AHT Ashford Hospitality Trust Inc

Ashford Hospitality Trust, Inc. (NYSE:AHT) today reported the following results and performance measures for the fourth quarter ended December 31, 2006. The proforma performance measurements for Occupancy, Average Daily Rate (ADR), revenue per available room (RevPAR), and Hotel Operating Profit include the Company's 66 hotels owned as of December 31, 2006, which excludes 15 hotel assets held for sale as of that date. Unless otherwise stated, all reported results compare the fourth quarter ended December 31, 2006, with the fourth quarter ended December 31, 2005. The reconciliation of non-GAAP financial measures is included in the financial tables accompanying this press release. FINANCIAL HIGHLIGHTS Total revenue increased 45% to $143.5 million Net income available to common shareholders increased to $7.9 million from a loss of $7.7 million Diluted net income available to common shareholders increased to $0.09 per share from a loss of $0.18 per share Adjusted funds from operations (AFFO) increased 50% to $25.5 million, or $0.27 per share Cash available for distribution (CAD) increased 49% to $21.5 million, or $0.23 per share Declared quarterly common dividend of $0.20 per diluted share Dividend coverage in 2006 reaches 124% of CAD STRONG INTERNAL GROWTH Proforma RevPAR increased 10.3% for hotels not under renovation on an 8.3% increase in ADR to $129.41 and a 132-basis point improvement in occupancy Proforma RevPAR increased 8.7% for all hotels on an 8.3% increase in ADR to $127.88 and a 27-basis point improvement in occupancy Proforma same-property hotel operating profit for hotels not under renovation improved 15.5% Proforma same-property hotel operating profit margins for hotels not under renovation improved 206 basis points CAPITAL RECYCLING AND ASSET ALLOCATION Capex invested in fourth quarter and in 2006 totaled $18 million and $48 million, respectively Capital recycling (16 hotels and two office buildings) projected to generate $170 million in gross proceeds and net pre-tax gain of $33 million, or $0.35 per diluted share in 2007 Two asset dispositions completed to date in 2007: Marriott Trumbull in Trumbull, CT, and Fairfield Inn by Marriott in Princeton, IN EXTERNAL GROWTH CONTINUES TO ENHANCE RETURNS Total enterprise value increased to $2.2 billion at December 31, 2006 Mezzanine and first mortgage loan portfolio totaled $103 million at December 31, 2006, with an average annual unleveraged yield of 13.2% Acquired Westin O�Hare in Rosemont, IL for $125 million in cash Acquired seven-hotel portfolio of upper-upscale, full-service hotels for $267.2 million in cash Closed on two mezzanine loans totaling $11 million secured by the Hilton Suites Galleria and Wyndham Dallas North in Dallas, TX Announced the acquisition of a 51-hotel portfolio of upper-upscale and premium selective service hotels for $2.4 billion PORTFOLIO REVPAR GROWTH As of December 31, 2006, the Company had a portfolio of direct hotel investments consisting of 66 properties classified in continuing operations. During the fourth quarter, 55 of the hotels included in continuing operations were not under renovation. The Company believes reporting its operating metrics for continuing operations on a proforma total basis (all 66 hotels) and proforma not-under-renovation basis (55 hotels) is a measure that reflects a meaningful and more focused comparison of the operating results in its direct hotel portfolio. The Company's reporting by region and brand includes the results of all 66 hotels. Details of each category are