Ashford Trust Reports Second Quarter 2014 Results Strong RevPAR Increase of 7.7% for All Hotels for the Second Quarter

DALLAS, Aug. 7, 2014 /PRNewswire/ -- Ashford Hospitality Trust, Inc. (NYSE: AHT) ("the Company" or "Ashford Trust") today reported financial results and performance measures for the second quarter ended June 30, 2014.  Prior to the third quarter of 2013, the Company reported 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 second quarter ended June 30, 2014, with the second quarter ended June 30, 2013 (see discussion below).  The reconciliation of non-GAAP financial measures is included in the financial tables accompanying this press release.

FINANCIAL AND OPERATING HIGHLIGHTS

  • RevPAR for the Ashford Trust Portfolio hotels increased 7.7% during the quarter
  • RevPAR for all Ashford Trust Portfolio hotels not under renovation increased 7.8% during the quarter
  • Hotel EBITDA increased 7.7% for all Ashford Trust Portfolio hotels
  • Hotel EBITDA Margin increased 56 basis points for all Ashford Trust Portfolio hotels
  • Net loss attributable to common shareholders for the Company was $10.1 million, or $0.11 per diluted share, compared with net loss attributable to common shareholders of $1.4 million, or $0.02 per diluted share, in the prior-year quarter
  • Adjusted funds from operations (AFFO) for the Company was $0.39 per diluted share for the quarter as compared with $0.55 from the prior-year quarter
    • The prior year results include the operations of the Ashford Prime portfolio
  • At the end of the second quarter 2014, 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 $467 million
  • On July 18, 2014, the Company closed on the $8.0 million acquisition of the 39-room Ashton Hotel in Fort Worth, TX
  • On August 6, 2014, the Company closed on the $50.0 million acquisition of the 357-room Fremont Marriott Silicon Valley
  • More recently, the Company announced it had refinanced three mortgage loans with an outstanding balance of $325 million with new loans totaling $469 million resulting in approximately $104 million of excess proceeds after reserves and closing costs; the refinancing also unencumbered two hotels
  • David Kimichik, the Company's former Chief Financial Officer and Treasurer, retired on June 13, 2014, following a career spanning over 32 years with the Company and its predecessor; Deric Eubanks, formerly the Company's Senior Vice President of Finance, succeeded him as Chief Financial Officer and Treasurer reporting to Ashford Trust Chairman and Chief Executive Officer, Monty J. Bennett

CAPITAL EXPENDITURES

  • Capex invested in the quarter for the Ashford Trust Portfolio was $40 million

CAPITAL STRUCTURE

At June 30, 2014, the Company had total assets of $2.7 billion in continuing operations, and $3.6 billion overall including the Highland Hospitality Portfolio which is not consolidated.  As of June 30, 2014, 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 5.6%.

On April 9, 2014, the Company announced it had priced its follow-on public offering of 7,500,000 shares of common stock at $10.70 per share.  Settlement of the offering occurred on April 14, 2014, generating total net proceeds of $77 million.  On May 14, 2014, the Company's underwriters exercised in part their option to purchase an additional 850,000 shares of common stock from the Company in connection with the offering.  In total, the Company sold 8,350,000 shares of common stock for total proceeds of $85.5 million

On May 1, 2014, the Company closed on a refinancing of the Courtyard Manchester.  The previous $5.0 million loan was refinanced with a $6.9 million loan.  The new loan has a ten year term with a fixed interest rate of 4.99% and 30-year amortization.  The hotel is owned in a joint venture with Interstate Hotels & Resorts where the Company owns 85% and Interstate owns 15%.  The excess proceeds after transaction costs were distributed to the partners on a pro rata basis.

On July 18, 2014, the Company closed on the acquisition of the 39-room Ashton Hotel in Fort Worth, Texas for $8.0 million.  The Ashton Hotel is a luxury, boutique hotel located in downtown Fort Worth, two blocks from the Company's Hilton Fort Worth.  The Company's affiliated property management company, Remington Lodging, took over management of the hotel at closing and will complex the executive staff with the Hilton.  During 2013, the Ashton Hotel achieved occupancy of 70% with an Average Daily Rate of $213.  The company financed the hotel with a non-recourse, $5.5 million loan with a term of five years.       

On August 6, 2014, the Company closed on its acquisition of the 357-room Fremont Marriott Silicon Valley hotel at a purchase price of $50.0 million.  On a forward 12-month basis, the purchase price represents an estimated cap rate of 8.1% on net operating income, which equates to an expected 10.0x forward EBITDA multiple.  Located in the vibrant Silicon Valley submarket of the Bay Area in Northern California, the hotel features approximately 15,000 square feet of meeting space spread across 19 flexible meeting areas.  The Company financed the property with a $37.5 million non-recourse mortgage loan.  The loan has a term of two years with three, one-year extension options and bears interest at a floating rate of LIBOR + 4.20%.  At closing, the management of the property was transferred to Remington Lodging. 

Additionally, the Company recently announced it had successfully refinanced three mortgage loans with an outstanding balance of approximately $325 million.  The three previous mortgage loans that were refinanced include: the $135 million J.P. Morgan Floater loan; the $101 million UBS 1 loan; and the $89 million Merrill Lynch 3 loan.  The new loans total $469 million and include a $301 million loan with a two-year initial term and three one-year extension options that bears interest at a floating rate of LIBOR + 4.35%; a $62.9 million loan with a two-year initial term and three one-year extension options that bears interest at a floating rate of LIBOR + 4.35%; a $67.52 million loan with a ten-year term that bears interest at a fixed rate of 5.20%; a $12.5 million loan with a ten-year term that bears interest at a fixed rate of 4.85%; and a $24.98 million loan with a ten-year term that bears interest at a fixed rate of 4.90%.  In total, the refinancing resulted in excess net proceeds, after closing costs and capital expenditure reserves, of approximately $104 million, and unencumbered two hotels.

