AHT Ashford Hospitality Trust Inc

DALLAS, March 8 /PRNewswire-FirstCall/ -- Ashford Hospitality Trust, Inc. (NYSE:AHT) today reported the following results and performance measures for the fourth quarter and year ended December 31, 2005. The performance measurements for Occupancy, ADR, RevPar, and Hotel Operating Profit include the Company's 63 core hotels, which excludes 17 hotel assets held for sale, and compare the fourth quarter and full year ended December 31, 2005 to the fourth quarter and full year ended December 31, 2004. The reconciliation of non-GAAP financial measures is included in the financial tables accompanying this press release. FINANCIAL HIGHLIGHTS - Total revenue increased 157.4% to $104.1 million from $40.4 million - Net loss available to common shareholders was $7.7 million compared with a net loss of $794,000 - Net loss available to common shareholders per share was $0.18 compared with a net loss of $0.03 - Results include debt extinguishment charges and write-off of loan costs totaling $13.4 million, or $0.31 per share, in the fourth quarter - Adjusted funds from operations (AFFO) increased 404.5% to $17.0 million from $3.4 million - AFFO per diluted share increased 145.5% to $0.27 from $0.11 - Cash available for distribution (CAD) was $14.5 million, or $0.23 per diluted share - CAD per share increased by 109.1% for the quarter and 104.7% over the 2004 year - Declared eighth consecutive increase in quarterly common dividend to $0.20 per share - Dividend payout ratio was 80.7 % of CAD for the 2005 year STRONG INTERNAL GROWTH - Proforma revenue per available room (RevPAR) increased 12.7% for hotels not under renovation on a 9.2% increase in ADR to $107.92 and 224-basis point improvement in occupancy - Proforma RevPAR increased 9.5% for consolidated hotels on a 9.0% increase in ADR to $107.32 and 33-basis point improvement in occupancy - Proforma same-property hotel operating profit for hotels not under renovation improved 10.0% CAPITAL RECYCLING AND ASSET ALLOCATION - Today, 15 select service hotels remain designated as for sale with closings expected in 2006 - Capex invested in 2005 totals $38 million - Additional Capex planned for 2006 totals $75 million EXTERNAL GROWTH - Total enterprise value improved to $1.5 billion at December 31, 2005 - Acquired the Hyatt Dulles Airport in Herndon, Virginia, for $72.5 million in cash - Acquired an $18.2 million mezzanine loan on the Four Seasons Nevis in Nevis, West Indies - Mezzanine and first mortgage loan portfolio totaled $108.3 million at December 31, 2005, with weighted average interest rate of 14.2% PORTFOLIO REVPAR REFLECTS BENEFIT OF VALUE-ADDED RENOVATIONS As of December 31, 2005, the Company had a portfolio of direct hotel investments consisting of 80 properties, 63 of which are included in continuing operations. During the fourth quarter, 50 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 63 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(6 hotels) with a 20.0% increase; West South Central(5) with 10.8%; Mountain(5) with 10.6%; South Atlantic(25) with 10.1%; East South Central(4) with 7.7%; Middle Atlantic(3) with 5.4%; West North Central(2) with 4.4%; East North Central(11) with a 0.2% decrease; and New England(2) with a 16.1% decrease - RevPAR growth by brand was led by: Hyatt(2 hotels) with a 32.4% increase; InterContinental(2) with 15.3%; Hilton(21) with 11.0%; Marriott(27) with 9.7%; Starwood(2) with 1.9%; independents(2) with a 5.8% decrease; and Radisson(7) with a 8.4% decrease Monty J. Bennett, President and CEO, commented, "The strong FFO and RevPAR growth for the quarter was a direct result of the continued emphasis on reinvesting in our properties and maximizing the value inherent in these assets. Having previously targeted hotels that were expected to experience above-market RevPAR gains, we designed asset management plans together with our property managers to position each hotel to outperform its market. With double-digit RevPAR growth for hotels not under renovation in every quarter during 2005, the value of this patient strategy has been readily apparent. We intend to continue with this capital improvement plan during 2006 as we recycle capital to new assets that best fit within our long-term core portfolio and build on the operational improvements already underway." FINANCING ACTIVITY LOWERS BORROWING COSTS WITH FIXED-RATE DEBT At December 31, 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 53.6% based upon the company's closing stock price of $10.49. As of December 31, 2005, the