provided in the tables attached to this release. RevPAR growth by region was led by: New England (2 hotels) with a 47.4% increase; West South Central (5) with 31.6%; Mountain (5) with 14.4%; Pacific (10) with 12.6%; East North Central (8) with 12.4%; Middle Atlantic (4) with 11.3%; West North Central (3) with 8.5%; South Atlantic (27) with 0.8%; and East South Central (2) with a 2.7% decrease. RevPAR growth by brand was led by: Radisson (4 hotels) with a 27.2% increase; Hilton (23) with 15.6%; Starwood (5) with 15.3%; InterContinental (2) with 13.4%; independents (2) with 9.6%; Hyatt (2) with 3.6%; and Marriott (28) with 2.0%. HOTEL EBITDA MARGINS AND QUARTERLY SEASONALITY TRENDS For all 66 hotels as of December 31, 2006, Proforma Hotel EBITDA (adjusted as if all hotels were included in both periods) increased 11.1% to $41.3 million. Proforma Hotel EBITDA margin (expressed as a percentage of Total Hotel Revenue) improved 134 basis points to 26.1%. Ashford believes year-over-year Hotel EBITDA margin comparisons are more meaningful to gauge the performance of the Company�s hotels than sequential quarter-over-quarter comparisons. Given the substantial seasonality in the Company�s portfolio and its active capital recycling, to help investors better understand this seasonality the Company provides quarterly detail on its Proforma Hotel EBITDA and Proforma Hotel EBITDA margin for the current and prior-year periods based upon the number of core hotels in the portfolio as of the end of the current period. As Ashford�s portfolio mix changes from time to time so will the seasonality for Proforma Hotel EBITDA and Proforma EBITDA margin. For example, on May 3, 2006, Ashford reported Proforma EBITDA margins for the first quarter 2006 and 2005 for the Company�s 64 core hotels that averaged 28.9%. The Company�s current core portfolio contains 66 hotels, eight of which are new from first quarter 2006. Proforma Hotel EBITDA margin for these current core hotels for the first quarter 2006 and 2005 averages 27.0%. Based upon the current share count, each 60 basis point change to EBITDA margin for the current 66 core hotels affects quarterly FFO by approximately $0.01 per share. The range of current published first quarter 2007 EBITDA margins are well above the average proforma results for the previous two first quarters for the current core portfolio. Investors and analysts are encouraged to carefully consider our seasonality table when forecasting our quarterly results. Details of the quarterly calculations for the past two years for the current core portfolio are provided in tables attached to this release. Monty J. Bennett, President and CEO, commented, "The results generated by our portfolio continue to demonstrate the value added by the over $86 million of renovations we have completed over the past two years as well as the underlying strength of our markets and their favorable supply and demand balance. By remaining an active capital recycler, we have been able to narrow the focus of our portfolio on the segments, brands, managers and markets that meet our target return and performance goals. The end result has been our strong performance in terms of RevPAR and margin improvement." FINANCING ACTIVITY At December 31, 2006, 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 45% based upon the Company's closing stock price of $12.45. As of December 31, 2006, the Company�s $1.1 billion debt balance consisted of 78% of fixed-rate debt, with a total weighted average interest rate of 5.9%. The Company�s weighted average fixed-rate debt maturity