AHT Ashford Hospitality Trust Inc

DALLAS, Aug. 3 /PRNewswire-FirstCall/ -- Ashford Hospitality Trust, Inc. (NYSE:AHT) today reported the following results and performance measures for the second quarter ended June 30, 2005. All performance measurements include the Company's 77 core hotels, which excludes 2 hotel assets held for sale, and are compared with the second quarter ended June 30, 2004, unless otherwise indicated. The reconciliation of non-GAAP financial measures is included in the financial tables accompanying this press release. FINANCIAL HIGHLIGHTS - Total revenue increased 214.7% from $25.8 million to $81.3 million - Net income available to common shareholders increased 162.0% from $1.7 million to $4.4 million - Net income available to common shareholders per basic share increased 57.1% to $0.11 for the quarter from $0.07 in 2004 on a 61.9% increase in diluted weighted average common shares outstanding - Adjusted funds from operations (AFFO) increased 218.8% to $13.6 million from $4.3 million for 2004 - Adjusted FFO per diluted share increased 78.6% to $0.25 from $0.14 for 2004 on a 74.9% increase in diluted weighted average shares outstanding - Cash available for distribution (CAD) was $12.6 million, or $0.23 per diluted share - CAD per share increased by 64.3% for the quarter and 51.9% year to date over 2004 - Declared sixth consecutive increase in quarterly common dividend to $0.17 per share - Dividend payout ratio improves to 73.9% of CAD STRONG INTERNAL GROWTH - Proforma revenue per available room (RevPAR) increased 10.4% for consolidated hotels on an 8.4% increase in ADR to $104.68 and 137 basis point improvement in occupancy - Proforma RevPAR increased 12.6% for hotels not under renovation on an 8.3% increase in ADR to $107.83 and 300 basis point improvement in occupancy - Proforma same-property hotel operating profit increased 13.8% to $34.3 million from $30.2 million - Proforma same-property hotel operating profit margin improved 106 basis points - Proforma same-property hotel operating profit for hotels not under renovation improved 19.0% with a 191 basis point improvement in profit margin CAPITAL RECYCLING AND ASSET ALLOCATION - Eight non-core hotels sold or under contract for proceeds of $37.5 million at 1.1% TTM economic cap rate - 16 hotels under renovation in first half of 2005 with capex budget of $25.4 million - 16 additional hotels to commence renovation in second half of 2005 with capex budget of $22.3 million - Closed on 10 year fixed rate $370 million portfolio financing at a 5.3% interest rate EXTERNAL GROWTH - Total enterprise value improved to $1.5 billion at June 30, 2005 - Completed $465 million acquisition of 30-hotel portfolio totaling 4,328 rooms - Originated $20.5 million of mezzanine loans in the quarter plus a $5.6 million mezzanine loan in July 2005 - Mezzanine and first mortgage loan portfolio totaled $101.9 million at June 30, 2005, with weighted average interest rate of 13.3% PORTFOLIO REVPAR REFLECTS BENEFIT OF RENOVATIONS As of June 30, 2005, the Company had a portfolio of direct hotel investments consisting of 79 properties, 77 of which are included in continuing operations. During the second quarter, 61 of the hotels included in continuing operations were not under renovation. The Company believes reporting its operating metrics for continuing operations on a proforma consolidated and proforma not-under-renovation basis is a measure that reflects a meaningful and more focused comparison of the operating improvement in its direct hotel portfolio. The Company's reporting by region and brand includes the results of the 77 hotels in continuing operations. Details of each category are provided in the tables attached to this release. - RevPAR growth by region was led by: Pacific(8 hotels) with a 21.6% increase; West North Central(2) with 17.4%; East South Central(4) with 15.3%; South Atlantic(28) with 11.3%; Mountain(5) with 10.0%; East North Central(12) with 10.0%; New England(5) with 1.5%; West South Central(8) with 0.7%; and Middle Atlantic(5) with a 1.0% decrease - RevPAR growth by brand was led by: Hyatt(1 hotel) with a 31.6% increase; InterContinental(2) with 23.3%; Hilton(21) with 11.2%; Marriott(42) with 8.5%; Radisson(7) with 7.0%; Starwood(2) with 0.7%; and independents(2) with 0% - Proforma hotel operating profit growth by region was led by: Pacific(8 hotels) with a 37.3% increase; West North Central(2) with 33.8%; East North Central(12) with 27.2%; East South Central(4) with 23.1%; Mountain(5) with 17.4%; South Atlantic(28) with 10.7%; New England(5) with 1.3%; West South Central(8) with a 1.9% decrease; and Middle Atlantic(5) with a 31.3% decrease Monty J. Bennett, President and CEO, commented, "The second quarter results are a clear demonstration of the benefits we are gaining from an asset allocation strategy that places an emphasis on strong internal growth as well as external growth. For the past two years, we have been one of the most active in the industry on the investment front. With over $30 million invested to date in renovating and repositioning of our acquisitions and another $22 million to commence in the second half of this year, we have