Ashford Hospitality Trust Reports Fourth Quarter and Year End Results 8th Consecutive Quarterly Year Over Year Increase In AFFO Per Share

Record Fourth Quarter AFFO Per Share

Record Full Year AFFO Per Share

DALLAS, Feb. 22, 2012 /PRNewswire/ -- Ashford Hospitality Trust, Inc. (NYSE: AHT) today reported the following results and performance measures for the fourth quarter ended December 31, 2011.  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 fourth quarter ended December 31, 2011, with the fourth quarter ended December 31, 2010 (see discussion below). The reconciliation of non-GAAP financial measures is included in the financial tables accompanying this press release.

FINANCIAL HIGHLIGHTS

  • Adjusted funds from operations (AFFO) was $0.42 per diluted share for the quarter, the Company's 8th consecutive quarterly year over year increase and a record for the fourth quarter
  • Adjusted funds from operations (AFFO) was a record $1.86 per diluted share for the entire year
  • RevPAR increased 5.4% for all Legacy hotels in continuing operations, driven by a 3.5% increase in ADR and a 122 basis point increase in occupancy
  • RevPAR increased 3.3% for the 25 hotels in the Highland Hospitality Portfolio not under renovation in continuing operations, driven by a 2.4% increase in ADR and a 58 basis point increase in occupancy
  • Hotel operating profit margin increased 143 basis points for all Legacy hotels in continuing operations
  • Hotel operating profit margin increased 177 basis points for the 25 hotels in the Highland Hospitality Portfolio not under renovation in continuing operations
  • Net loss attributable to common shareholders was $18.3 million, or $0.28 per diluted share, compared with net loss attributable to common shareholders of $111.5 million, or $2.17 per diluted share, in the prior-year quarter
  • Fixed charge coverage ratio was 1.70x under the senior credit facility covenant versus a required minimum of 1.35x
  • In December, Ashford successfully restructured its $203.4 million mortgage loan and extended the maturity date from December 2011 to March 2014 with a one-year extension option
  • Subsequent to the end of the fourth quarter, the Company increased the size of its senior credit facility from $105 million to $145 million with the option to expand it 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
  • At the end of the fourth quarter, Ashford had cash and cash equivalents of $167.6 million
  • In December, the Board of Directors approved a 10% increase in the Company's dividend policy for 2012; Ashford expects to pay a quarterly dividend of $0.11 per share for 2012

CAPITAL ALLOCATION

  • Capex invested in the quarter for the Legacy portfolio was $21.9 million and $67.8 million for the full-year
  • Capex invested in the quarter for the Highland Hospitality Portfolio was $6.1 million and $13.6 million for the full-year

CAPITAL STRUCTURE

As previously disclosed, on October 12, 2011 the Company priced an underwritten public offering of 1,280,000 shares of its existing 9.00% Series E Cumulative Preferred Stock at $23.47 per share including accrued dividends; receiving net proceeds of $28.9 million after underwriting fees.  The net proceeds from the sale of these securities are being used for general corporate purposes, including, without limitation, repayment of debt or other maturing obligations, financing future hotel-related investments, capital expenditures and working capital.  Net proceeds may also be used for repurchasing shares of common stock under Ashford's repurchase program.

On December 12, 2011, Ashford announced it had successfully restructured its $203.4 million mortgage loan and extended the maturity date from December 2011 to March 2014.  There is also a one-year extension option subject to the satisfaction of certain conditions.  The restructuring provides for a new interest rate of LIBOR + 4.50%, with no LIBOR Floor.  At the closing of the restructuring, the Company paid down the loan by $25 million to $178.4 million.  Additionally, terms include that 85% of excess cash flow after debt service, working capital, and approved capital expenditures will be used to pay down the debt balance and thereby further deleverage the portfolio.

Ashford has successfully addressed debt maturities and is well positioned regarding the next few years.  The Company is engaged in negotiations with the existing lenders to restructure and extend the $167.2 million non-recourse portfolio mortgage loan that matures in May 2012.  On a parallel path, the Company is also in discussion with third party lenders to refinance this loan.  There appears to be a high likelihood of a viable restructure or refinance under current market conditions given the level of existing cash held in reserve for a possible debt pay down for this loan.

The Company previously announced entering into a new $105 million revolving credit facility for three years that replaced the Company's pre-existing credit line that was scheduled to mature in April 2012.  Subsequent to the end of the fourth quarter, the company upsized the facility to $145 million with the option to further expand the facility to an aggregate size of $225 million.  The facility is currently undrawn.  All other Company debt is non-recourse.

HIGHLAND HOSPITALITY PORTFOLIO UPDATE  

The Highland Hospitality portfolio experienced RevPAR growth of 2.6% during the fourth quarter of 2011, with RevPAR growth for hotels not under renovation in continuing operations of 3.3%.  This performance was negatively impacted by property manager changes at the Hyatt Regency Windwatch and the Hilton Boston Back Bay.  While this created a short-term revenue disruption during the fourth quarter, these initiatives were part of the continuing integration of the Highland Hospitality Portfolio into the Company's total portfolio and are expected to create long-term value through enhanced productivity and cost savings, as well as higher exit value given removal of brand management encumbrances.    

The Company expects both the revenue and EBITDA performance of the Highland Hospitality Portfolio to continue to improve as the hotels in the Portfolio continue to be fully integrated into Ashford's total portfolio.