PORTFOLIO REVPAR

As of June 30, 2014, the Ashford Trust Portfolio consisted of direct hotel investments with 114 properties classified in continuing operations.  During the second quarter of 2014, 100 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 114 hotels) and pro forma not under renovation basis (100 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 7.7% to $113.40 for all hotels in the Ashford Trust Portfolio on a 4.3% increase in ADR and a 3.3% increase in occupancy
  • Pro forma RevPAR increased 7.8% to $114.30 for hotels not under renovation in the Ashford Trust Portfolio on a 4.3% increase in ADR and a 3.4% 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 114 Ashford Trust Portfolio hotels are provided in the table attached to this release.

ASHFORD, INC. SPIN-OFF

As previously disclosed on February 27, 2014, Ashford Trust's Board of Directors 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 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 MKT Exchange.  This distribution is anticipated to be declared during the third quarter of 2014; however, it remains subject to the review of the registration statement on Form 10 filed with the Securities and Exchange Commission ("SEC") on April 7, 2014, the approval of the listing of shares by the applicable exchange, and other legal requirements. The Company cannot be certain this distribution will proceed or proceed in the manner as currently anticipated. 

RETIREMENT AND NAMING OF NEW CHIEF FINANCIAL OFFICER

On June 13, 2014, David Kimichik, the Company's former Chief Financial Officer and Treasurer, retired following a career spanning over 32 years with the Company and its predecessor.  Deric Eubanks, formerly the Company's Senior Vice President of Finance, succeeded him as Chief Financial Officer and Treasurer reporting to Ashford Trust Chairman and Chief Executive Officer, Monty J. Bennett

Prior to his role as Senior Vice President of Finance, Mr. Eubanks was Vice President of Investments and was responsible for sourcing and underwriting hotel investments including direct equity investments, joint venture equity, preferred equity, mezzanine loans, first mortgages, B-notes, construction loans, and other debt securities.  Before joining Ashford Trust, Mr. Eubanks was a Manager of Financial Analysis for ClubCorp, where he assisted in underwriting and analyzing investment opportunities in the golf and resort industries.  Mr. Eubanks earned a BBA from Southern Methodist University and is a CFA charterholder.

COMMON STOCK DIVIDEND

On June 13, 2014, 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 second quarter ending June 30, 2014, payable on July 15, 2014, to shareholders of record as of June 30, 2014.

"We made substantial progress during the second quarter and subsequent period in strengthening our capital structure while also enhancing our hotel portfolio.  Our accomplishments include our equity raise in April, the recently completed loan refinancing, and our recent hotel acquisitions.  These accomplishments speak to the nature of Ashford Trust's strategy to capitalize on opportunistic lodging investments and capital market conditions," commented Monty J. Bennett, Ashford Trust's Chairman and Chief Executive Officer.  "We continue to pursue investment opportunities that we believe are accretive to long-term shareholder returns and will also continue to stay in front of our debt maturities by strategically refinancing loans and capitalizing on the current attractive debt market conditions."

INVESTOR CONFERENCE CALL AND SIMULCAST

Ashford Hospitality Trust, Inc. will conduct a conference call on Friday, August 8, 2014, at 11:00 a.m. ET.  The number to call for this interactive teleconference is (913) 981-5551.  A replay of the conference call will be available through Friday, August 15, 2014, by dialing (719) 457-0820 and entering the confirmation number, 7335033.

The Company will also provide an online simulcast and rebroadcast of its second quarter 2014 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, August 8, 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. 

Ashford has created an Ashford App for the hospitality REIT investor community.  The Ashford App is available for free download at Apple's App Store and the Google Play Store by searching "Ashford."

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; the degree and nature of our competition; and the satisfaction of conditions to, or the completion of, the proposed spin-off of Ashford Inc.  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)







June 30,


December 31,






2014


2013






 (unaudited) 

ASSETS





Cash and cash equivalents

$        212,292


$        128,780


Marketable securities

34,935


29,601



Total cash, cash equivalents and marketable securities

247,227


158,381


Investments in hotel properties, net

2,079,506


2,164,389


Restricted cash

87,692


61,498


Accounts receivable, net of allowance of $197 and $242, respectively

32,234


21,791


Inventories

2,005


1,946


Notes receivable, net of allowance of $7,732 and $7,937, respectively

3,466


3,384


Investment in Highland Hospitality

143,276


139,302


Investment in Ashford Prime OP

55,135


56,243


Deferred costs, net

8,473


10,155


Prepaid expenses

11,791


7,519


Derivative assets, net

55


19


Other assets

5,950


4,303


Due from Ashford Prime, net

4,616


13,042


Due from affiliates

4,536


1,302


Due from third-party hotel managers

14,091


33,728











Total assets

$     2,700,053


$     2,677,002









LIABILITIES AND EQUITY




Liabilities:





Indebtedness

$     1,776,761


$     1,818,929


Capital leases payable

-


28


Accounts payable and accrued expenses

82,647


70,683


Dividends payable

21,903


20,735


Unfavorable management contract liabilities

6,318


7,306


Due to related party, net

753


270


Due to third-party hotel managers

1,607


958


Liabilities associated with marketable securities and other

6,699


3,764


Other liabilities

1,246


1,286











Total liabilities

1,897,934


1,923,959









Redeemable noncontrolling interests in operating partnership

202,541


134,206









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 March 31, 2014 and December 31, 2013

17


17




Series D Cumulative Preferred Stock, 9,468,706 shares issued and outstanding at March 31, 2014 and December 31, 2013

95


95




Series E Cumulative Preferred Stock, 4,630,000 shares issued and outstanding at March 31, 2014 and December 31, 2013

46


46



Common stock, $0.01 par value, 200,000,000 shares authorized, 124,896,765 shares issued, 89,290,897 and 80,565,563 shares outstanding, respectively

