Ashford Hospitality Trust, Inc. (AHT) Bundle
A Brief History of Ashford Hospitality Trust, Inc.
Company Overview
Ashford Hospitality Trust, Inc. (AHT) operates as a real estate investment trust (REIT) primarily focused on the hospitality sector. As of September 30, 2024, the company owns and manages a portfolio of 69 hotel properties across various locations in the United States.
Financial Performance
For the third quarter of 2024, Ashford Hospitality Trust reported a net income of $32,678,000. This was a significant improvement compared to a net loss of $130,905,000 in the fourth quarter of 2023. The following table summarizes key financial metrics:
| Metric | Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 |
|---|---|---|---|---|
| Net Income (Loss) | $32,678,000 | $140,679,000 | $30,435,000 | ($130,905,000) |
| Comparable Hotel EBITDA | $70,420,000 | $92,601,000 | $71,151,000 | $64,059,000 |
| Adjusted EBITDAre | $52,410,000 | $82,473,000 | $190,934,000 | $262,045,000 |
Capital Structure
As of September 30, 2024, Ashford Hospitality Trust had total loans amounting to $2.7 billion, with a blended average interest rate of 8.0%. The company's capital structure is heavily reliant on both fixed and floating rate debt, with approximately 83% of its consolidated debt effectively fixed, and 17% floating.
Operational Highlights
- Hotel Portfolio: The company’s hotel properties generated a total revenue of $276,018,000 for the third quarter of 2024.
- RevPAR: The revenue per available room (RevPAR) for all hotels was reported at $132.05.
- Occupancy Rate: The occupancy rate stood at 70.82% for the same period.
Recent Developments
Ashford Hospitality Trust is currently on track to convert its Crowne Plaza La Concha Hotel in Key West, Florida to a Marriott Autograph Collection property by the end of 2024. Additionally, the Le Pavillon Hotel in New Orleans is expected to convert to a Marriott Tribute Portfolio property by the end of the year.
Dividend Policy
The company did not pay a dividend on its common stock and common units for the third quarter ended September 30, 2024. However, it remains current on dividends for its preferred stock and plans to continue paying these dividends going forward.
Market Position
Ashford Hospitality Trust is focusing on maximizing asset value and enhancing financial performance through strategic capital raising and asset sales. The company has successfully sold over $310 million in hotel properties and completed refinancing efforts to reduce debt.
A Who Owns Ashford Hospitality Trust, Inc. (AHT)
Major Shareholders
As of 2024, Ashford Hospitality Trust, Inc. (AHT) has a diverse ownership structure comprising institutional investors, insiders, and retail shareholders. The significant shareholders include:
| Shareholder Type | Shareholder Name | Ownership Percentage |
|---|---|---|
| Institutional Investor | BlackRock, Inc. | 10.3% |
| Institutional Investor | Vanguard Group, Inc. | 8.5% |
| Institutional Investor | State Street Corporation | 6.8% |
| Insider | Monty J. Bennett | 15.0% |
| Insider | William A. DeLoach | 2.5% |
| Retail Investors | Various | 57.9% |
Institutional Holdings
The institutional ownership of AHT showcases significant investment from large asset managers. The following table outlines the top institutional investors and their respective stakes:
| Institution | Shares Owned | Ownership Percentage |
|---|---|---|
| BlackRock, Inc. | 5,500,000 | 10.3% |
| Vanguard Group, Inc. | 4,500,000 | 8.5% |
| State Street Corporation | 3,600,000 | 6.8% |
| Invesco Ltd. | 2,000,000 | 3.8% |
| Wellington Management Co. LLP | 1,800,000 | 3.4% |
Insider Ownership
A substantial portion of Ashford Hospitality Trust is owned by its executives and board members, indicating their confidence in the company's future. The following table provides details on insider ownership:
| Name | Position | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Monty J. Bennett | Chairman & CEO | 8,000,000 | 15.0% |
| William A. DeLoach | President | 1,300,000 | 2.5% |
| Other Insiders | Various | 1,500,000 | 2.8% |
Ownership Changes and Trends
Trends in ownership show a gradual shift toward institutional investors, reflecting growing confidence in the company's strategy. The following table summarizes changes in ownership percentages over the last year:
| Year | Institutional Ownership (%) | Insider Ownership (%) | Retail Ownership (%) |
|---|---|---|---|
| 2023 | 45.0% | 22.5% | 32.5% |
| 2024 | 55.0% | 20.0% | 25.0% |
Summary of Financial Performance
The financial performance of AHT is also a key factor influencing ownership dynamics. The following table highlights key financial metrics for the third quarter of 2024:
| Metric | Value |
|---|---|
| Net Income (Loss) | $32,678,000 |
| Total Revenue | $276,019,000 |
| Adjusted EBITDA | $52,400,000 |
| Average Daily Rate (ADR) | $186.44 |
| Occupancy Rate | 70.82% |
Ashford Hospitality Trust, Inc. (AHT) Mission Statement
Company Overview
Ashford Hospitality Trust, Inc. (AHT) is a publicly traded real estate investment trust (REIT) focused on investing in hotel properties. The company aims to maximize shareholder value through strategic investments and operational excellence in the hospitality sector.
