accounting for Super Bowl impacts, indicating additional runway for stabilization [60][62] Question: What is the current state of the transaction environment? - Management observed improvements in the financing market, leading to optimism for better transaction conditions in 2025, while remaining disciplined in their approach to asset sales [66] Question: Can you clarify the floating rate exposure and future plans regarding it? - Management explained that the increase in floating rate exposure is due to interest rate caps expiring and indicated a preference for a mix of fixed and floating rates, with a tendency towards more floating [70]

Company Overview - Ashford Hospitality Trust, Inc. is a real estate investment trust (REIT) focused on investing predominantly in upper upscale, full-service hotels [2] Loan Extension Details - The company has successfully extended its mortgage loan secured by the 141-room Hotel Indigo Atlanta Midtown in Atlanta, Georgia [1] - The original loan had a final maturity date in December 2024, which has now been extended to an initial maturity in February 2026, with a one-year extension option available, leading to a final maturity date in February 2027 [1] - The current balance of the loan is $12.3 million, with an interest rate set at a floating rate of SOFR + 2.85% [1]

Core Insights - Ashford Hospitality Trust (AHT) reported a quarterly loss of $2.21 per share, significantly worse than the Zacks Consensus Estimate of $1.56, but an improvement from a loss of $3.60 per share a year ago [1] - The company posted revenues of $275.48 million for the quarter ended December 2024, exceeding the Zacks Consensus Estimate by 4.19%, but down from $319.88 million year-over-year [2] - The stock has gained approximately 18.4% since the beginning of the year, outperforming the S&P 500's gain of 1.7% [3] Financial Performance - The FFO surprise for the latest quarter was -241.67%, following a previous quarter where the expected FFO was $0.70 per share, but the actual result was a loss of $1.71, leading to a surprise of -344.29% [1][2] - Over the last four quarters, AHT has surpassed consensus FFO estimates only once [2] Future Outlook - The sustainability of the stock's price movement will largely depend on management's commentary during the earnings call and the company's FFO outlook [3][4] - Current consensus FFO estimate for the upcoming quarter is -$1.47 on revenues of $272.3 million, and for the current fiscal year, it is $8.70 on revenues of $1.15 billion [7] Industry Context - The REIT and Equity Trust - Other industry, to which AHT belongs, is currently ranked in the bottom 46% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in estimate revisions, which could impact AHT's performance [5][6]

Financial Performance - Ashford Hospitality Trust, Inc. announced preliminary estimated occupancy for Q4 2024[5] - The average daily rate (ADR) and revenue per available room (RevPAR) results were also disclosed in the press release[5] - The press release was issued on January 13, 2025, indicating timely communication of financial performance[5] - The report includes a reference to the press release as Exhibit 99.1, which contains detailed financial results[6] - The financial results are part of the company's ongoing compliance with the Securities Exchange Act of 1934[9] Corporate Governance - The Chief Financial Officer, Deric S. Eubanks, signed the report, ensuring accountability[11] Stock Information - The company is listed on the New York Stock Exchange under the trading symbol AHT[4] - The company has multiple classes of preferred stock registered on the New York Stock Exchange[4] Business Developments - The report does not indicate any new product launches or market expansions at this time[5] - There is no mention of mergers or acquisitions in the current report[5]