Ashford Hospitality Trust(US:AHT)2025-07-30 23:19Executive Summary Ashford Trust reported a Q2 2025 net loss of $(39.9) million, with 1.3% comparable total revenue growth and 'GRO AHT' initiative progress Second Quarter 2025 Financial Highlights Ashford Trust reported a Q2 2025 net loss of $(39.9) million or $(6.88) per diluted share, with 1.3% comparable total revenue growth and 2.6% Hotel EBITDA growth | Metric | Q2 2025 | Change YoY | | :-------------------------------- | :-------- | :--------- | | Comparable RevPAR | $145 | -2.2% | | Comparable ADR | - | -2.7% | | Comparable Occupancy | - | +0.5% | | Comparable Total Revenue | - | +1.3% | | Net Loss Attributable to Common Stockholders | $(39.9) million | - | | Net Loss Per Diluted Share | $(6.88) | - | | Adjusted EBITDAre | $73.8 million | - | | Adjusted FFO Per Diluted Share | $0.78 | - | | Comparable Hotel EBITDA | $91.0 million | +2.6% | | Cash and Cash Equivalents | $100.0 million | - | | Restricted Cash | $153.9 million | - | | Net Working Capital | $184.2 million | - | | Capex Invested | $19.9 million | - | - The Company accrued approximately $6.8 million of default interest on its $744 million Highland loan during the quarter, which, if eliminated post-quarter end, would have increased AFFO to $11.4 million and AFFO per diluted share to $1.933 Recent Operating Highlights Ashford Trust is advancing its 'GRO AHT' initiative for $50 million annual EBITDA improvement, extended a $409.8 million loan, and agreed to sell a hotel for $27.0 million - The "GRO AHT" initiative targets $50 million in annual run-rate EBITDA improvement, with current initiatives expected to contribute over $30 million per year4910 - The Company successfully extended its Morgan Stanley Pool mortgage loan ($409.8 million, 17 hotels) to an initial maturity in March 2026610 - A definitive agreement was signed to sell the 242-room Hilton Houston NASA Clear Lake for $27.0 million, representing a 3.2% capitalization rate on net operating income71011 Capital Structure & Debt Management As of June 30, 2025, Ashford Trust had $2.7 billion in total loans at 8.1% average interest, with 76% floating and significant 2025 maturities Capital Structure Overview As of June 30, 2025, Ashford Trust had $2.7 billion in total loans at 8.1% average interest, with 76% floating and 24% fixed | Metric | Value | | :-------------------------------- | :---------- | | Total Loans (as of June 30, 2025) | $2.7 billion | | Blended Average Interest Rate | 8.1% | | Effectively Fixed Debt | 24% | | Effectively Floating Debt | 76% | Debt Summary Total indebtedness is $2.65 billion, predominantly floating-rate (97.8%), with several loans in default as of June 30, 2025 | Indebtedness Type | Amount (in thousands) | Percentage | | :-------------------------------- | :-------------------- | :--------- | | Fixed-Rate Debt | $57,156 | 2.2% | | Floating-Rate Debt | $2,594,855 | 97.8% | | Total Indebtedness | $2,652,011 | 100.0% | | Weighted Average Interest Rate | 8.14% | - | - As of June 30, 2025, the US Bank Hilton Santa Cruz/Scotts Valley mortgage loan and the BAML Highland Pool mortgage loan were in default, accruing default interest2933 - The Company entered into a preferred equity transaction for the Renaissance Nashville property, receiving $35.0 million with a 14.00% fixed preferred equity rate30 Indebtedness by Maturity With extensions, $765.6 million of debt is due in 2025, primarily from BAML Highland Pool, and $580 million due in 2030 and thereafter | Year | Principal Due (in thousands) | | :--- | :--------------------------- | | 2025 | $765,596 | | 2026 | $325,000 | | 2027 | $47,330 | | 2028 | $508,200 | | 2029 | $423,885 | | Thereafter | $580,000 | | Total Indebtedness | $2,652,011 | - The BAML Highland Pool