Ashford Hospitality Trust (AHT) 2 May 232023 Q1 Earnings call transcript

Greetings and welcome to Ashford Hospitality Trust First Quarter 2023 Results Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Jordan Jennings, Manager of Investor Relations. you. Thank

begin. may You

developments. and for today's the Ashford and on of everyone, review first call the XXXX recent you update results Hospitality to welcome day, conference to to quarter Good Trust for

Chief On the call President Chris Deric will be and and Head Chief Officer; Executive Management. Executive President Financial Rob Eubanks, Nixon, Officer; Hays, today and Vice of Asset

in conference a were notice The accessibility of afternoon on certain well contain distributed call information that statements pursuant provisions you and Internet being regulations. the as assumptions federal are remind of are press forward-looking to in this listen-only this upon as the Safe Harbor At over of call based results conference the basis me made or and securities release. time, a yesterday this let

Such the filings factors to are risks, those could assumptions, cause known materially Commission. and more results are Securities subject fully anticipated. which uncertainties company's from or to with in differ the unknown actual and Exchange These forward-looking statements numerous discussed

be made in statements publicly this of this made only of as company forward-looking call them. are this date The and revise Statements or not call obligated the the update is to call offer conference during included offer at or to can not be do an www.sec.gov. constitute any solicitation to of securities. only means found sell and of which statement prospectus, an by buy offered will Securities our registration

the measures, the X, at are filed also company's financial been or through call company's In X-K which earnings tables this May accompanying XXXX, be reconciliations which www.ahtreit.com. Form addition, and schedules are on on may certain used terms website in accessed with release non-GAAP of and provided the in SEC have

March provided call with Also, March review otherwise together stated, ended results reported is XX, those first first earnings release. information this other all quarter compare the in listener XX, release Each discussed unless XXXX provided XXXX. in the the ended to the encouraged quarter all in with reconciliations

I over go to the call ahead Hays. turn sir. Rob will now Please,

comments, Welcome Deric Chris morning. Good on introductory quarter first our will my results the then operational portfolio. review financial will an update provide After to our call. and

approximately The positioned if are: ended quarter; extension capital, and strong for second, well first, pleased achieved today be of growth tests the quarter have in very the we and continue with to capital. RevPAR main first to cash we feel our with strategic our our themes continue $XXX We we via our financing. working upcoming million the strong. position to and access for call net are undrawn needed, liquidity We

capital this preferred XXX% nicely the will our third, over raising and non-traded allow quarter. for And our is offering We previous conditions. future to subject time, over the market accretively cost attractive believe of portfolio capital an up and us to provide ramping grow from increased

this capital that REITs competitive to discounts access currently trading significant are given values. growth to is a lodging material net believe asset advantage, particularly their We the fact at

use capital be used of down debt needed. to for that growth, as pay preference some may will we though Our the future capital

security. currently selling and agreements signed have selling representatives XX representing to continue We syndicate over build X,XXX the the dealer

We approximately in million $XX.X are to-date still in process. raising gross proceeds, the including alone. very $X.X And we have of March early capital issued million

to XXXX. momentum We expect get this fundraising accelerate we further into as

year over portfolio year the our and growth increased rates, increased quarter RevPAR This Let prior prior the year RevPAR compared hotels XX% which increased first operating XX% the hotels. for in at led by to performance me the quarter. saw all turn strong quarter growth our over we for now occupancy average approximately to was prior in XX% which quarter.

respective hotels of hotel of and their loans under XX% out respective cash of compared solid In performance, our their to the only hotels traps cash now company's our our majority addition at to are traps of approximately quarter XXXX their the of fourth end traps cash now the EBITDA. are hotels year generated of XX% out XXXX. Further, the XX% full of that hotel the remaining

our is with main our operating to performance extension our for any tests maximizing associated downs minimize of for One pay property-level potential priorities XXXX loans.

to make Hotel extension We as of Highland loan. great on this the continue as the well progress JPMorgan the with our Chase BAML front Pool of modification extension eight successful loan completed

final lender We're of Deric in talk XXXX. Alexandria also Santa refinancing which the these Hilton Posada company's working the and in with more Fe will about to on more only the La debt are a detail. loans maturities

we exceed or tests, where allocate If we While our we there market extension focus situations have additional back that maximizing feel those of remaining upcoming be balances assets lenders values arise, to hotels. for the capital value shareholders. may may current on well situations to loan give for prepared underlying