is 8 years. FOURTH QUARTER INVESTMENT ACTIVITY On November 9, 2006, the Company acquired the Westin O�Hare hotel property in Rosemont, Illinois, from JER Partners for approximately $125.0 million in cash. To fund this acquisition, the Company used cash available on its balance sheet and proceeds from a 10-year fixed-rate $101.0 million mortgage loan executed on November 16, 2006. The loan bears interest at 5.81% and is paid interest only for the first five years. On December 7, 2006, the Company acquired a seven-property hotel portfolio from a partnership of affiliates of Oak Hill Capital Partners, The Blackstone Group, and Interstate Hotels and Resorts for approximately $267.2 million in cash. Of the seven acquired hotels, five are considered core hotels while two are considered non-core hotels, which the Company intends to sell. To fund this acquisition, the Company used cash available on its balance sheet, and proceeds from a 5-year floating-rate $212.0 million mortgage loan executed on December 7, 2006. The loan bears interest at LIBOR plus 172 basis points. On December 27, 2006, the Company closed on a $7.0 million mezzanine loan receivable on the Hilton Suites Galleria, due December 2009. The loan bears interest at a rate of LIBOR plus 650 basis points for a term of three years with two one-year extension options; is interest only and locked from prepayment for the first 18 months. On December 27, 2006, the Company closed on a $4.0 million mezzanine loan receivable on the Wyndham Dallas North, due December 2009. The loan bears interest at a rate of LIBOR plus 575 basis points for a term of three years with two one-year extension options; is interest only and locked from prepayment for the first 18 months. SUBSEQUENT INVESTMENT ACTIVITY On January 18, 2007, the Company entered into a definitive agreement to acquire a 51-property hotel portfolio from CNL Hotels and Resorts, Inc. (�CHR�) for approximately $2.4 billion in cash. Pursuant to this agreement, the Company will own 100% of 33 properties and 70%-89% of 18 properties through existing joint ventures. The acquisition is subject to certain closing conditions including, among other things, approval by a majority of CHR�s outstanding common shareholders. To fund this acquisition, the Company intends to use committed debt and equity financing with a financial institution as well as assumptions of the seller�s existing debt. The components of the committed debt include approximately $1.2 billion of ten-year, fixed-rate debt at an estimated average blended interest rate of 5.95%, approximately $340 million of three-year, variable-rate debt with two one-year extension options at LIBOR plus 165 basis points, and approximately $325 million of one-year, variable-rate debt with a two year extension option at an interest rate of LIBOR plus 150 basis points. The committed equity financing represents the anticipated sale of up to 8 million shares of Series C Cumulative Redeemable Preferred Stock for up to approximately $200 million at LIBOR plus 250 basis points. The assumed debt includes approximately $463 million of fixed-rate debt, representing ten fixed-rate loans with an average blended interest rate of 6.22% and expiration dates ranging from 2008 to 2025. The acquisition is expected to close in the second quarter of 2007. On February 6, 2007, the Company sold its Marriott located in Trumbull, Connecticut, for approximately $28.3 million. As the Company acquired this property on December 7, 2006, no gain or loss was recognized on the sale. On February 8, 2007, the