Company's $908.6 million debt portfolio consisted of approximately 87% of fixed-rate debt and approximately 13% of variable-rate debt, with a total weighted average interest rate of 5.59%. The Company's weighted average debt maturity is 8.6 years. On October 28, 2005, the Company executed a $45.0 million mortgage loan, which is secured by one hotel, at an interest rate of LIBOR plus 2%, matures October 10, 2007, includes three one-year extension options, and requires monthly interest-only payments through maturity. In connection with this loan, the Company purchased a 7.0% LIBOR interest rate cap with a $45.0 million notional amount, which matures October 15, 2007, to limit its exposure to rising interest rates on its variable-rate debt. On November 14, 2005, the Company executed a $211.5 million mortgage loan, which is secured by 16 hotels divided equally into two pools. The first pool for $110.9 million incurs interest at a fixed rate of 5.75%, matures December 11, 2014, and requires monthly interest-only payments for four years plus monthly principal payments thereafter based on a twenty-five-year amortization schedule. The second pool for $100.6 million incurs interest at a fixed rate of 5.7%, matures December 11, 2015, and requires monthly interest-only payments for five years plus monthly principal payments thereafter based on a twenty-five-year amortization schedule. The Company used proceeds from the loan to repay its $210.0 million term loan, due October 10, 2006, and its $6.2 million mortgage loan, due January 1, 2006. On December 23, 2005, the Company executed a $100.0 million senior secured revolving credit facility with the ability to be increased to $150.0 million subject to certain conditions, of which drawings thereon will initially be secured by certain mezzanine loans receivable, that will mature December 23, 2008, will incur interest at LIBOR plus a range of 1.5% to 2.75% depending on the loan-to-value ratio and types of collateral pledged, and will require monthly interest-only payments through maturity. FOURTH QUARTER INVESTMENT ACTIVITY On October 28, 2005, the Company acquired the Hyatt Dulles Airport in Herndon, Virginia, for approximately $72.5 million in cash. To finance the acquisition, the company obtained a $45 million 2-year loan at LIBOR plus 200 basis points. On December 16, 2005, the Company acquired a mezzanine loan receivable of approximately $18.2 million on the Four Seasons Nevis in Nevis, West Indies. The loan bears interest at a rate of LIBOR plus 9% and matures in October 2008, with interest-only payments through maturity. SUBSEQUENT INVESTMENT ACTIVITY On January 17, 2006, the Company sold two Howard Johnson hotels located in Commack, New York, and Westbury, New York, for approximately $11.0 million, or approximately $10.3 million net of closing costs. These two hotels were originally acquired by the Company on March 16, 2005, in connection with its acquisition of a 21-property hotel portfolio, and are the last to be sold of the eight acquired hotels designated for sale from this portfolio. On January 25, 2006, in an underwritten follow-on public offering, the Company issued 12,107,623 shares of its common stock at $11.15 per share, which generated gross proceeds of approximately $135.0 million. The aggregate proceeds to the Company, net of underwriters' discount and offering costs, was approximately $128.6 million. The 12,107,623 shares issued include 1,057,623 shares sold pursuant to an over-allotment option granted to the underwriters. The net proceeds were used for a $60.0 million pay-down on the Company's $100.0 million credit facility due August 17, 2008, a $45.0 million pay-down on the Company's $45.0 million mortgage loan due October 10, 2007, and the acquisition of the Marriott at Research Triangle Park, as discussed below. On February 16, 2006, the Company entered into a definitive agreement to acquire the Pan Pacific San Francisco Hotel in San Francisco, California, for approximately $95.0 million in cash. The Company intends to use proceeds from its follow-on public offering on January 25, 2006, and funds available on its credit facility to fund this acquisition. The acquisition is expected to close in early April 2006. On February 24, 2006, the Company acquired the Marriott at Research Triangle Park hotel property in Durham, North Carolina, for approximately $28.0 million in cash. The Company used proceeds from its follow-on public offering on January 25, 2006, to fund this acquisition. INVESTMENT OUTLOOK Mr. Bennett concluded, "The past