Remington Remington to we well. from well companies is affiliated believe We able an years. consists us to optimize really apart ahead, many us the portfolio operations diverse best-in-class enabling consistently geographically and management Looking positioned. assets that industry high-quality with has manager brands manage our aggressively of outperform our as relationship sets our and with for costs been property revenues believe standpoint

assets recycling component of to market our if sell that sale we market an important strategy to opportunities remains warrant. and non-core We've certain to assets. pursue capital for may identified we Additionally, continue conditions several bring

paying down net go towards sales debt. expect any proceeds We to from these

Turning Relations. Investor to

have to We Trust. attractive and Ashford robust an continue opportunity investment is in effort strategy get our front of investors, we what at outreach a believe to explain communicate

this look conferences you Street led with those many investor We events. speaking year. conferences of coming And Wall over year. to have meetings XXX numerous at industry over have the past forward attended which and We up have we several

includes performance maximize to place the to Trust. right the company time believe portfolio. continuing looking Ashford move for sheet plan optimizing opportunities grow value forward at the invest We plan This balance the to at and improving liquidity assets grow across in our and and over operating

part moving ventures forward. they and with acquisitions sales excited of we preferred are we asset of We have about property first And that expect joint our be success plans a of of ended continue in a opportunities when front track amount the to quarter cash it our we launch to this We record sheet. us. of offering and the comes the balance substantial on with non-traded will see

I'll first review Deric quarter financial now the to to turn our performance. call over

Rob. Thanks,

the first net reported a we For diluted quarter, million common loss to $XX.X per attributable $X.XX or of stockholders share.

blended quarter. diluted diluted quarter For quarter, of a account X.X% loans per quarter. the for per in reported reflected the money of At was EBITDAre prior AFFO of the $XX.X Adjusted interest of taking interest we end XX% $X.XX rate quarter, million $X.X to a with we in average the compared year rate into a the of loss share first year had the share the over billion prior which rate caps. growth of $X.XX

rate extension. loans the caps options requirement in have of current maturity all caps fixed the with during XXXX. SOFR will and to interest LIBOR expire underlying of of the our interest extension date typically as level debt money. include are at caps Considering the to these many dates we and loans interest now purchase these the rate now Most corresponding the effectively expire several of rate maturity loans of in almost of XXXX additional These time simultaneously have caps, with initial of and XX% the is caps that the our structured are remaining as

to year as rate any last hedge In future purchased pre-purchased remain purchase. these interest rates against a caps we interest need value purchases. of extensions, forward caps the caps elevated, of we anticipation should new help of starting the defray these these If cost

new utilized we of fact, of the the of forward some recent defray In to starting for these the we the extension Highland of cap caps purchased the BAML cost value loan.

$XXX markets X Hotel JPMorgan Chase extended loan. quarter, the capital successfully during the modified front – and On we million our

us the this X.XX% As debt extension. significantly extension principal million part $XX the extension, we of down X.X% reduced and to more flexibility for pay from a next yield test made XXXX giving

to quarter subsequent April end, extended loan until our Additionally XXXX. BAML Highland Pool we

As paid the refinancing loans, on Hilton the with by Posada we working final million. the only are also Alexandria XXXX. La de balance part Santa which existing maturities of this loan We're down in $XX and lender Fe debt the the of the company's extension,

of refinancing, not down part we of amounts. either loan outstanding this expected As do the paying anticipate

hotel loans are in currently last that traps, down are we of cash which from unable hotels cash trap property is and the currently company our non-recourse XX% level utilize XX% purposes. to all property Our level to means corporate-related quarter. are A cash for

their the cash was respective first hotels Importantly, Indigo released of and after quarter, loans had cash XX quarter end. million approximately the trapped to Stanley that and Atlanta Highland corporate of loan $XX out after came the been traps pool, Morgan pool,

utilize quarter, be and that any released the million meet the various debt we approximately end we remaining in be or We held restricted of freely able $XX will our the to properties cash first and corporate. of the accounts. cash trapped restricted on these at coverage million had us of balance with to will and is equivalents At quarter $XXX As recover cash cash and traps, cash which is reserve thresholds, The in that sheet. $XXX comprised restricted ended million. and majority cash cash of cash of vast lender the manager reflected yield