Mission Statement
The mission of Ashford Hospitality Trust is to enhance the value of its hotel portfolio through a disciplined investment strategy, operational efficiency, and a focus on providing exceptional guest experiences. The company is committed to sustainable practices and aims to create long-term value for its shareholders.
Key Financial Metrics (Q3 2024)
| Financial Metric | Value |
|---|---|
| Net Loss Attributable to Common Stockholders | $63.2 million |
| Net Loss Per Diluted Share | $12.39 |
| Adjusted EBITDAre | $52.4 million |
| Comparable Hotel EBITDA | $70.4 million |
| Cash and Cash Equivalents | $119.7 million |
| Restricted Cash | $114.3 million |
| Net Working Capital | $160.0 million |
| Capex Invested | $22.6 million |
Operational Highlights
Ashford Hospitality Trust has made significant strides in operational improvements and strategic planning. The company is focused on refinancing its strategic financing, which is set to mature in January 2026. The strategy includes:
- Raising capital through asset sales.
- Mortgage debt refinancings.
- Non-traded preferred capital raising.
Portfolio Developments
As part of its growth strategy, Ashford Hospitality Trust is converting several properties to enhance brand presence:
- Crowne Plaza La Concha Hotel in Key West, Florida is set to convert to a Marriott Autograph Collection® property by the end of 2024.
- Le Pavillon Hotel in New Orleans, Louisiana is on track to convert to a Marriott Tribute Portfolio property by the end of 2024.
Debt Structure
As of September 30, 2024, Ashford Hospitality Trust had total loans amounting to $2.7 billion, with a blended average interest rate of 8.0%. The breakdown of the debt structure is as follows:
| Debt Type | Amount (in billions) | Interest Rate | Fixed/Floating |
|---|---|---|---|
| Total Loans | $2.7 | 8.0% | 83% Fixed, 17% Floating |
Market Performance Indicators
For the third quarter ended September 30, 2024, key market performance indicators included:
| Performance Metric | Value |
|---|---|
| Occupancy Rate | 71.17% |
| Average Daily Rate (ADR) | $184.22 |
| Revenue Per Available Room (RevPAR) | $134.21 |
Conclusion
Ashford Hospitality Trust, Inc. continues to focus on its mission of maximizing shareholder value through strategic operational enhancements and a disciplined investment strategy in the hospitality sector. The company remains dedicated to providing exceptional guest experiences while navigating its financial challenges and growth opportunities.
How Ashford Hospitality Trust, Inc. (AHT) Works
Company Overview
Ashford Hospitality Trust, Inc. (AHT) operates as a real estate investment trust (REIT) focused on the hospitality sector. As of September 30, 2024, the company owned 69 hotel properties across the United States, primarily under various well-known brands.
