Ashford Hospitality Trust Reports First Quarter Results

Adjusted EBITDA increased 21.6% for the Quarter

RevPAR Growth of 5.5% for Legacy Hotels Not Under Renovation

288 Basis Point Improvement in Hotel EBITDA Margin for Highland Hotels

Apr 25, 2012, 16:45 ET from Ashford Hospitality Trust, Inc.

DALLAS, April 25, 2012 /PRNewswire/ -- Ashford Hospitality Trust, Inc. (NYSE: AHT) today reported the following results and performance measures for the first quarter ended March 31, 2012.  The performance measurements for Occupancy, Average Daily Rate (ADR), Revenue Per Available Room (RevPAR), and Hotel Operating Profit (or Hotel EBITDA) are proforma.  Unless otherwise stated, all reported results compare the first quarter ended March 31, 2012, with the first quarter ended March 31, 2011 (see discussion below). The reconciliation of non-GAAP financial measures is included in the financial tables accompanying this press release.

FINANCIAL HIGHLIGHTS

  • RevPAR increased 5.5% for all Legacy hotels not under renovation in continuing operations, driven by a 2.2% increase in ADR and a 224 basis point increase in occupancy
  • Excluding assets located in the Washington D.C. market, RevPAR increased 6.7% for all Legacy hotels not under renovation in continuing operations
  • RevPAR increased 2.5% for the 21 hotels in the Highland Hospitality Portfolio not under renovation in continuing operations, driven by a 214 basis point increase in occupancy and a 0.7% decrease in ADR
  • RevPAR growth for both the Legacy portfolio and the Highland Hospitality Portfolio were essentially in line with competitive sets; competitive set variance to national RevPAR average a result of underperformance of upper upscale and upscale chain scales, Washington D.C. market exposure, Dallas/Fort Worth market exposure and airport locations
  • Hotel operating profit (Hotel EBITDA) increased 15.6% for all hotels in the Highland Hospitality Portfolio
  • Hotel operating profit margin increased 130 basis points for all Legacy hotels not under renovation in continuing operations
  • Hotel operating profit margin increased 376 basis points for the 21 hotels in the Highland Hospitality Portfolio not under renovation in continuing operations
  • Net loss attributable to common shareholders was $29.5 million, or $0.44 per diluted share, compared with net income attributable to common shareholders of $31.3 million, or $0.46 per diluted share, in the prior-year quarter
  • Adjusted funds from operations (AFFO) was $0.28 per diluted share for the quarter as compared with $0.40 from the prior-year quarter; Interest Rate Derivative Income decreased by $10 million as the benefits from our Flooridor terminated in 2011, impacting AFFO per share by $0.12
  • Fixed charge coverage ratio was 1.58x under the senior credit facility covenant versus a required minimum of 1.35x
  • In February 2012, the Company increased the size of its senior credit facility from $105 million to $145 million with the option, subject to lender approval, to expand the facility further to a maximum size of $225 million
  • The Company's only recourse obligation is its senior credit facility, which currently has no outstanding balance
  • During the first quarter, Ashford sold 370,413 shares of its Series A and Series D Cumulative Preferred Stock through its At-the-Market program for total gross proceeds of $9 million
  • At the end of the first quarter, Ashford had cash and cash equivalents of $150 million

CAPITAL ALLOCATION  

  • Capex invested in the quarter for the Legacy portfolio was $23.3 million
  • Capex invested in the quarter for the Highland Hospitality Portfolio was $6.2 million

CAPITAL STRUCTURE During the first quarter, the Company upsized its previous $105 million senior credit facility to $145 million, with the option, subject to lender approval, to further expand the facility to an aggregate size of $225 million.  The facility is currently undrawn.  All other Company debt is non-recourse.

The Company only has one debt maturity in 2012, a $167.2 million loan secured by 10 hotels, and is currently working with a new lender to refinance and extend that loan.  The Company is well positioned for essentially all upcoming debt maturities in 2013 and 2014.

Additionally, in the first quarter, the Company sold 120,731 shares of its 8.55% Series A Cumulative Preferred Stock at $24.91 per share and 249,682 shares of its 8.45% Series D Cumulative Preferred Stock at $24.67 per share through its At-the-Market program for total gross proceeds of $9 million

HIGHLAND HOSPITALITY PORTFOLIO UPDATE  The Highland Hospitality Portfolio experienced RevPAR growth of 1.3% during the first quarter of 2012, with RevPAR growth for hotels not under renovation in continuing operations of 2.5%.  For all hotels in the Highland Hospitality Portfolio, Hotel EBITDA Margin increased 288 bps and Hotel EBITDA flow-through was 215%.  For the 21 hotels not under renovation during the quarter, Hotel EBITDA Margin increased 376 basis points and Hotel EBITDA flow-through was 140%.  Hotel EBITDA increased 15.6% in the first quarter for all hotels in the Highland Hospitality Portfolio, and since the closing of the acquisition, trailing 12-month EBITDA has increased 12%.  While there might be some near-term disruption from hotels undergoing renovations and recent changes in property management, the Company expects both the revenue and EBITDA performance of the Highland Hospitality Portfolio to continue to improve as the hotels benefit from capital expenditures, more effective property management, and become more fully integrated into Ashford's total portfolio.