Company sold its Fairfield Inn in Princeton, Indiana, for approximately $3.2 million. In connection with this sale, the Company expects to recognize a gain of approximately $1.4 million, the income tax effects of which will be deferred through a 1031 like-kind exchange. INVESTMENT OUTLOOK Mr. Bennett concluded, "With the transformational acquisition of the $2.4 billion, 51-hotel portfolio from CNL Hotels & Resorts on the near horizon, we are prepared to quickly assimilate these assets into our portfolio. As evidenced by our recent announcement regarding capital recycling efforts on $170 million of existing assets and plans for additional phases of capital recycling in 2007, we are also making good progress on our deleveraging strategy. Given the projected favorable operating environment for hotels, we expect continued execution of our portfolio management and internal growth strategies to produce favorable results in 2007." INVESTOR CONFERENCE CALL AND SIMULCAST Ashford Hospitality Trust, Inc. will conduct a conference call at 11:00 a.m. ET on March 8, 2007, to discuss the fourth quarter results. The number to call for this interactive teleconference is (913)�981-5584. A seven-day replay of the conference call will be available by dialing (719) 457-0820 and entering the confirmation number, 2646707. The Company will also provide an online simulcast and rebroadcast of its fourth quarter 2006 earnings release conference call. The live broadcast of Ashford's quarterly conference call will be available online at the Company's website at www.ahtreit.com as well as on http://www.videonewswire.com/event.asp?id=37791 on March 8, 2007, beginning at 11:00 a.m. ET. 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 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 333-131878), 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) � Years Ended Three Months Ended Ended December 31, 2006 December 31, 2005 December 31, 2006 December 31, 2005 � REVENUE Rooms $ 365,917� $ 235,951� $ 104,713� $ 75,098� Food and beverage 81,081� 48,752� 29,945� 15,734� Other 17,312� 12,062� 5,187� 3,894� Total hotel revenue 464,310� 296,765� 139,845� 94,726� � Interest income from notes receivable 14,858� 13,323� 3,341� 3,836� Asset management fees from affiliates 1,266� 1,258� 331� 318� Total Revenue 480,434� 311,346� 143,517� 98,880� � EXPENSES Hotel operating expenses Rooms 82,022� 53,007� 24,631� 17,559� Food and beverage 60,146� 36,886� 21,116� 11,964� Other direct 8,197� 5,165� 2,484� 1,547� Indirect 137,298� 91,531� 41,765� 29,807� Management fees 17,850� 10,889� 5,294� 3,916� Total hotel expenses 305,513� 197,478� 95,290� 64,793� � Property taxes, insurance, and other 26,286� 16,264� 8,175� 5,234� Depreciation and amortization 49,564� 28,169� 14,896� 10,233� Corporate general and administrative: Stock-based compensation 5,204� 3,446� 1,083� 963� Other corporate and administrative 15,155� 11,077� 4,317� 3,154� Total Operating Expenses 401,722� 256,434� 123,761� 84,377� � � � � OPERATING INCOME 78,712� 54,912� 19,756� 14,503� � Interest income 2,917� 1,027� 852� 300� Interest expense (46,419) (34,448) (12,716) (12,232) Amortization of loan costs (2,038) (3,956) (569) (832) Write-off of loan costs and exit fees (788) (5,803) -� (5,652) Loss on debt extinguishment -� (10,000) -� (7,743) INCOME BEFORE INCOME TAXES AND MINORITY INTEREST 32,384� 1,732� 7,323� (11,656) Benefit from income taxes 2,920� 2,584� 2,321� 2,190� Minority interest (4,274) (887) (387) 1,912� INCOME (LOSS) FROM CONTINUING OPERATIONS 31,030� 3,429� 9,257� (7,554) Income from