Ashford Hospitality Trust(AHT) - 2025 Q2 - Quarterly Report

Financial Performance - Total revenue for the three months ended June 30, 2025, was $302,001, a decrease of $14,481 compared to $316,482 in 2024, representing a decline of approximately 4.6%[253] - Net income attributable to the Company for the three months ended June 30, 2025, was a loss of $30,396, a decrease of $80,650 from a net income of $50,254 in 2024, reflecting a significant decline of 160%[257] - RevPAR for the three months ended June 30, 2025, was $144.08, down from $149.34 in 2024, indicating a decrease of approximately 2.0%[254] - Occupancy rate for the three months ended June 30, 2025, was 75.23%, slightly up from 74.87% in 2024, showing an increase of 0.36 percentage points[254] - ADR for the three months ended June 30, 2025, was $191.51, down from $199.48 in 2024, representing a decrease of approximately 4.9%[254] - Operating income for the three months ended June 30, 2025, was $49,296, a decrease of $86,206 from $135,502 in 2024, indicating a decline of approximately 63.7%[253] - The company reported impairment charges of $1,447 for the three months ended June 30, 2025, compared to no impairment charges in 2024[253] - Interest expense for the three months ended June 30, 2025, was $70,687, an increase of $2,271 from $68,416 in 2024, reflecting an increase of approximately 3.3%[253] - Rooms revenue from hotel properties decreased by $16.4 million, or 6.7%, to $227.2 million in the 2025 quarter compared to the 2024 quarter[258] - Food and beverage revenue increased by $76,000, or 0.1%, to $55.3 million in the 2025 quarter compared to the 2024 quarter[259] - Other hotel revenue increased by $2.1 million, or 12.2%, to $19.0 million in the 2025 quarter compared to the 2024 quarter[260] - Total hotel expenses for the three months ended June 30, 2025, were $198,830, a decrease of $8,615 compared to $207,445 in 2024, reflecting a reduction of approximately 4.1%[253] - EBITDA for the six months ended June 30, 2025, was $176,764 thousand, a decrease from $371,868 thousand in the same period of 2024[344] - Adjusted EBITDAre for the three months ended June 30, 2025, was $73,832 thousand, compared to $78,658 thousand for the same period in 2024[344] - FFO available to common stockholders and OP unitholders for the three months ended June 30, 2025, was $(21,117) thousand, compared to $(16,971) thousand for the same period in 2024[347] - Net income (loss) attributable to the Company changed from net income of $121.8 million for the six months ended June 30, 2024, to a net loss of $50.4 million for the six months ended June 30, 2025[281] Asset Management - As of June 30, 2025, the company's portfolio consisted of 67 consolidated operating hotel properties, totaling 16,736 rooms[229] - The company focuses on owning predominantly full-service hotels in the upper upscale segment, with RevPAR generally less than twice the national average[230] - The company maintains a diverse portfolio across multiple states, including Texas, Florida, Virginia, and Maryland[348] - The total number of owned rooms represents a significant asset base for the company[348] - The company continues to focus on expanding its hotel portfolio in key markets[348] - Future strategies may include further acquisitions or developments to enhance market presence[348] - The company has a total of 17,329 rooms across its properties, with 17,196 rooms owned[350] - The company entered into a franchise agreement to convert the Le Pavillon in New Orleans to a Tribute Portfolio property, completed in November 2024[350] - The company also converted the La Concha Key West Hotel to an Autograph Collection property, completed in December 2024[350] - The Renaissance Palm Springs property has 410 rooms, fully owned by the company[350] - The Hilton Marietta property has 200 rooms, fully owned by the company[350] - The company has a total of 100% ownership in several properties, including the Renaissance Palm Springs and Hilton Marietta[350] Financing Activities - The company successfully extended its Morgan Stanley Pool mortgage loan secured by 17 hotels, with a current balance of $409.8 million, bearing interest at SOFR + 3.39%[239] - The company extended its Highland mortgage loan secured by 18 hotels, with a principal paydown of $10.0 million and a new maturity date of January 9, 2026, bearing interest at SOFR + 4.13%[245] - The company executed a Promissory Note with Ashford LLC allowing for up to $20 million in cash to fund Permitted Costs, with an interest rate of 10.0%[247] - 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%[320] - The company is in discussions regarding a multi-year extension of a $22.1 million non-recourse mortgage loan that reached final maturity on March 6, 2025[322] - As of June 30, 2025, the company's total indebtedness is $2.7 billion, with $2.6 billion being variable-rate debt[353] - A 25-basis point change in interest rates on the variable-rate debt would impact annual results by approximately $6.5 million[353] - The company has interest rate caps in place to limit exposure to interest rate fluctuations[353] - The remaining $105.2 million of fixed-rate debt is unaffected by interest rate changes[353] Cash Flow and Investments - For the six months ended June 30, 2025, net cash flows used in operating activities were $8.6 million, compared to $38.5 million for the same period in 2024[331] - Net cash flows provided by investing activities for the six months ended June 30, 2025, were $105.8 million, primarily from asset dispositions totaling $126.4 million[332] - 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[318] Tax and Regulatory Considerations - The company is assessing the impact of the One Big Beautiful Bill Act on its effective tax rate and cash tax position, but does not expect a material impact on its consolidated financial statements[244] Shareholder Returns - The company has a stock repurchase program approved for up to $200 million, although no shares have been repurchased yet[327] - As of August 12, 2025, the company issued approximately 813,000 shares of common stock for gross proceeds of approximately $10.9 million under the Virtu Equity Distribution Agreement[327] - The company anticipates not paying any dividends on its common stock for 2025, while expecting to pay dividends on preferred stock[337]