Ashford Trust Announces Plan To Spin-Off Asset Management Business As A Separate, Publicly Traded Platform Reports Fourth Quarter and Year End 2013 Results

Completes $487 Million in New Loans and Refinancings since the beginning of 2013

Completes Spin-Off of Ashford Prime

DALLAS, Feb. 27, 2014 /PRNewswire/ -- Today, Ashford Hospitality Trust, Inc. (NYSE: AHT) ("the Company" or "Ashford Trust") announced that its Board of Directors has unanimously approved a plan to spin-off its asset management business into a separate publicly traded company in the form of a taxable distribution.  The distribution is expected to be completed in the third quarter of 2014 and will be comprised of common stock in Ashford, Inc. ("Ashford Inc."), a newly formed or successor company of the Company's existing advisor subsidiary, Ashford Hospitality Advisors LLC, which currently advises Ashford Hospitality Prime, Inc. (NYSE: AHP) ("Ashford Prime").  The Company plans to file a listing application for Ashford Inc. with the NYSE or NYSE MKT Exchanges.  In connection with the spin-off, it is anticipated that Ashford Inc. will enter into a 20-year advisory agreement to externally advise the Company.  In addition, Ashford Inc. will continue to externally advise Ashford Prime.  

It is expected that Ashford Inc. will be well positioned to grow its asset management business.  The Company's investment securities subsidiary is raising capital and it is expected that Ashford Inc. will advise this platform. In addition, other business opportunities for Ashford Inc. include future external advisory services to other platforms, such as a select service hotel platform and a hotel debt platform, both of which are opportunities being explored by the Company.  Further, it is anticipated that Ashford Inc. will pursue other business acquisitions which may include hotel management, project and construction management, and other hospitality related services.

This distribution is anticipated to be declared during the third quarter of 2014; however, it remains subject to the filing of the required registration statement with the Securities and Exchange Commission ("SEC"), the review of the registration statement by the SEC, the approval of the listing of shares by the applicable exchange, and other legal requirements. The Company expects to file the required registration statement next month.  The Company cannot be certain this distribution will proceed or proceed in the manner as currently anticipated.     

Further, the Company reported the following results and performance measures for the fourth quarter ended December 31, 2013.  Prior to the third quarter of 2013, the Company had been reporting its Legacy Portfolio and Highland Hospitality Portfolio pro forma hotel operating statistics separately.  In the third quarter 2013, the Company changed its reporting format and now combines the pro forma hotel operating statistics for its Legacy Portfolio and Ashford Trust's pro rata share of the Highland Hospitality Portfolio as the Ashford Trust Portfolio.  The performance measurements for Occupancy, Average Daily Rate (ADR), Revenue Per Available Room (RevPAR), and Hotel Operating Profit (or Hotel EBITDA) are pro forma.  Unless otherwise stated, all reported results compare the fourth quarter ended December 31, 2013, with the fourth quarter ended December 31, 2012 (see discussion below).  The reconciliation of non-GAAP financial measures is included in the financial tables accompanying this press release.

FINANCIAL AND OPERATING HIGHLIGHTS

  • During the quarter, the Company completed the spin-off of Ashford Prime, which started trading under the ticker symbol "AHP" on November 20, 2013, on the New York Stock Exchange
  • The Company closed mortgage loans totaling $18.2 million on the Residence Inn Jacksonville, FL and the Residence Inn Manchester, CT
  • Subsequent to the end of the fourth quarter, the Company refinanced its $165 million MIP Portfolio mortgage loan, with a new $200 million non-recourse mortgage loan
  • At the end of the fourth quarter 2013, the Company had total net working capital, including its pro rata share of the Highland Hospitality Portfolio net working capital and the market value of its OP Units in Ashford Prime, of $381 million
  • RevPAR for the Ashford Trust Portfolio hotels not under renovation increased 2.5% during the quarter
  • RevPAR for all Ashford Trust Portfolio hotels increased 1.3% during the quarter
  • Excluding Washington, D.C. assets and markets positively impacted by Hurricane Sandy, RevPAR increased 4.3% for all Ashford Trust Portfolio hotels
  • Hotel EBITDA flow-through was 62% for all Ashford Trust Portfolio hotels
  • Due to Marriott's change to calendar reporting in 2013, the prior year fourth quarter included twenty more days than the fourth quarter 2013 which significantly impacted the year over year comparisons
  • Net loss attributable to common shareholders for the Company was $25.9 million, or $0.32 per diluted share, compared with net loss attributable to common shareholders of $21.1 million, or $0.32 per diluted share, in the prior-year quarter
  • Adjusted funds from operations (AFFO) for the Company was $0.14 per diluted share for the quarter as compared with $0.39 from the prior-year quarter
    • Interest rate derivative income decreased by $8.1 million from the prior year quarter, impacting AFFO per share by $0.08

CAPITAL EXPENDITURES

  • Capex invested in the quarter for the Ashford Trust Portfolio was $40.8 million
  • For the full-year 2013, capex invested in the Ashford Trust Portfolio was $149.2 million

CAPITAL STRUCTURE
At December 31, 2013, the Company had total assets of $2.7 billion in continuing operations, and $3.7 billion overall including the Highland Hospitality Portfolio which is not consolidated.  As of December 31, 2013, the Company had $1.8 billion of mortgage debt in continuing operations and $2.6 billion overall including the Highland Hospitality Portfolio.  Ashford Trust's total combined debt had a blended average interest rate of 5.3%, with a weighted average debt maturity of 2.8 years. 

On November 19, 2013 Ashford Trust completed the spin-off of Ashford Prime, which began trading on the New York Stock Exchange ("NYSE") under the ticker symbol "AHP" on November 20, 2013.  Ashford Trust completed the spin-off by distributing a pro-rata taxable dividend of Ashford Prime common stock to Ashford Trust stockholders of record as of the close of business of the NYSE on November 8, 2013 (the "Record Date").  The distribution was based on a distribution ratio of one share of Ashford Prime common stock for every five shares of Ashford Trust common stock held by such stockholder on the Record Date.  Following the distribution, there were approximately 24.9 million shares of Ashford Prime common stock and partnership units outstanding.  This was comprised of approximately 16.1 million shares of Ashford Prime common stock and 8.8 million partnership units, which includes the partnership units issued to Ashford Trust reflecting its 20% ownership in Ashford Prime's operating partnership. 

On December 23, 2013, the Company announced that it had closed mortgage loans totaling $18.2 million on the Residence Inn Jacksonville, FL and the Residence Inn Manchester, CT, with both loans now set to mature in January 2024.  The previous $6.4 million loan balance on the Residence Inn Jacksonville was refinanced with a new $10.8 million loan, with a 10-year term that provides for a fixed interest rate of 5.49% and is non-recourse.  The refinance resulted in excess net proceeds of approximately $4.0 million, which were added to the Company's unrestricted cash balance.  As a result, this refinancing was neutral to the Company on a net debt basis.

The new financing on the Residence Inn Manchester includes a $7.4 million loan, also with a 10-year term.  The new loan provides for a fixed interest rate of 5.49% and is non-recourse.  Ashford has an 85% ownership interest in the property, with Interstate Hotels & Resorts holding the remaining 15%.  Terms described in this press release refer to 100% of the loan indebtedness unless otherwise indicated. This property was previously unencumbered, and the excess loan proceeds above typical closing costs and reserves were distributed to the partners on a pro rata basis.  Ashford Trust's share of the excess proceeds was approximately $6.0 million, which were added to the Company's unrestricted cash balance.  As a result, this refinancing was neutral to the Company on a net debt basis.