year Ashford excelled at its strategic objectives of: diversified and accretive investments, strong internal growth, financial stability, and dividend increases. With a very successful capital raise completed early in the first quarter, we have been able to make a strong start in 2006 in continuing our core objectives. Since year end, we have acquired the Marriott at Research Triangle Park and agreed to purchase the Pan Pacific San Francisco for a combined investment of $123 million. In addition, we have an active pipeline. These attractive external growth opportunities complement the continued improvement in our capital structure, the double- digit RevPAR growth in our current portfolio generated by value-added reinvestment and our ongoing capital recycling program. Combined with a very optimistic industry outlook, we believe these factors position us to achieve our most successful year yet in 2006." INVESTOR CONFERENCE CALL AND SIMULCAST Ashford Hospitality Trust, Inc. will conduct a conference call at 11:00 a.m. eastern time on March 9, 2006, to discuss the fourth quarter results. The number to call for this interactive teleconference is 913-981-5509. A seven- day replay of the conference call will be available by dialing 719-457-0820 and entering the confirmation number, 3440675. The Company will also provide an online simulcast and rebroadcast of its fourth 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 on http://phx.corporate-/ ir.net/phoenix.zhtml?p=irol-eventDetails&c=147105&eventID=1207269 March 9, 2006, beginning at 11:00 a.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. Substantially all of our non-current assets consist of real estate investments and debt investments secured by real estate. Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, most industry investors consider supplemental measures of performance, which are not measures of operating performance under GAAP, to be helpful in evaluating a real estate company's operations. These supplemental measures include FFO, AFFO, EBITDA, Hotel Operating Profit, and CAD. 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, Hotel Operating Profit, 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 are such measures indicative of funds available to fund our cash needs, including our ability to make cash distributions. However, management believes FFO, AFFO, EBITDA, Hotel Operating Profit, 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. 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 Three Year Year Months Months Ended Ended Ended Ended Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2005 2004 2005 2004 REVENUE Rooms $250,571 $89,798 $78,698 $29,806 Food and beverage 52,317 14,337 16,720 6,160 Other 14,181 3,923 4,522 1,556 Total hotel revenue 317,069 108,058 99,940 37,522 Interest income from notes receivable 13,323 7,549 3,836 2,603 Asset management fees from affiliates 1,258 1,318 318 318 Total Revenue 331,650 116,925 104,094 40,443 EXPENSES Hotel operating expenses Rooms 56,991 20,908 18,603 7,312 Food and beverage 39,711 10,859 12,760 4,630 Other direct 5,420 2,150 1,613 816 Indirect 99,804 35,561 32,141 12,199 Management fees 11,547 3,395 4,088 1,204 Total hotel expenses 213,473 72,873 69,205 26,161 Property taxes, insurance, and other 17,248 6,655 5,495 1,727 Depreciation and amortization 30,286 10,768 11,101 4,040 Corporate general and administrative: Stock-based compensation 3,446 2,397 963 605 Other corporate and administrative 11,077 9,458 3,154 2,548 Total Operating Expenses 275,530 102,151 89,918 35,081 OPERATING INCOME 56,120 14,774 14,176 5,362 Interest income 1,027 335 300 88 Interest expense (34,448) (9,217) (12,232) (3,820) Amortization of loan costs (3,956) (1,884) (832) (965) Write-off of loan costs and exit fees (5,803) (1,633) (5,652) - Loss on debt extinguishment (10,000) - (7,743) - INCOME (LOSS) BEFORE INCOME TAXES AND MINORITY INTEREST 2,940 2,375 (11,983) 665 Benefit from (provision for) income taxes 2,650 (658) 2,249 29 Minority interest (1,159) (298) 1,966 (133) INCOME (LOSS) FROM CONTINUING OPERATIONS 4,431 1,419 (7,768) 561 Income from discontinued operations, net 5,006 - 2,768 - NET INCOME (LOSS) 9,437 1,419 (5,000) 561 Preferred dividends 9,303 1,355 2,719 1,355 NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS $134 $64 $(7,719) $(794) Basic and Diluted: Income (Loss) From Continuing Operations Per Share Available To Common Shareholders $(0.12) $- $(0.24) $(0.03) Income From Discontinued Operations Per Share $0.12 $- $0.06 $- Net Income (Loss) Per Share