PORTFOLIO REVPAR

As of December 31, 2011, the Company's Legacy portfolio consisted of direct hotel investments with 96 properties classified in continuing operations.  During the fourth quarter, 63 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 (63 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 5.4% to $86.66 for all hotels in the Legacy portfolio on a 3.5% increase in ADR and a 122 basis point increase in occupancy
  • Proforma RevPAR increased 4.6% to $83.03 for hotels not under renovation in the Legacy portfolio on a 2.1% increase in ADR and a 161 basis point increase in occupancy
  • Proforma RevPAR increased 3.3% to $91.82 for hotels not under renovation in the Highland Hospitality Portfolio on a 2.4% increase in ADR and a 58 basis point increase in occupancy
  • Proforma RevPAR increased 2.6% to $91.11 for all hotels in the Highland Hospitality Portfolio on a 2.4% increase in ADR and an 11 basis point increase in occupancy

Through December 1, 2011, one hotel property held by a joint venture in which Ashford had an ownership interest of 89% was leased on a triple-net lease basis to a third-party tenant who operated the hotel property. Effective December 2, 2011, Ashford converted its 89% interest in a triple-net lease to a 100% ownership position and the triple-net lease was converted to a long-term management contract at no cost to the Company. The Company recognized a gain of $9.7 million for this transaction, consisting of the assignments of an $8.1 million note receivable and $1.6 million security deposits, which is included in "Other income" in the consolidated statements of operations.

HOTEL EBITDA MARGINS AND QUARTERLY SEASONALITY TRENDS

Hotel operating profit (Hotel EBITDA) for all Legacy hotels increased 11.0%, for the quarter.  For the 63 hotels that were not under renovation, Proforma Hotel EBITDA increased 10.4% to $39.8 million. Proforma Hotel EBITDA margin (expressed as a percentage of Total Hotel Revenue) increased 127 basis points to 28.1%.  For all 96 Legacy hotels included in continuing operations as of December 31, 2011, Proforma Hotel EBITDA increased 11.0% to $67.1 million and Hotel EBITDA margin increased 143 basis points to 28.3%.

For the Company's 71.74% share of the 25 hotels in the Highland Hospitality Portfolio that were not under renovation, Proforma Hotel EBITDA increased 10.0% to $17.7 million.  Proforma Hotel EBITDA margin (expressed as a percentage of Total Hotel Revenue) increased 177 basis points to 25.5%.  For all 28 hotels in the Highland Hospitality Portfolio, Proforma Hotel EBITDA increased 6.4% to $19.0 million.  Proforma Hotel EBITDA margin (expressed as a percentage of Total Hotel Revenue) increased 114 basis points to 25.4%.  

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 December 15, 2011, Ashford announced that its Board of Directors had declared a common stock dividend for the fourth quarter ended December 31, 2011, of $0.10 per diluted share, payable January 16, 2012, for shareholders of record on December 31, 2011.

The Board also approved the Company's dividend policy for 2012.  The Company expects to pay a quarterly cash dividend of $0.11 per common share for 2012, or $0.44 per common share on an annualized basis.  While this policy results in ample dividend coverage on a historical basis, the Company believes a more conservative approach is prudent during this time of global economic uncertainty.  The adoption of a dividend policy does not commit the Board of Directors to declare future dividends or the amount thereof. The Board will continue to review its dividend policy on a quarter-to-quarter basis.  

Monty J. Bennett, Chief Executive Officer, commented, "This was a record quarter and year for Ashford in several respects.  It represents seven out of eight years of record AFFO per share performance, including our eighth consecutive quarterly year over year AFFO per share increase and another record fourth quarter of AFFO per share.  We believe significant upside exists given the early stages of the economic recovery, improving macroeconomic fundamentals and the lack of new supply over the next few years.  Further, we continue to maintain a conservative approach to capital and liquidity so that we are prepared for economic uncertainties, while positioning ourselves to take advantage of opportunistic investments as they arise.  Our strategic approach has served us well during this economic environment, but our focus on improved operating performance and maximizing shareholder returns remains a constant."

INVESTOR CONFERENCE CALL AND SIMULCAST

Ashford Hospitality Trust, Inc. will conduct a conference call on Thursday February 23, 2012, at 11 a.m. ET.  The number to call for this interactive teleconference is (480) 629-9722. A replay of the conference call will be available through Thursday, March 1, 2012, by dialing (303) 590-3030 and entering the confirmation number, 4508934.

The Company will also provide an online simulcast and rebroadcast of its fourth quarter 2011 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 February 23, 2012, beginning at 11 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)








December 31,






2011


2010






(Unaudited)

ASSETS






Investment in hotel properties, net

$ 2,957,899


$ 3,023,736


Cash and cash equivalents

167,609


217,690


Restricted cash

84,069


67,666


Accounts receivable, net

28,623


27,493


Inventories

2,371


2,909


Notes receivable

11,199


20,870


Investment in unconsolidated joint ventures

179,527


15,000


Assets held for sale

-


144,511


Investments in securities and other

21,374


-


Deferred costs, net

17,421


17,519


Prepaid expenses

11,308


12,727


Derivative assets

37,918


106,867


Other assets

4,851


7,502


Intangible assets, net

2,810


2,899


Due from third-party hotel managers

62,747


49,135











Total assets

$ 3,589,726


$ 3,716,524









LIABILITIES AND EQUITY




Liabilities






Indebtedness of continuing operations

$ 2,362,458


$ 2,518,164


Indebtedness of assets held for sale

-


50,619


Capital leases payable

-


36


Accounts payable and accrued expenses

82,282


79,248


Dividends payable

16,941


7,281


Unfavorable management contract liabilities

13,611


16,058


Due to related parties

2,569


2,400


Due to third-party hotel managers

1,602


1,870


Liabilities associated with investments in securities and other

2,246


-


Other liabilities

5,400


4,627


Other liabilities of assets held for sale

-


2,995











Total liabilities

2,487,109


2,683,298









Series B-1 Cumulative Convertible Redeemable Preferred stock, 7,247,865 shares





issued and outstanding at December 31, 2010

-


72,986

Redeemable noncontrolling interests in operating partnership

112,796


126,722









Equity:







