Ashford Hospitality Trust(US:AHT)2022-05-05 16:00Company Overview - As of March 31, 2022, the company owned 100 consolidated hotel properties, representing a total of 22,313 rooms[175]. - The company is advised by Ashford LLC, which manages all hotel properties in its portfolio[177]. - As of March 31, 2022, Remington Hotels managed 68 of the company’s 100 hotel properties[177]. - The company owns a total of 22,313 rooms across various properties, all of which are 100% owned[259]. - The largest property is the Marriott in Arlington, VA, with 701 rooms[259]. - The company has multiple hotel brands including Embassy Suites, Hilton, and Marriott, all offering full-service and select-service options[259]. - The company operates properties in key locations such as Austin, TX, and Las Vegas, NV, with significant room counts[259]. - The company has a diverse portfolio with properties in various states, enhancing market presence[259]. - All properties listed are fully owned, indicating a strong asset base[259]. - The company is focused on maintaining a 100% ownership model across its hotel properties[259]. Investment Strategy - The company’s investment strategy focuses on owning predominantly full-service hotels in the upper upscale segment, targeting markets with revenue per available room (RevPAR) generally less than twice the national average[175]. - The company plans to maintain maximum cash and cash equivalents liquidity and implement selective capital improvements to increase profitability[175]. - The company is actively pursuing capital market activities to enhance long-term stockholder value[175]. Financial Performance - Total revenue increased by $131.3 million, or 113.3%, from $115.8 million in Q1 2021 to $247.1 million in Q1 2022[196]. - Rooms revenue rose by $98.2 million, or 101.1%, to $195.3 million in Q1 2022, driven by a 46.4% increase in room rates and a 1,620 basis points increase in occupancy[202]. - RevPAR increased from $47.40 in Q1 2021 to $96.46 in Q1 2022, representing a growth of 103.5%[200]. - Occupancy rate improved from 42.22% in Q1 2021 to 58.33% in Q1 2022, an increase of 16.11 percentage points[200]. - ADR increased from $112.25 in Q1 2021 to $165.36 in Q1 2022, a rise of 47.3%[200]. - Net loss attributable to the Company decreased by $47.6 million from $103.0 million in Q1 2021 to $55.4 million in Q1 2022[202]. - EBITDA for the three months ended March 31, 2022, was $39,998 thousand, a recovery from $(14,768) thousand in the prior year[250]. - Adjusted EBITDAre for the three months ended March 31, 2022, was $40,211 thousand, compared to $(5,242) thousand in the same period of 2021[250]. - Net income for the three months ended March 31, 2022, was $(55,802) thousand, compared to $(105,390) thousand for the same period in 2021[250]. - FFO available to common stockholders and OP unitholders for the three months ended March 31, 2022, was $(6,884) thousand, compared to $(36,196) thousand in 2021[254]. - Adjusted FFO available to common stockholders and OP unitholders for the three months ended March 31, 2022, was $(1,541) thousand, compared to $(29,713) thousand in the same period of 2021[254]. Expenses and Cash Flow - Hotel operating expenses rose by $85.2 million, or 93.1%, to $176.8 million in Q1 2022 compared to Q1 2021[204]. - Corporate, general and administrative expenses decreased by $3.9 million, or 55.6%, to $3.1 million in Q1 2022 compared to Q1 2021[209]. - Advisory services fee increased by $1.2 million, or 10.1%, to $13.4 million in Q1 2022 compared to Q1 2021[208]. - Interest expense increased by $10.3 million, or 30.9%, to $43.6 million in the 2022 quarter compared to the 2021 quarter[211]. - Write-off of premiums, loan costs, and exit fees decreased by $2.7 million to $727,000 in the 2022 quarter compared to the 2021 quarter[212]. - Unrealized gain on derivatives increased by $2.3 million from $919,000 in the 2021 quarter to $3.2 million in the 2022 quarter[214]. - Net cash flows used in operating activities were $(14.5) million for the three months ended March 31, 2022, compared to $(91.9) million for the same period in 2021[236]. - Net cash flows used in investing activities were $17.3 million for the three months ended March 31, 2022, primarily due to $22.7 million for capital improvements[237]. - For the three months ended March 31, 2022, net cash flows provided by financing activities were $8.9 million, a significant decrease from $218.8 million in the same period of 2021[238]. Debt and Liquidity - Total indebtedness as of March 31, 2022, is $3.9 billion, with $3.6 billion in variable-rate debt[261]. - A 25-basis point change in interest rates on the variable-rate debt would impact annual results by approximately $8.9 million[261]. - The company may incur indebtedness to meet distribution requirements imposed on REITs if cash flow from investments is insufficient[240]. - The board of directors will continue to review the distribution policy on at least a quarterly basis, considering various factors including business conditions and lease payments[239]. - Cash and cash equivalents as of March 31, 2022, totaled $548.6 million, with restricted cash of $102.3 million[217]. - The company does not anticipate paying any dividends on outstanding common stock for any quarter during 2022, while dividends on preferred stock are expected to be paid[240]. Future Outlook - The company expects to achieve pre-pandemic RevPAR by 2023 and hotel operating levels by 2024[217]. - As of March 31, 2022, 90% of the company's hotels were in cash traps, with approximately $10.3 million of restricted cash subject to these provisions[221]. Stock and Securities - The company has a repurchase program authorized to acquire up to $200 million in common and preferred stock[187]. - The company established an At-The-Market Program to sell shares of common stock with an aggregate offering price of up to $100 million[188]. - The company filed a new universal shelf registration statement with the SEC for the registration of unspecified amounts of equity and debt securities, with a maximum aggregate offering price of up to $300 million[180]. - The company has a stock repurchase program with an aggregate value of up to $200 million approved on April 6, 2022[230]. - The company filed a new universal shelf registration statement with the SEC for equity and debt securities with a maximum aggregate offering price of up to $300 million[231].