Available To Common Shareholders $- $- $(0.18) $(0.03) Weighted Average Common Shares Outstanding 40,194,132 25,120,653 43,145,657 25,280,502 ASHFORD HOSPITALITY TRUST, INC. CONSOLIDATED BALANCE SHEETS (In Thousands, Except Share and Per Share Amounts) (Unaudited) December 31, December 31, 2005 2004 ASSETS Investment in hotel properties, net $1,066,962 $427,005 Cash and cash equivalents 57,995 47,109 Restricted cash 27,842 14,059 Accounts receivable, net of allowance of $366 and $61, respectively 21,355 5,463 Inventories 1,186 612 Assets held for sale 157,579 2,882 Notes receivable 108,305 79,661 Deferred costs, net 14,046 9,390 Prepaid expenses 9,662 2,639 Other assets 4,014 6,677 Intangible assets, net 1,181 - Due from third-party hotel managers 12,274 383 Due from affiliates 476 65 Total assets $1,482,877 $595,945 LIABILITIES AND OWNERS' EQUITY Indebtedness $908,623 $300,754 Capital leases payable 453 313 Accounts payable 9,984 8,980 Accrued expenses 21,054 9,340 Other liabilities - 90 Dividends payable 13,703 6,141 Deferred income 729 401 Due to third-party hotel managers 1,385 859 Due to affiliates 5,654 1,048 Total liabilities 961,585 327,926 Commitments and contingencies Minority interest 87,969 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 December 31, 2005 and 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 December 31, 2005 and 2004 23 23 Common stock, $0.01 par value, 200,000,000 shares authorized, 43,831,394 and 25,810,447 shares issued and outstanding at December 31, 2005 and 2004, respectively 438 258 Additional paid-in capital 403,919 234,973 Unearned compensation (4,792) (3,959) Accumulated other comprehensive income 1,372 554 Accumulated deficit (42,637) (13,177) Total owners' equity 358,323 218,672 Total liabilities and owners' equity $1,482,877 $595,945 ASHFORD HOSPITALITY TRUST, INC. FFO and Adjusted FFO (In Thousands, Except Share And Per Share Amounts) (Unaudited) Three Three Year Year Months Months Ended Ended Ended Ended Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2005 2004 2005 2004 Net income (loss) available to common shareholders $134 $64 $(7,719) $(794) Plus real estate depreciation and amortization 30,182 10,713 11,056 4,022 Remove minority interest 2,425 298 (1,265) 133 FFO available to common shareholders $32,741 $11,075 $2,072 $3,361 Add back dividends on redeemable preferred stock 4,386 - 1,490 - Add back write-off of loan costs and exit fees 5,803 1,633 5,652 - Add back loss on debt extinguishment 10,000 - 7,743 - Adjusted FFO $52,930 $12,708 $16,957 $3,361 Adjusted FFO per diluted share available to common shareholders $0.96 $0.41 $0.27 $0.11 Diluted weighted average shares outstanding 55,149,994 30,993,250 61,869,686 31,492,272 ASHFORD HOSPITALITY TRUST, INC. EBITDA (In Thousands) (Unaudited) Three Three Year Year Months Months Ended Ended Ended Ended Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2005 2004 2005 2004 Net income (loss) $9,437 $1,419 $(5,000) $561 Add back: Interest income 1,027 335 300 88 Interest expense and amortization of loan costs (38,404) (11,101) (13,064) (4,785) Minority interest (2,425) (298) 1,265 (133) Depreciation and amortization (30,286) (10,768) (11,101) (4,040) Benefit from (provision for) income taxes 184 (658) 1,231 29 (69,904) (22,490) (21,369) (8,841) EBITDA $79,341 $23,909 $16,369 $9,402 For the year ended December 31, 2005, EBITDA has not been adjusted to add back the loss on debt extinguishment of approximately $10.0 million and the write-off of loan costs and exit fees of approximately $5.8 million. For the year ended December 31, 2004, EBITDA has not been adjusted to add back the write-off of loan costs and exit fees of approximately $1.6 million. For the three months ended December 31, 2005, EBITDA has not been adjusted to add back the loss on debt extinguishment of approximately $7.7 million and the write-off of loan costs and exit fees of approximately $5.7 million. ASHFORD HOSPITALITY TRUST, INC. CASH AVAILABLE FOR DISTRIBUTION (In Thousands, Except Per Share Amounts) (Unaudited) Year Year Ended (per Ended (per Dec. 31, diluted Dec. 31, diluted 2005 share) 2004 share) Net income available to common shareholders $134 $64 Add back dividends on redeemable preferred stock 4,386 3 Total $4,520 $67 Plus real estate depreciation and amortization 30,182 $0.55 10,713 $0.35 Remove minority interest 2,425 0.04 298 0.01 Plus stock-based compensation 3,446 0.06 2,397 0.08 Plus amortization of loan costs 3,956 0.07 1,884 0.06 Plus write-off of loan costs 5,803 0.11 1,633 0.05 Plus loss on debt