emphasized reinvesting in our hotels. Through this strategy, we expect to continue to enhance returns to our portfolio as these hotels leverage their improved competitive positioning. We have been very selective in the brands we have acquired as well as the managers we have hired to drive margin improvement through cost controls and RevPAR penetration, and this combination has once again yielded strong growth in hotel gross operating profit and margins. During the quarter, we successfully recycled capital through the sale or commitment to sell eight non-core hotels and found attractive sources of financing. Moving forward, we expect this proven ability and willingness to recycle capital on attractive terms to place Ashford at the forefront of the lodging industry." FINANCING STRATEGY SUPPORTS CONTINUED GROWTH IN PORTFOLIO As of June 30, 2005, the Company had, net of a mark-to-market premium, approximately $797.4 million of mortgage debt outstanding at a weighted average interest rate of 5.57% and a weighted average maturity of 6.9 years. Of this amount, $611.9 million was comprised of fixed-rate debt and $185.5 million was comprised of floating-rate debt. Of the Company's total mortgage debt, 93% is hedged, capped or fixed against interest rate increases and only 0.8%, or $6.3 million, of the Company's debt matures before 2008. At June 30, 2005, the Company's net debt, defined as total debt less cash, to total enterprise value, defined as net debt plus the market value of all common shares, preferred shares and operating partnership units outstanding was 50.8% based upon the Company's closing stock price of $10.80. On April 5, 2005, in a follow-on public offering, the Company issued 5,000,000 shares of its common stock at $10.25 per share, which generated gross proceeds of approximately $51.3 million. However, the aggregate proceeds to the Company, net of underwriters' discount and offering costs, was approximately $49.3 million. On May 4, 2005, the Company issued an additional 182,100 shares of its common stock pursuant to an over-allotment option granted to the underwriters, which generated additional proceeds of approximately $1.8 million. On December 27, 2004, the Company executed a Series B Cumulative Convertible Redeemable Preferred Stock Purchase Agreement ("purchase agreement") for the sale of $75.0 million of Series B cumulative convertible redeemable preferred stock of the Company to a financial institution. Under the purchase agreement, 993,049 shares of Series B preferred stock were issued December 30, 2004 for approximately $10.0 million and 6,454,816 shares of Series B preferred stock were issued June 15, 2005 for approximately $65.0 million. Pursuant to this purchase agreement and subsequent amendment, the financial institution had certain participation rights with respect to certain sales of equity securities by the Company. Based on these participation rights and the Company's follow-on common stock offering completed on January 20, 2005, the financial institution had the option to purchase up to 2,070,000 shares of the Company's common stock for $9.139 per share. Pursuant to this option on July 1, 2005, the Company issued 2,070,000 shares of its common stock to the financial institution, which generated proceeds of approximately $18.9 million. SECOND QUARTER INVESTMENT ACTIVITY On April 18, 2005, the Company originated a mezzanine loan receivable of approximately $8.0 million with an interest rate of 14% increasing 1% annually until reaching an 18% maximum, maturing April 2010, with interest-only payments through maturity, and prepayment prohibited through December 2007. On May 27, 2005, the Company originated a mezzanine loan receivable of approximately $8.5 million with an interest rate of LIBOR plus 9.75%, maturing May 2007 with three one-year extension options, and with interest-only payments through maturity. On June 21, 2005, the Company originated a mezzanine loan receivable of approximately $4.0 million with an interest rate of 14%, maturing June 2010, and with interest-only payments through maturity. On June 17, 2005, the Company acquired a 30-property hotel portfolio from CNL Hotels and Resorts, Inc. for approximately $465.0 million in cash. Annualized revenues of these 30 hotels are approximately $120.5 million. To fund this acquisition, the Company used proceeds from several sources, including: a $370.0 million mortgage loan executed on June 17, 2005, approximately $65.0 million from the issuance of 6,454,816 shares of Series B convertible redeemable preferred stock to a financial institution on June 15, 2005, and cash remaining from its follow-on public offering on April 5, 2005. SUBSEQUENT INVESTMENT ACTIVITY On July 12, 2005, the Company originated a mezzanine loan receivable of approximately $5.6 million with an interest rate of LIBOR plus 9.5%, maturing July 2008 with a one-year extension option based on the financial performance of the underlying hotel, with interest-only payments through February 2007 plus principal payments thereafter based on a twenty-five year amortization schedule. Prepayment is prohibited through July 2006. INVESTMENT OUTLOOK Mr. Bennett concluded, "The statistics