discontinued operations, net 6,766� 6,008� 1,404� 2,554� � NET INCOME (LOSS) 37,796� 9,437� 10,661� (5,000) Preferred dividends 10,875� 9,303� 2,719� 2,719� NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS $ 26,921� $ 134� $ 7,942� $ (7,719) � Income (Loss) From Continuing Operations Per Share Available To Common Shareholders: Basic $ 0.33� $ (0.15) $ 0.09� $ (0.24) Diluted $ 0.32� $ (0.15) $ 0.08� $ (0.24) Income From Discontinued Operations Per Share: Basic $ 0.11� $ 0.15� $ 0.02� $ 0.06� Diluted $ 0.11� $ 0.15� $ 0.02� $ 0.06� Net Income (Loss) Per Share Available To Common Shareholders: Basic $ 0.44� $ -� $ 0.11� $ (0.18) Diluted $ 0.43� $ -� $ 0.09� $ (0.18) Weighted Average Common Shares Outstanding: Basic 61,713,178� 40,194,132� 71,781,641� 43,145,657� Diluted 62,127,948� 40,194,132� 85,788,414� 43,145,657� ASHFORD HOSPITALITY TRUST, INC. CONSOLIDATED BALANCE SHEETS (In Thousands, Except Share and Per Share Amounts) (Unaudited) � December 31, December 31, 2006� 2005� � ASSETS Investment in hotel properties, net $ 1,632,946� $ 1,106,668� Cash and cash equivalents 73,343� 57,995� Restricted cash 9,413� 27,842� Accounts receivable, net 22,081� 21,355� Inventories 2,110� 1,186� Assets held for sale 119,342� 117,873� Notes receivable 102,833� 107,985� Deferred costs, net 14,143� 13,975� Prepaid expenses 11,154� 9,662� Other assets 7,826� 4,014� Intangible assets, net -� 1,181� Due from third-party hotel managers 15,964� 12,274� Due from affiliates 757� 476� Total assets $ 2,011,912� $ 1,482,486� � � LIABILITIES AND OWNERS' EQUITY Indebtedness $ 1,091,150� $ 908,623� Capital leases payable 177� 453� Accounts payable 16,371� 9,984� Accrued expenses 32,591� 21,054� Dividends payable 19,975� 13,703� Deferred income 294� 338� Deferred incentive management fees 3,744� -� Unfavorable management contract liability 15,281� -� Due to third-party hotel managers 1,604� 1,385� Due to affiliates 4,152� 5,654� Total liabilities 1,185,339� 961,194� � Commitments and contingencies Minority interest 109,864� 87,969� � Preferred stock, $0.01 par value: Series B Cumulative Convertible Redeemable Preferred Stock, 7,447,865 issued and outstanding at December 31, 2006 and 2005, respectively 75,000� 75,000� � 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, 2006 and 2005, respectively 23� 23� Common stock, $0.01 par value, 200,000,000 shares authorized, 72,942,841 and 43,831,394 shares issued and outstanding at December 31, 2006 and 2005, respectively 729� 438� Additional paid-in capital 708,420� 403,919� Unearned compensation -� (4,792) Accumulated other comprehensive income 111� 1,372� Accumulated deficit (67,574) (42,637) Total owners' equity 641,709� 358,323� � � Total liabilities and owners' equity $ 2,011,912� $ 1,482,486� ASHFORD HOSPITALITY TRUST, INC. EBITDA (In Thousands) (Unaudited) � Year Year Three Months Three Months Ended Ended Ended Ended December 31, 2006 December 31, 2005 December 31, 2006 December 31, 2005 � Net income $ 37,796� $ 9,437� $ 10,661� $ (5,000) � Add back: Interest income (2,917) (1,027) (852) (300) Interest expense and amortization of loan costs 48,457� 38,404� 13,285� 13,064� Minority interest 5,277� 2,425� 417� (1,265) Depreciation and amortization 52,863� 30,286� 15,743� 11,101� Benefit from income taxes (2,719) (184) (2,027) (1,231) 100,961� 69,904� 26,566� 21,369� � � � � EBITDA $ 138,757� $ 79,341� $ 37,227� $ 16,369� � � For the year ended December 31, 2006, EBITDA has not been adjusted to add back the write-off of loan costs of approximately $788,000 and the loss from reclassification from