extinguishment 10,000 0.18 - 0.00 Less debt premium amortization to reduce interest expense (518) (0.01) - 0.00 Less capital improvements reserve (11,429) (0.21) (3,799) (0.12) CAD $48,385 $0.88 $13,193 $0.43 Three Three Months Months Ended (per Ended (per Dec. 31, diluted Dec. 31, diluted 2005 share) 2004 share) Net income (loss) available to common shareholders $(7,719) $(794) Add back dividends on redeemable preferred stock 1,490 3 Total $(6,229) $(791) Plus real estate depreciation and amortization 11,056 0.18 4,022 0.13 Remove minority interest (1,265) (0.02) 133 0.00 Plus stock-based compensation 963 0.02 605 0.02 Plus amortization of loan costs 832 0.01 965 0.03 Plus write-off of loan costs 5,652 0.09 - 0.00 Plus loss on debt extinguishment 7,743 0.13 - 0.00 Less debt premium amortization to reduce interest expense (55) (0.00) - 0.00 Less capital improvements reserve (4,198) (0.07) (1,336) (0.04) CAD $14,499 $0.23 $3,598 $0.11 ASHFORD HOSPITALITY TRUST, INC. KEY PERFORMANCE INDICATORS - PRO FORMA (Unaudited) Three Months Ended December 31, % 2005 2004 Variance ALL HOTELS INCLUDED IN CONTINUING OPERATIONS: Room revenues $79,771,221 $72,851,757 9.50% RevPar $73.60 $67.22 9.49% Occupancy 68.58% 68.25% 0.49% ADR $107.32 $98.50 8.96% Year Ended December 31, % 2005 2004 Variance ALL HOTELS INCLUDED IN CONTINUING OPERATIONS: Room revenues $316,118,078 $286,431,128 10.36% RevPar $77.21 $69.96 10.36% Occupancy 71.74% 70.84% 1.27% ADR $107.63 $98.77 8.97% NOTE: The above pro forma table assumes the 63 hotel properties included in income from continuing operations for the three months and year ended December 31, 2005 were owned as of the beginning of the periods presented. For both comparative periods presented, the above table excludes the 17 hotel properties included in discontinued operations at December 31, 2005. Three Months Ended December 31, % 2005 2004 Variance ALL HOTELS NOT UNDER RENOVATION INCLUDED IN CONTINUING OPERATIONS: Room revenues $62,559,505 $55,501,657 12.72% RevPar $76.94 $68.27 12.70% Occupancy 71.29% 69.05% 3.25% ADR $107.92 $98.86 9.16% Year Ended December 31, % 2005 2004 Variance ALL HOTELS NOT UNDER RENOVATION INCLUDED IN CONTINUING OPERATIONS: Room revenues $242,886,207 $216,716,876 12.08% RevPar $79.83 $71.30 11.97% Occupancy 73.37% 71.90% 2.05% ADR $108.80 $99.16 9.72% NOTE: The above pro forma table assumes the 50 hotel properties not under renovation and included in income from continuing operations for the three months and year ended December 31, 2005 were owned as of the beginning of the periods presented. For both comparative periods presented, the above table excludes the 17 hotel properties included in discontinued operations at December 31, 2005. Excluded Hotels Under Renovation: Crowne Plaza Beverly Hills, Embassy Suites Houston, Embassy Suites West Palm Beach, Hilton Nassau Bay - Clear Lake, Historic Inns of Annapolis, Radisson City Center - Indianapolis, Radisson Hotel Airport - Indianapolis, Radisson Milford, Radisson Plaza Downtown Fort Worth, Radisson Rockland, Sheraton Minneapolis West, Residence Inn Palm Desert, Residence Inn San Diego Sorrento Mesa ASHFORD HOSPITALITY TRUST, INC. Pro Forma Hotel RevPAR by Region (Unaudited) Region Number of Hotels Number of Rooms Pacific (1) 6 1,501 Mountain (2) 5 869 West North Central (3) 2 390 West South Central (4) 5 1,210 East North Central (5) 11 1,682 East South Central (6) 4 573 Middle Atlantic (7) 3 590 South Atlantic (8) 25 4,114 New England (9) 2 300 Total Portfolio 63 11,229 Three Months Percent Ended Year Ended Change in December 31, December 31, RevPAR Region 2005 2004 2005 2004 Quarter YTD Pacific (1) $80.95 $67.47 $86.55 $72.27 20.0% 19.8% Mountain (2) $81.62 $73.77 $88.42 $80.45 10.6% 9.9% West North Central (3) $63.75 $61.07 $69.44 $61.58 4.4% 12.8% West South Central (4) $69.90 $63.11 $70.07 $67.90 10.8% 3.2% East North Central (5) $53.18 $53.29 $56.92 $54.42 -0.2% 4.6% East South Central (6) $55.98 $51.97 $59.64 $53.17 7.7% 12.2% Middle Atlantic (7) $63.52 $60.25 $70.17 $67.07 5.4% 4.6% South Atlantic (8) $85.01 $77.23 $88.56 $79.25 10.1% 11.8% New England (9) $36.27 $43.23 $42.71 $45.48 -16.1% -6.1% Total Portfolio $73.60 $67.22 $77.21 $69.96 9.5% 10.4% (1) Includes California (2) Includes Nevada, Arizona, New Mexico, and Utah (3) Includes Minnesota and Kansas (4) Includes Texas (5) Includes Ohio and Indiana (6) Includes Kentucky and Alabama (7) Includes New York and Pennsylvania (8) Includes Virginia, Florida, Georgia, Maryland, and North Carolina (9) Includes Massachusetts NOTE: The above pro