issued by hotel industry experts in 2005 have one thing in common -- the expectation that for at least 2005 and most of 2006, hotels should continue to gain pricing power, and RevPAR should continue to improve year-over-year. In this environment, we believe we have a number of opportunities to leverage our experience in sourcing attractive investments through pre-emptive and off-market hotel acquisition and lending transactions. We continue to improve our operating margins with aggressive asset management. With this range of growth opportunities available to us, we are entering a new growth phase that is focused on improvement in returns on capital, improvement in CAD as well as the ability to conservatively cover our dividend, reducing our cost of capital through effective management of our capital structure and differentiating ourselves from our peers." INVESTOR CONFERENCE CALL AND SIMULCAST Ashford Hospitality Trust, Inc. will conduct a conference call at 1:00 p.m. eastern time on August 4, 2005, to discuss the second quarter results. The number to call for this interactive teleconference is 719-457-2641. A seven-day replay of the conference call will be available by dialing 719-457-0820 and entering the confirmation number, 7046288. The Company will also provide an online simulcast and rebroadcast of its second quarter 2005 earnings release conference call. The live broadcast of Ashford's quarterly conference call will be available online at the Company's website at http://www.ahtreit.com/ as well as http://phx.corporate-/ ir.net/phoenix.zhtml?p=irol-eventDetails&c=147105&eventID=1101087 on August 4, 2005, beginning at 1:00 p.m. eastern time. (Due to length of URL, please cut and paste into browser.) The online replay will follow shortly after the call and continue for approximately one year. FFO, AFFO, EBITDA and CAD are non-GAAP financial measures within the meaning of the Securities and Exchange Commission rules. 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 CAD 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 is it indicative of funds available to fund our cash needs, including our ability to make cash distributions. However, management believes FFO, AFFO, EBITDA and CAD 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. EBITDA yield is defined as trailing 12-month EBITDA divided by the purchase price. Ashford Hospitality Trust is a self-administered real estate investment trust focused on investing in the hospitality industry across all segments and at all levels of the capital structure, including direct hotel investments, first mortgages, mezzanine loans and sale-leaseback transactions. Additional information can be found on the Company's web site at http://www.ahtreit.com/. 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 forward-looking statements include, but are not limited to, our business and investment strategy, timing for closings, our understanding of our competition, current market trends and opportunities, and projected capital expenditures. Such statements are subject to numerous assumptions and uncertainties, many of which are outside Ashford's control. These forward-looking statements are subject to known and unknown risks and uncertainties, which could cause actual results to differ materially from those anticipated, including, without limitation: general volatility of the capital markets and the market price of our common stock; changes in our business or investment strategy; availability, terms and deployment of capital; availability of qualified personnel; changes in our industry and the market in which we operate, interest rates or the general economy; and the degree and nature of our competition. These and other risk factors are more fully discussed in the section entitled "Risk Factors" in Ashford's Registration Statement on Form S-3, (File Number 333-114283), and from time to time, in Ashford's other filings with the Securities and Exchange Commission. 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. CONSOLIDATED STATEMENTS OF OPERATIONS (In Thousands, Except Share and Per Share Amounts) (Unaudited) Three Months Three Months Six Months Six Months Ended Ended Ended Ended June 30, June 30, June 30, June 30, 2005 2004 2005 2004 REVENUE Rooms $59,564 $19,622 $96,176 $35,083 Food and beverage 14,653 3,090 22,226 5,201 Other 3,671 755 5,560 1,331 Total hotel revenue 77,888 23,467 123,962 41,615 Interest income from notes receivable 3,114 2,027 5,662 2,871 Asset management fees from related parties 310 340 648 659 Total Revenue 81,312 25,834 130,272 45,145 EXPENSES Hotel operating expenses Rooms 13,023 4,338 21,162 7,884 Food and beverage 10,613 2,200 16,280 3,738 Other direct 1,370 421 2,219 777 Indirect 24,162 7,365 38,213 13,752 Management fees, including related parties 2,416 702 3,873 1,283 Total hotel expenses 51,584 15,026 81,747 27,434 Property taxes, insurance, and other 3,878 1,424 6,451 2,610 Depreciation and amortization 5,849 2,197 10,140 3,959 Corporate general and administrative: Stock-based compensation 912 592 1,531 1,187 Other corporate and administrative 2,312 2,508 4,992 4,421 Total Operating Expenses 64,535 21,747 104,861 39,611 OPERATING INCOME 16,777 4,087 25,411 5,534 Interest income 180 39 457 131 Interest expense (6,750) (1,638) (10,774) (2,410) Amortization of loan costs (1,040) (259) (1,987) (349) Write-off of loan costs - - (151) - Loss on debt extinguishment - - (2,257) - INCOME BEFORE INCOME TAXES AND MINORITY INTEREST 9,167 2,229 10,699 2,906 Benefit from (provision for) income taxes (219) (157) 22 (157) Minority interest (1,890) (378) (2,194) (500) INCOME FROM CONTINUING OPERATIONS 7,058 1,694 8,527 2,249 Discontinued Operations: Income (loss) from discontinued operations 6 - (12) - Income taxes - - - - Income (loss) from discontinued operations, net 6 - (12) - NET INCOME 7,064 1,694 8,515 2,249 Preferred dividends 2,626 - 4,014 - NET INCOME AVAILABLE TO COMMON SHAREHOLDERS $4,438 $1,694 $4,501 $2,249 Basic and Diluted: Income From Continuing Operations Per Share Available To Common Shareholders $0.11 $0.07 $0.12 $0.09 Income (Loss) From Discontinued Operations Per Share $- $- $- $- Net Income Per Share Available To Common Shareholders $0.11 $0.07 $0.12 $0.09 Weighted Average Common Shares Outstanding 40,555,747 25,045,345 37,022,341 25,034,796 ASHFORD HOSPITALITY TRUST, INC. CONSOLIDATED BALANCE SHEETS (In Thousands, Except Share and Per Share Amounts) (Unaudited) June 30, December 31, 2005 2004 ASSETS Investment in hotel properties, net $1,136,133 $427,005 Cash and cash equivalents 43,349 47,109 Restricted cash 26,419 14,059 Accounts receivable, net of allowance of $264 and $61, respectively 20,153 5,463 Inventories 1,348 612 Assets held for sale 10,806 2,882 Notes receivable 101,915 79,661 Deferred costs, net 13,033 9,390 Prepaid expenses 3,802 2,639 Other assets 7,976 6,677 Due from affiliates 15,625 448 Total assets $1,380,559 $595,945 LIABILITIES AND OWNERS' EQUITY Indebtedness $801,472 $300,754 Capital leases payable 631 313 Accounts payable 14,048 8,980 Accrued expenses 21,610 9,340 Other liabilities 22 90 Dividends payable 10,572 6,141 Deferred income 607 401 Due to affiliates 6,641 1,907 Total liabilities 855,603 327,926 Commitments and contingencies - - Minority interest 91,950 39,347 Preferred stock, $0.01 par value: Series B Cumulative Convertible Redeemable Preferred Stock, 7,447,865 and 993,049 issued and outstanding at June 30, 2005 and December 31, 2004, respectively 75,000 10,000 Preferred stock, $0.01 par value, 50,000,000 shares authorized: Series A Cumulative Preferred Stock, 2,300,000 issued and outstanding at June 30, 2005 and December 31, 2004 23 23 Common stock, $0.01 par value, 200,000,000 shares authorized, 41,724,947 and 25,810,447 shares issued and outstanding at June 30, 2005 and December 31, 2004, respectively 418 258 Additional paid-in capital 384,608 234,973 Unearned compensation (6,214) (3,959) Accumulated other comprehensive income 786 554 Accumulated deficit (21,615) (13,177) Total owners' equity 358,006 218,672 Total liabilities and owners' equity $1,380,559 $595,945 ASHFORD HOSPITALITY TRUST, INC. FFO and Adjusted FFO (In Thousands, Except Share And Per Share Amounts) (Unaudited) Three Months Three Months Six Months Six Months Ended Ended Ended Ended June 30, June 30, June 30, June 30, 2005 2004 2005 2004 Net income available to common shareholders $4,438 $1,694 $4,501 $2,249 Plus real estate depreciation and amortization 5,830 2,181 10,103 3,940 Remove minority interest 1,892 378 2,191 500 FFO available to common shareholders $12,160 $4,253 $16,795 $6,689 Add back dividend on redeemable preferred stock 1,397 - 1,556 - Add back loss on debt extinguishment - - 2,257 - Adjusted FFO $13,557 $4,253 $20,608 $6,689 Adjusted FFO per diluted share available to common shareholders $0.25 $0.14 $0.43 $0.22 Diluted weighted average shares outstanding 54,148,626 30,964,556 48,140,991 30,919,957 For the three months ended June 30, 2005, Adjusted FFO has been adjusted to add back dividends on redeemable preferred stock of approximately $1.4 million. For the six months ended June 30, 2005, Adjusted FFO has been adjusted to add back dividends on redeemable preferred stock of approximately $1.6 million and the loss on debt extinguishment of approximately $2.3 million. ASHFORD HOSPITALITY TRUST, INC. EBITDA (In Thousands) (Unaudited) Three Three Six Six Months Months Months Months Ended Ended Ended Ended June 30, June 30, June 30, June 30, 2005 2004 2005 2004 Net income $7,064 $1,694 $8,515 $2,249 Add back: Interest income 180 39 457 131 Interest expense and amortization of loan costs (7,790) (1,897) (12,761) (2,759) Minority interest (1,892) (378) (2,191) (500) Depreciation and amortization from continuing operations (5,849) (2,197) (10,140) (3,959) Depreciation and amortization from discontinued operations - - (5) - Benefit from (provision for) income taxes (219) (157) 22 (157) (15,570) (4,590) (24,618) (7,244) EBITDA $22,634 $6,284 $33,133 $9,493 For the six months ended June 30, 2005, EBITDA has not been adjusted to add back the loss on debt extinguishment of approximately $2.3 million. ASHFORD HOSPITALITY TRUST, INC. CASH AVAILABLE FOR DISTRIBUTION (In Thousands, Except Per Share Amounts) (Unaudited) Three Months Three Months Ended (per Ended (per June 30, diluted June 30, diluted 2005 share) 2004 share) Net income available to common shareholders $4,438 $1,694 Add back dividend on redeemable preferred stock 1,397 - Total $5,835 $1,694 Plus real estate depreciation and amortization 5,830 $0.11 2,181 0.07 Remove minority interest 1,892 0.03 378 0.01 Plus stock-based compensation 912 0.02 592 0.02 Plus amortization of loan costs 1,040 0.02 259 0.01 Plus write-off of loan costs - 0.00 - 0.00 Plus loss on debt extinguishment - 0.00 - 0.00 Less debt premium amortization to reduce interest expense (195) 0.00 - 0.00 Less capital improvements reserve (2,693) (0.05) (831) (0.03) CAD $12,621 $0.23 $4,273 $0.14 Six Months Six Months Ended (per Ended (per June 30, diluted June 30, diluted 2005 share) 2004 share) Net income available to common shareholders $4,501 $2,249 Add back dividend on redeemable preferred stock 1,556 - Total $6,057 $2,249 Plus real estate depreciation and amortization 10,103 $0.21 3,940 0.13 Remove minority interest 2,191 0.05 2,191 0.07 Plus stock-based compensation 1,531 0.03 1,187 0.04 Plus amortization of loan costs 1,987 0.04 349 0.01 Plus write-off of loan costs 151 0.00 - 0.00 Plus loss on debt extinguishment 2,257 0.05 - 0.00 Less debt premium amortization to reduce interest expense (270) (0.01) - 0.00 Less capital improvements reserve (4,399) (0.09) (1,516) (0.05) CAD $19,608 $0.41 $8,400 $0.27 ASHFORD HOSPITALITY TRUST, INC. KEY PERFORMANCE INDICATORS - PRO FORMA (Unaudited) ALL HOTELS INCLUDED IN CONTINUING OPERATIONS: Three Months Ended June 30, 2005 2004 % Variance Consolidated (Pro Forma): Room revenues $88,903,449 $80,521,643 10.41% RevPar $79.16 $71.71 10.39% Occupancy 75.62% 74.25% 1.85% ADR $104.68 $96.58 8.39% NOTE: The above pro forma table includes the 77 hotel properties included in income from continuing operations for the three and six months ended June 30, 2005 as if all such hotels were owned as of the beginning of the periods presented. ALL HOTELS INCLUDED IN CONTINUING OPERATIONS: Six Months Ended June 30, 2005 2004 % Variance Consolidated (Pro Forma): Room revenues $171,372,468 $154,703,981 10.77% RevPar $76.58 $69.15 10.75% Occupancy 73.00% 71.40% 2.24% ADR $104.91 $96.85 8.32% NOTE: The above pro forma table includes the 77 hotel properties included in income from continuing operations for the three and six months ended June 30, 2005 as if all such hotels were owned as of the beginning of the periods presented. ALL HOTELS INCLUDED IN CONTINUING OPERATIONS AND NOT UNDER RENOVATION: Three Months Ended June 30, 2005 2004 % Variance Hotels Not Under Renovation (Pro Forma): Room revenues $75,664,913 $67,198,455 12.60% RevPar $84.37 $74.94 12.58% Occupancy 78.24% 75.24% 3.99% ADR $107.83 $99.60 8.26% NOTE: The above pro forma table includes the 61 hotel properties included in income from continuing operations that were not under renovation during the three and six months ended June 30, 2005 as if all such hotels were owned as of the beginning of the periods presented. Excluded Hotels Under Renovation: Sheraton Bucks County, Hampton Inn Terre Haute, Hampton Inn Horse Cave, Hampton Inn Evansville, Residence Inn Evansville, Fairfield Inn Evansville West, Fairfield Inn Princeton, Courtyard Columbus Tipton Lakes, Courtyard Bloomington, Hampton Inn Mall of Georgia, Hilton St. Petersburg Bayfront, Radisson Milford, Radisson Plaza Downtown Fort Worth, Residence Inn Ft. Worth, Residence Inn Salt Lake City, Residence Inn Tyler ALL HOTELS INCLUDED IN CONTINUING OPERATIONS AND NOT UNDER RENOVATION: Six Months Ended June 30, 2005 2004 % Variance Hotels Not Under Renovation (Pro Forma): Room revenues $146,456,008 $129,071,438 13.47% RevPar $81.94 $72.32 13.30% Occupancy 75.67% 72.30% 4.66% ADR $108.29 $100.03 8.26% NOTE: The above pro forma table includes the 61 hotel properties included in income from continuing operations that were not under renovation during the three and six months ended June 30, 2005 as if all such hotels were owned as of the beginning of the periods presented. Excluded Hotels Under Renovation: Sheraton Bucks County, Hampton Inn Terre Haute, Hampton Inn Horse Cave, Hampton Inn Evansville, Residence Inn Evansville, Fairfield Inn Evansville West, Fairfield Inn Princeton, Courtyard Columbus Tipton Lakes, Courtyard Bloomington, Hampton Inn Mall of Georgia, Hilton St. Petersburg Bayfront, Radisson Milford, Radisson Plaza Downtown Fort Worth, Residence Inn Ft. Worth, Residence Inn Salt Lake City, Residence Inn Tyler ASHFORD HOSPITALITY TRUST, INC. Proforma Hotel RevPAR by Region Region Number of Hotels Number of Rooms Pacific (1) 8 1,804 Mountain (2) 5 869 West North Central (3) 2 390 West South Central (4) 8 1,553 East North Central (5) 12 1,796 East South Central (6) 4 573 Middle Atlantic (7) 5 824 South Atlantic (8) 28 4,284 New England (9) 5 586 Total Portfolio 77 12,679 (1) Includes California (2) Includes Nevada, Arizona, New Mexico, and Utah (3) Includes Minnesota and Kansas (4) Includes Texas (5) Includes Ohio, Indiana, and Michigan (6) Includes Kentucky and Alabama (7) Includes New York, Pennsylvania, and New Jersey (8) Includes Virginia, Florida, Georgia, Maryland, Delaware, and North Carolina (9) Includes Maine, Rhode Island, and Massachusetts NOTE: The above pro forma table includes the 77 hotel properties included in income from continuing operations for the three and six months ended June 30, 2005 as if all such hotels were owned as of the beginning of the periods presented. Three Months Ended Six Months Ended June 30, June 30, Region 2005 2004 2005 2004 Pacific (1) $88.59 $72.87 $85.85 $73.93 Mountain (2) $88.91 $80.83 $91.73 $83.64 West North Central (3) $73.03 $62.20 $68.32 $58.29 West South Central (4) $69.82 $69.32 $68.86 $68.88 East North Central (5) $66.02 $60.01 $57.41 $53.75 East South Central (6) $64.11 $55.62 $58.62 $50.80 Middle Atlantic (7) $73.20 $73.92 $64.84 $64.39 South Atlantic (8) $89.57 $80.46 $90.19 $78.33 New England (9) $54.21 $53.38 $47.71 $48.02 Total Portfolio $79.16 $71.71 $76.58 $69.15 (1) Includes California (2) Includes Nevada, Arizona, New Mexico, and Utah (3) Includes Minnesota and Kansas (4) Includes Texas (5) Includes Ohio, Indiana, and Michigan (6) Includes Kentucky and Alabama (7) Includes New York, Pennsylvania, and New Jersey (8) Includes Virginia, Florida, Georgia, Maryland, Delaware, and North Carolina (9) Includes Maine, Rhode Island, and Massachusetts NOTE: The above pro forma table includes the 77 hotel properties included in income from continuing operations for the three and six months ended June 30, 2005 as if all such hotels were owned as of the beginning of the periods presented. Percent Change in RevPAR Region Quarter YTD Pacific (1) 21.6% 16.1% Mountain (2) 10.0% 9.7% West North Central (3) 17.4% 17.2% West South Central (4) 0.7% 0.0% East North Central (5) 10.0% 6.8% East South Central (6) 15.3% 15.4% Middle Atlantic (7) -1.0% 0.7% South Atlantic (8) 11.3% 15.1% New England (9) 1.5% -0.6% Total Portfolio 10.4% 10.7% (1) Includes California (2) Includes Nevada, Arizona, New Mexico, and Utah (3) Includes Minnesota and Kansas (4) Includes Texas (5) Includes Ohio, Indiana, and Michigan (6) Includes Kentucky and Alabama (7) Includes New York, Pennsylvania, and New Jersey (8) Includes Virginia, Florida, Georgia, Maryland, Delaware, and North Carolina (9) Includes Maine, Rhode Island, and Massachusetts NOTE: The above pro forma table includes the 77 hotel properties included in income from continuing operations for the three and six months ended June 30, 2005 as if all such hotels were owned as of the beginning of the periods presented. ASHFORD HOSPITALITY TRUST, INC. Proforma Hotel RevPAR by Brand Brand Number of Hotels Number of Rooms Hilton 21 3,344 Hyatt 1 654 InterContinental 2 420 Independent 2 317 Marriott 42 5,664 Radisson 7 1,871 Starwood 2 409 Total Portfolio 77 12,679 NOTE: The above pro forma table includes the 77 hotel properties included in income from continuing operations for the three and six months ended June 30, 2005 as if all such hotels were owned as of the beginning of the periods presented. Three Months Six Months Ended Ended June 30, June 30, Brand 2005 2004 2005 2004 Hilton $82.84 $74.50 $82.22 $75.43 Hyatt $88.89 $67.53 $83.69 $68.19 InterContinental $122.64 $99.43 $126.29 $104.20 Independent $94.34 $94.32 $88.18 $83.41 Marriott $79.26 $73.05 $77.51 $69.94 Radisson $58.74 $54.89 $52.16 $47.48 Starwood $69.51 $69.03 $58.81 $61.39 Total Portfolio $79.16 $71.71 $76.58 $69.15 NOTE: The above pro forma table includes the 77 hotel properties included in income from continuing operations for the three and six months ended June 30, 2005 as if all such hotels were owned as of the beginning of the periods presented. Percent Change in RevPAR Brand Quarter YTD Hilton 11.2% 9.0% Hyatt 31.6% 22.7% InterContinental 23.3% 21.2% Independent 0.0% 5.7% Marriott 8.5% 10.8% Radisson 7.0% 9.8% Starwood 0.7% -4.2% Total Portfolio 10.4% 10.7% NOTE: The above pro forma table includes the 77 hotel properties included in income from continuing operations for the three and six months ended June 30, 2005 as if all such hotels were owned as of the beginning of the periods presented. ASHFORD HOSPITALITY TRUST, INC. PRO FORMA HOTEL OPERATING PROFIT (In Thousands) (Unaudited) ALL HOTELS INCLUDED IN CONTINUING OPERATIONS: Three Months Ended Six Months Ended June 30, June 30, % June 30, June 30, % 2005 2004 Variance 2005 2004 Variance REVENUE Rooms $88,903 $80,522 10.41% $171,372 $154,704 10.77% Food and beverage 15,598 14,067 10.88% 29,859 26,371 13.23% Other 3,495 3,589 -2.62% 6,756 6,964 -2.99% Total hotel revenue 107,996 98,178 10.00% 207,987 188,039 10.61% EXPENSES Hotel operating expenses Rooms 19,821 17,520 13.13% 37,966 33,664 12.78% Food and beverage 11,277 9,960 13.22% 21,845 19,243 13.52% Other direct 1,568 1,697 -7.60% 3,052 3,360 -9.17% Indirect 30,579 29,750 2.79% 60,356 58,442 3.28% Management fees 4,682 3,553 31.78% 8,488 6,597 28.66% Total hotel operating expenses 67,927 62,480 8.72% 131,707 121,306 8.57% Property taxes, insurance, and other 5,724 5,520 3.70% 11,340 11,000 3.09% HOTEL OPERATING PROFIT (HOTEL EBITDA) $34,345 $30,178 13.81% $64,940 $55,733 16.52% NOTE: The above pro forma table assumes the 77 hotel properties included in income from continuing operations for the three and six months ended June 30, 2005 were owned as of the beginning of the periods presented. For both comparative periods presented, the above table excludes the 8 hotel properties included in discontinued operations during the portion of 2005 that such hotels were owned. ALL HOTELS NOT UNDER RENOVATION INCLUDED IN CONTINUING OPERATIONS: Three Months Ended Six Months Ended June 30, June 30, % June 30, June 30, % 2005 2004 Variance 2005 2004 Variance REVENUE Rooms $75,665 $67,198 12.60% $146,456 $129,071 13.47% Food and beverage 12,581 11,123 13.11% 24,187 20,837 16.08% Other 2,963 3,015 -1.72% 5,715 5,733 -0.31% Total hotel revenue 91,209 81,336 12.14% 176,358 155,641 13.31% EXPENSES Hotel operating expenses Rooms 16,738 14,890 12.41% 32,280 28,675 12.57% Food and beverage 8,985 7,914 13.53% 17,522 15,275 14.71% Other direct 1,215 1,327 -8.44% 2,405 2,626 -8.42% Indirect 24,883 24,150 3.04% 49,455 47,448 4.23% Management fees 4,104 2,894 41.81% 7,406 5,359 38.20% Total hotel operating expenses 55,925 51,175 9.28% 109,068 99,383 9.75% Property taxes, insurance, and other 4,733 4,474 5.79% 9,321 8,956 4.08% HOTEL OPERATING PROFIT (HOTEL EBITDA) $30,551 $25,687 18.94% $57,969 $47,302 22.55% NOTE: The above pro forma table assumes the 61 hotel properties not under renovation and included in income from continuing operations for the three and six months ended June 30, 2005 were owned as of the beginning of the periods presented. For both comparative periods presented, the above table excludes the 8 hotel properties included in discontinued operations during the portion of 2005 that such hotels were owned. ASHFORD HOSPITALITY TRUST, INC. Proforma Hotel Operating Profit by Region (In Thousands) Region Number of Hotels Number of Rooms Pacific (1) 8 1,804 Mountain (2) 5 869 West North Central (3) 2 390 West South Central (4) 8 1,553 East North Central (5) 12 1,796 East South Central (6) 4 573 Middle Atlantic (7) 5 824 South Atlantic (8) 28 4,284 New England (9) 5 586 Total Portfolio 77 12,679 (1) Includes California (2) Includes Nevada, Arizona, New Mexico, and Utah (3) Includes Minnesota and Kansas (4) Includes Texas (5) Includes Ohio, Indiana, and Michigan (6) Includes Kentucky and Alabama (7) Includes New York, Pennsylvania, and New Jersey (8) Includes Virginia, Florida, Georgia, Maryland, Delaware, and North Carolina (9) Includes Maine, Rhode Island, and Massachusetts NOTE: The above pro forma table includes the 77 hotel properties included in income from continuing operations for the three and six months ended June 30, 2005 as if all such hotels were owned as of the beginning of the periods presented. Three Months Ended June 30, Region 2005 % Total 2004 % Total Pacific (1) $6,382 18.6% $4,647 15.4% Mountain (2) $2,462 7.2% $2,097 6.9% West North Central (3) $1,132 3.3% $846 2.8% West South Central (4) $2,897 8.4% $2,954 9.8% East North Central (5) $4,112 12.0% $3,232 10.7% East South Central (6) $1,256 3.7% $1,020 3.4% Middle Atlantic (7) $1,376 4.0% $2,002 6.6% South Atlantic (8) $13,851 40.3% $12,514 41.5% New England (9) $877 2.6% $866 2.9% Total Portfolio $34,345 100.0% $30,178 100.0% (1) Includes California (2) Includes Nevada, Arizona, New Mexico, and Utah (3) Includes Minnesota and Kansas (4) Includes Texas (5) Includes Ohio, Indiana, and Michigan (6) Includes Kentucky and Alabama (7) Includes New York, Pennsylvania, and New Jersey (8) Includes Virginia, Florida, Georgia, Maryland, Delaware, and North Carolina (9) Includes Maine, Rhode Island, and Massachusetts NOTE: The above pro forma table includes the 77 hotel properties included in income from continuing operations for the three and six months ended June 30, 2005 as if all such hotels were owned as of the beginning of the periods presented. Six Months Ended June 30, Region 2005 % Total 2004 % Total Pacific (1) $12,375 19.1% $8,989 16.1% Mountain (2) $5,338 8.2% $4,599 8.3% West North Central (3) $1,923 3.0% $1,412 2.5% West South Central (4) $5,648 8.7% $5,826 10.5% East North Central (5) $5,942 9.1% $5,165 9.3% East South Central (6) $1,951 3.0% $1,611 2.9% Middle Atlantic (7) $1,933 3.0% $2,640 4.7% South Atlantic (8) $28,883 44.5% $24,389 43.8% New England (9) $947 1.5% $1,102 2.0% Total Portfolio $64,940 100.0% $55,733 100.0% (1) Includes California (2) Includes Nevada, Arizona, New Mexico, and Utah (3) Includes Minnesota and Kansas (4) Includes Texas (5) Includes Ohio, Indiana, and Michigan (6) Includes Kentucky and Alabama (7) Includes New York, Pennsylvania, and New Jersey (8) Includes Virginia, Florida, Georgia, Maryland, Delaware, and North Carolina (9) Includes Maine, Rhode Island, and Massachusetts NOTE: The above pro forma table includes the 77 hotel properties included in income from continuing operations for the three and six months ended June 30, 2005 as if all such hotels were owned as of the beginning of the periods presented. Percent Change in Hotel Operating Profit Region Quarter YTD Pacific (1) 37.3% 37.7% Mountain (2) 17.4% 16.1% West North Central (3) 33.8% 36.2% West South Central (4) -1.9% -3.1% East North Central (5) 27.2% 15.0% East South Central (6) 23.1% 21.1% Middle Atlantic (7) -31.3% -26.8% South Atlantic (8) 10.7% 18.4% New England (9) 1.3% -14.1% Total Portfolio 13.8% 16.5% (1) Includes California (2) Includes Nevada, Arizona, New Mexico, and Utah (3) Includes Minnesota and Kansas (4) Includes Texas (5) Includes Ohio, Indiana, and Michigan (6) Includes Kentucky and Alabama (7) Includes New York, Pennsylvania, and New Jersey (8) Includes Virginia, Florida, Georgia, Maryland, Delaware, and North Carolina (9) Includes Maine, Rhode Island, and Massachusetts NOTE: The above pro forma table includes the 77 hotel properties included in income from continuing operations for the three and six months ended June 30, 2005 as if all such hotels were owned as of the beginning of the periods presented. ASHFORD HOSPITALITY TRUST, INC. Debt Summary As of June 30, 2005 (in thousands) Floating- Fixed-Rate Rate Total Debt Debt Debt $370.0 million mortgage note payable secured by 30 hotel properties, matures July 1, 2015, at an interest rate of 5.32% $370,000 $- $370,000 $210.0 million term loan secured by 25 hotel properties, matures October 10, 2006, at varying interest rates averaging LIBOR plus 1.95%, with $105.0 million principal locked at 4.18 % 105,000 105,000 210,000 $60.0 million secured credit facility secured by two hotel properties, matures August 17, 2007, at an interest rate of LIBOR plus a range of 2.0% to 2.3% depending on the loan-to-value ratio - 40,000 40,000 $45.6 million secured credit facility secured by four mezzanine notes receivable, matures July 13, 2007, at an interest rate of LIBOR plus 6.25% with a 2% LIBOR floor - 28,882 28,882 Mortgage note payable secured by one hotel property, matures January 1, 2006, at an interest rate of 7.08% 6,241 - 6,241 Mortgage note payable secured by one hotel property, matures April 1, 2011, at an interest rate of the average weekly yield for 30-day commercial paper plus 3.4% - 11,598 11,598 Mortgage note payable secured by four hotel properties, matures October 11, 2022, at an interest rate of 8.76% 16,883 - 16,883 Mortgage note payable secured by seven hotel properties, matures September 11, 2008, at an interest rate of 6.45% 82,607 - 82,607 Mortgage note payable secured by four hotel properties, matures December 7, 2010, at an interest rate of 6.73% 31,221 - 31,221 Total Debt Excluding Premium $611,952 $185,480 $797,432 Mark to Market Premium 4,040 Total Debt Reported at June 30, 2005 $801,472 Percentage of Total 76.74% 23.26% 100.00% Weighted Average Interest Rate at June 30, 2005 5.57% Ashford Hospitality Trust, Inc. Capital Expenditures Calendar 2004 2005 1st 2nd 3rd 4th 1st 2nd 3rd 4th Quar- Quar- Quar- Quar- Quar- Quar- Quar- Quar- ter ter ter ter ter ter ter ter planned planned Hyatt Regency Orange County x Radisson Cincinnati Riverfront Radisson Hotel MacArthur Airport Embassy Suites Dallas Galleria Embassy Suites Dulles Int'l Embassy Suites Austin Arboretum Embassy Suites Las Vegas Airport Doubletree Suites Columbus x x x Doubletree Suites Dayton x x x Embassy Suites Phoenix Airport x x x Embassy Suites Flagstaff Embassy Suites East Syracuse x x x Residence Inn Lake Buena Vista Sea Turtle Inn Jacksonville x Sheraton Bucks County x x x x Hampton Inn Terre Haute x x x Hampton Inn Horse Cave x x x Hampton Inn Evansville x x x Residence Inn Evansville x x x Fairfield Inn Evansville West x x x Fairfield Inn Princeton x x x Courtyard Columbus Tipton Lakes x x x Courtyard Bloomington x x x x Courtyard Louisville Airport Hampton Inn Mall of Georgia x x SpringHill Suites Mall of Georgia SpringHill Suites Kennesaw Fairfield Inn and Suites Kennesaw Homewood Suites Mobile Hilton Garden Inn Jacksonville SpringHill Suites Jacksonville Hampton Inn Lawrenceville SpringHill Suites BWI Airport Crown Plaza Beverly Hills x Crowne Plaza La Concha - Key West x Embassy Suites Houston x x Embassy Suites West Palm Beach x x Hilton Nassau Bay - Clear Lake x x Hilton St. Petersburg Bayfront x x x Historic Inns of Annapolis x x Radisson City Center - Indianapolis x x Radisson Hotel Airport - Indianapolis x x Radisson Milford x x x x Radisson Plaza Downtown Fort Worth x x x Radisson Rockland x x Sheraton Minneapolis West x Hilton Santa Fe x x Courtyard Alpharetta Courtyard Ft. Lauderdale Weston Courtyard Irvine Courtyard Overland Park Courtyard Palm Desert Courtyard Reagan Airport Residence Inn Ann Arbor Residence Inn Fairfax Residence Inn Fishkill Residence Inn Ft. Worth x x x Residence Inn Orlando Residence Inn Palm Desert x x Residence Inn Providence x Residence Inn Sacramento Residence Inn Salt Lake City x x x Residence Inn San Diego Sorrento Mesa x Residence Inn Sea World Residence Inn Tyler x x x Residence Inn Wilmington SpringHill Suites Centreville SpringHill Suites Charlotte SpringHill Suites Gaithersburg SpringHill Suites Raleigh Airport TownePlace Suites Boston x TownePlace Suites Ft. Worth TownePlace Suites Miami Airport TownePlace Suites Miami Lakes TownePlace Suites Mt. Laurel x TownePlace Suites Portland x TownePlace Suites Silicon Valley Contact: David Kimichik Tripp Sullivan Chief Financial Officer Corporate Communications, Inc. (972) 490-9600 (615) 254-3376 DATASOURCE: Ashford Hospitality Trust, Inc. CONTACT: David Kimichik, Chief Financial Officer of Ashford Hospitality Trust, Inc., +1-972-490-9600; or Tripp Sullivan of Corporate Communications, Inc., +1-615-254-3376 Web site: http://www.ahtreit.com/

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