Subsequent to the end of the fourth quarter, on January 27, 2014, the Company announced it had successfully refinanced its $165 million MIP Portfolio mortgage loan, with a new $200 million non-recourse mortgage loan with a two-year initial term and three one-year extension options, subject to the satisfaction of certain conditions.  The new loan is interest only and provides for a floating interest rate of LIBOR + 4.75% with a 0.20% LIBOR Floor.  The refinance resulted in excess net proceeds of approximately $30 million, which were added to the Company's unrestricted cash balance. As a result, this refinancing is neutral to the Company on a net debt basis.  The new loan remains secured by the same five hotels including: the Embassy Suites Philadelphia Airport, Embassy Suites Walnut Creek, Sheraton Mission Valley San Diego, Sheraton Anchorage and the Hilton Minneapolis/St Paul Airport Mall of America.

The Company expects to close on the sale of the Pier House Resort to Ashford Prime on February 28, 2014.  The sales price is $92.7 millionAshford Prime will assume the $69 million mortgage and will pay the balance of the purchase price in cash.

PORTFOLIO REVPAR
As of December 31, 2013, the Ashford Trust Portfolio consisted of direct hotel investments with 115 properties classified in continuing operations.  During the fourth quarter of 2013, 99 of the Ashford Trust Portfolio hotels included in continuing operations were not under renovation.  The Company believes reporting its operating metrics for the Ashford Trust Portfolio hotels in continuing operations on a pro forma total basis (all 115 hotels) and pro forma not under renovation basis (99 hotels) is a measure that reflects a meaningful and focused comparison of the operating results in its portfolio.  Details of each category are provided in the tables attached to this release.

  • Pro forma RevPAR increased 1.3% to $88.86 for all hotels in the Ashford Trust Portfolio on a 1.6% increase in ADR and a 17 basis point decrease in occupancy
  • Pro forma RevPAR increased 2.5% to $88.40 for hotels not under renovation in the Ashford Trust Portfolio on a 1.4% increase in ADR and a 72 basis point increase in occupancy

HOTEL EBITDA MARGINS AND QUARTERLY SEASONALITY TRENDS
The Company 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 Hotel EBITDA and Hotel EBITDA Margin for the current and certain prior-year periods based upon the number of hotels in the Ashford Trust Portfolio, including its pro-rata share of the Highland Hospitality Portfolio as of the end of the current period.  As the Company's portfolio mix changes from time to time so will the seasonality for Pro forma Hotel EBITDA and Pro forma Hotel EBITDA margin.  The details of the quarterly calculations for the previous four quarters for the 115 Ashford Trust Portfolio hotels included in continuing operations are provided in the table attached to this release.

In addition, in 2013, Marriott Hotels and Resorts converted to a monthly reporting calendar as opposed to its traditional thirteen-period reporting calendar.  Historically, the Company has recorded four of its Marriott-managed hotels' accounting periods in the fourth quarter and three in each of the other quarters during the year.  Presently, Marriott manages 40 hotels for the Company, making it one of the Company's largest property managers.  Accordingly, this year the Company has converted its 2012 numbers on a pro forma basis to calendar months, consistent with the new Marriott monthly reporting calendar, to provide necessary consistency in period-to-period comparisons.   

COMMON STOCK DIVIDEND
On December 16, 2013, the Company announced that its Board of Directors had declared a quarterly cash dividend of $0.12 per diluted share for the Company's common stock for the fourth quarter ending December 31, 2013, payable on January 15, 2014, to shareholders of record as of December 31, 2013.

The Board also approved the Company's dividend policy for 2014.  The Company expects to pay a quarterly cash dividend of $0.12 per share for 2014, or $0.48 per share on an annualized basis.  The Company believes this dividend policy is appropriate given the recent spin-off of Ashford Hospitality Prime, and its recent dividend announcement.  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. 

"Ashford Trust has made significant progress in creating value for our shareholders.  We have completed $487 million of refinancings since the beginning of 2013 resulting in significant excess proceeds, and, in November, we completed the spin-off of Ashford Prime," commented Monty J. Bennett, Ashford Trust's Chairman and Chief Executive Officer.  "The announced plan to spin-off Ashford Trust's asset management business is another step toward maximizing value for our shareholders.  With advisory agreements in place with two publicly traded REITs, the anticipated launch of our securities investment platform, and several potential business possibilities in front of us, Ashford Inc. is well positioned for growth.  This transaction provides an opportunity to unlock that value for the benefit of Ashford Trust shareholders.  With both Ashford Trust and Ashford Prime pursuing distinct investment strategies, we believe both companies are well positioned to capitalize on the attractive lodging industry fundamentals we expect to continue for the next several years, and that Ashford's asset management business will benefit from that growth.  For Ashford Trust, we will also continue to proactively address our debt maturities by capitalizing on the current attractive interest rates and debt market conditions we are seeing.  As the management team with the highest insider ownership in our industry, you can be assured we are highly aligned with you in our pursuit to maximize shareholder value."

INVESTOR CONFERENCE CALL AND SIMULCAST
Ashford Hospitality Trust, Inc. will conduct a conference call on Friday, February 28, 2014, at 11:00 a.m. ET.  The number to call for this interactive teleconference is (480) 629-9835.  A replay of the conference call will be available through Friday, March 7, 2014, by dialing (303) 590-3030 and entering the confirmation number, 4662726.

The Company will also provide an online simulcast and rebroadcast of its fourth quarter 2013 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 Friday, February 28, 2014, beginning at 11:00 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 Hospitality Trust is a real estate investment trust (REIT) focused on investing opportunistically in the hospitality industry across all segments and at all levels of the capital structure primarily within the United States.

Follow Chairman and CEO Monty Bennett on Twitter at www.twitter.com/MBennettAshford or @MBennettAshford.

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 statements are subject to numerous assumptions and uncertainties, many of which are outside Ashford Trust'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 Trust'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.  Hotel EBITDA flow-through is the change in Hotel EBITDA divided by the change in total revenues.  Hotel EBITDA Margin is Hotel EBITDA divided by total 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,


December 31,






2013


2012






 (Unaudited) 

ASSETS





Cash and cash equivalents

$        128,780


$        185,935


Marketable securities

29,601


23,620



Total cash, cash equivalents and marketable securities

158,381


209,555


Investment in hotel properties, net

2,164,389


2,872,304


Restricted cash

61,498


84,786


Accounts receivable, net of allowance of $242 and $265, respectively

21,791


35,116


Inventories

1,946


2,111


Notes receivable, net of allowance of $7,937 and $8,333, respectively

3,384


11,331


Investment in Highland Hospitality

139,302


158,694


Investment in Ashford Prime

56,243


-


Deferred costs, net

10,155


17,194


Prepaid expenses

7,519


10,145


Derivative assets, net

19


6,391


Other assets

4,303


4,594


Intangible asset, net

-


2,721


Due from Ashford Prime, net

13,042


-


Due from affiliates

1,302


1,168


Due from third-party hotel managers

33,728


48,619











Total assets

$     2,677,002


$     3,464,729









LIABILITIES AND EQUITY




Liabilities:





Indebtedness

$     1,818,929


$     2,339,410


Capital leases payable

28


-


Accounts payable and accrued expenses

70,683


84,293


Dividends payable

20,735


18,258


Unfavorable management contract liabilities

7,306


11,165


Due to related party, net

270


3,725


Due to third-party hotel managers

958


1,410


Liabilities associated with marketable securities and other

3,764


1,641


Other liabilities

1,286


6,348











Total liabilities

1,923,959


2,466,250









Redeemable noncontrolling interests in operating partnership

134,206


151,179









Equity:







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







Series A Cumulative Preferred Stock, 1,657,206 shares issued and outstanding at








December 31, 2013 and December 31, 2012

17


17




Series D Cumulative Preferred Stock, 9,468,706 shares issued and outstanding at








December 31, 2013 and December 31, 2012

95


95




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








December 31, 2013 and December 31, 2012

46


46



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







issued, 80,565,563 and 68,150,617 shares outstanding, respectively 

1,249


1,249



Additional paid-in capital

1,652,743


1,766,168



Accumulated other comprehensive loss

(197)


(282)



Accumulated deficit

(896,110)


(770,467)



Treasury stock, at cost (44,331,202 shares and 56,746,148 shares, respectively)

(140,054)


(164,884)




Total shareholders' equity of the Company

617,789


831,942


Noncontrolling interests in consolidated entities

1,048


15,358











Total equity

618,837


847,300












Total liabilities and equity

$     2,677,002


$     3,464,729

















 

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, 





2013


2012


2013


2012





 (Unaudited) 


 (Unaudited) 

REVENUE









Rooms

$    162,994


$    186,326


$    749,270


$    727,124


Food and beverage

36,274


45,106


153,602


160,488


Other

9,306


9,094


37,815


34,689














Total hotel revenue

208,574


240,526


940,687


922,301


Advisory services

1,047


-


1,047


-


Other

134


52


526


305














Total revenue

209,755


240,578


942,260


922,606












EXPENSES









Hotel operating expenses










Rooms

38,696


44,550


171,006


166,625



Food and beverage

23,885


29,838


104,536


108,274



Other expenses

65,903


72,961


281,826


276,949



Management fees 

8,478


10,350


38,945


38,492















Total hotel operating expenses

136,962


157,699


596,313


590,340













Property taxes, insurance and other

10,690


11,566


47,075


44,903


Depreciation and amortization

29,891


33,287


127,990


133,979


Impairment charges

(100)


(96)


(396)


(5,349)


Gain on insurance settlements

(270)


(91)


(270)


(91)


Transaction costs

28



1,324



Corporate, general and administrative:










Stock/unit-based compensation

8,490


3,739


25,539


17,440



Other general and administrative

1,651


7,283


27,282


26,610















Total operating expenses

187,342


213,387


824,857


807,832












OPERATING INCOME

22,413


27,191


117,403


114,774













Equity in loss of unconsolidated entities

(8,778)


(3,179)


(23,404)


(20,833)


Interest income

10


41


71


125


Other income (loss)

(796)


8,712


5,650


31,700


Interest expense

(31,397)


(34,615)


(133,697)


(138,661)


Amortization of loan costs

(2,041)


(1,892)


(7,772)


(6,135)


Write-off of loan costs and exit fees

(127)


(3,998)


(2,098)


(3,998)


Unrealized gain (loss) on marketable securities

3,076


(863)


5,115


2,502


Unrealized loss on derivatives

(1,138)


(8,905)


(8,315)


(35,657)












LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

(18,778)


(17,508)


(47,047)


(56,183)


Income tax (expense) benefit

177


509


(1,511)


(2,375)












LOSS FROM CONTINUING OPERATIONS

(18,601)


(16,999)


(48,558)


(58,558)

Income (loss) from discontinued operations


3,316



(3,650)












NET LOSS

(18,601)


(13,683)


(48,558)


(62,208)

Income from consolidated entities attributable to noncontrolling interests

(1,798)


(1,311)


(908)


(868)

Net loss attributable to redeemable noncontrolling interests in operating partnership

3,031


2,393


8,183


9,296












NET LOSS ATTRIBUTABLE TO THE COMPANY

(17,368)


(12,601)


(41,283)


(53,780)

Preferred dividends

(8,491)


(8,491)


(33,962)


(33,802)












NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS

$    (25,859)


$    (21,092)


$    (75,245)


$    (87,582)












INCOME (LOSS) PER SHARE – BASIC AND DILUTED









Basic:










Loss from continuing operations attributable to common shareholders

$        (0.32)


$        (0.36)


$        (1.00)


$        (1.25)



Income (loss) from discontinued operations attributable to common shareholders


0.04



$        (0.05)














Net loss attributable to common shareholders

$        (0.32)


$        (0.32)


$        (1.00)


$        (1.30)














Weighted average common shares outstanding – basic

81,383


67,670


75,155


67,533













Diluted:










Loss from continuing operations attributable to common shareholders

$        (0.32)


$        (0.36)


$        (1.00)


$        (1.25)



Income (loss) from discontinued operations attributable to common shareholders


$          0.04



$        (0.05)














Net loss attributable to common shareholders

$        (0.32)


$        (0.32)


$        (1.00)


$        (1.30)














Weighted average common shares outstanding – diluted

81,383


67,670


75,155


67,533













Dividends declared per common share:

$          0.12


$          0.11


$          0.48


$          0.44












Amounts attributable to common shareholders:









Loss from continuing operations

$    (17,368)


$    (15,488)


$    (41,283)


$    (50,570)


Income (loss) from discontinued operations


2,887



(3,210)


Preferred dividends

(8,491)


(8,491)


(33,962)


(33,802)














Net loss attributable to common shareholders

$    (25,859)


$    (21,092)


$    (75,245)


$    (87,582)












 

 ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES 

 RECONCILIATION OF NET LOSS TO EBITDA 

 (in thousands) 

 (Unaudited) 





 Three Months Ended 


 Year Ended 




 December 31, 


 December 31, 




2013


2012


2013


2012











 Net loss 


$      (18,601)


$    (13,683)


$    (48,558)


$    (62,208)

 Income from consolidated entities attributable to noncontrolling interests 

(1,798)


(1,311)


(908)


(868)

 Net loss attributable to redeemable noncontrolling interests in operating partnership 

3,031


2,393


8,183


9,296

 Net loss attributable to the Company 

(17,368)


(12,601)


(41,283)


(53,780)












 Interest income 

(10)


(41)


(70)


(124)


 Interest expense and amortization of loan costs 

33,161


36,576


139,782


144,857


 Depreciation and amortization  

29,424


33,011


125,041


133,463


 Income tax expense (benefit) 

(177)


(532)


1,511


2,352


 Net loss attributable to redeemable noncontrolling interests in operating partnership 

(3,031)


(2,393)


(8,183)


(9,296)


 Equity in loss of unconsolidated entities 

8,778


3,179


23,404


20,833


 Company's portion of EBITDA of unconsolidated entity (Prime) 

(2,577)


-


(2,577)


-


 Company's portion of EBITDA of unconsolidated joint venture (Highland) 

17,625


21,054


76,901


78,730











 EBITDA 


65,825


78,253


314,526


317,035












 Amortization of unfavorable management contract liabilities 

(515)


(753)


(2,245)


(2,447)


 Impairment charges 

(100)


(96)


(396)


(1,229)


 Gain on sale/disposition of properties 

-


(4,490)


-


(4,488)


 Non-cash gain on insurance settlements 

(270)


(91)


(270)


(91)


 Write-off of loan costs and exit fees 

127


4,117


2,098


4,117


 Other (income) loss (1) 

796


(8,712)


(5,650)


(31,700)


 Transaction, acquisition and management conversion costs 

31


-


1,657


-


 Transaction costs related to spin-off, net of reimbursements 

(4,894)


-


1,548


-


 Dead deal costs 

-


869


-


869


 Legal costs related to litigation settlements (2) 

-


28


-


2,491


 Unrealized (gain) loss on marketable securities 

(3,076)


863


(5,115)


(2,502)


 Unrealized loss on derivatives 

1,138


8,905


8,315


35,657


 El Conquistador results since appointment of receiver 

-


505


-


1,402


 Modification of rent terms 

539


-


539


-


 Equity-based compensation 

8,490


3,739


25,539


17,440


 Company's portion of adjustments to EBITDA of unconsolidated entity (Prime) 

2,781


-


2,781


-


 Company's portion of adjustments to EBITDA of unconsolidated joint venture (Highland) 

296


(7)


4,442


219











 Adjusted EBITDA 

$        71,168


$      83,130


$    347,769


$    336,773











(1)

Other (income) loss, primarily consisting of income from interest rate derivatives in both periods and net realized loss on marketable securities in both periods, is excluded from Adjusted EBITDA.  

