Ashford Hospitality Trust (AHT) 8 May 242024 Q1 Earnings call transcript

Thank you for standing by. My name is Greg, and I will be your conference operator today. At this time, I would like to welcome everyone to the Ashford Hospitality Trust First Quarter 2024 Results Conference Call. [Operator Instructions] I would now like to turn the call over to Jordan Jennings, Vice President, Investor Relations. Jordan, please go ahead.

of will Eubanks, Hays, Chris Chief Vice and today Executive and Nixon, call President Deric Officer; Financial Head the be President Rob Chief Executive On Management. Asset Officer; and on in well as Internet accessibility conference over notice The release. a yesterday results basis afternoon as listen-only distributed press of of this call a were the and pursuant or that in this assumptions the this At are upon provisions federal statements based certain of time, made let securities me and are forward-looking harbor safe regulations. information call to remind contain being you the conference

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

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

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

March release. first March this ahead, XXXX. call other results sir. earnings I Rob now those information over the in call stated, all in to ended all reported release will XX, Please XX, first with encouraged compare Also, is Each otherwise Hays. to the review provided quarter with go ended the unless listener provided turn XXXX, quarter in the discussed together reconciliations

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

announced remaining, we financing tangible we we paying approximately this year, off $XXX plan. keenly million strategic corporate are earlier the on focused As are making in with progress XXXX with our

and slowdown have step Ashford now path paid of almost this back is XX%, crucial by on believe Trust in a this we growth. positioning We the

and plan is Our sufficient includes to capital raising goal. of with refinancings optionality preferred non-traded through combination accomplish debt this a this to us multifaceted accomplish raising. significant provides sales, capital mortgage and asset It

while all various the We currently the assets the providing and unlikely to the assets to our working to also are deleveraging process, diligently efforts. several have assets, sell while attractive at valuations we sales we're impact which most are capturing stages largest of determine

assets, another under X and letter XX $XXX of under intent. assets million. approximately we These have assets another signed of have agreements X sold have purchase X We and combined sale assets a a price sales

for the XX.Xx a XXXX Salt demonstration progress we or CapEx XXX-room million. Utah represented a And making located price X.X% company's Lake the As on sales March, anticipated sale City, for income in rate adjusted Inn operating Residence of efforts, on closed are we in these XXXX of hotel in the $XX.X an net significant capitalization EBITDA. the the

represented the hotel XXXX a net rate XXx anticipated spend, sales EBITDA. the capital price operating XXXX or Excluding income X% on capitalization

used to pay proceeds debt. the All from were down the sale

XXX-room closed Bay of per million to $XXX the Boston on In for the Boston, Hilton in sale or key. we end, addition, quarter subsequent $XXX,XXX Back Massachusetts

of quarter Hampton $X.X Georgia on used reduction, Lawrenceville, from sale proceeds the strategic for the end, closed Also Inn the million XX-room financing. including approximately company's were the sale All for pay down of to million. to $XX debt the subsequent we in

Post other trailing remaining and asset make regular these XX-month price financing to going X% sales sales. balance a plan our is we from our March now paydowns on rate on proceeds preferred and $XXX XXXX. transactions, approximately forward, represented operating million stock the through of capitalization The the net non-traded strategic of income sale

Additionally, property securing hotel Loan $XXX KEYS to we company's control the transfer A possession receiver. the of KEYS and announced B and recently million million court-appointed the a the Loan $XXX Pool Pool the

have foreclosure properties XXXX. servicer lieu the been on We consensual of in foreclosure these fully a July cooperating for with since deed of

of these this As economic have we in the transfer, of a further hotels. result interest no operations

Virginia, loan to Marriott We're the refinance by Morgan and Tennessee, also Arlington, Georgia. the be Renaissance a the strategic in with can Nashville, by of from several hotels a Pool Atlanta, located loan lenders could the in the the Nashville loan proceeds Gateway refinancing there believe substantial Renaissance XX used secured by and secured working Stanley which down We secured company's pay with the to the be Loan, states, Nashville financing. Loan Indigo excess Atlanta

as Princeton currently financing part of completed. process this will unencumbered Westin is we it extent to The sales which for the be running are a

We our also about non-traded offering. stock be to preferred continue excited

representatives over We syndicate of agreements build security. million proceeds, $XX including first gross selling the we to during representing dealer continue approximately the To have the X,XXX $XXX million selling XX signed date, quarter. up and have raised

XXXX. preferred pay offering, we're across to right the financing that off on continue refinancings to the we path progress in the strategic our asset Given we sales, making are and mortgage believe non-traded

were In bit revenue market March with operating performance, approximately a improvement in which saw the the X% shift, a while holiday attributed terms we results growth of portfolio. of our April we to hotel for Easter soft, directly

seeing corporate remainder geographically turn the high-quality the demand are portfolio as to we We outperform. to and balanced now benefit to I'll of our first over to financial look we XXXX, well performance. believe positioned a Deric leisure, remains portfolio our group of broadly high-quality diverse diversified sources quarter call review the that is and across

Thanks, Rob.

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

$X.X quarter of was EBITDAre with loans the million. $XX.X the rate quarter, the average blended into of the caps. a quarter, AFFO taking X.X%, end negative for interest we For we $X.XX. reported the account in diluted of of money share per At rate billion had interest Adjusted first

caps, SOFR all of the in $XXX trapped reserve and million the corresponding our cash and of our and cash restricted level effectively equivalents We current is comprised cash related the now by XX% $XXX as the quarter million vast to debt now and with cash of cash of are interest lenders. and money. of million. The rate held $X.X caps restricted Considering interest ended almost rate that fixed of manager is majority held lender accounts of

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

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

million diluted the million is XX.X end the our count stock outstanding, million comprised of At of and quarter, of fully shares approximately OP X.X of which common share XX.X shares consisted units.

dividends Chris reinstating like we common and to management While not currently the concludes quarter. a XXXX. over This asset in turn I would discuss quarterly anticipate or monthly, paying we now dividend are it preferred to our activities our for to do our financial review,

you, Deric. Thank

decreased still quarter. portfolio prior Despite decline, quarter, for growth the the comparable our portfolio prior above total For RevPAR achieved hotel year over revenue year X% our RevPAR comparable the hotel quarter. the

which food per beverage and rolling compared up been has XX% and several actively quarter. departments, X% our targeted on prior room basis, to initiatives at team were revenue respectively, out the occupied other Our and a year

to portfolio, would of the across our Group like across expanding largest year profitability X% our up our continues business take our some some transient and into actively success one dive markets. our including and over pace segment first quarter. group prior of Additionally, to strengthening quarter in the accelerate food I revenue position, portfolio. time to growth was beverage driving the

ADR quarter by revenue are rooms that multiyear year ahead Group the was Increases the the dates during X% pacing bookings window. by through is all with and quarter booked the extending last year year, X%. business the the being of Group the group premium driven association, booked a ahead year for was group over by are of pacing for X% in booking future overall at business bookings balance multi-hotel second full primarily that prior the quarter. in secured

ahead Our pace is rooms by XXXX XX%. revenue group

lead to group continues group strong rates and size the increase. conversion has year-over-year booking average remained normalize, While volume started to

restaurants, As mentioned at room service earlier, our banquet we bars, and portfolio services. are seeing across success the

Our was compared food quarter. department basis up occupied and profit beverage X% a room year on to prior per the

the to room food and meeting our year on an includes Broadly, services banquet One as per and benefited beverage in quarter. hotel well department. basis was room this the a was up profit we that XX% rental audiovisual are which occupied from Vegas, in Las Embassy as seeing increase Suites compared from the food department This beverage. prior

amount our food Knowing with group, to demand booking. in banquet Super and beverage surrounding secure that a order high increased the be Bowl, material and their proactively to requirements catering would each team adding

we similar the that We've of each been in pleased Washington, with food the market of labor overlapping hotel in which had our our count which assets the portfolio. stays strong influenced key select waste. XX% the to menus, Additionally, groups of cost D.C. and accounts reduced performance for

total Suites revenue year to basis the that growth of revenue margin EBITDA would City, the total by like XX% year quarter. to These relative prior which expanded hotel X% the assets Crystal to One in quarter. by is XX prior achieved to Hotel the quarter. compared increased Embassy approximately points compared I prior year highlight

hotel exceeded by First year quarter hotel. groups the the revenue-producing The rooms of the history booked of quarter XXX%. largest group prior in revenue the one

margin quarter generally year expand with It hotel by rate during quarter. million in drive to was that XXX business group provides which profit, building allowed which Suites compared premium. at the a This a for basis Embassy points helped room measures, military $X.X the to approximately additional produced EBITDA City Group Crystal revenue. qualified short-term security in the group needed opportunity an us a prior

collectively, exclude you our X experienced Embassy Suites hotel performance City, Washington, when expansion. Crystal extraordinary margin hotels the D.C. remaining the EBITDA from Even in

on Moving capital to expenditures.

initiated and renovation Embassy Marriott we Sugarland. public space guestrooms at quarter, at the room guest Dallas of comprehensive the a renovation and first the During Suites

the we towards a in undergoing of conversions Additionally, progress New our which hotel Orleans Pavillon hotel. is making La a into and X properties, into upcoming of Key of conversion the portfolio Concha West, continually autograph Tribute an La collection conversion are

Marriott's from be platforms. benefit and robust to later year sales, expected are conversions will loyalty Both and distribution this completed

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

group mentioned portfolio foundation building is our solid As business. earlier, a of

various beverage are in experiencing department and is we strong and food Our demand markets. excelling,

The margin revenue. drive team has steps taken aggressive to and propel

continue across conversions, as evaluate strategic renovations. concludes several partnerships brand to our our prepared such and That portfolio, remarks. high-yield new We initiatives

for open Q&A. now the We will up call

it & Batory Tyler And of like the line Oppenheimer Instructions] from question with comes looks [Operator our first Company.

This is Tyler. for on Jonathan

me, for First maybe Chris. for or one Rob

compared April a How gain a March. in in guys portfolio favorable calendar more much on that to Can of you bit to is that talk attributable pickup You think demand? versus improvement you shift improvement? the noted in the little a month-over-month do

think had destination that least kind the of in also our a bit -- portfolio. Yes. shift by revenue Thanks, saw our XXX so factor there March saw some was across that about warmer weather which April half the portfolio, Jonathan. And But Northeast at for cited, holiday of coming bps. demand major in of was the in shift. We Rob softer then is as great out portfolio. XXX for of accounts for We The the QX, RevPAR, not down up was we markets. for bps probably about we

passengers. Our airport saw hotels distressed in reduction a

And expect so as holiday for of were kind we QX factors we some to of of in and benefited QX April so which into a beyond. anomalies but definitely all don't different kind think other the felt we shift, there continue are that we of number from get fronts,

mean one a cap of asset. another? do Okay. smaller Boston type versus the these rates is capital there Very preference the some be versus think gears helpful. doing seem recycling? all Bay deals, is sales attractive you sale And asset asset to help about the how to then which quarter. Can getting sales you're it normal Back larger pretty like switching to balancing And I us in of just

of mean time. side. different -- obviously we'd the That's we on. of there's limited side the as to couple get more mean exposure be focused anyway one we'd on that service portfolio the question. see a the we've going stated service some I over like in will I is, a good full We more have reduce historically, like factors to

And large These numbers had year a loan due them the were with they -- that coming seeing some made some the are them. able right, stuff some it of -- are loans coming focusing boxes. due could that the the crossed of of strategy over and generate of have seem so cap to on smaller the sense combination achieve the we this buyers were result, than more and rates you for on that loans to that these some seen other you're attractive basically, sell to next we as bigger proceeds we're assets

balance next may does But coming couple a Boston then not can financing. up. even have some have proceeds. the things asset there's just us, franchise they important CapEx that's to some while there asset would to of that they I need the down prefer -- it's looking it's that given been a But agreement some very at the other we significant our assets are all significant expiring us, where maybe generate to considered Which would but for assets is sell, strategic it years. because great pay in mean the

We the go to was going significant. do CapEx into that that need to was think

we And that at our up debate. I it looked best use capital so the as was was for it, across portfolio, think of definitely

so of different for kind takes that on couple a why sell And to us asset. boxes that of

just is mix. of really a kind it So

dollars are strategic on maybe avoiding service so -- able to assets to and continue the proceeds pay some are proceeds, see we'll And the some that CapEx assets you long-term significant sell, to be a generate that some a it continue assets as also I of will financing. maybe less couple generate that other will think to higher that balancing assets then quality

left me. one about has how original last your expectations? you compared that And the maybe how how talk you us much available maybe for Can have to then remind on rates, -- And preferred Okay. longer ramped that? much room

I'm pretty $X kind Deric. about a is say We've raising. were the pleased consistent this hit to ramp I'd in comment with Jonathan, pretty on ramp we've are make million to coming Yes, as off in the up happy that. capital of $XX continue and size million deleveraging a will And we financing. strategic hope we our to in. progress paying month our of that it more been

almost We market to We're of and of a dealers these that paid like that's making see. off investors and and progress lot something the XX% that. the there,

syndicate make more of in to that through there, expand. will continue we right of as XXXX. So raise our dealers May The that progress goes we anticipate May raise now,

some left. got time we've So

pleased at level I we expect it want the and point, if of up actually this to. capital an there opportunity extend There's to it we to raising But move would ramp say, very we're with as forward.

of Okay. your Great. Appreciate all future the color. And Rob. in luck best endeavors,

like At turn there closing Instructions] to over for management [Operator looks time, will questions. it are no I back this remarks. call And further the

today's next forward Stephen team. quarter. speaking thank look I and We joining all to you for the Zsigray with you call,

you. may for Thank concludes ladies today's and you And call. you gentlemen, Thank and now joining, that disconnect.