Shareholders' equity of the Company






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







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

15


15




Series D Cumulative Preferred Stock, 8,966,797 shares issued and outstanding

90


90




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








at December 31, 2011

46


-



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







and 123,403,893 shares issued, respectively, 68,032,289 and 58,999,324 shares







outstanding, respectively

1,249


1,234



Additional paid-in capital

1,746,259


1,552,657



Accumulated other comprehensive loss

(184)


(550)



Accumulated deficit

(609,272)


(543,788)



Treasury stock, at cost (56,864,476 shares and 64,404,569 shares, respectively)

(164,796)


(192,850)




Total shareholders' equity of the Company

973,407


816,808


Noncontrolling interests in consolidated joint ventures

16,414


16,710











Total equity

989,821


833,518












Total liabilities and equity

$ 3,589,726


$ 3,716,524



ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

























Three Months Ended


Year Ended





December 31,


December 31,





2011


2010


2011


2010





(Unaudited)


(Unaudited)

REVENUE









Rooms

$ 176,634


$  166,100


$ 685,568


$ 640,989


Food and beverage

45,123


42,187


158,258


151,105


Rental income from operating leases

1,333


1,708


5,341


5,436


Other

10,086


9,848


40,268


39,291














Total hotel revenue

233,176


219,843


889,435


836,821


Interest income from notes receivable

-


346


-


1,378


Asset management fees and other

145


113


362


425














Total  Revenue

233,321


220,302


889,797


838,624












EXPENSES









Hotel operating expenses










Rooms

42,531


39,721


158,645


148,308



Food and beverage

30,204


28,474


108,961


105,229



Other direct

5,792


5,845


23,367


23,576



Indirect

68,588


64,680


253,766


242,623



Management fees

9,631


9,468


36,140


34,909















Total hotel operating expenses

156,746


148,188


580,879


554,645













Property taxes, insurance, and other

11,805


11,701


46,758


49,389


Depreciation and amortization

34,302


32,875


133,882


132,651


Impairment charges

(93)


47,667


(4,841)


46,404


Gain on insurance settlement

(130)


-


(2,035)


-


Transaction acquisition and contract termination costs

(2)


7,001


(793)


7,001


Corporate general and administrative:










Stock/unit-based compensation

3,963


1,899


12,391


7,067



Other general and administrative

6,577


6,039


32,131


23,552















Total Operating Expenses

213,168


255,370


798,372


820,709












OPERATING INCOME (LOSS)

20,153


(35,068)


91,425


17,915













Equity in earnings (loss) of unconsolidated joint ventures

(5,068)


(21,590)


14,528


(20,265)


Interest income

15


57


85


283


Other income

26,015


15,781


109,524


62,826


Interest expense

(33,515)


(33,906)


(133,922)


(135,685)


Amortization of loan costs

(1,116)


(1,079)


(4,625)


(4,924)


Write-off of premiums, loan costs and exit fees

-


(3,893)


(729)


(3,893)


Unrealized loss on investments

(1,614)


-


(391)


-


Unrealized gain (loss) on derivatives

(17,473)


(18,540)


(70,286)


12,284












INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

(12,603)


(98,238)


5,609


(71,459)


Income tax (expense) benefit

787


591


(1,620)


155












INCOME (LOSS) FROM CONTINUING OPERATIONS

(11,816)


(97,647)


3,989


(71,304)

Income (loss) from discontinued operations

63


(24,538)


(4,106)


9,512












NET LOSS

(11,753)


(122,185)


(117)


(61,792)

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

(73)


262


(610)


1,683

Net loss attributable to redeemable noncontrolling interests in operating partnership

1,629


16,979


2,836


8,369












NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY

(10,197)


(104,944)


2,109


(51,740)

Preferred dividends

(8,135)


(6,545)


(46,876)


(21,194)












NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS

$ (18,332)


$ (111,489)


$ (44,767)


$ (72,934)












INCOME (LOSS) PER SHARE – BASIC AND DILUTED:




















Loss from continuing operations attributable to common shareholders

$     (0.28)


$       (1.76)


$     (0.66)


$     (1.59)


Income (loss) from discontinued operations attributable to common shareholders

-


(0.41)


(0.07)


0.16













Net loss attributable to common shareholders

$     (0.28)


$       (2.17)


$     (0.73)


$     (1.43)













Weighted average common shares outstanding – basic and diluted

67,132


51,407


61,954


51,159












Amounts attributable to common shareholders:









Income (loss) from continuing operations, net of tax

$ (10,253)


$   (83,725)


$     6,609


$ (60,158)


Income (loss) from discontinued operations, net of tax

56


(21,219)


(4,500)


8,418


Preferred dividends

(8,135)


(6,545)


(46,876)


(21,194)













Net loss attributable to common shareholders

$ (18,332)


$ (111,489)


$ (44,767)


$ (72,934)



ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

RECONCILIATION OF NET LOSS TO EBITDA

(in thousands)