loan, with a balance of $743.6 million, was amended on July 30, 2025, extending its current maturity from July 2025 to January 202633 Investor Relations & Disclosures Ashford Trust will host a Q2 earnings call on July 31, 2025, using non-GAAP measures and cautioning on forward-looking statements Investor Conference Call A Q2 2025 earnings conference call is scheduled for July 31, 2025, at 11:00 a.m. ET, with replay available - Conference call scheduled for Thursday, July 31, 2025, at 11:00 a.m. ET, with replay available until August 7, 2025, and online simulcast on www.ahtreit.com[12](index=12&type=chunk)13 Non-GAAP Financial Measures Non-GAAP measures like FFO, AFFO, and EBITDA enhance operational understanding and peer comparisons, not replacing GAAP - Non-GAAP financial measures used include FFO, AFFO, EBITDA, EBITDAre, Adjusted EBITDAre, and Hotel EBITDA, which are believed to improve understanding of operational results and peer comparisons14 Forward-Looking Statements Forward-looking statements on strategy and plans are subject to risks including debt, asset sales, operating results, and market trends - Forward-looking statements are based on beliefs, assumptions, and expectations, subject to numerous risks and uncertainties, including debt repayment, asset sales, operating results, market trends, and interest rates161718 Consolidated Financial Statements As of June 30, 2025, total assets decreased to $3.06 billion, total liabilities to $3.31 billion, increasing the equity deficit, and Q2 2025 reported a net loss of $(39.9) million Consolidated Balance Sheets As of June 30, 2025, total assets decreased to $3.06 billion and liabilities to $3.31 billion, increasing the total equity deficit | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Investments in hotel properties, net | $2,243,537 | $2,319,207 | | Cash and cash equivalents | $99,965 | $112,907 | | Restricted cash | $153,870 | $99,695 | | Assets held for sale | $18,904 | $96,628 | | Total assets | $3,059,352 | $3,160,985 | | Indebtedness, net | $2,644,765 | $2,629,289 | | Total liabilities | $3,307,418 | $3,372,771 | | Total equity (deficit) | $(473,309) | $(405,835) | Consolidated Statements of Operations For Q2 2025, the Company reported a net loss of $(39.9) million, with total revenue decreasing by 4.6% year-over-year | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total revenue | $302,001 | $316,482 | $579,360 | $620,378 | | Total operating expenses | $280,146 | $269,289 | $527,028 | $572,414 | | Operating income (loss) | $87,441 | $38,552 | $6,684 | $94,397 | | Net income (loss) | $(32,439) | $50,811 | $(54,637) | $123,216 | | Net income (loss) attributable to common stockholders | $(39,943) | $44,328 | $(67,700) | $111,769 | | Net income (loss) per diluted share | $(6.88) | $2.50 | $(11.82) | $7.67 | Non-GAAP Financial Reconciliations Q2 2025 Adjusted EBITDAre was $73.8 million, a decrease from Q2 2024, and Adjusted FFO per diluted share decreased to $0.78 from $2.69 Reconciliation of Net Income (Loss) to EBITDA, EBITDAre and Adjusted EBITDAre Q2 2025 Adjusted EBITDAre was $73.8 million, down from $78.7 million in Q2 2024, due to lower net income and reduced gains on asset disposition | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income (loss) | $(32,439) | $50,811 | $(54,637) | $123,216 | | EBITDA | $83,907 | $172,190 | $176,764 | $371,868 | | EBITDAre | $68,770 | $73,024 | $119,713 | $131,837 | | Adjusted EBITDAre | $73,832 | $78,658 | $135,497 | $138,303 | Reconciliation of Net Income (Loss) to Funds From Operations (FFO) and Adjusted FFO Q2 2025 Adjusted FFO per diluted share decreased to $0.78 from $2.69 in Q2 2024, driven by net loss and lower gains | Metric (in thousands, except per share) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income (loss) attributable to common stockholders | $(39,943) | $44,328 | $(67,700) | $111,769 | | FFO available to common stockholders and OP unitholders | $(21,117) | $(16,971) | $(54,491) | $(48,872) | | Adjusted FFO available to common stockholders and OP unitholders | $4,621 | $11,792 | $(1,003) | $(1,820) | | Adjusted FFO per diluted share | $0.78 | $2.69 | $(0.17) | $(0.44) | Key Performance Indicators (KPIs) Q2 2025 comparable RevPAR for all hotels decreased 2.2% to $144.73, and for hotels not under renovation, it decreased 1.73% to $146.34 All Hotels Performance Q2 2025 comparable RevPAR for all hotels decreased 2.2% to $144.73, driven by a 2.7% ADR decrease and 0.5% occupancy increase | Metric | Q2 2025 Comparable | Q2 2024 Comparable | % Variance | | :---------------- | :----------------- | :----------------- | :--------- | | Rooms revenue (in thousands) | $222,901 | $225,337 | (1.08)% | | RevPAR | $144.73 | $147.98 | (2.20)% | | Occupancy | 75.13% | 74.78% | 0.47% | | ADR | $192.65 | $197.90 | (2.65)% | | Metric | YTD Q2 2025 Comparable | YTD Q2 2024 Comparable | % Variance | | :---------------- | :--------------------- | :--------------------- | :--------- | | Rooms revenue (in thousands) | $425,042 | $421,161 | 0.92% | | RevPAR | $138.76 | $138.29 | 0.33% | | Occupancy | 71.47% | 71.01% | 0.65% | | ADR | $194.14 | $194.75 | (0.31)% | All Hotels Not Under Renovation Performance Q2 2025 comparable RevPAR for hotels not under renovation decreased 1.73% to $146.34, with a 2.30% ADR decrease and 0.58% occupancy increase | Metric | Q2 2025 Comparable | Q2 2024 Comparable | % Variance | | :---------------- | :----------------- | :----------------- | :--------- | | Rooms revenue (in thousands) | $218,565 | $219,827 | (0.57)% | | RevPAR | $146.34 | $148.91 | (1.73)% | | Occupancy | 75.49% | 75.05% | 0.58% | | ADR | $193.86 | $198.41 | (2.30)% | | Metric | YTD Q2 2025 Comparable | YTD Q2 2024 Comparable | % Variance | | :---------------- | :--------------------- | :--------------------- | :--------- | | Rooms revenue (in thousands) | $416,024 | $410,894 | 1.25% | | RevPAR | $140.04 | $139.17 | 0.62% | | Occupancy | 71.82% | 71.31% | 0.71% | | ADR | $194.98 | $195.16 | (0.09)% | Hotel Financial Performance Q2 2025 comparable total hotel revenue increased 1.30% to $297.1 million, Hotel EBITDA grew 2.60% to $91.0 million, with strong RevPAR growth in key markets Overall Hotel Net Income (Loss) & EBITDA Q2 2025 comparable total hotel revenue increased 1.30% to $297.1 million, and comparable hotel EBITDA grew 2.60% to $91.0 million | Metric (in thousands) | Q2 2025 Comparable | Q2 2024 Comparable | % Variance | | :-------------------------------- | :----------------- | :----------------- | :--------- | | Total hotel revenue | $297,143 | $293,342 | 1.30% | | Hotel net income (loss) | $57,359 | $51,079 | 12.29% | | Hotel net income (loss) margin | 19.30% | 17.41% | 1.89% | | Hotel EBITDA | $91,019 | $88,710 | 2.60% | | Hotel EBITDA margin | 30.63% | 30.24% | 0.39% | | Metric (in thousands) | YTD Q2 2025 Comparable | YTD Q2 2024 Comparable | % Variance | | :-------------------------------- | :--------------------- | :--------------------- | :--------- | | Total hotel revenue | $569,914 | $556,592 | 2.39% | | Hotel net income (loss) | $93,622 | $83,773 | 11.76% | | Hotel net income (loss) margin | 16.43% | 15.05% | 1.38% | | Hotel EBITDA | $168,169 | $159,718 | 5.29% | | Hotel EBITDA margin | 29.51% | 28.70% | 0.81% | Hotel Net Income (Loss) & EBITDA for Hotels Not Under Renovation Q2 2025 comparable total hotel revenue for hotels not under renovation increased 1.73% to $292.2 million, with EBITDA growing 3.53% to $89.9 million | Metric (in thousands) | Q2 2025 Comparable | Q2 2024 Comparable | % Variance | | :-------------------------------- | :----------------- | :----------------- | :--------- | | Total hotel revenue | $292,195 | $287,212 | 1.73% | | Hotel net income (loss) | $57,533 | $50,172 | 14.67% | | Hotel net income (loss) margin | 19.69% | 17.47% | 2.22% | | Hotel EBITDA | $89,923 | $86,856 | 3.53% | | Hotel EBITDA margin | 30.77% | 30.24% | 0.53% | | Metric (in thousands) | YTD Q2 2025 Comparable | YTD Q2 2024 Comparable | % Variance | | :-------------------------------- | :--------------------- | :--------------------- | :--------- | | Total hotel revenue | $559,667 | $545,138 | 2.67% | | Hotel net income (loss) | $92,920 | $82,375 | 12.80% | | Hotel net income (loss) margin | 16.60% | 15.11% | 1.49% | | Hotel EBITDA | $165,537 | $156,392 | 5.85% | | Hotel EBITDA margin | 29.58% | 28.69% | 0.89% | Hotel Revenue, Net Income (Loss) & EBITDA for Trailing Twelve Months (TTM) TTM ended June 30, 2025, comparable total hotel revenue was $1.096 billion, with net income of $81.8 million and EBITDA of $300.4 million | Metric (in thousands) | TTM Ended June 30, 2025 Comparable | | :-------------------------------- | :--------------------------------- | | Total hotel revenue | $1,095,944 | | Hotel net income (loss) | $81,824 | | Hotel net income (loss) margin | 7.47% | | Hotel EBITDA | $300,350 | | Hotel EBITDA margin | 27.41% | Hotel RevPAR by Market Q2 2025 saw strong comparable RevPAR growth in Miami (+11.6%), Houston (+7.4%), and Tampa (+6.3%), with declines in Nashville and Washington D.C. | Market | Q2 2025 Comparable RevPAR | Q2 2024 Comparable RevPAR | % Variance | | :-------------------------------- | :------------------------ | :------------------------ | :--------- | | Atlanta, GA Area | $140.81 | $144.07 | (2.3)% | | Houston, TX Area | $117.64 | $109.49 | 7.4% | | Los Angeles, CA Metro Area | $154.24 | $150.03 | 2.8% | | Miami, FL Metro Area | $174.80 | $156.58 | 11.6% | | Nashville, TN Area | $246.56 | $260.93 | (5.5)% | | San Francisco - Oakland, CA Metro Area | $144.07 | $137.79 | 4.6% | | Tampa, FL Area | $144.52 | $135.91 | 6.3% | | Washington D.C. - MD - VA Area | $175.51 | $185.91 | (5.6)% | | Total Portfolio | $144.73 | $147.98 | (2.2)% | | Market | YTD Q2 2025 Comparable RevPAR | YTD Q2 2024 Comparable RevPAR | % Variance | | :-------------------------------- | :-------------------------- | :-------------------------- | :--------- | | Atlanta, GA Area | $146.13 | $140.17 | 4.3% | | Houston, TX Area | $114.63 | $103.37 | 10.9% | | Miami, FL Metro Area | $211.42 | $200.62 | 5.4% | | San Francisco - Oakland, CA Metro Area | $134.84 | $131.17 | 2.8% | | Tampa, FL Area | $171.77 | $160.66 | 6.9% | | Total Portfolio | $138.76 | $138.29 | 0.3% | Hotel Net Income (Loss) by Market Q2 2025 saw significant comparable hotel net income growth in Orlando (+972.3%), Minneapolis-St. Paul (+1,207.5%), and San Francisco-Oakland (+128.8%) | Market | Q2 2025 Comparable Net Income (in thousands) | Q2 2024 Comparable Net Income (in thousands) | % Variance | | :-------------------------------- | :----------------------------------------- | :----------------------------------------- | :--------- | | Atlanta, GA Area | $1,767 | $1,394 | 26.8% | | Houston, TX Area | $441 | $229 | 92.6% | | Los Angeles, CA Metro Area | $4,308 | $2,651 | 62.5% | | Miami, FL Metro Area | $1,503 | $1,100 | 36.6% | | Minneapolis - St. Paul, MN Area | $693 | $53 | 1,207.5% | | Orlando, FL Area | $7,388 | $689 | 972.3% | | San Francisco - Oakland, CA Metro Area | $1,160 | $507 | 128.8% | | Total Portfolio | $57,359 | $51,079 | 12.3% | | Market | YTD Q2 2025 Comparable Net Income (in thousands) | YTD Q2 2024 Comparable Net Income (in thousands) | % Variance | | :-------------------------------- | :----------------------------------------- | :----------------------------------------- | :--------- | | Houston, TX