(2)

Legal costs associated with litigation settlements are excluded from Adjusted EBITDA.


























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

 (in thousands, except per share amounts) 

 (Unaudited) 














 Three Months Ended 


 Year Ended 




 December 31, 


 December 31, 




2013


2012


2013


2012











 Net loss 


$      (18,601)


$    (13,683)


$    (48,558)


$    (62,208)

 Income from consolidated entities attributable to noncontrolling interests 

(1,798)


(1,311)


(908)


(868)

 Net loss attributable to redeemable noncontrolling interests in operating partnership 

3,031


2,393


8,183


9,296

 Preferred dividends 

(8,491)


(8,491)


(33,962)


(33,802)











 Net loss attributable to common shareholders 

(25,859)


(21,092)


(75,245)


(87,582)












 Depreciation and amortization on real estate 

29,308


32,957


124,611


133,246


 Gain on sale/disposition of properties 

-


(4,490)


-


(4,488)


 Net loss attributable to redeemable noncontrolling interests in operating partnership 

(3,031)


(2,393)


(8,183)


(9,296)


 Equity in loss of unconsolidated entities 

8,778


3,179


23,404


20,833


 Company's portion of FFO of unconsolidated entity (Prime) 

(3,339)


-


(3,339)


-


 Company's portion of FFO of unconsolidated joint venture (Highland) 

7,031


10,241


34,275


31,496











 FFO available to common shareholders 

12,888


18,402


95,523


84,209












 Write-off of loan costs and exit fees 

127


4,117


2,098


4,117


 Impairment charges 

(100)


(96)


(396)


(1,229)


 Non-cash gain on insurance settlements 

(270)


(91)


(270)


(91)


 Other (income) loss (1) 

796


(660)


565


340


 Legal costs related to litigation settlements (2) 

-


28


-


2,491


 Transaction, acquisition and management conversion costs 

31


-


1,657


-


 Transaction costs related to spin-off, net of reimbursements 

(4,894)


-


1,548


-


 Unrealized (gain) loss on marketable securities 

(3,076)


863


(5,115)


(2,502)


 Unrealized loss on derivatives 

1,138


8,905


8,315


35,657


 Dead deal costs 

-


869


-


869


 El Conquistador results since appointment of receiver 

-


924


-


2,068


 Modification of rent terms 

539


-


539


-


 Equity-based compensation adjustment related to modified employment terms 

-


-


4,678


480


 Equity-based compensation related to spin-off deferred compensation 

4,313


-


4,313


-


 Company's portion of adjustments to FFO of unconsolidated entity (Prime) 

2,716


-


2,716


-


 Company's portion of adjustments to FFO of unconsolidated joint venture (Highland) 

-


1


24


234











 Adjusted FFO available to common shareholders 

$        14,208


$      33,262


$    116,195


$    126,643











 Adjusted FFO per diluted share available to common shareholders 

$            0.14


$          0.39


$          1.24


$          1.49











 Weighted average diluted shares 

100,497


85,389


93,982


85,082











(1)

Other (income) loss, primarily consisting of net realized loss on marketable securities in both periods, is excluded from Adjusted FFO.  

(2)

Legal costs associated with litigation settlements are excluded from Adjusted FFO.

 

ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

ASHFORD TRUST (INCLUDING 71.74% PRO RATA SHARE OF HIGHLAND HOSPITALITY PORTFOLIO, EXCLUDING PRIME PORTFOLIO)

SUMMARY OF INDEBTEDNESS OF CONTINUING OPERATIONS

DECEMBER 31, 2013

(dollars in thousands)

(Unaudited)




























 Proforma 


 Proforma 







 Fixed-Rate 


 Floating-Rate 


 Total 


 TTM Hotel 


 TTM EBITDA 

Indebtedness


Maturity


Interest Rate


 Debt 


 Debt 


 Debt 


 EBITDA 


 Debt Yield 
















 BoA MIP - 5 hotels 


March 2014


LIBOR + 4.50%


$                 -


$           164,433

(1)

$                164,433


$               18,888


11.5%

 Wells Senior - 25 hotels 


March 2014


LIBOR + 3.00%


-


380,222

(5)

380,222


65,249


17.2%

 Mezz 1 - 28 hotels 


March 2014


Greater of 7.00% or LIBOR + 6.00%


-


93,497

(5)

93,497


87,717


14.0%

 Mezz 2 - 28 hotels 


March 2014


Greater of 8.00% or LIBOR + 7.00%


-


89,007

(5)

89,007


87,717


12.3%

 Mezz 3 - 28 hotels 


March 2014


Greater of 10.50% or LIBOR + 9.50%


-


76,292

(5)

76,292


87,717


11.1%

 Mezz 4 - 28 hotels 


March 2014


LIBOR + 2.00%




13,218

(5)

13,218


87,717


10.9%

 JPM Floater - 9 hotels 


May 2014


LIBOR + 6.50%


-


135,000

(2)

135,000


17,563


13.0%

 GEMSA Manchester - 1 hotel 


May 2014


8.32%


5,075


-


5,075


766


15.1%

 Senior credit facility - Various 


September 2014


LIBOR + 2.75% to 3.5%


-


-

(6)

-


 N/A 


N/A

 Goldman Sachs - 5 hotels 


November 2014


Greater of 6.40% or LIBOR + 6.15%


-


211,000

(3)

211,000


24,632


11.7%

 UBS 1 - 8 hotels 


December 2014


5.75%


102,348


-


102,348


11,788


11.5%

 Merrill 1 - 10 hotels 


July 2015


5.22%


148,990


-


148,990


21,714


14.6%

 JPM Pier House - 1 hotel 


September 2015


LIBOR + 4.90%


-


69,000

(4)

69,000


7,567


11.0%

 UBS 2 - 8 hotels 


December 2015


5.70%


94,899


-


94,899


11,459


12.1%

 Merrill 2 - 5 hotels 


February 2016


5.53%


107,737


-


107,737


16,487


15.3%

 Merrill 3 - 5 hotels 


February 2016


5.53%


89,347


-


89,347


15,967


17.9%

 Merrill 7 - 5 hotels 


February 2016


5.53%


77,394


-


77,394


12,890


16.7%

 Wachovia 1 - 5 hotels 


April 2017


5.95%


113,343


-


113,343


12,806


11.3%

 Wachovia 5 - 5 hotels 


April 2017


5.95%


101,878


-


101,878


10,883


10.7%

 Wachovia 6 - 5 hotels 


April 2017


5.95%


155,019


-


155,019


16,400


10.6%

 Wachovia 2 - 7 hotels 


April 2017


5.95%


123,997


-


123,997


12,913


10.4%

 Morgan Stanley Boston Back Bay - 1 hotel 


January 2018


4.38%


72,814


-


72,814


9,527


13.1%

 Morgan Stanley Princeton/Nashville - 2 hotels 


January 2018


4.44%


79,614


-


79,614


12,941


16.3%

 GACC Gateway - 1 hotel 


November 2020


6.26%


101,268


-


101,268


15,087


14.9%

 GACC Jacksonville RI - 1 hotel 


January 2024


5.49%


10,800


-


10,800


1,283


11.9%

 GACC Manchester RI - 1 hotel 


January 2024


5.49%


7,400


-


7,400


1,001


13.5%
















 Total 






$    1,391,923


$        1,231,669


$             2,623,592


$             317,811


12.1%
















 Percentage 






53.1%


46.9%


100.0%




















 Weighted average interest rate 






5.61%


5.50%


5.56%




















 Weighted average interest rate with the effect of interest rate swaps 




5.17%

(7)

5.50%

(7)

5.32%




















All indebtedness is non-recourse with the exception of the senior credit facility.