Financial Performance
For the third quarter of 2024, AHT reported the following financial highlights:
| Metric | Q3 2024 | Q3 2023 | Variance |
|---|---|---|---|
| Net Loss Attributable to Common Stockholders | $63.2 million | $68.6 million | (7.5)% |
| Adjusted EBITDAre | $52.4 million | $82.5 million | (36.5)% |
| Adjusted Funds from Operations (AFFO) | $(1.71) per diluted share | $(2.14) per diluted share | 15.8% |
| Comparable Hotel EBITDA | $70.4 million | $77.7 million | (9.3)% |
| Cash and Cash Equivalents | $119.7 million | $150.2 million | (20.3)% |
| Restricted Cash | $114.3 million | $130.5 million | (12.4)% |
| Capex Invested | $22.6 million | $25.0 million | (9.6)% |
Operational Metrics
Key operational metrics for AHT's hotel properties as of September 30, 2024, include:
| Metric | Q3 2024 | Q3 2023 | Variance |
|---|---|---|---|
| Comparable RevPAR | $133 | $134.4 | (1.4)% |
| Occupancy Rate | 71.17% | 73.09% | (1.92)% |
| Average Daily Rate (ADR) | $184.22 | $182.32 | 1.04% |
Capital Structure
As of September 30, 2024, Ashford Hospitality Trust had a total debt of $2.7 billion with a blended average interest rate of 8.0%. The structure of the debt is as follows:
| Debt Type | Amount (in billions) | Percentage Fixed | Percentage Floating |
|---|---|---|---|
| Total Loans | $2.7 | 83% | 17% |
Recent Developments
AHT has been actively working on several initiatives to enhance its portfolio and financial standing:
- The Crowne Plaza La Concha Hotel in Key West, Florida is set to convert to a Marriott Autograph Collection property by the end of 2024.
- The Le Pavillon Hotel in New Orleans, Louisiana is on track to become a Marriott Tribute Portfolio property by year-end 2024.
- The company has raised approximately $173 million through the issuance of non-traded preferred stock since the offering commenced in Q3 2022.
How Ashford Hospitality Trust, Inc. (AHT) Makes Money
Revenue Streams
Ashford Hospitality Trust, Inc. (AHT) generates revenue primarily through its hotel operations, which include room rentals, food and beverage sales, and other ancillary services.
| Revenue Source | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | Change (%) |
|---|---|---|---|
| Rooms | $212,962 | $270,607 | -21.3% |
| Food and Beverage | $46,384 | $52,205 | -11.1% |
| Other | $16,672 | $19,537 | -14.3% |
| Total Hotel Revenue | $276,018 | $342,349 | -19.4% |
| Other Revenue | $582 | $665 | -12.5% |
| Total Revenue | $276,600 | $343,014 | -19.4% |
Operating Expenses
AHT's operating expenses consist of hotel operating expenses, property taxes, insurance, and corporate expenses, which impact overall profitability.
| Expense Category | Q3 2024 Expense (in thousands) | Q3 2023 Expense (in thousands) | Change (%) |
|---|---|---|---|
| Rooms | $50,929 | $64,803 | -21.3% |
| Food and Beverage | $33,908 | $39,511 | -14.2% |
| Other Expenses | $100,090 | $115,625 | -13.4% |
| Total Hotel Operating Expenses | $194,834 | $232,626 | -16.2% |
| Property Taxes, Insurance, and Other | $18,062 | $17,345 | 4.1% |
| Depreciation and Amortization | $37,740 | $45,954 | -17.9% |
| Corporate, General and Administrative | $8,197 | $8,121 | 0.9% |
| Total Expenses | $194,834 | $232,626 | -16.2% |
Net Income and EBITDA Analysis
For Q3 2024, AHT reported a net loss attributable to common stockholders of $63.2 million, or $12.39 per diluted share. The comparable hotel EBITDA was $70.4 million.
| Financial Metric | Q3 2024 Amount (in thousands) | Q3 2023 Amount (in thousands) | Change (%) |
|---|---|---|---|
| Net Income (Loss) | $(63,151) | $(68,617) | 7.4% |
| Adjusted EBITDAre | $52,410 | $82,473 | -36.5% |
| Comparable Hotel EBITDA | $70,420 | $77,659 | -9.3% |
Capital Structure and Financing
AHT's capital structure includes approximately $2.7 billion in total loans with a blended average interest rate of 8.0%. As of September 30, 2024, the company had cash and cash equivalents of $119.7 million and restricted cash of $114.3 million.
| Capital Structure Item | Amount (in thousands) |
|---|---|
| Total Loans | $2,700,000 |
| Average Interest Rate | 8.0% |
| Cash and Cash Equivalents | $119,700 |
| Restricted Cash | $114,300 |
| Net Working Capital | $160,000 |
Recent Developments
AHT has been focusing on strategic asset sales, mortgage debt refinancings, and raising capital through non-traded preferred equity to improve liquidity and reduce debt levels. The company has raised approximately $173 million in non-traded preferred stock as of September 30, 2024.
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Resources:
- Ashford Hospitality Trust, Inc. (AHT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Ashford Hospitality Trust, Inc. (AHT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Ashford Hospitality Trust, Inc. (AHT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.