(Unaudited)



















Three Months Ended


Year Ended



December 31,


December 31,



2011


2010


2011


2010










Net loss

$    (11,753)


$  (122,185)


$         (117)


$    (61,792)

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

(73)


262


(610)


1,683

Net loss attributable to redeemable noncontrolling interests in operating partnership

1,629


16,979


2,836


8,369

Net income (loss) attributable to the Company

(10,197)


(104,944)


2,109


(51,740)











Interest income

(14)


(57)


(84)


(273)


Interest expense and amortization of loan costs

34,233


35,819


137,466


147,233


Depreciation and amortization  

33,485


34,706


130,995


141,547


Income tax expense

(787)


(649)


1,705


(132)


Impairment charges

(93)


71,249


1,395


82,055


Net loss attributable to redeemable noncontrolling interests in operating partnership

(1,629)


(16,979)


(2,836)


(8,369)


Equity in (earnings) loss of unconsolidated joint ventures

5,068


21,590


(14,528)


20,265


Company's portion of EBITDA of unconsolidated joint ventures

18,622


-


104,807


1,325










EBITDA

78,688


40,735


361,029


331,911











Amortization of unfavorable management contract liabilities

(753)


(753)


(2,447)


(2,447)


Gain on sale/disposition of properties

(5)


-


(2,655)


(55,931)


Non-cash gain on insurance settlements

(130)


-


(1,287)


-


Write-off of premiums, loan costs and exit fees

-


3,893


1,677


3,893


Other income (1)

(26,015)


(15,786)


(109,524)


(62,906)


Transaction acquisition and contract termination costs

(2)


7,001


(793)


7,001


Legal costs related to litigation settlement (2)

-


-


6,875


-


Debt restructuring costs

823


-


823


-


Unrealized loss on investments

1,614


-


391


-


Unrealized (gain) loss on derivatives

17,473


18,540


70,286


(12,284)


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

(683)


-


(42,248)


-










Adjusted EBITDA

$      71,010


$      53,630


$    282,127


$    209,237



















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

(in thousands, except per share amounts)





















Three Months Ended


Year Ended



December 31,


December 31,



2011


2010


2011


2010










Net loss

$    (11,753)


$  (122,185)


$         (117)


$    (61,792)

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

(73)


262


(610)


1,683

Net loss attributable to redeemable noncontrolling interests in operating partnership

1,629


16,979


2,836


8,369

Preferred dividends

(8,135)


(6,545)


(46,876)


(21,194)










Net loss attributable to common shareholders

(18,332)


(111,489)


(44,767)


(72,934)











Depreciation and amortization on real estate

33,419


34,642


130,741


141,285


Gain on sale/disposition of properties

(5)


-


(2,655)


(55,931)


Non-cash gain on insurance settlements

(130)


-


(1,287)


-


Impairment charges

(93)


71,249


1,395


82,055


Net loss attributable to redeemable noncontrolling interests in operating partnership

(1,629)


(16,979)


(2,836)


(8,369)


Equity in (earnings) loss of unconsolidated joint ventures

5,068


21,590


(14,528)


20,265


Company's portion of FFO of unconsolidated joint ventures

4,671


-


8,125


1,325










FFO available to common shareholders

22,969


(987)


74,188


107,696











Dividends on convertible preferred stock

-


1,015


1,374


4,143


Write-off of premiums, loan costs and exit fees

-


3,893


1,677


3,893


Transaction acquisition and contract termination costs

(2)


7,001


(793)


7,001


Other income (1)

(9,515)


-


(38,663)


-


Legal costs related to litigation settlement (2)

-


-


6,875


-


Debt restructuring costs

823


-


823


-


Unrealized loss on investments

1,614


-


391


-


Unrealized (gain) loss on derivatives

17,473


18,540


70,286


(12,284)


Non-cash dividends on Series B-1 preferred stock (3)

-


-


17,363


-


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

1,568


-


16,682


-










Adjusted FFO available to common shareholders

$      34,930


$      29,462


$    150,203


$    110,449










Adjusted FFO per diluted share available to common shareholders

$          0.42


$          0.40


$          1.86


$          1.50










Weighted average diluted shares

83,850


73,956


80,597


73,833










(1)  Other income related to income from interest rate derivatives is excluded from the Adjusted EBITDA for all periods presented. In addition, the gain from litigation settlement, the net investment loss on investments in securities and other, the premiums and fees associated with credit default swaps, and other income recognized on the acquisition of 11% of noncontrolling interest in a consolidated joint venture are also excluded from Adjusted EBITDA for 2011.

For 2011, the gain from litigation settlement, the net investment loss, the premiums and fees associated with credit default swaps, and other income recognized on the acquisition of 11% of noncontrolling interest in a consolidated joint venture are excluded for Adjusted FFO calculation.

(2)  The legal costs associated with the litigation settlement are also excluded from Adjusted EBITDA and Adjusted FFO for the year ended December 31, 2011.

(3)  Represents the conversion of 1.4 million shares of the Series B-1 preferred stock to shares of our common stock that was treated as a dividend in accordance with applicable accounting guidance.



ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

SUMMARY OF INDEBTEDNESS OF CONTINUING OPERATIONS

DECEMBER 31, 2011

(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%


-


145,667


145,667

Mortgage loan


5 hotels


March 2014


LIBOR + 4.50%


-


178,400

(1)

178,400

Mortgage loan


1 hotel


May 2014


8.32%


5,476


-


5,476

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%


106,863


-


106,863

Mortgage loan


10 hotels


July 2015


5.22%


155,831


-


155,831

Mortgage loan


8 hotels


December 2015


5.70%


98,786


-


98,786

Mortgage loan


5 hotels


December 2015


12.72%


151,185


-


151,185

Mortgage loan


5 hotels


February 2016


5.53%


112,453


-


112,453

Mortgage loan


5 hotels


February 2016


5.53%


93,257


-


93,257

Mortgage loan


5 hotels


February 2016


5.53%


80,782


-


80,782

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%


103,759


-


103,759

Mortgage loan


1 hotel


April 2034


Greater of 6% or Prime + 1%


-


6,651


6,651














Total indebtedness








$    1,844,798


$           517,660


$     2,362,458














Percentage








78.1%


21.9%


100.0%














Weighted average interest rate at December 31, 2011




6.41%


3.43%


5.75%














Total indebtedness with effect of interest rate swaps




$    2,344,233


$             18,225


2,362,458














Percentage with the effect of interest rate swaps




99.2%


0.8%


100.0%














Weighted average interest rate with the effect of interest rate swaps



2.59%

(2)

3.41%

(2)

2.77%














(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 December 31, 2011 level and with the effect of our interest rate derivatives.



PIM HIGHLAND HOLDING LLC

SUMMARY OF INDEBTEDNESS

DECEMBER 31, 2011

(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%


$         64,268


$                    -


$          64,268

Mortgage loan


1 hotel


April 2013


6.11%


46,023




46,023

Mortgage loan


1 hotel


February 2013


5.97%


32,651




32,651

Mortgage loan


25 hotels


March 2014


LIBOR + 2.75%


-


530,000

(1)

530,000

Mezzanine loan


28 hotels


March 2014


Greater of 6.50% or LIBOR + 6.00%


-


144,594

(1)

144,594

Mezzanine loan


28 hotels


March 2014


Greater of 7.5% or LIBOR + 7.00%


-


137,650

(1)

137,650

Mezzanine loan


28 hotels


March 2014


Greater of 10.00% or LIBOR + 9.50%


-


117,986

(1)

117,986

Mezzanine loan


28 hotels


March 2014


LIBOR + 2.00%




18,425

(1)

18,425














Total indebtedness








142,942


948,655


1,091,597

Ashford's proportionate obligations






x 71.74%


x 71.74%


x 71.74%









$       102,547


$           680,565


$        783,112














Percentage








13.1%


86.9%


100.0%














Weighted average interest rate at December 31, 2011




6.01%


5.07%


5.19%














Percentage with the effect of interest rate swaps




100.0%


0.0%


100.0%














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


$    1,947,345


$        1,198,225


$     3,145,570














Percentage with the effect of interest rate swaps




99.4%


0.6%


100.0%














Weighted average interest rate with the effect of interest rate swaps



2.77%


4.37%


3.38%

(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

DECEMBER 31, 2011

(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


-


145,667


-


-


-


-


145,667

Mortgage loan secured by five hotel properties






-


178,400


-


-


178,400

Mortgage loan secured by Manchester Courtyard

-


-


5,476


-


-


-


5,476

Senior credit facility



-


-


-


-


-


-


-

Mortgage loan secured by El Conquistador Hilton

-


-


19,740


-


-


-


19,740

Mortgage loan secured by eight hotel properties, UBS Pool 1

-


-


106,863


-


-


-


106,863

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

-


-


-


155,831


-


-


155,831

Mortgage loan secured by eight hotel properties, UBS Pool 2

-


-


-


98,786


-


-


98,786

Mortgage loan secured by five hotel properties


-


-


-


151,185


-


-


151,185

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

-


-


-


-


112,453


-


112,453

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

-


-


-


-


93,257


-


93,257

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

-


-


-


-


80,782


-


80,782

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

-


-


-


-


-


8,098


8,098

Mortgage loan secured by Arlington Marriott


-


-


-


-


-


103,759


103,759

Mortgage loan secured by Jacksonville Residence Inn

-


-


-


-


-


6,651


6,651



















Total indebtedness of continuing operations


$ 167,202


$ 145,667


$ 132,079


$ 584,202


$ 286,492


$   1,046,816


$ 2,362,458



















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



PIM HIGHLAND HOLDING LLC

INDEBTEDNESS BY MATURITY

ASSUMING EXTENSION OPTIONS ARE EXERCISED

DECEMBER 31, 2011

(in thousands)

(Unaudited)










































2012


2013


2014


2015


2016


Thereafter


Total



















Mortgage loan secured by Boston Hilton


$           -


$   64,268


$           -


$           -


$           -


$               -


$      64,268

Mortgage loan secured by Nashville Renaissance

-


46,023


-


-


-


-


46,023

Mortgage loan secured by Princeton Westin


-


32,651


-


-


-


-


32,651

Mortgage loan secured by 25 hotel properties


-


-


-


-


530,000


-


530,000

Mezzanine loan




-


-


-


-


144,594


-


144,594

Mezzanine loan




-


-


-


-


137,650


-


137,650

Mezzanine loan




-


-


-


-


117,986


-


117,986

Mezzanine loan




-


-


-


-


18,425


-


18,425



















Total indebtedness



-


142,942


-


-


948,655


-


1,091,597

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%






$           -


$ 102,547


$           -


$           -


$ 680,565


$               -


$    783,112



















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

$ 167,202


$ 248,214


$ 132,079


$ 584,202


$ 967,057


$   1,046,816


$ 3,145,570



ASHFORD HOSPITALITY TRUST, INC.