PORTFOLIO REVPAR As of March 31, 2012, the Company's Legacy portfolio consisted of direct hotel investments with 96 properties classified in continuing operations.  During the first quarter, 71 of the hotels included in continuing operations were not under renovation.  The Company believes reporting its operating metrics for continuing operations on a proforma total basis (all 96 hotels) and proforma not under renovation basis (71 hotels) is a measure that reflects a meaningful and focused comparison of the operating results in its direct hotel portfolio.  The Company's reporting by region and brand includes the results of all 96 hotels in continuing operations.  Details of each category are provided in the tables attached to this release.

  • Proforma RevPAR increased 3.6% to $95.61 for all hotels in the Legacy portfolio on a 2.0% increase in ADR and a 110 basis point increase in occupancy
  • Proforma RevPAR increased 5.5% to $94.83 for hotels not under renovation in the Legacy portfolio on a 2.2% increase in ADR and a 224 basis point increase in occupancy
  • Proforma RevPAR increased 1.3% to $90.88 for all hotels in the Highland Hospitality Portfolio on a 0.6% increase in ADR and a 49 basis point increase in occupancy
  • Proforma RevPAR increased 2.5% to $89.09 for hotels not under renovation in the Highland Hospitality Portfolio on a 0.7% decrease in ADR and a 214 basis point increase in occupancy

HOTEL EBITDA MARGINS AND QUARTERLY SEASONALITY TRENDS During the quarter, Hotel operating profit (Hotel EBITDA) for all Legacy hotels increased 7.3% to $67.0 million.  For the 71 hotels that were not under renovation, Proforma Hotel EBITDA increased 11.0% to $48.2 million. Proforma Hotel EBITDA margin (expressed as a percentage of Total Hotel Revenue) increased 130 basis points to 31.2% for the 71 Legacy hotels not under renovation.  For all 96 Legacy hotels included in continuing operations, Proforma Hotel EBITDA margin increased 75 basis points to 29.9%.

For the Company's 71.74% share of all hotels in the Highland Hospitality Portfolio, Hotel operating profit (Hotel EBITDA) increased 15.6% to $15.8 million.  For the 21 hotels in the Highland Hospitality Portfolio that were not under renovation, Proforma Hotel EBITDA increased 21.8% to $13.0 million.  Proforma Hotel EBITDA margin (expressed as a percentage of Total Hotel Revenue) increased 376 basis points to 24.7% for the 21 Highland hotels not under renovation.  For all 28 Highland Hospitality hotels included in continuing operations, Proforma Hotel EBITDA margin increased 288 basis points to 23.6%.  

Ashford believes year-over-year Hotel EBITDA and Hotel EBITDA margin comparisons are more meaningful to gauge the performance of the Company's hotels than sequential quarter-over-quarter comparisons.  Given the substantial seasonality in the Company's portfolio and its active capital recycling, to help investors better understand this seasonality, the Company provides quarterly detail on its Proforma Hotel EBITDA and Proforma Hotel EBITDA margin for the current and certain prior-year periods based upon the number of core hotels in the portfolio as well as its pro-rata share of the Highland portfolio as of the end of the current period.  As Ashford's portfolio mix changes from time to time so will the seasonality for Proforma Hotel EBITDA and Proforma Hotel EBITDA margin.  The details of the quarterly calculations for the previous four quarters for the current portfolio of 96 Legacy hotels included in continuing operations together with Ashford's pro-rata share of the Highland portfolio are provided in the table attached to this release.

COMMON STOCK DIVIDEND On March 15, 2012, Ashford announced that its Board of Directors had declared a quarterly cash dividend of $0.11 per diluted share for the Company's common stock for the first quarter ending March 31, 2012, payable April 16, 2012, to shareholders of record as of March 30, 2012.

Monty J. Bennett, Chief Executive Officer, commented, "We continue to see U.S. lodging industry fundamentals improve and believe that we are in the early stages of this cyclical recovery.  In addition, there are indications that the time horizon until we see significant new supply growth could extend even further than originally anticipated.  Given the global macroeconomic risks that continue to be present, we continue to focus on risk mitigation and liquidity.  While we remain methodical in our analysis and due diligence of potential investments, we are seeing attractive assets come to market at terms that are consistent with our investment approach.  As a result of our actions during the economic downturn, we are well positioned to benefit from the improvement in hotel fundamentals, and we have the ability to take advantage of opportunistic investments that meet our return criteria.  As always, we will remain focused on improving operating performance and maximizing shareholder returns."