1,249


1,249



Additional paid-in capital

1,722,032


1,652,743



Accumulated other comprehensive loss

(110)


(197)



Accumulated deficit

(998,583)


(896,110)



Treasury stock, at cost (35,605,868 shares and 44,331,202 shares, respectively)

(125,938)


(140,054)




Total shareholders' equity of the Company

598,808


617,789


Noncontrolling interests in consolidated entities

770


1,048











Total equity

599,578


618,837












Total liabilities and equity

$     2,700,053


$     2,677,002

















 

 

ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES





CONSOLIDATED STATEMENTS OF OPERATIONS





(in thousands, except per share amounts)














 Three Months Ended 


 Six Months Ended 





 June 30, 


 June 30, 





2014


2013


2014


2013





 (unaudited) 


 (unaudited) 

REVENUE









Rooms

$    168,198


$    205,740


$    325,919


$    389,209


Food and beverage

29,014


43,234


57,253


82,884


Other

6,656


9,429


13,033


18,145














Total hotel revenue

203,868


258,403


396,205


490,238


Advisory services

3,945


-


6,139


-


Other

1,076


136


2,141


243














Total revenue

208,889


258,539


404,485


490,481












EXPENSES









Hotel operating expenses










Rooms

36,172


45,075


71,093


87,231



Food and beverage

19,379


27,616


38,702


54,791



Other expenses

72,578


73,356


131,120


141,648



Management fees 

8,116


10,686


15,896


20,579















Total hotel operating expenses

136,245


156,733


256,811


304,249













Property taxes, insurance and other

8,981


11,663


18,601


23,911


Depreciation and amortization

26,612


32,842


52,841


65,322


Impairment charges

(104)


(99)


(205)


(195)


Transaction costs

83


1,170


83


1,170


Corporate, general and administrative:










Non-cash stock/unit-based compensation

7,742


4,550


12,230


12,893



Other general and administrative

11,709


10,149


19,956


16,322















Total operating expenses

191,268


217,008


360,317


423,672












OPERATING INCOME

17,621


41,531


44,168


66,809













Equity in earnings (loss) of unconsolidated entities

7,461


2,367


3,963


(4,521)


Interest income

12


13


18


49


Other income

2,000


310


3,277


6,132


Interest expense

(26,293)


(34,174)


(52,879)


(67,622)


Amortization of loan costs

(1,629)


(1,852)


(3,568)


(3,784)


Write-off of loan costs and exit fees

(6)



(2,034)


(1,971)


Unrealized gain (loss) on marketable securities

(944)


(919)


(943)


1,782


Unrealized gain (loss) on derivatives

(263)


789


(610)


(6,360)












INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

(2,041)


8,065


(8,608)


(9,486)


Income tax expense

(312)


(465)


(528)


(1,069)












INCOME (LOSS) FROM CONTINUING OPERATIONS

(2,353)


7,600


(9,136)


(10,555)


Gain on sale of hotel property, net of tax

-


-


3,491


-












NET INCOME (LOSS)

(2,353)


7,600


(5,645)


(10,555)

(Income) loss from consolidated entities attributable to noncontrolling interests

(5)


8


22


715

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

772


(502)


1,649


2,260












NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY

(1,586)


7,106


(3,974)


(7,580)

Preferred dividends

(8,491)


(8,491)


(16,981)


(16,981)












NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS

$    (10,077)


$      (1,385)


$    (20,955)


$    (24,561)












LOSS PER SHARE – BASIC AND DILUTED









Basic:










Net loss attributable to common shareholders

$        (0.11)


$        (0.02)


$        (0.25)


$        (0.36)














Weighted average common shares outstanding – basic

88,781


68,489


85,283


68,088













Diluted:










Net loss attributable to common shareholders

$        (0.11)


$        (0.02)


$        (0.25)


$        (0.36)














Weighted average common shares outstanding – diluted

88,781


68,489


85,283


68,088













Dividends declared per common share:

$          0.12


$          0.12


$          0.24


$          0.24












Amounts attributable to common shareholders:









Net income (loss) attributable to the Company

$      (1,586)


$        7,106


$      (3,974)


$      (7,580)


Preferred dividends

(8,491)


(8,491)


(16,981)


(16,981)














Net loss attributable to common shareholders

$    (10,077)


$      (1,385)


$    (20,955)


$    (24,561)























 

 

 

 ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES 

 RECONCILIATION OF NET INCOME (LOSS) TO EBITDA 

 (in thousands) 

 (unaudited) 





 Three Months Ended 


 Six Months Ended 




 June 30, 


 June 30, 




2014


2013


2014


2013











 Net income (loss) 

$        (2,353)


$        7,600


$      (5,645)


$    (10,555)

 (Income) loss from consolidated entities attributable to noncontrolling interests

(5)


8


22


715

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

772


(502)


1,649


2,260

 Net income (loss) attributable to the Company 

(1,586)


7,106


(3,974)


(7,580)












 Interest income 

(12)


(13)


(18)


(49)


 Interest expense and amortization of loan costs 

27,890


35,529


56,381


70,501


 Depreciation and amortization  

26,573


32,005


52,764


63,665


 Income tax expense 

312


465


540


1,069


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

(772)


502


(1,649)


(2,260)


 Equity in (earnings) loss of unconsolidated entities 

(7,461)


(2,367)


(3,963)


4,521


 Company's portion of EBITDA of unconsolidated entities (Ashford Prime OP) 

3,091


-


5,625


-


 Company's portion of EBITDA of unconsolidated entities (Highland) 

28,827


26,747


49,402


44,136











 EBITDA 


76,862


99,974


155,108


174,003












 Amortization of unfavorable management contract liabilities 

(494)


(586)


(988)


(1,197)


 Impairment charges 

(104)


(99)


(205)


(195)


 Gain on sale of hotel property 

-


-


(3,503)


-


 Write-off of loan costs and exit fees 

6


-


2,034


1,971


 Other income (1) 