KEY PERFORMANCE INDICATORS - PRO FORMA

LEGACY PORTFOLIO ONLY

(dollars in thousands)

(Unaudited)
































Three Months Ended


Year Ended




December 31,


December 31,




2011


2010


% Variance


2011


2010


% Variance















ALL HOTELS INCLUDED IN CONTINUING OPERATIONS:


Room revenues (in thousands)

$ 181,176


$ 171,877


5.41%


$ 702,118


$ 659,315


6.49%


RevPAR

$     86.66


$     82.22


5.40%


$     93.21


$     87.53


6.49%


Occupancy

68.11%


66.89%


1.22%


72.17%


70.33%


1.84%


ADR

$   127.25


$   122.91


3.53%


$   129.16


$   124.46


3.78%















NOTES:

The above pro forma table assumes the 96 hotel properties owned and included in continuing operations as of December 31, 2011 were owned as of the



beginning of the first comparative reporting period.















ALL HOTELS NOT UNDER RENOVATION INCLUDED IN













CONTINUING OPERATIONS:













Room revenues (in thousands)

$ 108,036


$ 103,286


4.60%


$ 425,695


$ 405,365


5.02%


RevPAR

$     83.03


$     79.37


4.61%


$     90.18


$     85.87


5.02%


Occupancy

68.55%


66.94%


1.61%


72.38%


71.03%


1.35%


ADR

$   121.11


$   118.58


2.13%


$   124.60


$   120.89


3.07%















NOTES:













 (1) The above pro forma table assumes the 63 hotel properties owned and included in continuing operations as of December 31, 2011, but not under renovation for the three months and year ended December 31, 2011, were owned as of the beginning of the first comparative reporting period.  


 (2) Excluded Hotels Under Renovation: Capital Hilton, Courtyard Basking Ridge, Courtyard Foothill Ranch Irvine, Courtyard Legacy Park  
 Courtyard Louisville Airport, Courtyard Newark, Courtyard Oakland Airport, Courtyard Old Town Scottsdale, Courtyard Philadelphia Downtown,  
 Courtyard San Francisco Downtown, Courtyard Seattle Downtown, Crown Plaza La Concha-Key West, Embassy Suites Austin Arboretum,  
 Embassy Suites Dallas Galleria, Embassy Suites Flagstaff, Embassy Suites Houston, Embassy Suites Portland Downtown, Embassy Suites Walnut Creek,  
 Hilton Costa Mesa, Hilton Nassau Bay Clear Lake, Hilton Santa Fe, Hilton Tucson El Conquistador Golf Resort, Marriott Bridgewater,  
 Marriott Legacy Center, Residence Inn Jacksonville, Residence Inn Las Vegas, Sheraton San Diego Mission Valley, SpringHill Suites Charlotte,  
 SpringHill Suites Buford Mall of Georgia, SpringHill Suites Manhattan Beach, SpringHill Suites Philadelphia, SpringHill Suites Raleigh Airport,  
 SpringHill Suites Richmond  





























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


Year Ended




December 31,


December 31,




2011


2010


% Variance


2011


2010


% Variance















71.74% PRO-RATA SHARE OF ALL HOTELS


Room revenues (in thousands)

$   51,076


$   49,792


2.58%


$ 202,506


$ 194,426


4.16%


RevPAR

$     91.11


$     88.81


2.59%


$     95.74


$     91.91


4.17%


Occupancy

66.79%


66.68%


0.11%


70.64%


69.38%


1.26%


ADR

$   136.40


$   133.19


2.41%


$   133.54


$   132.48


0.80%















NOTES:

The above pro forma table assumes the 28 hotel properties owned as of December 31, 2011 were owned as of the beginning of the first comparative
reporting period.

















71.74% PRO-RATA SHARE OF ALL HOTELS NOT UNDER


RENOVATION













Room revenues (in thousands)

$   47,089


$   45,609


3.24%


$ 184,825


$ 175,766


5.15%


RevPAR

$     91.82


$     88.92


3.26%


$     95.98


$     91.27


5.16%


Occupancy

67.13%


66.55%


0.58%


70.57%


69.00%


1.57%


ADR

$   136.78


$   133.61


2.37%


$   136.01


$   132.28


2.82%















NOTES:













 (1) The above pro forma table assumes the 25 hotel properties owned as of December 31, 2011, but not under renovation for the three months and year ended December 31, 2011, were owned as of the beginning of the first comparative reporting period.  


 (2) Excluded Hotels Under Renovation: Marriott Omaha, Marriott San Antonio Plaza, The Churchill Washington DC  



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


Year Ended




December 31,


December 31,




2011


2010


% Variance


2011


2010


% Variance

REVENUE













Rooms

$ 181,176


$ 171,877


5.4%


$ 702,118


$ 659,315


6.5%


Food and beverage

46,041


43,192


6.6%


161,136


154,175


4.5%


Other

9,681


9,742


-0.6%


38,884


38,884


0.0%



Total hotel revenue

236,898


224,811


5.4%


902,138


852,374


5.8%















EXPENSES













Rooms

43,336


40,977


5.8%


161,931


152,545


6.2%


Food and beverage

30,804


29,123


5.8%


111,016


107,320


3.4%


Other direct

5,794


5,872


-1.3%


23,388


23,674


-1.2%


Indirect  

66,845


65,663


1.8%


253,033


244,939


3.3%


Management fees, includes base and incentive fees

11,048


10,662


3.6%


40,395


39,365


2.6%



Total hotel operating expenses

157,827


152,297


3.6%


589,763


567,843


3.9%


Property taxes, insurance, and other

12,021


12,114


-0.8%


47,865


50,386


-5.0%

HOTEL OPERATING PROFIT (Hotel EBITDA)

67,050


60,400


11.0%


264,510


234,145


13.0%


Hotel EBITDA Margin

28.30%


26.87%


1.43%


29.32%


27.47%


1.85%
















Minority interest in earnings of consolidated joint ventures

1,366


1,215


12.4%


6,133


4,872


25.9%

HOTEL OPERATING PROFIT (Hotel EBITDA),













excluding minority interest in joint ventures

$   65,684


$   59,185


11.0%


$ 258,377


$ 229,273


12.7%















 NOTE:   The above pro forma table assumes the 96 hotel properties owned and included in continuing operations as of December 31, 2011 were owned as
of the beginning of the first comparative reporting period.    



ALL HOTELS NOT UNDER RENOVATION INCLUDED IN CONTINUING OPERATIONS:





Three Months Ended


Year Ended




December 31,


December 31,




2011


2010


% Variance


2011


2010


% Variance

REVENUE













Rooms

$ 108,036


$ 103,286


4.6%


$ 425,695


$ 405,365


5.0%


Food and beverage

27,881


25,445


9.6%


95,539


91,630


4.3%


Other

5,463


5,410


1.0%


21,282


20,816


2.2%



Total hotel revenue

141,380


134,141


5.4%


542,516


517,811


4.8%















EXPENSES













Rooms

25,781


24,561


5.0%


96,957


92,187


5.2%


Food and beverage

17,848


16,892


5.7%


64,262


62,342


3.1%


Other direct

3,178


3,101


2.5%


12,359


12,244


0.9%


Indirect  

40,131


39,635


1.3%


152,795


149,051


2.5%


Management fees, includes base and incentive fees

7,233


6,994


3.4%


25,910


26,125


-0.8%



Total hotel operating expenses

94,171


91,183


3.3%


352,283


341,949


3.0%


Property taxes, insurance, and other

7,444


6,929


7.4%


30,003


30,077


-0.2%

HOTEL OPERATING PROFIT (Hotel EBITDA)

39,765


36,029


10.4%


160,230


145,785


9.9%


Hotel EBITDA Margin

28.13%


26.86%


1.27%


29.53%


28.15%


1.38%
















Minority interest in earnings of consolidated joint ventures

526


558


-5.7%


2,413


2,030


18.9%

HOTEL OPERATING PROFIT (Hotel EBITDA),












  excluding minority interest in joint ventures

$   39,239


$   35,471


10.6%


$ 157,817


$ 143,755


9.8%















NOTES:

  (1) The above pro forma table assumes the 63 hotel properties owned and included in continuing operations as of December 31, 2011, but not under
   renovation during the three months ended December 31, 2011 were owned as of the beginning of the first comparative reporting period.    


  (2) Excluded Hotels Under Renovation: Capital Hilton, Courtyard Basking Ridge, Courtyard Foothill Ranch Irvine, Courtyard Legacy Park    
  Courtyard Louisville Airport, Courtyard Newark, Courtyard Oakland Airport, Courtyard Old Town Scottsdale, Courtyard Philadelphia Downtown,    
  Courtyard San Francisco Downtown, Courtyard Seattle Downtown, Crown Plaza La Concha-Key West, Embassy Suites Austin Arboretum,    
  Embassy Suites Dallas Galleria, Embassy Suites Flagstaff, Embassy Suites Houston, Embassy Suites Portland Downtown, Embassy Suites Walnut Creek,    
  Hilton Costa Mesa, Hilton Nassau Bay Clear Lake, Hilton Santa Fe, Hilton Tucson El Conquistador Golf Resort, Marriott Bridgewater,    
  Marriott Legacy Center, Residence Inn Jacksonville, Residence Inn Las Vegas, Sheraton San Diego Mission Valley, SpringHill Suites Charlotte,    
  SpringHill Suites Buford Mall of Georgia, SpringHill Suites Manhattan Beach, SpringHill Suites Philadelphia, SpringHill Suites Raleigh Airport,    

  SpringHill Suites Richmond    



PIM HIGHLAND HOLDING LLC

PRO FORMA HOTEL OPERATING PROFIT

(dollars in thousands)

(Unaudited)







71.74% PRO-RATA SHARE OF ALL HOTELS INCLUDED IN PIM HIGHLAND PORTFOLIO:







Three Months Ended


Year Ended




December 31,


December 31,




2011


2010


% Variance


2011


2010


% Variance

REVENUE












Rooms


$ 51,076


$ 49,792


2.6%


$ 202,506


$ 194,426


4.2%

Food and beverage

21,049


21,089


-0.2%


74,096


70,958


4.4%

Other


2,734


2,803


-2.5%


11,437


11,274


1.4%


Total hotel revenue

74,859


73,684


1.6%


288,039


276,658


4.1%















EXPENSES













Rooms

11,926


12,185


-2.1%


47,204


47,579


-0.8%


Food and beverage

13,696


14,404


-4.9%


50,618


50,776


-0.3%


Other direct

1,370


1,386


-1.2%


5,449


5,325


2.3%


Indirect  

22,097


21,773


1.5%


83,982


81,143


3.5%


Management fees, includes base and incentive fees

2,988


2,187


36.6%


10,080


8,311


21.3%



Total hotel operating expenses

52,077


51,935


0.3%


197,333


193,134


2.2%


Property taxes, insurance, and other

3,740


3,844


-2.7%


16,139


15,836


1.9%

HOTEL OPERATING PROFIT (Hotel EBITDA),

$ 19,042


$ 17,905


6.4%


$   74,567


$   67,688


10.2%


Hotel EBITDA Margin

25.44%


24.30%


1.14%


25.89%


24.47%


1.42%















NOTES:

 (1) The above pro forma table assumes the 28 hotel properties owned as of December 31, 2011 were owned as of the beginning of the first comparative reporting period.  


  (2) For comparative purposes, data in the table above has been adjusted to eliminate one-time real estate tax refunds received by prior owner.    


71.74%PRO-RATA SHARE OF ALL HOTELS INCLUDED IN PIM HIGHLAND PORTFOLIO NOT UNDER RENOVATION:





Three Months Ended


Year Ended




December 31,


December 31,




2011


2010


% Variance


2011


2010


% Variance

REVENUE












Rooms


$ 47,089


$ 45,609


3.2%


$ 184,825


$ 175,766


5.2%

Food and beverage

19,988


19,900


0.4%


69,743


65,992


5.7%

Other


2,522


2,503


0.8%


10,343


9,989


3.5%


Total hotel revenue

69,599


68,012


2.3%


264,911


251,747


5.2%















EXPENSES













Rooms

11,073


11,242


-1.5%


43,621


43,641


0.0%


Food and beverage

12,965


13,572


-4.5%


47,592


47,314


0.6%


Other direct

1,294


1,282


0.9%


5,100


4,889


4.3%


Indirect  

20,428


20,224


1.0%


77,623


74,771


3.8%


Management fees, includes base and incentive fees

2,772


2,046


35.5%


9,357


7,688


21.7%



Total hotel operating expenses

48,532


48,366


0.3%


183,293


178,303


2.8%


Property taxes, insurance, and other

3,319


3,506


-5.3%


14,497


14,264


1.6%

HOTEL OPERATING PROFIT (Hotel EBITDA),

$ 17,748


$ 16,140


10.0%


$   67,121


$   59,180


13.4%


Hotel EBITDA Margin

25.50%


23.73%


1.77%


25.34%


23.51%


1.83%















NOTES:

 (1) The above pro forma table assumes the 25 hotel properties owned as of December 31, 2011 but not under renovation were owned as of the beginning of the first comparative reporting period.    


  (2) Excluded Hotels Under Renovation: Marriott Omaha, Marriott San Antonio Plaza, The Churchill Washington DC    


  (3) For comparative purposes, data in the table above has been adjusted to eliminate one-time real estate tax refunds received by prior owner.    



ASHFORD HOSPITALITY TRUST, INC.

PRO FORMA HOTEL REVPAR BY REGION

LEGACY PORTFOLIO ONLY

(Unaudited)









































Three Months Ended


Year Ended



Number of


Number of


December 31,


December 31,

Region


Hotels


Rooms


2011


2010


% Change


2011


2010


% Change


















Pacific (1)


20


4,867


$ 92.49


$ 84.28


9.7%


$ 101.77


$ 92.49


10.0%

Mountain (2)


8


1,704


67.34


67.75


-0.6%


75.71


75.89


-0.2%

West North Central (3)


3


690


70.33


72.33


-2.8%


78.70


75.35


4.4%

West South Central (4)


9


1,936


87.05


82.92


5.0%


91.25


84.63


7.8%

East North Central (5)


7


1,103


68.03


64.00


6.3%


72.37


66.70


8.5%

East South Central (6)


2


236


76.41


82.05


-6.9%


80.17


86.97


-7.8%

Middle Atlantic (7)


8


2,090


99.23


90.70


9.4%


99.46


90.95


9.4%

South Atlantic (8)


37


7,610


87.78


84.83


3.5%


95.30


91.03


4.7%

New England (9)


2


159


81.80


77.60


5.4%


83.04


77.98


6.5%


















Total Portfolio


96


20,395


$ 86.66


$ 82.22


5.4%


$   93.21


$ 87.53


6.5%



































(1) Includes Alaska, California, Oregon, and Washington

(2) Includes Nevada, Arizona, New Mexico, and Utah

(3) Includes Minnesota and Kansas

(4) Includes Texas

(5) Includes Ohio and Indiana

(6) Includes Kentucky and Alabama

(7) Includes New York, New Jersey, and Pennsylvania

(8) Includes Virginia, Florida, Georgia, Maryland, District of Columbia, and North Carolina

(9) Includes Connecticut



NOTE:  The above pro forma table assumes the 96 hotel properties owned and included in continuing operations as of December 31, 2011 were owned as of the  

  beginning of the comparative reporting period.    



PIM HIGHLAND HOLDING LLC

PRO FORMA HOTEL REVPAR BY REGION

(Unaudited)









































Three Months Ended


Year Ended



Number of


Number of


December 31,


December 31,

Region


Hotels


Rooms


2011


2010


% Change


2011


2010


% Change


















Pacific (1)


1


294


$ 61.25


$ 46.36


32.1%


$   69.34


$ 56.66


22.4%

Mountain (2)


1


145


74.00


73.40


0.8%


79.62


78.98


0.8%

West North Central (3)


1


215


69.81


68.17


2.4%


81.42


80.43


1.2%

West South Central (4)


4


929


85.12


86.68


-1.8%


91.23


88.04


3.6%

East North Central (5)


1