had which of we costs. to by hotel primarily one operating This At is quarter, managers. our available due property million cash also also end third-party represents managers, $XX hotel the of in held the fund from

approximately $XXX working million. We also ended the net quarter of with capital

we've other and capital to we for can that preferred in ramp on our we discussed of attractive As capital capital XXXX. or made non-traded back progress our This to look used and raise raise downs through been be as purposes progress. the for this the expect progress that stock corporate with is forward acquisitions, pay we've for we the reporting momentum Rob debt pleased up us

portfolio consolidated of March consisted XXXX, hotels XX, XXX rooms. As XX,XXX of our with

outstanding, at count comprised and shares million stock fully currently stands common shares million diluted units. approximately of X.X share of is which million XX.X XX.X Our OP

million we strategic XXXX. used calculate In fully included the exit average diluted X.X fee completed common January associated share, shares AFFO in our weighted the per first on approximately share the financing count to with quarter,

equity cap million. stock yesterday's our closing Assuming price, approximately $XXX market is

we quarterly our common monthly, While we reinstating for dividend preferred are or time. currently anticipate some paying a not do dividends

Over improve made. with we our are we've steps we've the to that taken financial the past several strengthen progress pleased and numerous liquidity our months, position and

balance cash solid. Our is

schedule. an have We attractive maturity

is positioned. we Our non-traded up the security preferred is company offering and ramping well believe

like turn to Chris now would I and our the for to review, financial it our activities discuss to over asset quarter. concludes management This

Thank you, Deric.

XX% the prior quarter, quarter. comparable portfolio EBITDA hotel our the over For for increased year

scales. quarter comparable RevPAR In growth the chain for favorably addition, of average the RevPAR the upscale upper to our for XX% and upscale compared growth

We off strong. team has operating results work that the the drive of start are and asset to done proud our year management

assessment tax of time group few our I demand our recent now savings. success increased our including highlighting would stories ADR, the like spend across a portfolio across to some portfolio, and

driving to Our in was increased the over year quarter. prior successful team XX% this quarter compared ADR, comparable which

our Using Every related month on dive each able revenue to forecast was property in optimized line over the of premiums property segment our optimization approach grow follow pricing pushing than quarter by in to deep each comparable and conducts types and top on suite-room club our team business, year more the marketing this XX% ensuring quarter. strategy the calls properties revenue the discussed team prior strategy. in driving focused total

In quarter. consecutive quarter. the team in our compared in quarter quarter to foundation quarterly momentum year Xth drive quarter, leads positive on strategies higher portfolio That continues which the the pipeline room in group our the increased business, the focused as implemented has which in prior first group in comparable our team was to growth build than revenue. addition by resulted to of of XX% the XX% now to revenue approximately building all group achieving the That with ADR, the back room marks has year group prior been year-over-year

the saw revenue from We XX% was first booking signs dates, future the year prior the quarter. group relative where on volume books for quarter, also to in up all approximately excellent our placed

momentum this for portfolio about favorable our XXXX and should volume excited are in forward. group mean moving We what the

to $X.X during able was quarter. for in their savings led year the by our has drive savings quarter. through us approximately prior in tax the first first initiative which represents compared property overall during tax million a assessment successful appeal Another property to This process XXX% quarter the been increase team,

those markets is for property team this their properties. showing then, to And Our we're great savings able data example the within more our multiple areas. tax analysis used trends that to was team in Ritz-Carlton, isolate the and potential through $XXX,XXX where annualized taxes. additional A at focus strategies property saved we Atlanta identify than that of

strong our All to contributed in of these the quarter. more efforts performance and

all-time hotel set comparable hotels records records first these of in first hotel XX% previous comparable XX% records fact all-time Collectively, exceeded EBITDA. quarter in our their and hotels XX%. by of In our record-breaking hotels comparable quarter RevPAR EBITDA set

that, We locations, also suburban Diego, including They over markets hotel Worth. heavily pleased airports. to performances Dallas/Fort areas are major Atlanta particularly out record-breaking our like and are metros are San ranging Miami urban urban, spread leisure-focused these in from resort, and and like

on capital expenditures. to Moving

approach a our That We now a have noted how repositioning hotels. calls, we to in accelerate. in proactive strategically and commitment continues to demand have as previous resulted advantage competitive taken renovating has

