Ashford Hospitality Trust (AHT) Q1 2025 Earnings Call May 07, 2025 11:00 AM ET Company Participants Deric Eubanks - CFOStephen Zsigray - CEO & PresidentChristopher Nixon - EVP & Head of Asset ManagementJonathan Jenkins - Equity Research Associate Director Operator Hello, and thank you for standing by. My name is Regina, and I will be your conference operator today. At this time, I would like to welcome everyone to the Ashford Hospitality Trust First Quarter twenty twenty five Results Conference Call. All li ...

Financial Data and Key Metrics Changes - The company reported a net loss attributable to common stockholders of $27.8 million or $4.91 per diluted share for Q1 2025, with total AFFO improving by $8.2 million compared to the prior year quarter [12][15] - Adjusted EBITDAre for the quarter was $61.7 million, reflecting a $2.2 million increase over the prior year quarter, despite total revenue being down by $26.5 million [12][13] - The company ended the quarter with cash and cash equivalents of $85.8 million and restricted cash of $139.2 million, with restricted cash increasing by $39 million from the previous quarter [13][14] Business Line Data and Key Metrics Changes - Comparable RevPAR grew by 3.2%, total revenue increased by 3.6%, and comparable hotel EBITDA rose by 8.7% in Q1 2025 [5][6] - La Pavion Hotel reported a total revenue growth of 78% over the prior year quarter, while La Concha Hotel achieved a 27% total revenue growth [6][7] - Hotel EBITDA across the entire portfolio grew by 9% during the first quarter compared to the prior year quarter [18][21] Market Data and Key Metrics Changes - The company experienced a 95% occupancy rate across its hotels in Washington D.C. during the presidential inauguration, generating over $1.6 million in incremental room revenue [17] - Group room revenue pace increased by 10% for the top five hotels in the portfolio compared to the prior year, with a 6% increase projected for the full year 2025 [19][20] Company Strategy and Development Direction - The company is focused on its Grow AHT initiative, aiming for a $50 million run rate EBITDA improvement, with expectations of achieving over $30 million of that goal [6][10] - The company plans to continue improving its capital structure by extending near-term debt maturities and exploring strategic dispositions [10][27] - The company is optimistic about the pipeline of event-driven opportunities, particularly with the upcoming FIFA World Cup in 2026 [20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macroeconomic uncertainties but emphasized a focus on controlling internal factors and maximizing hotel performance [10][27] - The company is confident in its ability to unlock additional value and improve operational performance through ongoing initiatives [27] Other Important Information - The company completed the sale of the Courtyard Boston Downtown for $123 million, which provided significant capital expenditure savings [8] - The company has fully repaid its corporate strategic financing, leaving it free of corporate debt [8][10] Q&A Session Summary Question: Can you help us think about the monthly RevPAR progression in the quarter and the impact of calendar shifts? - Management noted that January was the strongest month, with softening observed in February and March due to calendar shifts and other headwinds [30][31] Question: How much of the portfolio do you think is exposed to international inbound travel and government demand? - Management indicated that international demand is less than 5% of the portfolio, with government demand being a bit larger but still manageable [36][38] Question: Can you help us think about the AHT GROW initiative and areas of success? - Management stated that while low-hanging fruit has been harvested, there are still significant opportunities for improvement, particularly at the corporate level [39][40] Question: Is there any update on the Bammel Island loan? - Management confirmed a forbearance agreement is in place and they are working on refinancing options [41] Question: Any color about potential dispositions and current market pricing? - Management highlighted that they are now able to explore asset sales more opportunistically after paying off previous corporate financing, focusing on high-value assets [43][45]