(2,000)


(310)


(3,277)


(6,132)


 Transaction, acquisition and management conversion costs 

83


1,300


83


1,300


 Transaction costs related to spin-offs 

1,187


3,856


1,187


3,856


 Software implementation costs 

255


-


255


-


 Legal judgment 

10,800


-


10,800


-


 Unrealized (gain) loss on marketable securities 

944


919


943


(1,782)


 Unrealized (gain) loss on derivatives 

263


(789)


610


6,360


 Compensation adjustment related to modified employment terms 

2,997


-


2,997


-


 Non-cash stock/unit-based compensation

5,505


4,550


9,993


12,893


 Company's portion of adjustments to EBITDA of unconsolidated entities (Ashford Prime OP) 

176


-


490


-


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

(7)


3


(513)


22











 Adjusted EBITDA 

$        96,473


$    108,818


$    176,014


$    191,099











(1)

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






























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

 (in thousands, except per share amounts) 

 (unaudited) 














 Three Months Ended 


 Six Months Ended 




 June 30, 


 June 30, 




2014


2013


2014


2013











 Net income (loss) 

$        (2,353)


$        7,600


$      (5,645)


$    (10,555)

  (Income) loss from consolidated entities attributable to noncontrolling interests 

(5)


8


22


715

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

772


(502)


1,649


2,260

  Preferred dividends 

(8,491)


(8,491)


(16,981)


(16,981)











 Net loss attributable to common shareholders 

(10,077)


(1,385)


(20,955)


(24,561)












 Depreciation and amortization on real estate 

26,482


31,900


52,587


63,462


 Gain on sale of hotel property 

-


-


(3,503)


-


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

(772)


502


(1,649)


(2,260)


 Equity in (earnings) loss of unconsolidated entities 

(7,461)


(2,367)


(3,963)


4,521


 Company's portion of FFO of unconsolidated entities (Ashford Prime OP) 

1,985


-


2,771


-


 Company's portion of FFO of unconsolidated entities (Highland) 

17,621


14,617


26,472


20,253











 FFO available to common shareholders 

27,778


43,267


51,760


61,415












 Write-off of loan costs and exit fees 

6


-


2,034


1,971


 Impairment charges 

(104)


(99)


(205)


(195)


 Other income (1) 

(2,000)


(310)


(3,277)


83


 Legal judgment 

10,800


-


10,800


-


 Transaction, acquisition and management conversion costs 

83


1,300


83


1,300


 Transaction costs related to spin-offs 

1,187


3,856


1,187


3,856


 Unrealized (gain) loss on marketable securities 

944


919


943


(1,782)


 Unrealized (gain) loss on derivatives 

263


(789)


610


6,360


 Software implementation costs 

255


-


255


-


 Compensation adjustment related to modified employment terms 

2,997


-


2,997


-


 Equity-based compensation adjustment related to modified employment terms 

-


-


-


4,678


 Company's portion of adjustments to FFO of unconsolidated entities (Ashford Prime OP) 

67


-


388


-


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

(7)


3


(513)


22











 Adjusted FFO available to common shareholders 

$        42,269


$      48,147


$      67,062


$      77,708











 Adjusted FFO per diluted share available to common shareholders 

$            0.39


$          0.55


$          0.64


$          0.90











 Weighted average diluted shares 

108,757


87,488


105,001


86,644











(1)

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






 

 

 

ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

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

SUMMARY OF INDEBTEDNESS

JUNE 30, 2014

(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 
















 Senior credit facility - Various 


September 2014


LIBOR + 2.75% to 3.5%


$                 -


$                    -

(5)

$                          -


 N/A 


N/A

 Goldman Sachs - 5 hotels 


November 2014


Greater of 6.40% or LIBOR + 6.15%


-


211,000

(3)

211,000


25,953


12.3%

 UBS 1 - 8 hotels 


December 2014


5.75%


101,123


-


101,123


12,652


12.5%

 Wells Senior - 25 hotels 


March 2015


LIBOR + 3.00%


-


380,222

(4)

380,222


69,240


18.2%

 Mezz 1 - 28 hotels 


March 2015


Greater of 7.00% or LIBOR + 6.00%


-


93,332

(4)

93,332


92,594


14.8%

 Mezz 2 - 28 hotels 


March 2015


Greater of 8.00% or LIBOR + 7.00%


-


88,850

(4)

88,850


92,594


13.0%

 Mezz 3 - 28 hotels 


March 2015


Greater of 10.50% or LIBOR + 9.50%


-


76,157

(4)

76,157


92,594


11.7%

 Mezz 4 - 28 hotels 


March 2015


LIBOR + 2.00%




13,218

(4)

13,218


92,594


11.5%

 JPM Floater - 9 hotels 


May 2015


LIBOR + 6.50%


-


135,000

(2)

135,000


19,239


14.3%

 Merrill 1 - 10 hotels 


July 2015


5.22%


147,444


-


147,444


22,406


15.2%

 UBS 2 - 8 hotels 


December 2015


5.70%


93,843


-


93,843


12,474


13.3%

 Merrill 2 - 5 hotels 


February 2016


5.53%


106,664


-


106,664


17,608


16.5%

 Merrill 3 - 5 hotels 


February 2016


5.53%


88,457


-


88,457


16,768


19.0%

 Merrill 7 - 5 hotels 


February 2016


5.53%


76,624


-


76,624


12,625


16.5%

 Morgan Stanley MIP - 5 hotels 


February 2016


LIBOR + 4.75%


-


200,000

(1)