INVESTOR CONFERENCE CALL AND SIMULCAST Ashford Hospitality Trust, Inc. will conduct a conference call on Thursday, April 26, 2012, at 11:30 a.m. ET.  The number to call for this interactive teleconference is (480) 629-9818.  A replay of the conference call will be available through Thursday, May 3, 2012, by dialing (303) 590-3030 and entering the confirmation number, 4530722.

The Company will also provide an online simulcast and rebroadcast of its first quarter 2012 earnings release conference call.  The live broadcast of Ashford Hospitality Trust's quarterly conference call will be available online at the Company's web site, www.ahtreit.com on Thursday, April 26, 2012, beginning at 11:30 a.m. ET. The online replay will follow shortly after the call and continue for approximately one year.

Substantially all of our non-current assets consist of real estate investments and debt investments secured by real estate.  Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time.  Since real estate values instead have historically risen or fallen with market conditions, most industry investors consider supplemental measures of performance, which are not measures of operating performance under GAAP, to assist in evaluating a real estate company's operations. These supplemental measures include FFO, AFFO, EBITDA, and Hotel Operating Profit.  FFO is computed in accordance with our interpretation of standards established by NAREIT, which may not be comparable to FFO reported by other REITs that do not define the term in accordance with the current NAREIT definition or that interpret the NAREIT definition differently than us.  Neither FFO, AFFO, EBITDA, nor Hotel Operating Profit represents cash generated from operating activities as determined by GAAP and should not be considered as an alternative to a) GAAP net income (loss) as an indication of our financial performance or b) GAAP cash flows from operating activities as a measure of our liquidity, nor are such measures indicative of funds available to satisfy our cash needs, including our ability to make cash distributions.  However, management believes FFO, AFFO, EBITDA, and Hotel Operating Profit to be meaningful measures of a REIT's performance and should be considered along with, but not as an alternative to, net income and cash flow as a measure of our operating performance.

*  *  *  *  *

Ashford is a self-administered real estate investment trust focused on investing in the hospitality industry across all segments and at all levels of the capital structure.  Additional information can be found on the Company's website at www.ahtreit.com.

Certain statements and assumptions in this press release contain or are based upon "forward-looking" information and are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.  These forward-looking statements are subject to risks and uncertainties.  When we use the words "will likely result," "may," "anticipate," "estimate," "should," "expect," "believe," "intend," or similar expressions, we intend to identify forward-looking statements.  Such forward-looking statements include, but are not limited to, the timing for closing, the impact of the transaction on our business and future financial condition, our business and investment strategy, our understanding of our competition and current market trends and opportunities and projected capital expenditures.  Such statements are subject to numerous assumptions and uncertainties, many of which are outside Ashford's control.

These forward-looking statements are subject to known and unknown risks and uncertainties, which could cause actual results to differ materially from those anticipated, including, without limitation:  general volatility of the capital markets and the market price of our common stock; changes in our business or investment strategy; availability, terms and deployment of capital; availability of qualified personnel; changes in our industry and the market in which we operate, interest rates or the general economy; and the degree and nature of our competition.  These and other risk factors are more fully discussed in Ashford's filings with the Securities and Exchange Commission.  EBITDA is defined as net income before interest, taxes, depreciation and amortization.  EBITDA yield is defined as trailing twelve month EBITDA divided by the purchase price.  A capitalization rate is determined by dividing the property's annual net operating income by the purchase price.  Net operating income is the property's funds from operations minus a capital expense reserve of either 4% or 5% of gross revenues.  Funds from operations ("FFO"), as defined by the White Paper on FFO approved by the Board of Governors of the National Association of Real Estate Investment Trusts ("NAREIT") in April 2002, represents net income (loss) computed in accordance with generally accepted accounting principles ("GAAP"), excluding gains (or losses) from sales of properties and extraordinary items as defined by GAAP, plus depreciation and amortization of real estate assets, and net of adjustments for the portion of these items related to unconsolidated entities and joint ventures. 

The forward-looking statements included in this press release are only made as of the date of this press release.  Investors should not place undue reliance on these forward-looking statements.  We are not obligated to publicly update or revise any forward-looking statements, whether as a result of new information, future events or circumstances, changes in expectations or otherwise.