discontinued to continuing of approximately $863,000 or deduct the amortization of the unfavorable management contract liability of approximately $531,000. � 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 three months ended December 31, 2006, EBITDA has not been adjusted to deduct the amortization of the unfavorable management contract liability of approximately $318,000. � 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. FFO and Adjusted FFO (In Thousands, Except Share And Per Share Amounts) (Unaudited) � Year Year Three Months Three Months Ended Ended Ended Ended December 31, 2006 December 31, 2005 December 31, 2006 December 31, 2005 � Net income available to common shareholders $ 26,921� $ 134� $ 7,942� $ (7,719) � Plus real estate depreciation and amortization 52,550� 30,182� 15,663� 11,056� Remove minority interest 5,277� 2,425� 417� (1,265) FFO available to common shareholders $ 84,748� $ 32,741� $ 24,022� $ 2,072� � Add back dividends on convertible preferred stock 5,958� 4,386� 1,490� 1,490� Add back write-off of loan costs and exit fees 788� 5,803� -� 5,652� Add back loss on debt extinguishment -� 10,000� -� 7,743� Add back loss from reclassification of discontinued to continuing 863� -� -� -� Adjusted FFO $ 92,357� $ 52,930� $ 25,512� $ 16,957� � Adjusted FFO per diluted share available to common shareholders $ 1.13� $ 0.96� $ 0.27� $ 0.27� � Diluted weighted average shares outstanding 81,884,419� 55,149,994� 93,236,279� 61,869,686� ASHFORD HOSPITALITY TRUST, INC. CASH AVAILABLE FOR DISTRIBUTION ("CAD") (In Thousands, Except Per Share Amounts) (Unaudited) � Year Year Ended Ended December 31, 2006 (per dilutedshare) December 31, 2005 (per dilutedshare) � Net income available to common shareholders $ 26,921� $ 0.33� $ 134� $ 0.00� Add back dividends on convertible preferred stock 5,958� 0.07� 4,386� 0.08� Total $ 32,879� $ 0.40� $ 4,520� $ 0.08� � Plus real estate depreciation and amortization 52,550� $ 0.64� 30,182� $ 0.55� Remove minority interest 5,277� 0.06� 2,425� 0.04� Plus stock-based compensation 5,204� 0.06� 3,446� 0.06� Plus amortization of loan costs 2,038� 0.02� 3,956� 0.07� Plus write-off of loan costs 788� 0.01� 5,803� 0.11� Plus loss on debt extinguishment -� 0.00� 10,000� 0.18� Plus loss from reclassification of discontinued to continuing 863� 0.01� -� 0.00� Less debt premium amortization to reduce interest expense (151) (0.00) (518) (0.01) Less capital improvements reserve (18,369) (0.22) (11,429) (0.21) CAD $ 81,079� $ 0.99� $ 48,385� $ 0.88� � � Three Months Three Months Ended Ended December 31, 2006 (per dilutedshare) December 31, 2005 (per dilutedshare) � Net income available to common shareholders $ 7,942� $ 0.09� $ (7,719) $ (0.12) Add back dividends on convertible preferred stock 1,490� 0.02� 1,490� 0.02� Total $ 9,432� $ 0.10� $ (6,229) $ (0.10) � Plus real estate depreciation and amortization 15,663� $ 0.17� 11,056� $ 0.18� Remove minority interest 417� 0.00� (1,265) (0.02) Plus stock-based compensation 1,083� 0.01� 963� 0.02� Plus amortization of loan costs 569� 0.01� 832� 0.01� Plus write-off of loan costs -� -� 5,652� 0.09� Plus loss on debt extinguishment -� -� 7,743� 0.13� Less debt premium amortization to reduce interest expense (75) (0.00) (55) (0.00) Less capital improvements reserve (5,552) (0.06) (4,198) (0.07) CAD $ 21,537� $ 0.23� $ 14,499� $ 0.23� ASHFORD HOSPITALITY TRUST, INC. KEY PERFORMANCE INDICATORS - PRO FORMA (Unaudited) � � Three Months Ended Twelve Months Ended December 31, December 31, 2006� 2005� % Variance 2006� 2005� % Variance � ALL HOTELS INCLUDED