Area | $1,153 | $331 | 248.3% | | Los Angeles, CA Metro Area | $8,881 | $7,097 | 25.1% | | Miami, FL Metro Area | $5,604 | $5,221 | 7.3% | | Minneapolis - St. Paul, MN Area | $(402) | $(1,235) | 67.4% | | Orlando, FL Area | $9,458 | $2,441 | 287.5% | | San Francisco - Oakland, CA Metro Area | $1,286 | $726 | 77.1% | | Total Portfolio | $93,622 | $83,773 | 11.8% | Hotel EBITDA by Market Q2 2025 saw strong comparable hotel EBITDA growth in Minneapolis-St. Paul (+67.5%), Miami (+30.9%), and Houston (+26.2%), with declines in Nashville and Philadelphia | Market | Q2 2025 Comparable EBITDA (in thousands) | Q2 2024 Comparable EBITDA (in thousands) | % Variance | | :-------------------------------- | :--------------------------------------- | :--------------------------------------- | :--------- | | Atlanta, GA Area | $4,091 | $4,003 | 2.2% | | Houston, TX Area | $2,546 | $2,017 | 26.2% | | Los Angeles, CA Metro Area | $5,498 | $4,862 | 13.1% | | Miami, FL Metro Area | $2,939 | $2,245 | 30.9% | | Minneapolis - St. Paul, MN Area | $1,479 | $883 | 67.5% | | Nashville, TN Area | $10,208 | $11,058 | (7.7)% | | San Francisco - Oakland, CA Metro Area | $3,685 | $3,055 | 20.6% | | Total Portfolio | $91,019 | $88,710 | 2.6% | | Market | YTD Q2 2025 Comparable EBITDA (in thousands) | YTD Q2 2024 Comparable EBITDA (in thousands) | % Variance | | :-------------------------------- | :--------------------------------------- | :--------------------------------------- | :--------- | | Atlanta, GA Area | $9,136 | $7,975 | 14.6% | | Houston, TX Area | $4,926 | $3,786 | 30.1% | | Los Angeles, CA Metro Area | $12,320 | $11,483 | 7.3% | | Miami, FL Metro Area | $8,497 | $7,448 | 14.1% | | Minneapolis - St. Paul, MN Area | $1,116 | $379 | 194.5% | | San Francisco - Oakland, CA Metro Area | $6,403 | $5,873 | 9.0% | | Total Portfolio | $168,169 | $159,718 | 5.3% | Total Enterprise Value As of June 30, 2025, Ashford Trust's total enterprise value (TEV) was $2.864 billion, comprising market capitalization, preferred stock, indebtedness, and net working capital | Metric (in thousands, except share price) | June 30, 2025 | | :---------------------------------------- | :------------ | | Common stock shares outstanding | 5,909 | | Common stock price | $6.02 | | Market capitalization | $36,301 | | Total Preferred Stock (sum of Series D-M) | $373,893 | | Indebtedness | $2,652,011 | | Net working capital | $184,193 | | Total enterprise value (TEV) | $2,864,020 | Capital Expenditures Nine hotels are identified for significant capital expenditures in 2025, potentially causing displacement, with spending planned across all four quarters | Hotel | Rooms | Q1 2025 Actual | Q2 2025 Actual | Q3 2025 Estimated | Q4 2025 Estimated | | :-------------------------------- | :---- | :------------- | :------------- | :---------------- | :---------------- | | Courtyard Bloomington | 117 | x | x | | x | | Embassy Suites Palm Beach | 160 | x | | | | | Hampton Inn Evansville | 140 | x | x | | | | Hilton Garden Inn Austin Downtown | 254 | | x | x | | | Hilton Garden Inn Virginia Beach | 176 | | | | x | | Residence Inn Evansville | 78 | x | | | x | | Sheraton Anchorage | 370 | | | | x | | Sheraton Misson Valley | 260 | | | | x | | Westin Princeton | 296 | | | | x | | Total Hotels with Capex | - | 4 | 3 | 1 | 6 | Detailed Hotel EBITDA Reconciliations This section details reconciliations of net income (loss) to Hotel EBITDA across periods, markets, and hotel pools, highlighting depreciation and non-comparable adjustments Reconciliation of Net Income (Loss) to Hotel EBITDA (TTM Ended June 30, 2025) TTM ended June 30, 2025, comparable hotel EBITDA was $300.4 million, derived from $122.2 million net