 

ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except share amounts)

March 31,

December 31,

2012

2011

 (Unaudited) 

ASSETS

Investment in hotel properties, net

$     2,945,706

$     2,957,899

Cash and cash equivalents

150,386

167,609

Restricted cash

96,239

84,069

Accounts receivable, net of allowance of $189 and $217, respectively

39,039

28,623

Inventories

2,368

2,371

Notes receivable

11,229

11,199

Investment in unconsolidated joint ventures

169,224

179,527

Investments in securities and other

27,505

21,374

Deferred costs, net

16,346

17,421

Prepaid expenses

11,002

11,308

Derivative assets

30,163

37,918

Other assets

4,962

4,851

Intangible asset, net

2,788

2,810

Due from third-party hotel managers

59,210

62,747

Total assets

$     3,566,167

$     3,589,726

LIABILITIES AND EQUITY

Liabilities:

Indebtedness of continuing operations

$     2,357,445

$     2,362,458

Accounts payable and accrued expenses

87,713

82,282

Dividends payable

18,103

16,941

Unfavorable management contract liabilities

13,047

13,611

Due to related party

919

2,569

Due to third-party hotel managers

2,432

1,602

Liabilities associated with investments in securities and other

6,963

2,246

Other liabilities

6,265

5,400

Total liabilities

2,492,887

2,487,109

Redeemable noncontrolling interests in operating partnership

132,231

112,796

Equity:

Preferred stock, $0.01 par value, 50,000,000 shares authorized:

Series A Cumulative Preferred Stock, 1,608,631 and 1,487,900 shares issued

and outstanding, respectively

16

15

Series D Cumulative Preferred Stock, 9,216,479 and 8,966,797 shares issued

and outstanding, respectively

92

90

Series E Cumulative Preferred Stock, 4,630,000 shares issued and outstanding

46

46

Common stock, $0.01 par value, 200,000,000 shares authorized, 124,896,765 shares

issued, 68,184,960 and 68,032,289 shares outstanding, respectively 

1,249

1,249

Additional paid-in capital

1,750,072

1,746,259

Accumulated other comprehensive loss

(181)

(184)

Accumulated deficit

(661,454)

(609,272)

Treasury stock, at cost (56,711,805 shares and 56,864,476 shares, respectively)

(165,227)

(164,796)

Total shareholders' equity of the Company

924,613

973,407

Noncontrolling interests in consolidated joint ventures

16,436

16,414

Total equity

941,049

989,821

Total liabilities and equity

$     3,566,167

$     3,589,726

 

ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

 Three Months Ended 

 March 31, 

2012

2011

 (Unaudited) 

REVENUE

Rooms

$    174,548

$    162,750

Food and beverage

41,702

38,407

Rental income from operating leases

-

1,220

Other

9,562

9,345

Total hotel revenue

225,812

211,722

Asset management fees and other

75

68

Total  Revenue

225,887

211,790

EXPENSES

Hotel operating expenses

Rooms

39,739

37,046

Food and beverage

28,643

26,481

Other expenses

69,346

65,474

Management fees 

9,151

8,859

Total hotel operating expenses

146,879

137,860

Property taxes, insurance, and other

12,153

10,887

Depreciation and amortization

34,355

32,777

Impairment charges

(92)

(340)

Transaction acquisition costs

-

(1,224)

Corporate, general, and administrative:

Stock/unit-based compensation

5,146

1,814

Other general and administrative

5,101

12,069

Total Operating Expenses

203,542

193,843

OPERATING INCOME

22,345

17,947

Equity in earnings (loss) of unconsolidated joint ventures

(10,304)

28,124

Interest income

32

36

Other income

7,613

48,003

Interest expense

(33,992)

(33,499)

Amortization of loan costs

(1,212)

(1,079)

Unrealized gain on investments

1,785

-

Unrealized loss on derivatives

(9,941)

(16,817)

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

(23,674)

42,715

Income tax expense

(879)

(1,044)

INCOME (LOSS) FROM CONTINUING OPERATIONS

(24,553)

41,671

Income from discontinued operations

-

2,211

NET INCOME (LOSS)

(24,553)

43,882

(Income) loss from consolidated joint ventures attributable to noncontrolling interests

278

(931)

Net (income) loss attributable to redeemable noncontrolling interests in operating partnership

3,057

(5,118)

NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY

(21,218)

37,833

Preferred dividends

(8,331)

(6,555)

NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS

$    (29,549)

$      31,278

INCOME PER SHARE – BASIC AND DILUTED:

Basic:

Income (loss) from continuing operations attributable to common shareholders

$        (0.44)

$          0.51

Income from discontinued operations attributable to common shareholders

-

0.02

Net income (loss) attributable to common shareholders

$        (0.44)

$          0.53

Weighted average common shares outstanding – basic

67,152

57,931

Diluted:

Income (loss) from continuing operations attributable to common shareholders

$        (0.44)