200,000


19,727


9.9%

 Wachovia 1 - 5 hotels 


April 2017


5.95%


112,608


-


112,608


13,666


12.1%

 Wachovia 5 - 5 hotels 


April 2017


5.95%


101,217


-


101,217


11,661


11.5%

 Wachovia 6 - 5 hotels 


April 2017


5.95%


154,013


-


154,013


16,554


10.7%

 Wachovia 2 - 7 hotels 


April 2017


5.95%


123,193


-


123,193


13,435


10.9%

 Morgan Stanley Boston Back Bay - 1 hotel 


January 2018


4.38%


72,206


-


72,206


9,859


13.7%

 Morgan Stanley Princeton/Nashville - 2 hotels 


January 2018


4.44%


78,957


-


78,957


13,496


17.1%

 GACC Gateway - 1 hotel 


November 2020


6.26%


100,581


-


100,581


14,732


14.6%

 GACC Jacksonville RI - 1 hotel 


January 2024


5.49%


10,742


-


10,742


1,354


12.6%

 GACC Manchester RI - 1 hotel 


January 2024


5.49%


7,360


-


7,360


998


13.6%

 KEY BANK Manchester CY - 1 hotel 


May 2024


4.99%


6,893

(6)

-


6,893


837


12.1%
















 Total 






$    1,381,925


$        1,197,779


$             2,579,704


$             325,284


12.6%
















 Percentage 






53.6%


46.4%


100.0%




















 Weighted average interest rate 






5.60%


5.54%


5.57%



































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









(1)This mortgage loan has three one-year extension option beginning February 2016, 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.  The first extension period began in May 2014.





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







(4)Each of these loans has a one-year extension option beginning March 2015.







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







(6)On May 1, 2014, we refinanced our $5.1 million loan due May 2014 with a $6.9 million loan due May 2024 with no extension options.  The new loan provides for a fixed interest rate of 4.99%.



 

 

 

 ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES 


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

 INDEBTEDNESS BY MATURITY ASSUMING EXTENSION OPTIONS ARE EXERCISED 


 JUNE 30, 2014 


 (in thousands) 


 (unaudited) 

































2014


2015


2016


2017


2018


 Thereafter 


 Total 

















 Senior credit facility - Various 

$              -


$                    -


$               -


$              -


$                  -


$                  -


$                    -


 UBS 1 - 8 hotels 

100,119


-


-


-


-


-


100,119


 Merrill 1 - 10 hotels 

-


142,922


-


-


-


-


142,922


 UBS 2 - 8 hotels 

-


90,680


-


-


-


-


90,680


 Merrill 2 - 5 hotels 

-


-


101,741


-


-


-


101,741


 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 

-


-


93,332


-


-


-


93,332


 Mezz 2 - 28 hotels 

-


-


88,850


-


-


-


88,850


 Mezz 3 - 28 hotels 

-


-


76,157


-


-


-


76,157


 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


 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


 Morgan Stanley MIP - 5 hotels 

-


-


-


-


-


200,000


200,000


 Key Bank Manchester CY - 1 hotel 

-


-


-


-


-


5,671


5,671

















 Principal due in future periods 

$    100,119


$          233,602


$      910,980


$    814,106


$        141,061


$        310,784


$       2,510,652

















 Scheduled amortization payments remaining 

12,577


22,951


14,198


11,157


2,179


5,991


69,052

















 Total indebtedness 

$    112,696


$          256,553


$      925,178


$    825,263


$        143,240


$        316,775


$       2,579,704

















 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


Six Months Ended




June 30,


June 30,




2014


2013


% Variance


2014


2013


% Variance















ALL HOTELS INCLUDED IN ASHFORD TRUST PORTFOLIO:














Room revenues (in thousands)

$       234,188


$       217,333


7.76%


$      441,597


$      412,716


7.00%



RevPAR

$        113.40


$        105.24


7.75%


$       107.51


$         99.85


7.67%



Occupancy

79.96%


77.41%


3.29%


76.74%


74.03%


3.66%



ADR

$        141.83


$        135.96


4.32%


$       140.10


$       134.89


3.86%















NOTES:













(1)

The above pro forma table assumes the 86 hotel properties included in the Company's operations and the 28 hotel properties included in Highland 



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




























ALL HOTELS NOT UNDER RENOVATION INCLUDED













IN ASHFORD TRUST PORTFOLIO:














Room revenues (in thousands)

$       204,723


$       189,876


7.82%


$      388,783


$      362,374


7.29%



RevPAR

$        114.30


$        106.01


7.82%


$       109.13


$       101.07


7.97%



Occupancy

80.43%


77.80%


3.38%


77.45%


74.60%


3.82%



ADR

$        142.11


$        136.26


4.29%


$       140.90


$       135.48


4.00%















NOTES:













(1)

The above pro forma table assumes the 74 hotel properties included in the Company's operations and the 26 hotel properties included in Highland 



Hospitality Portfolio (PIM Highland Holding LLC) but not under renovation at June 30, 2014 were owned as of the beginning of each of the periods presented.
















(2)

Excluded Hotels Under Renovation:








Courtyard Boston Downtown, Hampton Inn Terre Haute, Hilton Fort Worth, Marriott Dallas Market Center




Sheraton Minnetonka, Courtyard Tipton Lakes, Marriott Research Triangle Park,







Sheraton Indianapolis, Residence Inn Newark, Courtyard Overland Park, Crowne Plaza Ravinia,






Embassy Suites Crystal City, Residence Inn Plano, Courtyard Bloomington



















(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 pro forma tables reflect 





an extra 3 days in Marriott-managed properties for the six months ended June 30, 2013. 

















 

 

 

ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

PRO FORMA HOTEL OPERATING PROFIT MARGIN

(Unaudited)









THE FOLLOWING PRO FORMA EBITDA MARGIN TABLE REFLECTS THE 86 HOTELS INCLUDED IN THE COMPANY'S 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.













114 Trust




Properties

HOTEL OPERATING PROFIT (HOTEL EBITDA) MARGIN:






2nd Quarter 2014

34.53%


2nd Quarter 2013

33.97%



Variance

0.56%





HOTEL OPERATING PROFIT (HOTEL EBITDA) MARGIN VARIANCE BREAKDOWN:






Rooms 

0.09%


Food & Beverage and Other Departmental

0.58%


Administrative & General 

0.29%


Sales & Marketing

0.30%


Hospitality

-0.04%


Repair & Maintenance 

0.05%


Energy 

-0.11%


Franchise Fee 

-0.40%


Management Fee 

0.06%


Incentive Management Fee 

-0.47%


Insurance 

0.11%


Property Taxes

0.06%


Other Taxes

0.03%


Leases/Other

0.01%



Total

0.56%





 

 

 

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 PORTFOLIO: 





























 Three Months Ended 


 Six Months Ended 




 June 30, 


 June 30, 




2014


2013


 % Variance 


2014


2013


 % Variance 

 REVENUE 













 Rooms 

$       234,188


$                  217,333


7.8%


$     441,597


$           412,716


7.0%


 Food and beverage 

48,721


49,579


-1.7%


97,150


95,090


2.2%


 Other 

9,582


9,010


6.3%


18,067


17,634


2.5%



 Total hotel revenue 

292,491


275,922


6.0%


556,814


525,440


6.0%















 EXPENSES 













 Rooms 

49,261


46,610


5.7%


95,766


91,168


5.0%


 Food and beverage 

32,169


31,667


1.6%


64,011


62,674


2.1%


 Other direct 

5,029


5,035


-0.1%


9,680


9,770


-0.9%


 Indirect  

76,696


72,687


5.5%


150,997


143,587


5.2%


 Management fees, includes base and incentive fees 

15,014


13,037


15.2%


26,077


23,413


11.4%



 Total hotel operating expenses 

178,169


169,036


5.4%


346,531


330,612


4.8%


 Property taxes, insurance, and other 

13,329


13,146


1.4%


26,587


26,172


1.6%

 HOTEL OPERATING PROFIT (Hotel EBITDA) 

100,993


93,740


7.7%


183,696


168,656


8.9%



 Hotel EBITDA Margin 

34.53%


33.97%


0.56%


32.99%


32.10%


0.89%
















 Minority interest in earnings of consolidated joint ventures 

83


75


10.7%


122


112


8.9%

 HOTEL OPERATING PROFIT (Hotel EBITDA), 













 excluding minority interest in joint ventures 

$     100,910


$                  93,665


7.7%


$   183,574


$        168,544


8.9%















 NOTES: 














(1)

The above pro forma table assumes the 86 hotel properties included in the Company's operations and the 28 hotel properties included in Highland 



Hospitality Portfolio (PIM Highland Holding LLC) were owned as of the beginning of each 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 pro forma table reflects 



an extra 3 days in Marriott-managed properties for the six months ended June 30, 2013.

 ALL HOTELS INCLUDED IN ASHFORD TRUST PORTFOLIO NOT UNDER RENOVATION: 


























 Three Months Ended 


 Six Months Ended 




 June 30, 


 June 30, 




2014


2013


 % Variance 


2014


2013


 % Variance 

 REVENUE 













 Rooms 

$       204,723


$                  189,876


7.8%


$     388,783


$           362,374


7.3%


 Food and beverage 

43,430


43,878


-1.0%


86,778


84,155


3.1%


 Other 

8,229


7,729


6.5%


15,512


15,169


2.3%



 Total hotel revenue 

256,382


241,483


6.2%


491,073


461,698


6.4%















 EXPENSES 













 Rooms 

43,251


41,049


5.4%


84,513


80,407


5.1%


 Food and beverage 

28,681


28,082


2.1%


57,207


55,642


2.8%


 Other direct 

4,207


4,311


-2.4%


8,138


8,359


-2.6%


 Indirect  

66,600


62,913


5.9%


131,373


124,798


5.3%


 Management fees, includes base and incentive fees 

13,482


11,756


14.7%


23,494


21,053


11.6%



 Total hotel operating expenses 

156,221


148,111


5.5%


304,725


290,259


5.0%


 Property taxes, insurance, and other 

11,587


11,473


1.0%


23,003


22,705


1.3%

 HOTEL OPERATING PROFIT (Hotel EBITDA) 

88,574


81,899


8.2%


163,345


148,734


9.8%



 Hotel EBITDA Margin 

34.55%


33.91%


0.64%


33.26%


32.21%


1.05%
















 Minority interest in earnings of consolidated joint ventures 

83


75


10.7%


122


112


8.9%

 HOTEL OPERATING PROFIT (Hotel EBITDA), 













 excluding minority interest in joint ventures 

$       88,491


$                  81,824


8.1%


$   163,223


$        148,622


9.8%















 NOTES: 














(1)

The above pro forma table assumes the 74 hotel properties included in the Company's operations and the 26 hotel properties included in Highland 



Hospitality Portfolio (PIM Highland Holding LLC) but not under renovation at June 30, 2014 were owned as of the beginning of each of the periods presented.
















(2)

Excluded Hotels Under Renovation:



Courtyard Boston Downtown, Hampton Inn Terre Haute, Hilton Fort Worth, Marriott Dallas Market Center



Sheraton Minnetonka, Courtyard Tipton Lakes, Marriott Research Triangle Park,



Sheraton Indianapolis, Residence Inn Newark, Courtyard Overland Park, Crowne Plaza Ravinia,



Embassy Suites Crystal City, Residence Inn Plano, Courtyard Bloomington
















(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 pro forma table reflects 



an extra 3 days in Marriott-managed properties for the six months ended June 30, 2013.

 

 

 

 

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:


















 Three Months Ended 


 Six Months Ended 




 June 30, 


 June 30, 




2014


2013


 % Variance 


2014


2013


 % Variance 

 REVENUE 













 Rooms 

$         67,592


$       61,681


9.6%


$     122,219


$    113,441


7.7%


 Food and beverage 

19,776


20,475


-3.4%


40,594


39,455


2.9%


 Other 

3,049


2,606


17.0%


5,548


5,187


7.0%



 Total hotel revenue 

90,417


84,762


6.7%


168,361


158,083


6.5%















 EXPENSES 













 Rooms 

13,532


12,514


8.1%


25,928


24,821


4.5%


 Food and beverage 

12,817


12,929


-0.9%


25,792


25,513


1.1%


 Other direct 

1,204


1,287


-6.4%


2,329


2,488


-6.4%


 Indirect  

23,646


22,132


6.8%


46,583


43,870


6.2%


 Management fees, includes base and incentive fees 

4,138


3,297


25.5%


7,036


5,873


19.8%



 Total hotel operating expenses 

55,337


52,159


6.1%


107,668


102,565


5.0%


 Property taxes, insurance, and other 

4,541


4,326


5.0%


8,623


8,325


3.6%

 HOTEL OPERATING PROFIT (Hotel EBITDA) 

$       30,539


$     28,277


8.0%


$     52,070


$    47,193


10.3%



 Hotel EBITDA Margin 

33.78%


33.36%


0.42%


30.93%


29.85%


1.07%















 NOTES: 














(1)

The above pro forma table assumes the 28 hotel properties owned at June 30, 2014 were owned as of the



beginning of each 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 pro forma table reflects 



an extra 3 days in Marriott-managed properties for the six months ended June 30, 2013.
















(3)

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

 

 

 

ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES


PRO FORMA HOTEL REVENUE & EBITDA FOR TRAILING TWELVE MONTHS


(dollars in thousands)


(Unaudited)
















THE FOLLOWING PRO FORMA SEASONALITY TABLE REFLECTS THE 86 HOTELS INCLUDED IN

THE COMPANY'S 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.
















2014

2014

2013

2013




2nd Quarter

1st Quarter

4th Quarter

3rd Quarter


TTM








Ashford Trust Portfolio







Total Hotel Revenue

$                   292,491

$              264,325

$            238,992

$            250,177


$   1,045,985

Hotel EBITDA

$                   100,993

$                82,703

$              67,125

$              74,463


$      325,284

Hotel EBITDA Margin

34.53%

31.29%

28.09%

29.76%


31.10%








EBITDA % of Total TTM

31.0%

25.4%

20.6%

22.9%


100.0%








JV Interests in EBITDA

$                            83

$                       39

$                     73

$                     80


$             275















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



Total Hotel Revenue

$                     90,417

$                77,946

$              73,095

$              74,709


$      316,167

Hotel EBITDA

$                     30,539

$                21,531

$              19,571

$              20,953


$        92,594

Hotel EBITDA Margin

33.78%

27.62%

26.77%

28.05%


29.29%








EBITDA % of Total TTM

33.0%

23.3%

21.1%

22.6%


100.0%








 

 

 

ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

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

PRO FORMA HOTEL REVPAR BY MARKET

(Unaudited)




























Three Months Ended


Six Months Ended









Number of


Number of


June 30,


June 30,





Region


Hotels


Rooms


2014

2013

% Change


2014


2013

 % Change 























Atlanta, GA Area


9


1,428


$               95.33

$       90.87

4.9%


$              94.35


$               87.94

7.3%




Boston, MA Area


2


506


$             218.20

$     196.29

11.2%


$            161.00


$             152.42

5.6%




Dallas / Ft. Worth Area


6


1,340


$             101.82

$       95.24

6.9%


$            102.69


$               93.39

10.0%




Houston, TX Area


3


607


$             120.66

$     117.17

3.0%


$            115.77


$             111.10

4.2%




Los Angeles, CA Metro Area


8


1,783


$             111.05

$       98.05

13.3%


$            112.03


$               97.64

14.7%




Miami, FL Metro Area


3


584


$             113.50

$     101.16

12.2%


$            137.06


$             126.75

8.1%




Minneapolis - St. Paul, MN-WI Area


2


520


$             101.66

$       96.27

5.6%


$              94.41


$               88.66

6.5%




New York / New Jersey Metro Area


7


1,559


$             118.49

$     109.22

8.5%


$            108.00


$             102.54

5.3%




Orlando, FL Area


6


1,834


$               84.28

$       78.46

7.4%


$              90.86


$               85.98

5.7%




Philadelphia, PA Area


3


648


$             101.64

$     102.84

-1.2%


$              91.34


$               88.05

3.7%




San Diego, CA Area


2


410


$             106.12

$       93.22

13.8%


$              99.89


$               90.04

10.9%




San Francisco - Oakland, CA Metro Area


5


1,011


$             127.69

$     113.13

12.9%


$            120.96


$             106.84

13.2%




Tampa, FL Area


3


582


$             100.65

$       86.65

16.2%


$            111.58


$             102.05

9.3%




Washington DC - MD - VA Area


10


2,290


$             142.66

$     140.37

1.6%


$            124.90


$             123.03

1.5%




Other Areas


45


7,592


$             110.26

$     101.60

8.5%


$            102.53


$               94.27

8.8%























Total Portfolio


114


22,694


$           113.40

$   105.24

7.7%


$          107.51


$              99.85

7.7%
















































































NOTES:



















(1)

The above pro forma table presents the 86 hotel properties included in the Company's 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 each 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