We are Ritz-Carlton the the at lobby renovating currently and bar Atlanta.

and Suites Marriott start as this as at guest Facade renovations Later room plan La Austin, the Fe flagstaff guestroom industry Embassy and to Suites well Portland, Houston, renovations year, Santa space Dallas Sugarland. public in suites Memphis and Embassy we Marriott and

are to strategically We working assets. two reposition also

expenditures. spending and million between anticipate $XXX capital we XXXX $XXX on million For

forward, conversions high-margin several hotels opportunities and number including addition started a of have at projects. and Looking out rolling new initiatives, we key brand looking ROI

and That call now up prepared for our concludes Q&A. remarks, open will we the

[Operator comes you. Instructions] Thank of Michael proceed line Robert Our W. Bellisario Pleaes question. Baird. first your from with the with question

what potential I Rob, concerning ones at the comments first for the to just big the EBITDA. you solution as back test your you? debt and pools is shareholders there? you can service are portfolios. of most on AHT certain today? Good Presumably, best you're which debt look the What can picture, go we the range think mail look want ratios. about coverage here Maybe mean to jingle morning, of Thanks. talking trailing everyone. outcomes debt portfolio. And I yield potential at sit are We Keys to do

one. only really test the at Yeah. that, Thanks, extension in Michael. of middle complicated year have right some we're now this concerns that's negotiations the that most honestly, – really we To me, it's it's lenders. the that's for -- given about of major And kind least with

up our pools. it -- The Keys come mezz to but pools, has hoping similar with loans the different because for has pool is we're best pools different solution across six it holders. six the are so And complicated each shareholders, senior holders because there also have are all within

take as can where to you kind trying solution. So right of there's a lot we're and optimize imagine of give the

We problems. loans have infinite also and to of to pay down amount obviously deal with capital these don't an be able

and financial some So be them. a right it we answer there's throes and you solution some we kind to now. it's of pools a the for kind that down of a pay that could where of holistic the can -- -- complicated deal from everything all us. But make way of go we're sense back in with And there's that

million of extension of been $XX pay of downs. to lot couple is stay they a So these that we last This But the the I tuned. some have just we've significant loan. on type negotiating of $XX say here of success down. done obviously Obviously, would had past year have tests. a kind ones over sort Typically, require pay million

business and put imagine, would similar have we'll that well. doesn't I to I our are make got some to and going be to the but the we're are going is be that, of good sophisticated fortunate And table that for in understand sense we're it's obviously able perspective do So that from anything some side us. going lenders other capital not to economic this pretty that what on we've think something

something it markets pretty they there are. what's best now figure in our to out where market is interest we've know the soft transaction they're in the their with best true is got so And trying debt interest. right And and out that, do that that's to

in it's where so say. on terms values actually of exactly are kind assets, to And hard of

same I you in kind don't definitely to a an where the asset. time, of But be want mean, to it's market. market position being forced usually a lack of a you're transaction at

facts all are And lenders that of so that account. those as something hopefully we're negotiating the with taken into that's

And XX-K from your lines being Understood. filed the same precious then, of you the the quarter. of comment about capital it. sort guys last along Got in maybe

venture in the investment You guys investment Napa. an made joint

why on that the is And are when hotels, us you a help that hand such then, what's at just Maybe understand, more the your what investment ownership, premium? investment cash deal? today cash details the economics are having with on also made what of

Yeah. Sure.

parties think we given given cash enough the other So like, some investments significant precious Ashford know over we that I short-term. that Trust at have that and have capital is we make just the I of kind of of to don't said kind

But and to own that opportunity Napa the sense that's great to in to long-term invest some called, invest we'd hotel of looking grow that assets was recap to in hotel. are over their love long-term we The a platform an a and in into continue was there doing Meritage, the

an but, for on us a exits. give small in there's And put us opportunity to investment that would certain rights

just a market So to on that our experience Yountville it's invest We way the Bardessono. very very given a hotel high-quality with Braemar for well asset like. know that obviously we in us side and

So long-term. be to the have potentially for road. investment attractive on small we us also market deal that able to It but an both sometime get it to down attractive access then a was like returns

be So the a of sold. that's to first have at in be we've kind asset to rights look ever got there able if going certain to

it So an of kind for in again, small a involved was but a get thing asset. to way us

where investments give extent you high-quality see of will lot to here making optionality I that in something really think that it be overtime. assets at investment short-term a we're small similar into us least us the an the making

potential you that -- you it. assets hear sale, commented just sale assets sales do And then, me have you bring follow-up asset Understood. on just for listed market might on a for the or for I market correctly or with brokers to sales that currently? really Got asset question it last

both. have We

We have sale assets both in individual portfolios market the that are assets. for currently and

assets brought both going be or there. out to next market here two. out it But the may have also month that tough individual is and We portfolio in

a kind -- down can get that's you we're is that now done take what if got that of doesn't seeing of regionally. one-off think financing maybe you've something kind right to somebody I asset that, require smaller

shortly. couple ones now. we've right on process in like and right that We've that couple now the may still were had market so be we market a others market the that putting assets got in And a here of in are that of portfolios the

So a everything. of bit it's little

seems fluid mean financing financing world. with I the there be a are things. it's more that's our bit we're we're a in position of to those And be willing we're deals to a done, obviously given us pretty assets little that the seller where which really situation to significant attractive so provide just normal. one out not less for just of getting seems financing important on these than some And to

now. it's say little I'd So, it's -- just everything of a bit we're Mike right

Helpful. Thanks clarifying. me. all for That’s for

line Our Woronka Deutsche Bank. your proceed of question. Please with next the comes Chris question with from

guys. morning to question. Michael's A question good Hey, follow-up

give -- did did dividend any with event there hotels the potential in you back considerations If any lender, tax those? you tax of to or the any are or

that. we're issues mean at that the don't something. But no that would anything the come something There's any of Chris, road or of Hey I moment preclude aware I Deric. moment no there's could us that up from it's at doing if we're issues know looking the down at. on

Okay. Thanks.

-- of getting That's was shouldn't at. or taxable would any sale not any I a requirement. kind not trigger I dividend proceeds, a on the giveback kind what sale, would be since or you're not say getting shouldn't meaning rights Just of trigger

any lot use requirement if don't side we've could be I was there given NOLs of offset anything on think got would gain any a dividend to gains. of we there those Yes, -- that just the

be So, a would us. I wouldn't for anticipate that problem

And had those we trigger at some least -- during assets, unfortunately anything we back downturn the didn't hand historically. when to

would it but-- any different be why this know don't than I So,

this And Okay. then for question guys. be Thanks might a Chris.

QX that in about than solid. half I it through occupancy that was pretty RevPAR driven I more think flow think with right? XX%, growth was So, And

if talked little how about you that I Is a you know know that growth don't bit little much there talk a drove impacted anything about tax. maybe that appeals. -- bit how sustainable anything or property RevPAR I tax occupancy is how going that much is QX. I forward? driving don't know Could

Yes. Thanks Chris.

happy margin with EBITDA So, about performance. to XXX prior bps year. we were were margins up really

said growth. As helped revenue obviously you our it's by

we think revenues two I lower when more revenues in when you look XX% revenue And at F&B up impressive margin. our into drill year-on-year come much and rooms streams; at historically increased while XX%. a even only it's are of rooms F&B. F&B it kind

And our margin improvement so we larger revenue were of a able of to F&B. to percentage kind drive tied with

within And F&B what were revenues seeing catering significantly. we're is that up

had business. revenues helps. prior highest also that running efficient year. operations. very so still were And F&B That's We the double margin We're catering that

the the staffing our recovery occupancy of So, at lower kind a running still than are levels rate pre-COVID. to

We Those focused that are continue we're energy a labor, offset within utility of We've seeing, of kind and our that. improvements. We're and expenses is number energy rolled projects heavily audits which margins ROI significantly. big of to increase we've and to costs. planned out component seeing -- got a on

is last utilization overtime down are labor rates down contract to quarter. last quarter, wage to our Our

to. where having especially, some easier think are in we an labor that are indicative and some culinary we departments. on the we're are contract where of There challenged, very In need of still time housekeeping And that's relying markets, so markets most I that folks. hiring in

higher encouraging. we labor contract think, go in cost that reduction as that whole, the on we'll I But And see is forward.

But we're probably about back whole. year, continued the because margins through I of for to half of year a our as from had you going much just so full is buildup. the very the toughest think a quarter forward the our revenue pull optimistic kind standpoint, last be Omicron margin year, and from QX,

the I added for. were looking color that So, you hope

Thanks, helpful. guys. Yes. Yes, very

proceed Please Our with next question comes Batory question. the from with Oppenheimer. your Tyler line of

from in some Thanks First may trends? volatility weakness anything or some one the is whether me. given demand for pockets on provide out, calling Good or [ph] or months? you over more Jonathan seeing slowing color on morning. leisure worth taking seen that are Can wherever that that's of our we've few be Any for like recent that DC questions, you past Tyler. of the This

Chris. Yes. to Thanks, Jonathan. I'll This be that. is, take happy

to mean, recovery. So sequential strong of we've to growth were I signs continuing QX, for this got quarter portfolio, quarter. see I recovered mean And after in XX% kind we're we of pre-COVID within group. We're XX up group out cited that XX% that to strong levels. very seeing of signs it I continues was segment year-on-year, days. within QX be short term

full-service business And seeing us. cited. It's additional groups, is Group us strong I that looking lot a kind for It's the really power, our sign well. smart revenue, got. think I we're are of the that's great that that's so the of and groups associated seeing in afforded catering with we of build kind advantage stabilizing business that take within segment, could We're from pricing we a really that hotels. group take corporate we've growth of more to around and

recovery signs was We're seeing continued improve transient of continues within those signs Boston convention very Atlanta very a within out was citywide strong. very seeing quarter-over-quarter. lot was We're encouraging markets. of markets. strong. Business DC business, of to strong. and our urban

and starting was up our year. within the And our indicative hold later negotiations the last One benefits accounts, negotiations of that's think business took was things, year see to went pricing brands ADR BT of The segment, ADR most that to that them line. with that. growth. move the into the to to kind really last corporate for year, the and of I XX%, dynamic the the see management I to happy was of we're companies and finally

growing. softening I that still are this Leisure but real no clip, signs seeing. there's growing slower at mean resorts, we're portfolio. growing. growing a -- Urban So is is of within

success. And of so, continued it's all signs

in vein, noticeable I maybe having any given the the conversations financing caused Has that lenders? markets similar then regional for in Deric, you've or now, March? right your there. -- And the color the appreciate Rob issues perspective on in changes, been bank I'm with curious all a

bank markets or terms to historically. say, debt noticed months wouldn't better. the we've I I what significant in eight of been six any getting change for to what be, so, for just some of the I've say, a continue weeks over seeing hotels financing Spreads issues, the it's But given historically, challenging wide been last definitely a in would now we've not seen markets.

coming getting to spreads rates, we're to the the Fed hopefully, terms -- go, would hopeful is of to very have the perspective getting EBITDA result of wide spreads credit from and down. because our the a end the will Kind a weird growing hotels market of here really is obviously to where better, when dynamic which which some raising in provide industry I'm the hopefully index this our So performing credit is visibility in and going well. the are then

markets and fundamentals. So a the the bit of a capital underlying between disconnect

on where some to comments, point the Thankfully, we're the in a final be it got to with today, it's here two think happy final our this we've that us. maturities keep in just place. we to pay and to options in try have at to keep that sit in But from challenging think market. that access for a from can with we I of continues around. lender that few to a where we're some the yes, -- we pretty we debt through I my and is goal maturities, some a But place we've don't perspective, downs be actually extension market will we we need we as as turn have very try at lot are so our the mentioned as attractive year in standpoint. to market working like And outcome try debt long an that And pretty

for you Thank helpful. all Very the Okay. color.

comes [Operator with With Instructions] next Bryan B. Riley. Maher B. I’m the line Riley, sorry. Please your from question with question. Our proceed of

No problem. morning. Good

you're for might for some me. even to following getting year of for $XXX question, of going upon and reduction debt for want CapEx you properties maybe at as put the year. weigh the this you're a your expirations $XXX part you that million to a balancing in. any Deric, ones but versus quick have to Rob lot that extensions think to are are the of Maybe year, next And you couple year a of saving portion million Just that capital of getting are then How that not least I extensions? and spending those of on conditioned this payments said up, level second you spend?

Yes, let -- this add Rob. me is

take that, crack a me Let at Bryan.

reality tests needed second question, is any first it not lot of material at the this a amount are extension really a answer The question the your no. that had as to is is, capital we're of to properties. kind -- of have mix. capital be that to is the PIPs. answer Most invested and into looking So kind we have We've sort of of that of some is your

the having CapEx of So during been four in like as over starting -- most now PIPs during three, those are we've lot the next years. downturn spent to two, the or people whole COVID industry not hit a the

what put So into it we a buckets. doing two lot of I'd are

kind of CapEx. got acquired You've PIP

and need of those whatnot Chris for comments to that wave Suites kind of so some in lot of his mentioned the we are kind of a that PIPs example that of do. And of ones Embassy in terms

some really the cool couple quarter that two talking the or repositioning add really a that then assets which projects value and on. we're returns estate real more really repositioning. think got think working on you've be because got great some have directly is we really same we've the other pretty awesome about that in bucket At we'll time, some great kind ROI do more next got We've of can I

various CapEx with a is just have of But partners. PIPs via brand our the required lot we that

terms negotiating those PIPs. terms very I have because do we and we're in size Hyatt partners to in advantage aggressively that our engineering it value and and an terms able work of that mean So of of with Hilton of be those brand how in very, kind our that PIPs to Marriott, and is of scale we getting

we partners, love but they in if can we extension for Whether to we as and love those and extensions things brand as contract code everything as imagine effective efficient it's down franchise as could would or to because can us gold we don't. and getting you be management our

good sense got we've value and So engineer optimize a on how things. to pretty those

value-add fight pretty those And what's not. and hard on what's we of things so

we I as as it's those down -- things get So think them. about low we've can got

historic what Yes. and for monthly mean kind most Rob big of, the with said. upcoming incredible I'll partners I and deployment where our And a brand been they've got calls PIPs. we've the partners to add we say part discuss, capital rate very XXXX work and the percentage us. willing as that of planned in than is our I'd a lower a lower to in lot than space. with peers the also revenue our of run spend understanding and

Okay. And maybe then for Deric.

of year. On think balance do might prepurchased that the you the this XXXX have you I what a know some you're using you But last estimate year CAP, cost rough CAP of be?

extension the loan It's acquired April. we prepurchase impossible Bryan. early here we used the the offset Pool dollar for in cap value the dollar that of said know Like value the to to caps for I of for really some in Highland the

that So perception to hotel And term we on would we day rates loan is cost, performance based some need of the be would buy strike call caps cases the on to are underlying the the just them that needing because it what here. to loan are which caps buy need we're have hotels. think that interest volatile going do based can But Morgan buy. KEYS where that's until it's later XX do where of I very to buy pricing and to impossible then Stanley the of we in – ideally, year. mostly the on it's to going the need on from another the the we this pools. be we really that market's know what the any in We

So into there pricing. moving go pieces there's lot of just of that a kind that

as the just with extension of the up soon And capital as are as goal plans soon bear, would then to as preferred is shares, raises debt capital those non-traded me for there or match and as last for your try needs the market Okay. more to raise possible kind money? on much

that Good way were of process time doesn't how question, It like. because as terms of is the just as we that in capital simple we'd it Bryan. firms, work on security. time, selling as could start raised and accelerate as just their I signed wish over the selling it different registered does grow and you and investment additional to just broker-dealers advisers more tend you adding get with people it agreements

tends just it so time until you And over to go and end up accelerate tend to it.

is, the It rate do you And where to than which Braemar's of now some right in of We it. preferred of if absolute as Braemar's accelerate we've at think mean is pay But debt did. Trust terms got pacing go faster you actually tends capital. have raise, into Trust look I downs. of of is uses still that Ashford we opportunities. I trajectory plenty Ashford see

strategic the We to at have that we'd some in time. financing point like pay-off obviously

which of in of in $XXX that's got whether to million, now. capital first – up of tomorrow that or opportunities terms So in first of if is years two we've it place this plenty comes offering round kind to comes this from it

Okay, That’s thank for me. all you.

Bryan. Thanks,

the no closing to call are further for There the back I'd questions in hand to management remarks. queue. like

Thank our one. look in on next first the to joining us call. you with you We speaking quarter all for forward

Ladies participation. teleconference. Thank today's and gentlemen, does your for you this conclude

this at have disconnect may You day. time lines and wonderful a your