$          0.45

Income from discontinued operations attributable to common shareholders

-

0.01

Net income (loss) attributable to common shareholders

$        (0.44)

$          0.46

Weighted average common shares outstanding – diluted

67,152

79,330

Dividends declared per common share:

$          0.11

$          0.10

Amounts attributable to common shareholders:

Income (loss) from continuing operations, net of tax

$    (21,218)

$      36,799

Income from discontinued operations, net of tax

-

1,034

Preferred dividends

(8,331)

(6,555)

Net income attributable to common shareholders

$    (29,549)

$      31,278

 

 ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES 

 RECONCILIATION OF NET INCOME (LOSS) TO EBITDA 

 (in thousands) 

 (Unaudited) 

 Three Months Ended 

 March 31, 

2012

2011

 Net income (loss) 

$    (24,553)

$      43,882

 (Income) loss from consolidated joint ventures attributable to noncontrolling interests 

278

(931)

 Net income (loss) attributable to redeemable noncontrolling interests in operating partnership 

3,057

(5,118)

 Net income (loss) attributable to the Company 

(21,218)

37,833

 Interest income 

(32)

(36)

 Interest expense and amortization of loan costs 

34,851

34,817

 Depreciation and amortization  

33,583

32,161

 Impairment charges 

(92)

(340)

 Income tax expense 

879

1,129

 Net income (loss) attributable to redeemable noncontrolling interests in operating partnership 

(3,057)

5,118

 Equity in (earnings) loss of unconsolidated joint ventures 

10,304

(28,124)

 Company's portion of EBITDA of unconsolidated joint ventures 

14,564

46,046

 EBITDA 

69,782

128,604

 Amortization of unfavorable management contract liabilities 

(565)

(565)

 Gain on sale/disposition of properties 

-

(2,802)

 Write-off of loan costs, premiums, and exit fees, net 

-

948

 Other income (1) 

(7,613)

(48,003)

 Transaction acquisition costs 

-

(1,223)

 Legal costs related to a litigation settlement (2) 

-

5,500

 Unrealized gain on investments 

(1,785)

-

 Unrealized loss on derivatives 

9,941

16,817

 Non-cash fair-market-value adjustments related to modified employment terms 

991

-

 Company's portion of adjustments to EBITDA of unconsolidated joint ventures 

95

(41,011)

 Adjusted EBITDA 

$      70,846

$      58,265

(1)

Other income primarily consisting of income from interest rate derivatives in both periods, net realized loss on investments in securities and other

in 2012, and a $30 million litigation settlement in 2011 are excluded from Adjusted EBITDA.  

(2)

Legal costs associated with a litigation settlement are excluded from Adjusted EBITDA.

 RECONCILIATION OF NET INCOME (LOSS) TO FUNDS FROM OPERATIONS ("FFO") 

 (in thousands, except per share amounts) 

 (Unaudited) 

 Net income (loss)   

$    (24,553)

$      43,882

 (Income) loss from consolidated joint ventures attributable to noncontrolling interests 

278

(931)

 Net income (loss) attributable to redeemable noncontrolling interests in operating partnership 

3,057

(5,118)

 Preferred dividends 

(8,331)

(6,555)

 Net income (loss) attributable to common shareholders 

(29,549)

31,278

 Depreciation and amortization on real estate 

33,517

32,100

 Impairment charges 

(92)

(340)

 Gain on sale/disposition of properties 

-

(2,802)

 Net income (loss) attributable to redeemable noncontrolling interests in operating partnership 

(3,057)

5,118

 Equity in (earnings) loss of unconsolidated joint ventures 

10,304

(28,124)

 Company's portion of FFO of unconsolidated joint ventures 

2,455

(10,972)

 FFO available to common shareholders 

13,578

26,258

 Dividends on convertible preferred stock 

-

1,025

 Write-off of loan costs, premiums, and exit fees, net 

-

948

 Transaction acquisition costs 

-

(1,223)

 Legal costs related to a litigation settlement (2) 

-

5,500

 Other income (1) 

356

(30,000)

 Unrealized gain on investments 

(1,785)

-

 Unrealized loss on derivatives 

9,941

16,817

 Non-cash fair-market-value adjustments related to modified employment terms 

991

-

 Company's portion of adjustments to FFO of unconsolidated joint ventures 

95

13,061

 Adjusted FFO 

$      23,176

$      32,386

 Adjusted FFO per diluted share available to common shareholders 

$          0.28

$          0.40

 Weighted average diluted shares 

84,265

80,118

(1)

 Other income in 2012 primarily represents net realized loss on investments in securities and other which is excluded from Adjusted FFO. 

 Other income in 2011 represents a gain from a litigation settlement which is excluded from Adjusted FFO. 

