Ashford Hospitality Trust(AHT) - 2025 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company reported a net loss attributable to common stockholders of $39.9 million or $6.88 per diluted share for Q2 2025 [13] - Adjusted Funds From Operations (AFFO) per diluted share was $0.78, which would have been $1.93 if not for accrued default interest [13] - Adjusted EBITDAre for the quarter was $73.8 million [14] - The company had $2.7 billion in loans with a blended average interest rate of 8.1% [14] - Cash and cash equivalents at the end of the quarter were $100 million, with restricted cash of $153.9 million [14] Business Line Data and Key Metrics Changes - Comparable total revenue growth was 1.3% and comparable hotel EBITDA growth was 2.6% [6] - Comparable hotel RevPAR declined by 2.2% due to reduced demand from group and government-related travel [17] - Group revenue for the portfolio declined approximately 4% during the second quarter compared to the prior year [18] - Other revenue increased by 22% on a per occupied room basis compared to the prior year quarter [20] Market Data and Key Metrics Changes - Government room nights were down approximately 26% compared to the prior year period, impacting RevPAR performance [17] - The company expects group demand to remain healthy, with group revenue currently pacing ahead of the prior year [19] - 42% of the portfolio's hotel rooms are located in host cities for the upcoming 2026 FIFA World Cup, positioning the company to capture outsized demand [19] Company Strategy and Development Direction - The company announced a transformative initiative called GrowAHT aimed at driving $50 million in run rate EBITDA improvement [6] - Strategic asset sales are ongoing to reduce leverage and improve cash flow after debt service [11] - The company plans to continue making improvements to its capital structure and explore opportunistic dispositions [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the second half of the year, expecting demand headwinds to subside and benefiting from anticipated interest rate cuts [11] - The company remains focused on controlling operational aspects and driving outsized performance despite broader market challenges [11] - Management highlighted the importance of high-margin revenue strategies and targeted cost reductions as part of the GrowAHT initiative [20] Other Important Information - The company completed significant renovations and brand conversions, leading to a 19% increase in hotel RevPAR for properties that underwent such changes [22] - For the full year 2025, the company anticipates spending between $90 million and $110 million on capital expenditures [26] Q&A Session Summary - There were no questions during the Q&A session, indicating a lack of inquiries from analysts or investors [27]