income after various adjustments | Metric (in thousands) | TTM Ended June 30, 2025 | | :--------------------------------------- | :---------------------- | | Net income (loss) | $122,240 | | Depreciation and amortization | $147,465 | | Hotel EBITDA including noncontrolling interest | $312,000 | | Non-comparable adjustments | $(11,650) | | Comparable hotel EBITDA | $300,350 | Reconciliation of Net Income (Loss) to Hotel EBITDA (Three Months Ended June 30, 2025) Q2 2025 comparable hotel EBITDA was $91.0 million, calculated from $57.6 million hotel net income, with $89.9 million from hotels not under renovation | Metric (in thousands) | Hotel Properties Not Under Renovation | Hotel Properties Under Renovation | Hotel Total | | :--------------------------------------- | :------------------------------------ | :-------------------------------- | :---------- | | Net income (loss) | $57,735 | $(174) | $57,561 | | Depreciation and amortization | $34,005 | $1,223 | $35,228 | | Hotel EBITDA including noncontrolling interest | $91,183 | $1,096 | $92,279 | | Non-comparable adjustments | $(1,260) | — | $(1,260) | | Comparable hotel EBITDA | $89,923 | $1,096 | $91,019 | Reconciliation of Net Income (Loss) to Hotel EBITDA (Three Months Ended March 31, 2025) Q1 2025 comparable hotel EBITDA was $77.2 million, derived from $69.1 million total hotel net income after various adjustments | Metric (in thousands) | Hotel Total | | :--------------------------------------- | :---------- | | Net income (loss) | $69,126 | | Depreciation and amortization | $37,290 | | Hotel EBITDA including noncontrolling interest | $78,473 | | Non-comparable adjustments | $(1,323) | | Comparable hotel EBITDA | $77,150 | Reconciliation of Net Income (Loss) to Hotel EBITDA (Three Months Ended December 31, 2024) Q4 2024 comparable hotel EBITDA was $65.5 million, derived from $(37.1) million total hotel net loss after significant adjustments | Metric (in thousands) | Hotel Total | | :--------------------------------------- | :---------- | | Net income (loss) | $(37,125) | | Depreciation and amortization | $37,256 | | Hotel EBITDA including noncontrolling interest | $69,415 | | Non-comparable adjustments | $(3,897) | | Comparable hotel EBITDA | $65,518 | Reconciliation of Net Income (Loss) to Hotel EBITDA (Three Months Ended September 30, 2024) Q3 2024 comparable hotel EBITDA was $66.7 million, derived from $32.7 million total hotel net income after various adjustments | Metric (in thousands) | Hotel Total | | :--------------------------------------- | :---------- | | Net income (loss) | $32,678 | | Depreciation and amortization | $37,691 | | Hotel EBITDA including noncontrolling interest | $71,833 | | Non-comparable adjustments | $(5,170) | | Comparable hotel EBITDA | $66,663 | Reconciliation of Net Income (Loss) to Hotel EBITDA (Three Months Ended June 30, 2024) Q2 2024 comparable hotel EBITDA was $88.7 million, derived from $140.7 million total hotel net income after significant adjustments | Metric (in thousands) | Hotel Properties Not Under Renovation | Hotel Properties Under Renovation | Hotel Total | | :--------------------------------------- | :------------------------------------ | :-------------------------------- | :---------- | | Net income (loss) | $139,772 | $907 | $140,679 | | Depreciation and amortization | $36,231 | $908 | $37,139 | | Hotel EBITDA including noncontrolling interest | $93,280 | $1,854 | $95,134 | | Non-comparable adjustments | $(6,424) | — | $(6,424) | | Comparable hotel EBITDA | $86,856 | $1,854 | $88,710 | Reconciliation of Net Income (Loss) to Hotel EBITDA (Six Months Ended June 30, 2025) Six months ended June 30, 2025, comparable hotel EBITDA was $168.2 million, derived from $126.7 million total hotel net income after substantial adjustments | Metric (in thousands) | Hotel Properties Not Under Renovation | Hotel Properties Under Renovation | Hotel Total | | :--------------------------------------- | :------------------------------------ | :-------------------------------- | :---------- | | Net income (loss) | $125,986 | $701 | $126,687 | | Depreciation and amortization | $70,067 | $2,451 | $72,518 | | Hotel EBITDA including noncontrolling interest | $168,120 | $2,632 | $170,752 | | Non-comparable adjustments | $(2,583) | — | $(2,583) | | Comparable hotel EBITDA | $165,537 | $2,632 | $168,169 | Reconciliation of Net Income (Loss) to Hotel EBITDA (Six Months Ended June 30, 2024) Six months ended June 30, 2024, comparable hotel EBITDA was $159.7 million, derived from $171.1 million total hotel net income after significant adjustments | Metric (in thousands) | Hotel Properties Not Under Renovation | Hotel Properties Under Renovation | Hotel Total | | :--------------------------------------- | :------------------------------------ | :-------------------------------- | :---------- | | Net income (loss) | $169,715 | $1,399 | $171,114 | | Depreciation and amortization | $75,506 | $1,853 | $77,359 | | Hotel EBITDA including noncontrolling interest | $170,120 | $3,326 | $173,446 | | Non-comparable adjustments | $(13,728) | — | $(13,728) | | Comparable hotel EBITDA | $156,392 | $3,326 | $159,718 | Reconciliation of Net Income (Loss) to Hotel EBITDA by Market (Three Months Ended June 30, 2025) Q2 2025: Nashville, TN Area generated highest comparable hotel EBITDA at $10.2 million, followed by Washington D.C. - MD - VA Area at $17.6 million | Market | Comparable Hotel EBITDA (in thousands) | | :-------------------------------- | :------------------------------------- | | Atlanta, GA Area | $4,091 | | Dallas / Ft. Worth, TX Area | $6,631 | | Houston, TX Area | $2,546 | | Los Angeles, CA Metro Area | $5,498 | | Miami, FL Metro Area | $2,939 | | Nashville, TN Area | $10,208 | | Washington D.C. - MD - VA Area | $17,634 | | Other Areas | $25,027 | | Total Portfolio | $91,019 | Reconciliation of Net Income (Loss) to Hotel EBITDA by Market (Three Months Ended June 30, 2024) Q2 2024: Washington D.C. - MD - VA Area had highest comparable hotel EBITDA at $18.5 million, followed by Nashville, TN Area at $11.1 million | Market | Comparable Hotel EBITDA (in thousands) | | :-------------------------------- | :------------------------------------- | | Atlanta, GA Area | $4,003 | | Dallas / Ft. Worth, TX Area | $6,483 | | Houston, TX Area | $2,017 | | Los Angeles, CA Metro Area | $4,862 | | Miami, FL Metro Area | $2,245 | | Nashville, TN Area | $11,058 | | Washington D.C. - MD - VA Area | $18,461 | | Other Areas | $24,370 | | Total Portfolio | $88,710 | Reconciliation of Net Income (Loss) to Hotel EBITDA by Market (Six Months Ended June 30, 2025) Six months ended June 30, 2025: Washington D.C. - MD - VA Area led with $28.9 million in comparable hotel EBITDA, followed by Nashville, TN Area at $19.7 million | Market | Comparable Hotel EBITDA (in thousands) | | :-------------------------------- | :------------------------------------- | | Atlanta, GA Area | $9,136 | | Dallas / Ft. Worth, TX Area | $14,520 | | Houston, TX Area | $4,926 | | Los Angeles, CA Metro Area | $12,320 | | Miami, FL Metro Area | $8,497 | | Nashville, TN Area | $19,684 | | Washington D.C. - MD - VA Area | $28,874 | | Other Areas | $39,039 | | Total Portfolio | $168,169 | Reconciliation of Net Income (Loss) to Hotel EBITDA by Market (Six Months Ended June 30, 2024) Six months ended June 30, 2024: Washington D.C. - MD - VA Area generated highest comparable hotel EBITDA at $29.1 million, followed by Nashville, TN Area at $19.3 million | Market | Comparable Hotel EBITDA (in