(2)

 Legal costs associated with a litigation settlement are excluded from Adjusted FFO.

 

ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

SUMMARY OF INDEBTEDNESS OF CONTINUING OPERATIONS

MARCH 31, 2012

(dollars in thousands)

(Unaudited)

 Fixed-Rate 

 Floating-Rate 

 Total 

Indebtedness

Collateral

Maturity

Interest Rate

 Debt 

 Debt 

 Debt 

 Mortgage loan 

10 hotels

May 2012

LIBOR + 1.65%

$                 -

$           167,202

167,202

 Mortgage loan 

2 hotels

August 2013

LIBOR + 2.75%

-

144,667

144,667

 Mortgage loan 

5 hotels

March 2014

LIBOR + 4.50%

-

177,193

(1)

177,193

 Mortgage loan 

1 hotel

May 2014

8.32%

5,429

-

5,429

 Senior credit facility 

Various

September 2014

LIBOR + 2.75% to 3.5%

-

-

-

 Mortgage loan 

1 hotel

December 2014

Greater of 5.5% or LIBOR + 3.5%

-

19,740

19,740

 Mortgage loan 

8 hotels

December 2014

5.75%

106,321

-

106,321

 Mortgage loan 

10 hotels

July 2015

5.22%

155,006

-

155,006

 Mortgage loan 

8 hotels

December 2015

5.70%

98,319

-

98,319

 Mortgage loan 

5 hotels

December 2015

12.72%

152,042

-

152,042

 Mortgage loan 

5 hotels

February 2016

5.53%

111,885

-

111,885

 Mortgage loan 

5 hotels

February 2016

5.53%

92,787

-

92,787

 Mortgage loan 

5 hotels

February 2016

5.53%

80,374

-

80,374

 Mortgage loan 

1 hotel

April 2017

5.91%

35,000

-

35,000

 Mortgage loan 

2 hotels

April 2017

5.95%

128,251

-

128,251

 Mortgage loan 

3 hotels

April 2017

5.95%

260,980

-

260,980

 Mortgage loan 

5 hotels

April 2017

5.95%

115,600

-

115,600

 Mortgage loan 

5 hotels

April 2017

5.95%

103,906

-

103,906

 Mortgage loan 

5 hotels

April 2017

5.95%

158,105

-

158,105

 Mortgage loan 

7 hotels

April 2017

5.95%

126,466

-

126,466

 TIF loan 

1 hotel

June 2018

12.85%

8,098

-

8,098

 Mortgage loan 

1 hotel

November 2020

6.26%

103,458

-

103,458

 Mortgage loan 

1 hotel

April 2034

Greater of 6% or Prime + 1%

-

6,616

6,616

 Total indebtedness 

$    1,842,028

$           515,417

$     2,357,445

 Percentage 

78.1%

21.9%

100.0%

 Weighted average interest rate at March 31, 2012 

6.42%

3.37%

5.75%

 Total indebtedness with effect of interest rate swaps 

$    1,842,029

$           515,417

2,357,446

 Percentage with the effect of interest rate swaps 

78.1%

21.9%

100.0%

 Weighted average interest rate with the effect of interest rate swaps 

4.71%

(2)

3.37%

(2)

4.41%

(1) This mortgage loan has a one-year extension option beginning March 2014, subject to satisfaction of certain conditions.

(2) These rates are calculated assuming the LIBOR rate stays at the March 31, 2012 level and with the effect of our interest rate derivatives.

PIM HIGHLAND HOLDING LLC

SUMMARY OF INDEBTEDNESS

MARCH 31, 2012

(dollars in thousands)

(Unaudited)

 Fixed-Rate 

 Floating-Rate 

 Total 

Indebtedness

Collateral

Maturity

Interest Rate

 Debt 

 Debt 

 Debt 

 Mortgage loan 

1 hotel

January 2013

5.96%

$         63,895

$                    -

$          63,895

 Mortgage loan 

1 hotel

April 2013

6.11%

45,709

45,709

 Mortgage loan 

1 hotel

February 2013

5.97%

32,462

32,462

 Mortgage loan 

25 hotels

March 2014

LIBOR + 2.75%

-

530,000

(1)

530,000

 Mezzanine loan 

28 hotels

March 2014

Greater of 7.00% or LIBOR + 6.00%

-

144,515

(1)

144,515

 Mezzanine loan 

28 hotels

March 2014

Greater of 8.00% or LIBOR + 7.00%

-

137,575

(1)

137,575

 Mezzanine loan 

28 hotels

March 2014

Greater of 10.50% or LIBOR + 9.50%

-

117,921

(1)

117,921

 Mezzanine loan 

28 hotels

March 2014

LIBOR + 2.00%

18,425

(1)