IN CONTINUING OPERATIONS: � Room revenues (1) $ 116,414,683� $ 109,218,959� 6.59% $ 459,869,722� $ 422,242,728� 8.91% RevPAR (1) $ 89.76� $ 82.59� 8.68% $ 94.33� $ 85.50� 10.32% Occupancy 70.19% 69.92% 0.38% 74.59% 73.15% 1.96% ADR $ 127.88� $ 118.12� 8.27% $ 126.47� $ 116.88� 8.20% � � NOTE: The above pro forma table assumes the 66 hotel properties owned and included in continuing operations at December 31, 2006 were owned as of the beginning of the periods presented. � � � Three Months Ended Twelve Months Ended December 31, December 31, 2006� 2005� % Variance 2006� 2005� % Variance � ALL HOTELS NOT UNDER RENOVATION INCLUDED IN CONTINUING OPERATIONS: � Room revenues (1) $ 106,146,050� $ 98,345,972� 7.93% $ 417,407,933� $ 380,189,207� 9.79% RevPAR (1) $ 92.31� $ 83.67� 10.33% $ 96.14� $ 86.31� 11.38% Occupancy 71.33% 70.01% 1.89% 75.17% 73.15% 2.77% ADR $ 129.41� $ 119.50� 8.29% $ 127.89� $ 118.00� 8.39% � � NOTE: The above pro forma table assumes the 55 hotel properties owned and included in continuing operations at December 31, 2006 but not under renovation for the three and twelve months ended December 31, 2006 were owned as of the beginning of the periods presented. � � Excluded Hotels Under Renovation: Residence Inn Evansville, Courtyard Columbus Tipton Lakes, SpringHill Suites Kennesaw, SpringHill Suites Jacksonville, Sea Turtle Inn Jacksonville, Courtyard Atlanta Alpharetta, Hilton Santa Fe, SpringHill Suites BWI Airport, SpringHill Suites Centreville, SpringHill Suites Gaithersburg, Courtyard Overland Park � � (1) On March 26, 2006, the Company converted its Radisson hotel in Ft. Worth, Texas, to a Hilton hotel, which resulted in a room count reduction from 517 to 294. Consequently, the increase in pro forma RevPAR exceeded the increase in pro forma room revenues for the three and twelve months ended December 31, 2006 compared to the same 2005 periods. ASHFORD HOSPITALITY TRUST, INC. Pro Forma Hotel RevPAR by Region (Unaudited) � Three Months Ended Twelve Months Ended Percent December 31, December 31, Change in RevPAR Region Number of Hotels Number of Rooms 2006� 2005� 2006� 2005� Quarter YTD � Pacific (1) 10� 2,723� $97.17� $86.29� $100.99� $91.48� 12.6% 10.4% Mountain (2) 5� 869� $93.39� $81.62� $97.79� $88.42� 14.4% 10.6% West North Central (3) 3� 690� $80.00� $73.73� $85.55� $77.97� 8.5% 9.7% West South Central (4) 5� 987� $91.99� $69.90� $91.00� $70.07� 31.6% 29.9% East North Central (5) 8� 1,628� $78.88� $70.18� $83.42� $73.65� 12.4% 13.3% East South Central (6) 2� 236� $77.54� $79.71� $83.83� $82.01� -2.7% 2.2% Middle Atlantic (7) 4� 853� $82.99� $74.55� $89.39� $80.71� 11.3% 10.7% South Atlantic (8) 27� 5,036� $92.84� $92.14� $99.35� $93.88� 0.8% 5.8% New England (9) 2� 300� $53.45� $36.27� $52.80� $42.71� 47.4% 23.6% � � � � � � � � Total Portfolio 66� 13,322� $89.76� $82.59� $94.33� $85.50� 8.7% 10.3% � � � (1) Includes Alaska and California (2) Includes Nevada, Arizona, New Mexico, and Utah (3) Includes Minnesota and Kansas (4) Includes Texas (5) Includes Ohio, Illinois, 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 66 hotel properties owned and included in continuing operations as of December 31, 2006 were owned as of the beginning of the periods presented. ASHFORD HOSPITALITY TRUST, INC. Pro Forma Hotel RevPAR by Brand (Unaudited) � Three Months Ended Twelve Months Ended Percent December 31, December 31, Change in RevPAR Brand Number of Hotels Number of Rooms 2006� 2005� 2006� 2005� Quarter YTD � Hilton 23� 4,212� $90.02� $77.87� $92.80� $80.76� 15.6% 14.9% Hyatt 2� 970� $95.82� $92.44� $98.20� $93.50� 