Ashford Hospitality Trust(US:AHT)2025-11-13 21:04Financial 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].