Six Months Ended





Number of


Number of


June 30,


June 30,

Region


Hotels


Rooms


2014

 % of Total 

2013

 % of Total 

% Change


2014

 % of Total 

2013

 % of Total 

% Change




















Atlanta, GA Area


9


1,428


$                4,286

4.2%

$               4,124

4.4%

3.9%


$                9,035

4.9%

$                7,794

4.6%

15.9%

Boston, MA Area


2


506


5,463

5.4%

4,773

5.1%

14.5%


6,410

3.5%

6,082

3.6%

5.4%

Dallas / Ft. Worth Area


6


1,340


4,952

4.9%

4,983

5.3%

-0.6%


10,395

5.7%

9,812

5.8%

5.9%

Houston, TX Area


3


607


3,311

3.3%

3,119

3.3%

6.2%


6,235

3.4%

5,719

3.4%

9.0%

Los Angeles, CA Metro Area


8


1,783


8,343

8.3%

7,151

7.6%

16.7%


16,544

9.0%

13,740

8.1%

20.4%

Miami, FL Metro Area


3


584


2,469

2.4%

1,872

2.0%

31.9%


6,859

3.7%

6,045

3.6%

13.5%

Minneapolis - St. Paul, MN-WI Area


2


520


2,225

2.2%

2,244

2.4%

-0.8%


3,837

2.1%

3,622

2.1%

5.9%

New York / New Jersey Metro Area


7


1,559


8,257

8.2%

7,809

8.3%

5.7%


13,914

7.6%

13,385

7.9%

4.0%

Orlando, FL Area


6


1,834


4,595

4.5%

4,215

4.5%

9.0%


10,854

5.9%

10,323

6.1%

5.1%

Philadelphia, PA Area


3


648


2,406

2.4%

2,243

2.4%

7.3%


3,600

2.0%

3,259

1.9%

10.5%

San Diego, CA Area


2


410


1,502

1.5%

1,341

1.4%

12.0%


2,652

1.4%

2,455

1.5%

8.0%

San Francisco - Oakland, CA Metro Area


5


1,011


5,139

5.1%

4,703

5.0%

9.3%


9,509

5.2%

8,323

4.9%

14.2%

Tampa, FL Area


3


582


2,293

2.3%

1,828

2.0%

25.4%


5,400

2.9%

4,878

2.9%

10.7%

Washington DC - MD - VA Area


10


2,290


13,478

13.3%

13,169

14.0%

2.3%


21,779

11.9%

21,449

12.7%

1.5%

Other Areas


45


7,592


32,275

32.0%

30,167

32.2%

7.0%


56,673

30.9%

51,770

30.7%

9.5%




















Total Portfolio


114


22,694


$          100,993

100.0%

$           93,740

100.0%

7.7%


$          183,696

100.0%

$         168,656

100.0%

8.9%







































NOTES:



















(1)

The above pro forma table presents the 86 hotel properties included in the Company's 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 each of the periods presented.

























(2)

The above pro forma table includes hotel operating profit for 100% of the 86 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 each 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 pro forma table reflects an extra 3 days in Marriott-managed properties for the six months ended June 30, 2013.




















 

 

 

 ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES 

 TOTAL ENTERPRISE VALUE 

JUNE 30, 2014

 (in thousands except share price) 

 (unaudited) 






 June 30, 


2014

 End of quarter diluted shares outstanding 

90,883

 Partnership units outstanding (common share equivalents) 

19,998

 Combined diluted shares and partnership units outstanding 

110,881

 Common stock price at quarter end 

$                       11.54

 Market capitalization at quarter end 

$                 1,279,567

 Series A preferred stock 

$                      41,430

 Series D preferred stock 

$                    236,718

 Series E preferred stock 

$                    115,750

 Debt on balance sheet date* 

$                 2,579,704

 Joint venture partners' share of consolidated debt 

$                       (2,138)

 Net working capital (see below) 

$                   (466,803)

Total enterprise value (TEV)*

$                 3,784,228



Ashford Prime Investment:


Partnership units owned at end of quarter

4,978

Common stock price at quarter end

$                       17.16

Market value of Ashford Prime investment

$                     85,422





Cash & cash equivalents*

$                   232,101

Marketable securities, net

28,221

Restricted cash*

156,086

Accounts receivable, net*

46,446

Prepaid expenses*

19,338

Due from affiliates, net*

5,344

Due from 3rd party hotel managers, net*

28,902

Market value of Ashford Prime investment

85,422

Total current assets

$                  601,860



Accounts payable, net & accrued expenses*

$                   113,154

Dividends payable

21,903

Total current liabilities

$                  135,057



Net working capital**

$                  466,803



* Includes the Company's 71.74% interest in Highland Hospitality

 **Calculation only includes our portion of the Interstate joint venture. 

 

Ashford Hospitality Trust, Inc.

Anticipated Capital Expenditures Calendar (a)






















2014


Rooms

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter



Actual

Actual

Estimated 

Estimated 

Courtyard Boston Downtown

315

x

x


x

Courtyard Bloomington

117

x

x



Courtyard Overland Park

168

x

x



Crowne Plaza Ravinia

495

x

x



Embassy Suites Crystal City

267

x

x



Hampton Inn Terre Haute

112

x

x



Residence Inn Newark

168

x

x



Residence Inn Plano

126

x

x



Sheraton Indianapolis

378

x

x



Crowne Plaza Key West

160

x




Embassy Suites Portland Downtown 

276

x




Hilton Costa Mesa 

486

x




Hyatt Regency Wind Watch

358

x




Marriott Sugarland 

300

x




Renaissance Nashville

673

x




Residence Inn Evansville

78

x




Residence Inn Hartford

96

x




Residence Inn San Diego Sorrento Mesa

150

x




Silversmith

143

x




Hilton Fort Worth

294


x

x


Sheraton Minnetonka

220


x

x


Courtyard Tipton Lakes

90


x



Marriott Dallas Market Center

265


x



Marriott RTP

225


x



Crowne Plaza Beverly Hills

258



x

x

Residence Inn Phoenix Airport

200



x

x

Springhill Suites Orlando LBV

400



x

x

Embassy Suites Palm Beach Garden

160



x


Hilton Tampa

238



x


Hyatt Coral Gables

250



x


Courtyard Newark/Silicon Valley

181




x

Embassy Suites Flagstaff

119




x

Hilton Minneapolis

300




x

Hilton Parsippany

354




x

Hyatt Regency Savannah

351




x

Marriott Bridgewater

347




x

Sheraton Bucks County

186




x

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













SOURCE Ashford Hospitality Trust, Inc.



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