forma table assumes the 63 hotel properties included in income from continuing operations for the three months and year ended December 31, 2005 were owned as of the beginning of the periods presented. For both comparative periods presented, the above table excludes the 17 hotel properties included in discontinued operations at December 31, 2005. ASHFORD HOSPITALITY TRUST, INC. Pro Forma Hotel RevPAR by Brand (Unaudited) Brand Number of Hotels Number of Rooms Hilton 21 3,344 Hyatt 2 970 InterContinental 2 420 Independent 2 317 Marriott 27 3,898 Radisson 7 1,871 Starwood 2 409 Total Portfolio 63 11,229 Three Months Percent Ended Year Ended Change in December 31, December 31, RevPAR Brand 2005 2004 2005 2004 Quarter YTD Hilton $76.89 $69.30 $80.18 $73.23 11.0% 9.5% Hyatt $92.44 $69.80 $93.50 $74.82 32.4% 25.0% InterContinental $108.75 $94.36 $117.18 $98.28 15.3% 19.2% Independent $63.87 $67.83 $80.08 $78.29 -5.8% 2.3% Marriott $77.61 $70.78 $79.30 $71.67 9.7% 10.7% Radisson $45.47 $49.66 $51.64 $50.99 -8.4% 1.3% Starwood $58.52 $57.45 $68.29 $67.09 1.9% 1.8% Total Portfolio $73.60 $67.22 $77.21 $69.96 9.5% 10.4% NOTE: The above pro forma table assumes the 63 hotel properties included in income from continuing operations for the three months and year ended December 31, 2005 were owned as of the beginning of the periods presented. For both comparative periods presented, the above table excludes the 17 hotel properties included in discontinued operations at December 31, 2005. ASHFORD HOSPITALITY TRUST, INC. PRO FORMA HOTEL OPERATING PROFIT (In Thousands) (Unaudited) ALL HOTELS INCLUDED IN CONTINUING OPERATIONS: Three Months Ended Year Ended Dec. 31 Dec. 31 % Dec. 31 Dec. 31 % 2005 2004 Variance 2005 2004 Variance REVENUE Rooms $79,771 $72,852 9.50% $316,118 $286,431 10.36% Food and beverage 17,170 15,592 10.12% 64,621 56,602 14.17% Other 4,017 3,350 19.91% 14,497 13,945 3.96% Total hotel revenue 100,958 91,794 9.98% 395,236 356,978 10.72% EXPENSES Hotel operating expenses Rooms 18,801 17,172 9.49% 71,504 64,288 11.22% Food and beverage 12,956 10,809 19.86% 48,285 41,509 16.32% Other direct 1,731 1,499 15.48% 6,416 6,411 0.08% Indirect 32,340 28,841 12.13% 120,164 112,616 6.70% Management fees 4,137 3,356 23.27% 14,919 12,207 22.22% Total hotel operating expenses 69,965 61,677 13.44% 261,288 237,031 10.23% Property taxes, insurance, and other 5,513 4,327 27.41% 21,212 19,654 7.93% HOTEL OPERATING PROFIT (EBITDA) $25,480 $25,790 -1.20% $112,736 $100,293 12.41% NOTE: The above pro forma table assumes the 63 hotel properties included in income from continuing operations for the three months and year ended December 31, 2005 were owned as of the beginning of the periods presented. For both comparative periods presented, the above table excludes the 17 hotel properties included in discontinued operations at December 31, 2005. ALL HOTELS NOT UNDER RENOVATION INCLUDED IN CONTINUING OPERATIONS: Three Months Ended Year Ended Dec. 31 Dec. 31 % Dec. 31 Dec. 31 % 2005 2004 Variance 2005 2004 Variance REVENUE Rooms $62,560 $55,502 12.72% $242,886 $216,717 12.08% Food and beverage 11,335 10,244 10.65% 43,554 38,378 13.49% Other 3,034 2,332 30.10% 10,583 9,825 7.72% Total hotel revenue 76,929 68,078 13.00% 297,023 264,920 12.12% EXPENSES Hotel operating expenses Rooms 14,961 13,581 10.16% 56,158 50,414 11.39% Food and beverage 8,785 7,447 17.97% 33,049 29,078 13.66% Other direct 1,219 1,092 11.63% 4,619 4,597 0.48% Indirect 23,217 20,666 12.34% 86,724 81,133 6.89% Management fees 3,312 2,524 31.22% 11,561 9,422 22.70% Total hotel operating expenses 51,494 45,310 13.65% 192,111 174,644 10.00% Property taxes, insurance, and other 3,909 3,196 22.31% 15,543 14,280 8.84% HOTEL OPERATING PROFIT (EBITDA) $21,526 $19,572 9.98% $89,369 $75,996 17.60% NOTE: The above pro forma table assumes the 50 hotel properties not under renovation and included in income from continuing operations for the three months and year ended December 31, 2005 were owned as of the beginning of the periods presented. For both comparative periods presented, the above table excludes the 17 hotel properties included in discontinued operations at December 31, 2005. ASHFORD HOSPITALITY TRUST, INC. Pro Forma Hotel Operating Profit by Region (In Thousands) (Unaudited) Region Number of Hotels Number of Rooms Pacific (1) 6 1,501 Mountain (2) 5 869 West North Central (3) 2 390 West South Central (4) 5 1,210 East North Central (5) 11 1,682 East South Central (6) 4 573 Middle Atlantic (7) 3 590 South Atlantic (8) 25 4,114 New England (9) 2 300 Total Portfolio 