thousands) | | :-------------------------------- | :------------------------------------- | | Atlanta, GA Area | $7,975 | | Dallas / Ft. Worth, TX Area | $12,959 | | Houston, TX Area | $3,786 | | Los Angeles, CA Metro Area | $11,483 | | Miami, FL Metro Area | $7,448 | | Nashville, TN Area | $19,342 | | Washington D.C. - MD - VA Area | $29,091 | | Other Areas | $38,870 | | Total Portfolio | $159,718 | Reconciliation of Net Income (Loss) to Hotel EBITDA by Hotel Pool (TTM Ended June 30, 2025) TTM ended June 30, 2025: BAML Highland Pool generated highest comparable hotel EBITDA at $87.6 million, followed by BAML/Sculptor KEYS Pool at $70.5 million | Hotel Pool | Comparable Hotel EBITDA (in thousands) | | :-------------------------------- | :------------------------------------- | | BAML/Sculptor KEYS Pool - 16 hotels | $70,476 | | BAML Highland Pool - 18 hotels | $87,567 | | Morgan Stanley Pool - 17 hotels | $42,363 | | JP Morgan Chase - 8 hotels | $25,160 | | BAML Nashville - 1 hotel | $35,669 | | Torchlight Marriott Gateway - 1 hotel | $17,020 | | Total Portfolio | $300,350 | Reconciliation of Net Income (Loss) to Hotel EBITDA by Hotel Pool (Three Months Ended June 30, 2025) Q2 2025: BAML Highland Pool generated highest comparable hotel EBITDA at $25.9 million, followed by BAML/Sculptor KEYS Pool at $23.1 million | Hotel Pool | Comparable Hotel EBITDA (in thousands) | | :-------------------------------- | :------------------------------------- | | BAML/Sculptor KEYS Pool - 16 hotels | $23,141 | | BAML Highland Pool - 18 hotels | $25,932 | | Morgan Stanley Pool - 17 hotels | $11,668 | | JP Morgan Chase - 8 hotels | $7,557 | | BAML Nashville - 1 hotel | $10,208 | | Torchlight Marriott Gateway - 1 hotel | $5,608 | | Total Portfolio | $91,019 | Reconciliation of Net Income (Loss) to Hotel EBITDA by Hotel Pool (Three Months Ended March 31, 2025) Q1 2025: BAML Highland Pool generated highest comparable hotel EBITDA at $22.4 million, followed by BAML/Sculptor KEYS Pool at $16.1 million | Hotel Pool | Comparable Hotel EBITDA (in thousands) | | :-------------------------------- | :------------------------------------- | | BAML/Sculptor KEYS Pool - 16 hotels | $16,064 | | BAML Highland Pool - 18 hotels | $22,418 | | Morgan Stanley Pool - 17 hotels | $12,466 | | JP Morgan Chase - 8 hotels | $7,193 | | BAML Nashville - 1 hotel | $9,476 | | Torchlight Marriott Gateway - 1 hotel | $4,067 | | Total Portfolio | $77,150 | Reconciliation of Net Income (Loss) to Hotel EBITDA by Hotel Pool (Three Months Ended December 31, 2024) Q4 2024: BAML Highland Pool generated highest comparable hotel EBITDA at $20.9 million, followed by BAML/Sculptor KEYS Pool at $14.2 million | Hotel Pool | Comparable Hotel EBITDA (in thousands) | | :-------------------------------- | :------------------------------------- | | BAML/Sculptor KEYS Pool - 16 hotels | $14,226 | | BAML Highland Pool - 18 hotels | $20,927 | | Morgan Stanley Pool - 17 hotels | $9,351 | | JP Morgan Chase - 8 hotels | $4,918 | | BAML Nashville - 1 hotel | $8,515 | | Torchlight Marriott Gateway - 1 hotel | $3,435 | | Total Portfolio | $65,518 | Reconciliation of Net Income (Loss) to Hotel EBITDA by Hotel Pool (Three Months Ended September 30, 2024) Q3 2024: BAML Highland Pool generated highest comparable hotel EBITDA at $18.3 million, followed by BAML/Sculptor KEYS Pool at $17.0 million | Hotel Pool | Comparable Hotel EBITDA (in thousands) | | :-------------------------------- | :------------------------------------- | | BAML/Sculptor KEYS Pool - 16 hotels | $17,045 | | BAML Highland Pool - 18 hotels | $18,290 | | Morgan Stanley Pool - 17 hotels | $8,878 | | JP Morgan Chase - 8 hotels | $5,492 | | BAML Nashville - 1 hotel | $7,470 | | Torchlight Marriott Gateway - 1 hotel | $3,910 | | Total Portfolio | $66,663 |