18,425

 Total indebtedness 

142,066

948,435

1,090,502

 Ashford's proportionate obligations 

 x 71.74% 

 x 71.74% 

 x 71.74% 

$       101,918

$           680,408

$        782,326

 Percentage 

13.0%

87.0%

100.0%

 Weighted average interest rate at March 31, 2012 

6.01%

5.25%

5.35%

 Percentage with the effect of interest rate swaps 

13.0%

87.0%

100.0%

 Total indebtedness of Ashford plus Ashford's 71.74% share of PIM Highland Holding LLC 

$    1,943,946

$        1,195,825

$     3,139,771

 Percentage with the effect of interest rate swaps 

61.9%

38.1%

100.0%

 Weighted average interest rate with the effect of interest rate swaps 

4.78%

4.44%

4.65%

(1) Each of these loans has two one-year extension options beginning March 2014.

 

 ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES 

 INDEBTEDNESS BY MATURITY ASSUMING EXTENSION OPTIONS ARE EXERCISED 

 MARCH 31, 2012 

 (in thousands) 

 (Unaudited) 

2012

2013

2014

2015

2016

 Thereafter 

 Total 

 Mortgage loan secured by 10 hotel properties, Wachovia Floater 

$   167,202

$            -

$            -

$            -

$            -

$                -

$       167,202

 Mortgage loan secured by two hotel properties 

-

144,667

-

-

-

-

144,667

 Mortgage loan secured by five hotel properties 

-

177,193

-

-

177,193

 Mortgage loan secured by Manchester Courtyard 

-

-

5,429

-

-

-

5,429

 Senior credit facility 

-

-

-

-

-

-

-

 Mortgage loan secured by El Conquistador Hilton 

-

-

19,740

-

-

-

19,740

 Mortgage loan secured by eight hotel properties, UBS Pool 1 

-

-

106,321

-

-

-

106,321

 Mortgage loan secured by 10 hotel properties, Merrill Lynch Pool 1 

-

-

-

155,006

-

-

155,006

 Mortgage loan secured by eight hotel properties, UBS Pool 2 

-

-

-

98,319

-

-

98,319

 Mortgage loan secured by five hotel properties 

-

-

-

152,042

-

-

152,042

 Mortgage loan secured by five hotel properties, Merrill Lynch Pool 2 

-

-

-

-

111,885

-

111,885

 Mortgage loan secured by five hotel properties, Merrill Lynch Pool 3 

-

-

-

-

92,787

-

92,787

 Mortgage loan secured by five hotel properties, Merrill Lynch Pool 7 

-

-

-

-

80,374

-

80,374

 Mortgage loan secured by Philadelphia Courtyard, Wachovia Stand-Alone 

-

-

-

-

-

35,000

35,000

 Mortgage loan secured by two hotel properties, Wachovia Fixed Rate Pool 3 

-

-

-

-

-

128,251

128,251

 Mortgage loan secured by three hotel properties, Wachovia Fixed Rate Pool 7 

-

-

-

-

-

260,980

260,980

 Mortgage loan secured by five hotel properties, Wachovia Fixed Rate Pool 1 

-

-

-

-

-

115,600

115,600

 Mortgage loan secured by five hotel properties, Wachovia Fixed Rate Pool 5 

-

-

-

-

-

103,906

103,906

 Mortgage loan secured by five hotel properties, Wachovia Fixed Rate Pool 6 

-

-

-

-

-

158,105

158,105

 Mortgage loan secured by seven hotel properties, Wachovia Fixed Rate Pool 2 

-

-

-

-

-

126,466

126,466

 Mortgage loan secured by Philadelphia Courtyard TIF 

-

-

-

-

-

8,098

8,098

 Mortgage loan secured by Arlington Marriott 

-

-

-

-

-

103,458

103,458

 Mortgage loan secured by Jacksonville Residence Inn 

-

-

-

-

-

6,616

6,616

 Total indebtedness of continuing operations 

$   167,202

$   144,667

$   131,490

$   582,560

$   285,046

$    1,046,480

$    2,357,445

 NOTE: These maturities assume no event of default would occur. 