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








(2)This mortgage loan has three one-year extension options beginning May 2014, subject to satisfaction of certain conditions.








(3)This mortgage loan has three one-year extension options beginning November 2014, subject to satisfaction of certain conditions.








(4)This mortgage loan has three one-year extension options beginning September 2015, subject to satisfaction of certain conditions.








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








(6)This credit facility has a one-year extension option subject to advance notice and a 0.25% extension fee beginning September 2014.








(7)These rates are calculated assuming the LIBOR rate stays at the December 31, 2013 level and with the effect of our interest rate derivatives.























 

 ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES 


ASHFORD TRUST (INCLUDING 71.74% PRO RATA SHARE OF HIGHLAND HOSPITALITY PORTFOLIO, EXCLUDING PRIME PORTFOLIO)

 INDEBTEDNESS BY MATURITY ASSUMING EXTENSION OPTIONS ARE EXERCISED 


DECEMBER 31, 2013

 (in thousands) 


 (Unaudited) 










































2014


2015


2016


2017


2018


 Thereafter 


 Total 




















 GEMSA Manchester - 1 hotel 


$        5,004


$                    -


$               -


$              -


$                  -


$                  -


$            5,004


 Senior credit facility - Various 


-


-


-


-


-


-


-


 UBS 1 - 8 hotels 



100,119


-


-


-


-


-


100,119


 BoA MIP - 5 hotels 


-


164,433


-


-


-


-


164,433


 Merrill 1 - 10 hotels 


-


142,922


-


-


-


-


142,922


 UBS 2 - 8 hotels 



-


90,680


-


-


-


-


90,680


 Merrill 2 - 5 hotels 


-


-


101,740


-


-


-


101,740


 Merrill 3 - 5 hotels 


-


-


84,374


-


-


-


84,374


 Merrill 7 - 5 hotels 


-


-


73,086


-


-


-


73,086


 Wells Senior - 25 hotels 


-


-


380,222


-


-


-


380,222


 Mezz 1 - 28 hotels 


-


-


93,581


-


-


-


93,581


 Mezz 2 - 28 hotels 


-


-


89,087


-


-


-


89,087


 Mezz 3 - 28 hotels 


-


-


76,360


-


-


-


76,360


 Mezz 4 - 28 hotels 


-


-


13,218


-


-


-


13,218


 JPM Floater - 9 hotels 


-


-


-


135,000


-


-


135,000


 Wachovia 1 - 5 hotels 


-


-


-


107,351


-


-


107,351


 Wachovia 5 - 5 hotels 


-


-


-


96,491


-


-


96,491


 Wachovia 6 - 5 hotels 


-


-


-


146,823


-


-


146,823


 Wachovia 2 - 7 hotels 


-


-


-


117,441


-


-


117,441


 Goldman Sachs - 5 hotels 


-


-


-


211,000


-


-


211,000


 JPM Pier House - 1 hotel 


-


-


-


-


69,000


-


69,000


 Morgan Stanley Boston Back Bay - 1 hotel 

-


-


-


-


67,358


-


67,358


 Morgan Stanley Princeton/Nashville - 2 hotels 

-


-


-


-


73,703


-


73,703


 GACC Gateway - 1 hotel 


-


-


-


-


-


89,886


89,886


 GACC Jacksonville RI - 1 hotel 

-


-


-


-


-


9,036


9,036


 GACC Manchester RI - 1 hotel 

-


-


-


-


-


6,191


6,191




















 Principal due in future periods 


$    105,123


$          398,035


$      911,667


$    814,106


$        210,060


$        105,113


$     2,544,105




















 Scheduled amortization payments remaining 

25,017


23,272


13,106


16,066


-


2,026


79,487




















 Total indebtedness of continuing operations 

$    130,140


$          421,307


$      924,773


$    830,172


$        210,060


$        107,139


$     2,623,592




















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










 

ASHFORD TRUST (INCLUDING 71.74% PRO RATA SHARE OF HIGHLAND HOSPITALITY PORTFOLIO)

KEY PERFORMANCE INDICATORS - PRO FORMA

(dollars in thousands)

(Unaudited)
































Three Months Ended


Twelve Months Ended




December 31,


December 31,




2013


2012


% Variance


2013


2012


% Variance















ALL HOTELS INCLUDED IN ASHFORD TRUST 













CONTINUING OPERATIONS:














Room revenues (in thousands)

$       186,686


$       181,958


2.60%


$      812,160


$      789,404


2.88%



RevPAR

$           88.86


$           87.69


1.33%


$          97.14


$          94.65


2.63%



Occupancy

68.38%


68.55%


-0.17%


72.62%


72.84%


-0.22%



ADR

$         129.96


$         127.93


1.59%


$        133.76


$        129.94


2.94%















NOTES:














(1)

The above pro forma table assumes the 115 hotel properties owned and included in continuing operations at December 31, 2013 were owned as of the



beginning of the period presented.


































ALL HOTELS NOT UNDER RENOVATION INCLUDED













IN ASHFORD TRUST CONTINUING OPERATIONS:














Room revenues (in thousands)

$       152,750


$       147,224


3.75%


$      660,639


$      641,126


3.04%



RevPAR

$           88.40


$           86.29


2.45%


$          96.06


$          93.46


2.78%



Occupancy

68.98%


68.26%


0.72%


72.59%


72.55%


0.04%



ADR

$         128.14


$         126.41


1.37%


$        132.32


$        128.82


2.72%















NOTES:














(1)

The above pro forma table assumes the 99 hotel properties owned and included in continuing operations at December 31, 2013, but not under renovation for



three and twelve months ended December 31, 2013 were owned as of the beginning of the periods presented.




















(2)

Excluded Hotels Under Renovation:













Courtyard Boston Downtown, Marriott Sugarland, Renaissance Nashville, Crowne Plaza Ravinia, Hilton Parsippany, Hyatt Regency Wind Watch,




Silversmith, Embassy Suites Portland Downtown, Residence Inn Atlanta Buckhead, Residence Inn Salt Lake City, Residence Inn San Diego, 





Courtyard Marriott Village LBV, Crowne Plaza Key West, Embassy Suites Dallas, Hilton Costa Mesa, Hilton St. Petersburg



















(3)

On January 1, 2013, Marriott converted from a fiscal year with 12 weeks of operations in each of the first three quarters of the year and 16 weeks in the fourth 



quarter of the year, to calendar quarters.   The above proforma table assumes the Marriott-managed properties were reported on calendar quarters for



all periods presented. 












 

ASHFORD HOSPITALITY TRUST, INC.

PRO FORMA HOTEL OPERATING PROFIT MARGIN

(Unaudited)

















THE FOLLOWING PRO FORMA EBITDA MARGIN TABLE REFLECTS THE 87 HOTELS INCLUDED IN THE COMPANY'S 

CONTINUING OPERATIONS AND THE COMPANY'S 71.74% SHARE OF THE 28 HOTELS INCLUDED IN THE HIGHLAND 

HOSPITALITY PORTFOLIO (PIM HIGHLAND HOLDING LLC), AS IF THESE HOTELS WERE OWNED AT THE BEGINNING

OF THE FIRST COMPARATIVE REPORTING PERIOD.





























3 months Ended


12 Months Ended






December 31


December 31



HOTEL OPERATING PROFIT (HOTEL EBITDA) MARGIN:















2013

28.30%


30.71%




2012

27.60%


30.20%





Variance

0.70%


0.51%











HOTEL OPERATING PROFIT (HOTEL EBITDA) MARGIN VARIANCE BREAKDOWN:















Rooms 

-0.02%


-0.06%




Food & Beverage and Other Departmental

0.45%


0.44%




Administrative & General 

0.28%


0.09%




Sales & Marketing

0.42%


0.21%




Hospitality

-0.13%


-0.07%




Repair & Maintenance 

-0.15%


-0.03%




Energy 

-0.13%


0.07%




Franchise Fee 

-0.26%


-0.10%




Management Fee 

-0.03%


-0.01%




Incentive Management Fee 

0.13%


0.16%




Insurance 

0.19%


-0.07%




Property Taxes

0.07%


-0.07%




Other Taxes

-0.14%


-0.05%




Leases/Other

0.02%


0.00%





Total

0.70%


0.51%











NOTE:








On January 1, 2013, Marriott converted from a fiscal year with 12 weeks of operations in each of the first three quarters 




of the year and 16 weeks in the fourth quarter of the year, to calendar quarters.   The above proforma table assumes the 




Marriott-managed properties were reported on calendar quarters for all periods presented. 



 

ASHFORD TRUST (INCLUDING 71.74% PRO RATA SHARE OF HIGHLAND HOSPITALITY PORTFOLIO)

 PRO FORMA HOTEL OPERATING PROFIT 

 (dollars in thousands) 

 (Unaudited) 























 ALL HOTELS INCLUDED IN ASHFORD TRUST CONTINUING OPERATIONS: 




























 Three Months Ended 


 Twelve Months Ended 




 December 31, 


 December 31, 




2013


2012


 % Variance 


2013


2012


 % Variance 

 REVENUE 













 Rooms 

$        186,686


$                   181,958


2.6%


$      812,160


$            789,404


2.9%


 Food and beverage 

47,530


48,473


-1.9%


184,252


187,365


-1.7%


 Other 

9,884


8,777


12.6%


38,407


36,348


5.7%



 Total hotel revenue 

244,100


239,208


2.0%


1,034,819


1,013,117


2.1%















 EXPENSES 













 Rooms 

43,970


42,733,000


2.9%


182,941


177,797,000


2.9%


 Food and beverage 

31,568


32,191,000


-1.9%


125,157


126,778,000


-1.3%


 Other direct 

4,990


4,713,000


5.9%


20,550


20,354,000


1.0%


 Indirect  

70,843


69,823,000


1.5%


290,532


286,836,000


1.3%


 Management fees, includes base and incentive fees 

10,457


10,476,000


-0.2%


44,255


44,848,000


-1.3%



 Total hotel operating expenses 

161,828


159,936


1.2%


663,435


656,613


1.0%


 Property taxes, insurance, and other 

13,201


13,254


-0.4%


53,573


50,575


5.9%

 HOTEL OPERATING PROFIT (Hotel EBITDA) 

69,071


66,018


4.6%


317,811


305,929


3.9%



 Hotel EBITDA Margin 

28.30%


27.60%


0.70%


30.71%


30.20%


0.51%
















 Minority interest in earnings of consolidated joint ventures 

73


56


30.4%


265


210


26.2%

 HOTEL OPERATING PROFIT (Hotel EBITDA), 













 excluding minority interest in joint ventures 

$        68,998


$                   65,962


4.6%


$    317,546


$         305,719


3.9%















 NOTES: 














(1)

The above pro forma table assumes the 115 hotel properties owned and included in continuing operations at December 31, 2013 were owned as of the





beginning of the periods presented.






















(2)

On January 1, 2013, Marriott converted from a fiscal year with 12 weeks of operations in each of the first three quarters of the year and 16 weeks in the fourth 




quarter of the year, to calendar quarters.   The above proforma table assumes the Marriott-managed properties were reported on calendar quarters for





all periods presented. 




















 ALL HOTELS NOT UNDER RENOVATION INCLUDED IN CONTINUING OPERATIONS: 


























 Three Months Ended 


 Twelve Months Ended 




 December 31, 


 December 31, 




2013


2012


 % Variance 


2013


2012


 % Variance 

 REVENUE 













 Rooms 

$        152,750


$                   147,224


3.8%


$      660,639


$            641,126


3.0%


 Food and beverage 

35,693


35,407


0.8%


136,489


137,291


-0.6%


 Other 

7,940


6,800


16.8%


30,793


28,280


8.9%



 Total hotel revenue 

196,383


189,431


3.7%


827,921


806,697


2.6%















 EXPENSES 













 Rooms 

35,984


34,808,574


3.4%


149,434


145,438,000


2.7%


 Food and beverage 

23,717


23,749,000


-0.1%


93,668


94,134,000


-0.5%


 Other direct 

4,153


3,794,000


9.5%


17,019


16,506,000


3.1%


 Indirect  

56,778


55,532,000


2.2%


231,687


227,942,000


1.6%


 Management fees, includes base and incentive fees 

8,599


8,670


-0.8%


35,982


36,322


-0.9%



 Total hotel operating expenses 

129,231


126,554


2.1%


527,790


520,342


1.4%


 Property taxes, insurance, and other 

11,164


10,699


4.3%


43,861


41,406


5.9%

 HOTEL OPERATING PROFIT (Hotel EBITDA) 

55,988


52,178


7.3%


256,270


244,949


4.6%



 Hotel EBITDA Margin 

28.51%


27.54%


0.96%


30.95%


30.36%


0.59%
















 Minority interest in earnings of consolidated joint ventures 

73


56


30.4%


265


210


26.2%

 HOTEL OPERATING PROFIT (Hotel EBITDA), 













 excluding minority interest in joint ventures 

$        55,915


$                   52,122


7.3%


$    256,005


$         244,739


4.6%















 NOTES: 














(1)

The above pro forma table assumes the 99 hotel properties owned and included in continuing operations at December 31, 2013 but not under renovation for





three and twelve months ended December 31, 2013, were owned as of the beginning of the periods presented.






















(2)

Excluded Hotels Under Renovation:













Courtyard Boston Downtown, Marriott Sugarland, Renaissance Nashville, Crowne Plaza Ravinia, Hilton Parsippany, Hyatt Regency Wind Watch,





Silversmith, Embassy Suites Portland Downtown, Residence Inn Atlanta Buckhead, Residence Inn Salt Lake City, Residence Inn San Diego, 





Courtyard Marriott Village LBV, Crowne Plaza Key West, Embassy Suites Dallas, Hilton Costa Mesa, Hilton St. Petersburg





















(3)

On January 1, 2013, Marriott converted from a fiscal year with 12 weeks of operations in each of the first three quarters of the year and 16 weeks in the fourth 




quarter of the year, to calendar quarters.   The above proforma table assumes the Marriott-managed properties were reported on calendar quarters for





all periods presented. 


























 

HIGHLAND HOSPITALITY PORTFOLIO

(PIM Highland Holding LLC)

 PRO FORMA HOTEL OPERATING PROFIT 

 (dollars in thousands) 

 (Unaudited) 























71.74% PRO-RATA SHARE OF ALL HOTELS INCLUDED IN HIGHLAND HOSPITALITY PORTFOLIO CONTINUING OPERATIONS:





















 Three Months Ended 


 Twelve Months Ended 




 December 31, 


 December 31, 




2013


2012


 % Variance 


2013


2012


 % Variance 

 REVENUE 













 Rooms 

$          50,626


$       51,319


-1.4%


$      219,457


$    213,100


3.0%


 Food and beverage 

19,551


19,653


-0.5%


75,536


74,791


1.0%


 Other 

2,919


2,795


4.4%


10,895


11,008


-1.0%



 Total hotel revenue 

73,096


73,767


-0.9%


305,888


298,899


2.3%















 EXPENSES 













 Rooms 

11,507


11,760


-2.2%


48,730


47,697


2.2%


 Food and beverage 

12,562


12,670


-0.9%


49,859


49,467


0.8%


 Other direct 

1,183


1,107


6.9%


4,937


5,051


-2.3%


 Indirect  

21,452


21,061


1.9%


86,920


86,218


0.8%


 Management fees, includes base and incentive fees 

2,792


2,889


-3.4%


11,326


11,130


1.8%



 Total hotel operating expenses 

49,496


49,487


0.0%


201,772


199,563


1.1%


 Property taxes, insurance, and other 

4,029


4,193


-3.9%


16,399


14,789


10.9%

 HOTEL OPERATING PROFIT (Hotel EBITDA) 

$        19,571


$     20,087


-2.6%


$      87,717


$    84,547


3.7%



 Hotel EBITDA Margin 

26.77%


27.23%


-0.46%


28.68%


28.29%


0.39%















 NOTES: 


-


-




-


-




(1)

The above pro forma table assumes the 28 hotel properties owned and included in continuing operations at December 31, 2013 were owned as of the



beginning of the periods presented.























(2)

On January 1, 2013, Marriott converted from a fiscal year with 12 weeks of operations in each of the first three quarters of the year and 16 weeks in the fourth 



quarter of the year, to calendar quarters.   The above proforma table assumes the Marriott-managed properties were reported on calendar quarters for



all periods presented. 

























(3)

 These 28 properties are also included in the pro forma hotel operating profit of Ashford Trust. 




















 

ASHFORD HOSPITALITY TRUST, INC.


PRO FORMA HOTEL REVENUE & EBITDA FOR TRAILING TWELVE MONTHS


(dollars in thousands)


(Unaudited)




















THE FOLLOWING PRO FORMA SEASONALITY TABLE REFLECTS THE 87 HOTELS INCLUDED IN



THE COMPANY'S CONTINUING OPERATIONS AND THE COMPANY'S 71.74% SHARE OF THE 28 HOTELS



INCLUDED IN HIGHLAND HOSPITALITY PORTFOLIO (PIM HIGHLAND HOLDING LLC)




AS IF THESE HOTELS WERE OWNED AT THE BEGINNING OF THE FIRST COMPARATIVE REPORTING PERIOD.
























2013

2013

2013

2013






4th Quarter

3rd Quarter

2nd Quarter

1st Quarter


TTM










Ashford Trust







Total Hotel Revenue

$                    244,100

$                    254,222

$                    281,029

$               255,469


$    1,034,820

Hotel EBITDA

$                      69,071

$                      75,613

$                      95,732

$                 77,395


$       317,811

Hotel EBITDA Margin

28.3%

29.74%

34.06%

30.30%


30.71%










EBITDA % of Total TTM

21.7%

23.8%

30.1%

24.4%


100.0%










JV Interests in EBITDA

$                             73

$                             80

$                             75

$                        37


$              265



















71.74% of PIM Highland Holding LLC Portfolio (included in Ashford Trust above)





Total Hotel Revenue

$                      73,095

$                      74,709

$                      84,763

$                 73,320


$       305,887

Hotel EBITDA

$                      19,571

$                      20,953

$                      28,277

$                 18,916


$         87,717

Hotel EBITDA Margin

26.77%

28.05%

33.36%

25.80%


28.68%










EBITDA % of Total TTM

22.3%

23.9%

32.2%

21.6%


100.0%





























NOTE:









On January 1, 2013, Marriott converted from a fiscal year with 12 weeks of operations in each of the first three quarters 





of the year and 16 weeks in the fourth quarter of the year, to calendar quarters.   The above proforma tables assume the 





Marriott-managed properties were reported on calendar quarters for all periods presented. 



 

ASHFORD HOSPITALITY TRUST, INC.

INCLUDING 71.74% PRO RATA SHARE OF HIGHLAND HOSPITALITY PORTFOLIO (PIM HIGHLAND HOLDING LLC)

PRO FORMA HOTEL REVPAR BY MARKET

(Unaudited)




























Three Months Ended


Twelve Months Ended








Number of


Number of


December 31,


December 31,




Region


Hotels


Rooms


2013

2012

% Change


2013


2012

% Change























Atlanta, GA Area


9


1,428


$        78.76

$       78.51

0.3%


$          85.62


$              80.70

6.1%




Boston, MA Area


2


506


$      155.25

$     149.86

3.6%


$        161.39


$            161.83

-0.3%




Dallas / Ft. Worth Area


6


1,340


$        89.75

$       83.01

8.1%


$          90.64


$              87.17

4.0%




Houston, TX Area


3


607


$      101.59

$       95.12

6.8%


$        107.29


$            100.74

6.5%




Los Angeles, CA Metro Area


8


1,783


$        82.72

$       78.57

5.3%


$          92.71


$              87.17

6.4%




Miami, FL Metro Area


3


584


$      105.47

$     100.65

4.8%


$        108.93


$            103.32

5.4%




Minneapolis - St. Paul, MN-WI Area


2


520


$        85.26

$       80.44

6.0%


$          91.04


$              87.57

4.0%




New York / New Jersey Metro Area


7


1,559


$        94.91

$     108.41

-12.5%


$        101.87


$            100.62

1.2%




Orlando, FL Area


6


1,834


$        73.50

$       69.19

6.2%


$          78.12


$              74.91

4.3%




Philadelphia, PA Area


3


648


$        78.04

$       84.14

-7.2%


$          86.00


$              89.23

-3.6%




San Diego, CA Area


2


410


$        78.70

$       73.92

6.5%


$          91.56


$              91.83

-0.3%




San Francisco - Oakland, CA Metro Area


5


1,011


$      107.54

$       95.14

13.0%


$        110.48


$              99.36

11.2%




Tampa, FL Area


3


582


$        73.72

$       77.39

-4.7%


$          85.66


$              89.78

-4.6%




Washington DC - MD - VA Area


10


2,290


$        93.29

$     102.91

-9.3%


$        110.03


$            117.98

-6.7%




Other Areas


46


7,734


$        86.88

$       83.73

3.8%


$          96.02


$              92.12

4.2%























Total Portfolio


115


22,836


$      88.86

$     87.69

1.3%


$        97.14


$            94.65

2.6%
















































































NOTES:



















(1)

The above pro forma table presents the 87 hotel properties included in Company's continuing operations and the 28 hotel properties included in Highland Hospitality Portfolio (PIM Highland Holding LLC) 



 as if these hotels were owned as of the beginning of the periods presented.




































ASHFORD HOSPITALITY TRUST, INC.

INCLUDING 71.74% PRO RATA SHARE OF HIGHLAND HOSPITALITY PORTFOLIO (PIM HIGHLAND HOLDING LLC)

PRO FORMA HOTEL OPERATING PROFIT (HOTEL EBITDA) BY MARKET

(Unaudited)




























Three Months Ended


Twelve Months Ended





Number of


Number of


December 31,


December 31,

Region


Hotels


Rooms


2013

 % of Total 

2012

 % of Total 

% Change


2013

 % of Total 

2012

 % of Total 

% Change




















Atlanta, GA Area


9


1,428


$         3,496

5.1%

$         3,698

5.6%

-5.5%


$             15,253

4.8%

$            13,914

4.5%

9.6%

Boston, MA Area


2


506


3,030

4.4%

3,047

4.6%

-0.6%


13,461

4.2%

13,693

4.5%

-1.7%

Dallas / Ft. Worth Area


6


1,340


4,235

6.1%

3,594

5.4%

17.8%


17,460

5.5%

16,066

5.3%

8.7%

Houston, TX Area


3


607


3,039

4.4%

2,825

4.3%

7.6%


11,346

3.6%

10,862

3.6%

4.5%

Los Angeles, CA Metro Area


8


1,783


5,011

7.3%

3,922

5.9%

27.8%


24,013

7.6%

21,572

7.1%

11.3%

Miami, FL Metro Area


3


584


2,395

3.5%

2,112

3.2%

13.4%


8,966

2.8%

7,830

2.6%

14.5%

Minneapolis - St. Paul, MN-WI Area


2


520


1,902

2.8%

1,692

2.6%

12.4%


7,870

2.5%

7,682

2.5%

2.4%

New York / New Jersey Metro Area


7


1,559


5,827

8.4%

6,974

10.6%

-16.4%


25,505

8.0%

24,873

8.1%

2.5%

Orlando, FL Area


6


1,834


3,564

5.2%

3,060

4.6%

16.5%


16,321

5.1%

14,706

4.8%

11.0%

Philadelphia, PA Area


3


648


1,576

2.3%

1,602

2.4%

-1.6%


6,560

2.1%

6,975

2.3%

-5.9%

San Diego, CA Area


2


410


998

1.4%

856

1.3%

16.6%


5,125

1.6%

5,366

1.8%

-4.5%

San Francisco - Oakland, CA Metro Area


5


1,011


3,941

5.7%

3,049

4.6%

29.3%


17,039

5.4%

14,155

4.6%

20.4%

Tampa, FL Area


3


582


1,401

2.0%

1,566

2.4%

-10.5%


7,064

2.2%

7,674

2.5%

-7.9%

Washington DC - MD - VA Area


10


2,290


6,956

10.1%

7,853

11.9%

-11.4%


36,005

11.3%

40,679

13.3%

-11.5%

Other Areas


46


7,734


21,700

31.4%

20,169

30.6%

7.6%


105,824

33.3%

99,881

32.6%

6.0%




















Total Portfolio


115


22,836


$     69,071

100.0%

$     66,018

100.0%

4.6%


$        317,811

100.0%

$        305,929

100.0%

3.9%







































NOTES:



















(1)

The above pro forma table presents the 87 hotel properties included in Company's continuing operations and the 28 hotel properties included in Highland Hospitality Portfolio (PIM Highland Holding LLC) 



 as if these hotels were owned as of the beginning of the periods presented.
































(2)

The above pro forma table includes hotel operating profit for 100% of the 95 hotel properties included in the Company's continuing operations and the Company's 71.74% share of the 28 hotels included in 



Highland Hospitality Portfolio (PIM Highland Holding LLC) as if these hotels were owned as of the beginning of the periods presented.



























(3)

On January 1, 2013, Marriott converted from a fiscal year with 12 weeks of operations in each of the first three quarters of the year and 16 weeks in the fourth quarter of the year, to calendar quarters.




The above proforma table assumes the Marriott-managed properties were reported on calendar quarters for all periods presented.


























 

 ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES 

 TOTAL ENTERPRISE VALUE 

DECEMBER 31, 2013

 (in thousands except share price) 

 (Unaudited) 






 December 31, 


2013

 End of quarter diluted shares outstanding 

82,068

 Partnership units outstanding (common share equivalents) 

18,991

 Combined diluted shares and partnership units outstanding 

101,059

 Common stock price at quarter end 

$                         8.28

 Market capitalization at quarter end 

$                   836,769

 Series A preferred stock 

$                     41,430

 Series D preferred stock 

$                   236,718

 Series E preferred stock 

$                   115,750

 Debt on balance sheet date* 

$                2,623,592

 Joint venture partners' share of consolidated debt 

$                     (1,871)

 Net working capital (see below) 

$                 (381,410)

Total enterprise value (TEV)*

$                3,470,978



Ashford Prime Investment:


Partnership units owned at end of quarter

4,978

Common stock price at quarter end

$                      18.20

Market value of Ashford Prime investment

$                    90,600





Cash & cash equivalents*

$                  148,438

Marketable securities, net

25,837

Restricted cash*

130,333

Accounts receivable, net*

31,848

Prepaid expenses*

13,057

Due from affiliates, net*

12,682

Due from 3rd party hotel managers, net*

49,493

Market value of Ashford Prime investment

90,600

Total current assets

$                  502,288



Accounts payable, net & accrued expenses*

$                  100,143

Dividends payable

20,735

Total current liabilities

$                  120,878



Net working capital

$                  381,410



* Includes AHT's 71.74% interest in Highland Hospitality




 

 

 

Ashford Hospitality Trust, Inc.

Anticipated Capital Expenditures Calendar (a)

(includes Highland Hospitality portfolio)



































2013


2014


Rooms

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter


1st Quarter

2nd Quarter

3rd Quarter

4th Quarter



Actual

Actual

Actual

Actual


Estimated

Estimated

Estimated

Estimated

Courtyard Hartford Manchester

90

x









Courtyard Savannah

156

x









Embassy Suites Dulles

150

x









Embassy Suites East Syracuse

215

x









Hampton Inn Lawrenceville

86

x









Hyatt Regency Savannah

351

x








x

Marriott San Antonio Plaza

251

x









Residence Inn Lake Buena Vista

210

x









Sheraton San Diego Mission Valley

260

x









The Melrose

240

x









Hilton Boston Back Bay

390

x

x








Courtyard Dallas Plano in Legacy Park

153

x

x








Hilton Santa Fe

158

x

x








Courtyard Boston Downtown

315

x

x

x

x


x

x



Hilton Costa Mesa

486

x



x


x




Marriott Sugarland

300

x



x


x




Embassy Suites Walnut Creek

249


x








Hilton Garden Inn BWI

158


x








Hilton Garden Inn Virginia Beach

176


x








Residence Inn Palm Desert

130


x








Hampton Inn Buford

92


x

x







Hampton Inn Terre Haute

112


x

x







Hyatt Regency Wind Watch

358


x

x

x


x




Embassy Suites Palm Beach Garden

160



x




x

x


Hilton Garden Inn Austin

254



x







Hilton Garden Inn Jacksonville

119



x







Hyatt Coral Gables

250



x





x


Marriott Crystal Gateway

697



x







Marriott DFW

491



x







Hilton Parsippany

354



x

x




x

x

Hilton St Petersburg

333



x

x






Renaissance Nashville

673



x

x


x




Residence Inn Atlanta Buckhead Lenox Park

150



x

x






Silversmith

143



x

x


x




Courtyard Marriott Village at LBV

312




x






Crowne Plaza Key West

160




x


x

x



Crowne Plaza Ravinia

495




x


x

x



Embassy Suites Dallas

150




x






Embassy Suites Portland Downtown

276




x


x




Residence Inn Salt Lake City

144




x






Residence Inn San Diego Sorrento Mesa

150




x






Residence Inn Hartford

96






x

x



Sheraton Indianapolis

378






x

x



Residence Inn Newark

168






x

x



Courtyard Overland Park

168






x

x



Embassy Suites Crystal City

267






x

x



Hilton Fort Worth

294






x

x



Residence Inn Evansville

78






x

x



Residence Inn Plano

126






x

x



Courtyard Bloomington

117






x




Residence Inn Phoenix Airport

200







x

x


Sheraton Minnetonka

220







x

x


Courtyard Tipton Lakes

90







x



Marriott RTP

225







x



Hilton Minneapolis

300








x

x

Courtyard Newark/Silicon Valley

181








x

x

Springhill Suites Orlando LBV

400








x

x

Crowne Plaza Beverly Hills

258








x

x

Hilton Tampa

238








x

x

Westin Princeton

296









x

Sheraton Bucks County

186









x

Marriott Bridgewater

347









x

Marriott Dallas Market Center

265









x

(a) Only hotels which have had or are expected to have significant capital expenditures that could result in displacement during 2013-2014 are included in this table.








 

 

 

SOURCE Ashford Hospitality Trust, Inc.



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