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]

Core Insights - Ashford Hospitality Trust has implemented several revenue-focused initiatives as part of the "GRO AHT" plan, aiming for $50 million in EBITDA growth and enhanced shareholder value [1][3] - The initiatives are projected to generate over $3 million in incremental hotel EBITDA annually, with additional initiatives in progress [2][3] Revenue Initiatives - Comprehensive Menu Engineering Analysis to optimize food and beverage offerings for increased profitability and guest satisfaction [6] - Modifications to parking agreements to streamline operations and enhance revenue [6] - Refreshing gift shop and corner store selections to better align with guest preferences and improve profitability [6] - Implementation of historic preservation fees to capture additional revenue opportunities in applicable markets [6] Financial Performance - In December, RevPAR increased by over 4% year-over-year, while total revenue growth was nearly double, highlighting the effectiveness of the ancillary revenue initiatives [3]

Core Viewpoint - Ashford Hospitality Trust, Inc. has announced the tax reporting information for its 2024 distributions on various series of preferred shares, detailing the income tax treatment applicable to each distribution [1][2]. Distribution Details - The preferred distributions paid on January 16, 2024, to stockholders of record as of December 29, 2023, are reportable in 2024, while those paid on January 15, 2025, to stockholders of record as of December 31, 2024, will be reportable in 2025 [2]. Series D Preferred Stock - Total Cash Per Share: $2.1124 - Ordinary Taxable Dividend: $0.0000 - Capital Gain Distribution: $0.9383 (44.42%) - Return of Capital: $1.1741 (55.58%) [3] Series F Preferred Stock - Total Cash Per Share: $1.8436 - Ordinary Taxable Dividend: $0.0000 - Capital Gain Distribution: $0.8189 (44.42%) - Return of Capital: $1.0247 (55.58%) [4] Series G Preferred Stock - Total Cash Per Share: $1.8436 - Ordinary Taxable Dividend: $0.0000 - Capital Gain Distribution: $0.8189 (44.42%) - Return of Capital: $1.0247 (55.58%) [5] Series H Preferred Stock - Total Cash Per Share: $1.8750 - Ordinary Taxable Dividend: $0.0000 - Capital Gain Distribution: $0.8329 (44.42%) - Return of Capital: $1.0421 (55.58%) [6] Series I Preferred Stock - Total Cash Per Share: $1.8750 - Ordinary Taxable Dividend: $0.0000 - Capital Gain Distribution: $0.8329 (44.42%) - Return of Capital: $1.0421 (55.58%) [7] Series J Preferred Stock - Total Cash Per Share: $2.0000 - Ordinary Taxable Dividend: $0.0000 - Capital Gain Distribution: $0.8884 (44.42%) - Return of Capital: $1.1116 (55.58%) [8] Series K Preferred Stock - Total Cash Per Share: $2.0792 - Ordinary Taxable Dividend: $0.0000 - Capital Gain Distribution: $0.9236 (44.42%) - Return of Capital: $1.1556 (55.58%) [9] Company Overview - Ashford Hospitality Trust is a real estate investment trust (REIT) focused on investing predominantly in upper upscale, full-service hotels [16].

Core Viewpoint - Ashford Hospitality Trust has successfully sold the 315-room Courtyard Boston Downtown for $123.0 million, which is approximately $390,500 per key, indicating a strategic move to enhance financial stability and reduce debt [1][2]. Company Summary - The sale of the Courtyard Boston Downtown will help deleverage the company's BAML Highland Pool loan and lead to significant capital expenditure savings in the future [2]. - The company is experiencing improved sentiment in transaction and financing markets, which is reflected in strong revenue growth achieved in December [2]. - Ashford Hospitality Trust operates as a real estate investment trust (REIT) primarily focused on upper upscale, full-service hotels [2].

Core Points - Ashford Hospitality Trust, Inc. declared multiple dividends for its preferred stocks for the first quarter ending March 31, 2025 [1][2][3][4][5][6][7] - The dividends are payable on April 15, 2025, to stockholders of record as of March 31, 2025 [1][2][3][4][5][6][7] - The company focuses on investing predominantly in upper upscale, full-service hotels [8] Dividend Details - Series D Cumulative Preferred Stock: $0.5281 per diluted share [1] - Series F Cumulative Preferred Stock: $0.4609 per diluted share [2] - Series G Cumulative Preferred Stock: $0.4609 per diluted share [2] - Series H Cumulative Preferred Stock: $0.46875 per diluted share [3] - Series I Cumulative Preferred Stock: $0.46875 per diluted share [3] - Series J Redeemable Preferred Stock: $0.16667 per share monthly [4] - Series K Redeemable Preferred Stock: $0.17500 per share monthly for specific CUSIPs [5] - Series K Redeemable Preferred Stock: $0.17292 per share monthly for other CUSIPs [6] - Series K Redeemable Preferred Stock: $0.17083 per share monthly for remaining CUSIPs [7] Share Information - As of December 31, 2024, there were 6,799,638 shares of Series J Redeemable Preferred Stock and 601,175 shares of Series K Redeemable Preferred Stock issued and outstanding [8]

Core Insights - Ashford Hospitality Trust expects an occupancy rate of approximately 66% for Q4 2024, with an Average Daily Rate (ADR) of about $190, leading to a Revenue Per Available Room (RevPAR) of approximately $126, reflecting a 3.0% increase compared to Q4 2023 [1] - The company reported a 4.4% increase in total hotel revenue for Q4 2024 and a 6.9% increase in December 2024 [3] Revenue Performance - For October 2024, Comparable RevPAR increased by approximately 4.5% compared to October 2023 [2] - For November 2024, Comparable RevPAR saw a modest increase of approximately 0.4% versus November 2023 [2] - December 2024 recorded a Comparable RevPAR increase of approximately 3.8% compared to December 2023 [2] Strategic Initiatives - The company is focusing on growing ancillary revenue streams through the GRO AHT initiative, which is already yielding impressive results [3] - The company plans to close its offering of Series J and Series K non-traded preferred stock on March 31, 2025, having raised approximately $185 million since the launch in 2022 [3]