 PIM HIGHLAND HOLDING LLC 

 INDEBTEDNESS BY MATURITY 

 ASSUMING EXTENSION OPTIONS ARE EXERCISED 

 MARCH 31, 2012 

 (in thousands) 

 (Unaudited) 

2012

2013

2014

2015

2016

 Thereafter 

 Total 

 Mortgage loan secured by Boston Hilton 

$            -

$     63,895

$            -

$            -

$            -

$                -

$         63,895

 Mortgage loan secured by Nashville Renaissance 

-

45,709

-

-

-

-

45,709

 Mortgage loan secured by Princeton Westin 

-

32,462

-

-

-

-

32,462

 Mortgage loan secured by 25 hotel properties 

-

-

-

-

530,000

-

530,000

 Mezzanine loan 

-

-

-

-

144,515

-

144,515

 Mezzanine loan 

-

-

-

-

137,575

-

137,575

 Mezzanine loan 

-

-

-

-

117,921

-

117,921

 Mezzanine loan 

-

-

-

-

18,425

-

18,425

 Total indebtedness 

-

142,066

-

-

948,435

-

1,090,502

 Ashford's proportionate obligations 

 x 71.74% 

 x 71.74% 

 x 71.74% 

 x 71.74% 

 x 71.74% 

 x 71.74% 

 x 71.74% 

$            -

$   101,918

$            -

$            -

$   680,408

$                -

$       782,326

 Total indebtedness of continuing operations plus Ashford's 

     71.74% share of PIM Highland Holding LLC 

$   167,202

$   246,585

$   131,490

$   582,560

$   965,454

$    1,046,480

$    3,139,771

 

ASHFORD HOSPITALITY TRUST, INC.

KEY PERFORMANCE INDICATORS - PRO FORMA

LEGACY PORTFOLIO ONLY

(dollars in thousands)

(Unaudited)

Three Months Ended

March 31,

2012

2011

% Variance

ALL HOTELS INCLUDED IN CONTINUING OPERATIONS:

Room revenues (in thousands)

$     173,432

$     166,439

4.20%

RevPAR

$         95.61

$         92.32

3.56%

Occupancy

70.97%

69.87%

1.10%

ADR

$       134.72

$       132.14

1.96%

NOTE:

The above pro forma table assumes the 96 hotel properties owned and included in continuing operations at March 31, 2012 were owned as of the

beginning of period presented.

ALL HOTELS NOT UNDER RENOVATION

INCLUDED IN CONTINUING OPERATIONS:

Room revenues (in thousands)

$     121,728

$     114,755

6.08%

RevPAR

$         94.83

$         89.92

5.46%

Occupancy

72.06%

69.83%

2.24%

ADR

$       131.60

$       128.78

2.19%

NOTES:

(1)

The above pro forma table assumes the 71 hotel properties owned and included in continuing operations at March 31, 2012 but not under renovation for

three months ended March 31, 2012 were owned as of the beginning of the periods presented.

(2)

Excluded Hotels Under Renovation:

Capital Hilton, Courtyard Basking Ridge, Courtyard Oakland Airport, Courtyard Philadelphia Downtown, Courtyard Seattle Downtown, 

Crowne Plaza La Concha - Key West, Embassy Suites Flagstaff, Embassy Suites Houston, Embassy Suites Portland - Downtown, 

Embassy Suites Walnut Creek, Hilton Nassau Bay - Clear Lake, Hilton Costa Mesa, Hilton Santa Fe, Hilton Tucson El Conquistador Golf Resort, 

Marriott Bridgewater, Residence Inn Jacksonville, Residence Inn Las Vegas, Sheraton San Diego Mission Valley, SpringHill Suites Buford Mall of Georgia, 

SpringHill Suites Charlotte, SpringHill Suites Manhattan Beach, SpringHill Suites Philadelphia, Embassy Suites Santa Clara, Courtyard Hartford Manchester, 

Historic Inns Annapolis

PIM HIGHLAND HOLDING LLC

KEY PERFORMANCE INDICATORS - PRO FORMA

(dollars in thousands)

(Unaudited)

THE FOLLOWING TABLE PRESENTS THE PRO FORMA PERFORMANCE OF THE HOTEL PORTFOLIO INCLUDED IN PIM HIGHLAND

HOLDING LLC AS IF THEY WERE OWNED AS OF THE BEGINNING OF THE FIRST COMPARATIVE REPORTING PERIOD.

Three Months Ended

March 31,

2012

2011

% Variance

71.74% PRO-RATA SHARE OF ALL HOTELS INCLUDED IN

CONTINUING OPERATIONS:

Room revenues (in thousands)

$       47,094

$       46,080

2.20%

RevPAR

$         90.88

$         89.69

1.33%

Occupancy

68.17%

67.69%

0.49%

ADR

$       133.31

$       132.51

0.60%

NOTE:

The above pro forma table assumes the 28 hotel properties owned and included in continuing operations at March 31, 2012 were owned as of the

beginning of period presented.

71.74% PRO-RATA SHARE OF ALL HOTELS NOT UNDER RENOVATION

INCLUDED IN CONTINUING OPERATIONS:

Room revenues (in thousands)

$       36,099

$       34,908

3.41%

RevPAR

$         89.09

$         86.88

2.54%

Occupancy

68.07%

65.93%

2.14%

ADR

$       130.87

$       131.76

-0.68%

NOTES: