2014

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

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:








(1)

The above pro forma table assumes the 21 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:









Marriott San Antonio Plaza, The Churchill, The Melrose, Courtyard Boston Tremont, Ritz-Carlton Atlanta, Courtyard Savannah,



Hilton Garden Virginia Beach
















 


 ASHFORD HOSPITALITY TRUST, INC. 

 PRO FORMA HOTEL OPERATING PROFIT 

 LEGACY PORTFOLIO ONLY 

 (dollars in thousands) 

 (Unaudited) 













 ALL HOTELS INCLUDED IN CONTINUING OPERATIONS: 



















 Three Months Ended 





 March 31, 





2012


2011


 % Variance 


 REVENUE 








 Rooms 

$             173,432


$     166,439


4.2%



 Food and beverage 

41,675


38,939


7.0%



 Other 

9,287


9,218


0.7%




 Total hotel revenue 

224,394


214,596


4.6%











 EXPENSES 








 Rooms 

39,381


37,944


3.8%