63 11,229 Three Months Ended December 31, Region 2005 % Total 2004 % Total Pacific (1) $4,745 18.6% $3,537 13.7% Mountain (2) $2,123 8.3% $2,002 7.8% West North Central (3) $788 3.1% $922 3.6% West South Central (4) $1,878 7.4% $2,123 8.2% East North Central (5) $1,940 7.6% $2,851 11.1% East South Central (6) $589 2.3% $794 3.1% Middle Atlantic (7) $847 3.3% $856 3.3% South Atlantic (8) $12,658 49.7% $12,356 47.9% New England (9) ($88) -0.3% $349 1.4% Total Portfolio $25,480 100.0% $25,790 100.0% Year Ended December 31, Region 2005 % Total 2004 % Total Pacific (1) $20,628 18.3% $14,149 14.1% Mountain (2) $9,937 8.8% $8,669 8.6% West North Central (3) $3,842 3.4% $3,330 3.3% West South Central (4) $8,431 7.5% $8,705 8.7% East North Central (5) $10,335 9.2% $11,136 11.1% East South Central (6) $3,694 3.3% $3,236 3.2% Middle Atlantic (7) $3,082 2.7% $3,663 3.7% South Atlantic (8) $52,322 46.4% $46,368 46.2% New England (9) $465 0.4% $1,037 1.0% Total Portfolio $112,736 100.0% $100,293 100.0% Percent Change in Hotel Operating Profit Region Quarter YTD Pacific (1) 34.2% 45.8% Mountain (2) 6.0% 14.6% West North Central (3) -14.5% 15.4% West South Central (4) -11.5% -3.1% East North Central (5) -32.0% -7.2% East South Central (6) -25.8% 14.2% Middle Atlantic (7) -1.1% -15.9% South Atlantic (8) 2.4% 12.8% New England (9) -125.2% -55.2% Total Portfolio -1.2% 12.4% (1) Includes California (2) Includes Nevada, Arizona, New Mexico, and Utah (3) Includes Minnesota and Kansas (4) Includes Texas (5) Includes Ohio and Indiana (6) Includes Kentucky and Alabama (7) Includes New York and Pennsylvania (8) Includes Virginia, Florida, Georgia, Maryland, and North Carolina (9) Includes Massachusetts NOTE: The above pro forma table assumes the 63 hotel properties included in income from continuing operations for the three months and year ended December 31, 2005 were owned as of the beginning of the periods presented. For both comparative periods presented, the above table excludes the 17 hotel properties included in discontinued operations at December 31, 2005. ASHFORD HOSPITALITY TRUST, INC. Debt Summary As of December 31, 2005 (in millions) Fixed-Rate Floating-Rate Total Debt Debt Debt $580.8 million mortgage note payable secured by 40 hotel properties, matures between July 1, 2015 and February 1, 2016, at an average interest rate of 5.4% $580.8 $- $580.8 $211.5 million term loan secured by 16 hotel properties, matures between December 11, 2014 and December 11, 2015, at an average interest rate of 5.73% 211.5 - 211.5 $100.0 million secured credit facility secured by 6 hotel properties, matures August 17, 2008, at an interest rate of LIBOR plus a range of 1.6% to 1.95% depending on the loan-to-value ratio - 60.0 60.0 Mortgage note payable secured by one hotel property, matures October 10, 2007, at an interest rate of LIBOR plus 2% - 45.0 45.0 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% - 11.3 11.3 Total Debt Excluding Premium $792.3 $116.3 $908.6 Percentage of Total 87.20% 12.80% 100.00% Weighted Average Interest Rate at December 31, 2005 5.59% ASHFORD HOSPITALITY TRUST, INC. Capital Expenditures Calendar 63 Core Hotels 2004 Actual Actual Actual Actual 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter Doubletree Suites Columbus x x x Doubletree Suites Dayton x x x Embassy Suites East Syracuse x x x Embassy Suites Phoenix Airport x x x Sheraton Bucks County x x Hyatt Regency Orange County x Hampton Inn Mall of Georgia Hampton Inn Terre Haute Hampton Inn Horse Cave Hampton Inn Evansville Hilton St. Petersburg Bayfront Fairfield Inn Evansville West Residence Inn Evansville Fairfield Inn Princeton Courtyard Columbus Tipton Lakes Courtyard Bloomington Radisson Milford Residence Inn Salt Lake City Radisson Plaza Downtown Fort Worth Historic Inns of Annapolis Residence Inn Palm Desert Crowne Plaza La Concha - Key West Embassy Suites Houston Hilton Santa Fe Radisson Rockland Sheraton Minneapolis West Residence Inn San Diego Sorrento Mesa Crowne Plaza Beverly Hills Embassy Suites West Palm Beach Radisson City Center - Indianapolis Radisson Hotel Airport - Indianapolis Hilton Nassau Bay - Clear Lake Sea Turtle Inn Jacksonville Hyatt Dulles SpringHill Suites Kennesaw SpringHill Suites Jacksonville Courtyard Palm Desert Courtyard Reagan Airport Residence Inn Fairfax SpringHill Suites BWI Airport SpringHill Suites Centreville SpringHill Suites Gaithersburg Courtyard Overland Park Courtyard Alpharetta Courtyard Ft. Lauderdale Weston Courtyard Irvine Courtyard Louisville Airport Embassy Suites Austin Arboretum Embassy Suites Dallas Galleria Embassy Suites Dulles Int'l Embassy Suites Flagstaff Embassy Suites Las Vegas Airport Fairfield Inn and Suites Kennesaw Hampton Inn Lawrenceville Hilton Garden Inn Jacksonville Homewood Suites Mobile Radisson Cincinnati Riverfront Radisson Hotel MacArthur Airport Residence Inn Lake Buena Vista Residence Inn Sea World SpringHill Suites Charlotte SpringHill Suites Mall of Georgia SpringHill Suites Raleigh Airport ASHFORD HOSPITALITY TRUST, INC. Capital Expenditures Calendar 63 Core Hotels 2005 Actual Actual Actual Actual 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter Doubletree Suites Columbus Doubletree Suites Dayton Embassy Suites East Syracuse Embassy Suites Phoenix Airport Sheraton Bucks County x x Hyatt Regency Orange County Hampton Inn Mall of Georgia x x Hampton Inn Terre Haute x x x Hampton Inn Horse Cave x x x Hampton Inn Evansville x x x Hilton St. Petersburg Bayfront x x x Fairfield Inn Evansville West x x x Residence Inn Evansville x x x Fairfield Inn Princeton x x x Courtyard Columbus Tipton Lakes x x x Courtyard Bloomington x x x Radisson Milford x x x Residence Inn Salt Lake City x Radisson Plaza Downtown Fort Worth x x x Historic Inns of Annapolis x x Residence Inn Palm Desert x x Crowne Plaza La Concha - Key West Embassy Suites Houston x Hilton Santa Fe Radisson Rockland x Sheraton Minneapolis West x Residence Inn San Diego Sorrento Mesa x Crowne Plaza Beverly Hills x Embassy Suites West Palm Beach x Radisson City Center - Indianapolis x Radisson Hotel Airport - Indianapolis x Hilton Nassau Bay - Clear Lake x Sea Turtle Inn Jacksonville Hyatt Dulles SpringHill Suites Kennesaw SpringHill Suites Jacksonville Courtyard Palm Desert Courtyard Reagan Airport Residence Inn Fairfax SpringHill Suites BWI Airport SpringHill Suites Centreville SpringHill Suites Gaithersburg Courtyard Overland Park Courtyard Alpharetta Courtyard Ft. Lauderdale Weston Courtyard Irvine Courtyard Louisville Airport Embassy Suites Austin Arboretum Embassy Suites Dallas Galleria Embassy Suites Dulles Int'l Embassy Suites Flagstaff Embassy Suites Las Vegas Airport Fairfield Inn and Suites Kennesaw Hampton Inn Lawrenceville Hilton Garden Inn Jacksonville Homewood Suites Mobile Radisson Cincinnati Riverfront Radisson Hotel MacArthur Airport Residence Inn Lake Buena Vista Residence Inn Sea World SpringHill Suites Charlotte SpringHill Suites Mall of Georgia SpringHill Suites Raleigh Airport ASHFORD HOSPITALITY TRUST, INC. Capital Expenditures Calendar 63 Core Hotels 2006 Estimated Estimated Estimated Estimated 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter Doubletree Suites Columbus Doubletree Suites Dayton Embassy Suites East Syracuse Embassy Suites Phoenix Airport Sheraton Bucks County Hyatt Regency Orange County Hampton Inn Mall of Georgia Hampton Inn Terre Haute Hampton Inn Horse Cave Hampton Inn Evansville Hilton St. Petersburg Bayfront Fairfield Inn Evansville West Residence Inn Evansville x x Fairfield Inn Princeton x x Courtyard Columbus Tipton Lakes x x Courtyard Bloomington x x Radisson Milford x x Residence Inn Salt Lake City Radisson Plaza Downtown Fort Worth x x Historic Inns of Annapolis x Residence Inn Palm Desert x x Crowne Plaza La Concha - Key West x x Embassy Suites Houston x Hilton Santa Fe x x Radisson Rockland x Sheraton Minneapolis West x Residence Inn San Diego Sorrento Mesa x x Crowne Plaza Beverly Hills x x Embassy Suites West Palm Beach x x x Radisson City Center - Indianapolis x x x Radisson Hotel Airport - Indianapolis x x Hilton Nassau Bay - Clear Lake x x Sea Turtle Inn Jacksonville x x x Hyatt Dulles x SpringHill Suites Kennesaw x SpringHill Suites Jacksonville x Courtyard Palm Desert x x Courtyard Reagan Airport x Residence Inn Fairfax x SpringHill Suites BWI Airport x SpringHill Suites Centreville x SpringHill Suites Gaithersburg x Courtyard Overland Park x Courtyard Alpharetta Courtyard Ft. Lauderdale Weston Courtyard Irvine Courtyard Louisville Airport Embassy Suites Austin Arboretum Embassy Suites Dallas Galleria Embassy Suites Dulles Int'l Embassy Suites Flagstaff Embassy Suites Las Vegas Airport Fairfield Inn and Suites Kennesaw Hampton Inn Lawrenceville Hilton Garden Inn Jacksonville Homewood Suites Mobile Radisson Cincinnati Riverfront Radisson Hotel MacArthur Airport Residence Inn Lake Buena Vista Residence Inn Sea World SpringHill Suites Charlotte SpringHill Suites Mall of Georgia SpringHill Suites Raleigh Airport 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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