3.6% 5.0% InterContinental 2� 420� $123.37� $108.75� $133.01� $117.18� 13.4% 13.5% Independent 2� 317� $70.01� $63.87� $79.29� $80.08� 9.6% -1.0% Marriott 28� 4,975� $94.36� $92.51� $98.59� $92.53� 2.0% 6.5% Radisson 4� 859� $56.45� $44.39� $60.95� $53.60� 27.2% 13.7% Starwood 5� 1,569� $81.65� $70.80� $93.62� $81.85� 15.3% 14.4% � � � � � � � � Total Portfolio 66� 13,322� $89.76� $82.59� $94.33� $85.50� 8.7% 10.3% � � � NOTE: The above pro forma table assumes the 66 hotel properties owned and included in continuing operations as of December 31, 2006 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: � Years Ended Three Months Ended Dec. 31, 2006 � Dec. 31, 2005 � % Variance Dec. 31, 2006 � Dec. 31, 2005 � % Variance � REVENUE Rooms (1) $ 459,870� $ 422,243� 8.91% $ 116,415� $ 109,219� 6.59% Food and beverage 125,799� 119,287� 5.46% 36,319� 34,708� 4.64% Other 23,408� 23,302� 0.45% 5,707� 6,431� -11.26% Total hotel revenue 609,077� 564,832� 7.83% 158,441� 150,358� 5.38% � EXPENSES Hotel operating expenses Rooms (1) 101,792� 95,387� 6.71% 26,610� 25,630� 3.82% Food and beverage 90,888� 85,972� 5.72% 25,153� 24,360� 3.26% Other direct 11,214� 10,718� 4.63% 2,860� 2,686� 6.48% Indirect 172,749� 161,985� 6.65% 45,549� 44,376� 2.64% Management fees, includes base and incentive fees 29,455� 25,942� 13.54% 8,096� 8,027� 0.86% Total hotel operating expenses 406,098� 380,004� 6.87% 108,268� 105,079� 3.03% � Property taxes, insurance, and other 33,703� 29,304� 15.01% 8,888� 8,106� 9.65% � � � � � � HOTEL OPERATING PROFIT (Hotel EBITDA) $ 169,276� $ 155,524� 8.84% $ 41,285� $ 37,173� 11.06% � NOTE: The above pro forma table assumes the 66 hotel properties owned and included in continuing operations at December 31, 2006 were owned as of the beginning of the periods presented. ALL HOTELS NOT UNDER RENOVATION INCLUDED IN CONTINUING OPERATIONS: � Years Ended Three Months Ended Dec. 31, 2006 � Dec. 31, 2005 � % Variance Dec. 31, 2006 � Dec. 31, 2005 � % Variance � REVENUE Rooms (1) $ 417,408� $ 380,189� 9.79% $ 106,146� $ 98,346� 7.93% Food and beverage 118,782� 112,995� 5.12% 34,520� 32,965� 4.72% Other 22,273� 22,060� 0.97% 5,435� 6,030� -9.87% Total hotel revenue 558,463� 515,244� 8.39% 146,101� 137,341� 6.38% � EXPENSES Hotel operating expenses Rooms (1) 92,603� 86,600� 6.93% 24,158� 23,227� 4.01% Food and beverage 85,658� 81,009� 5.74% 23,830� 23,006� 3.58% Other direct 10,604� 10,244� 3.51% 2,684� 2,569� 4.48% Indirect 158,442� 148,248� 6.88% 41,619� 40,739� 2.16% Management fees, includes base and incentive fees 26,902� 23,635� 13.82% 7,490� 7,295� 2.67% Total hotel operating expenses 374,209� 349,736� 7.00% 99,781� 96,836� 3.04% � Property taxes, insurance, and other 30,963� 26,910� 15.06% 8,131� 7,434� 9.38% � � � � � � HOTEL OPERATING PROFIT (Hotel EBITDA) $ 153,291� $ 138,598� 10.60% $ 38,189� $ 33,071� 15.48% � NOTE: The above pro forma table assumes the 55 hotel properties owned and included in continuing operations at December 31, 2006 but not under renovation for the year and three months ended December 31, 2006 were owned as of the beginning of the periods presented. � � � (1) On March 26, 2006, the Company converted its Radisson hotel in Ft. Worth, Texas, to a Hilton hotel, which resulted in a room count reduction from 517 to 294. Consequently, the increase in pro forma RevPAR exceeded the increase in pro forma room revenues for the year and three months ended December 31, 2006 compared to the same 2005 periods. ASHFORD HOSPITALITY TRUST, INC. PRO FORMA HOTEL OPERATING PROFIT MARGIN (Unaudited) � � 55 HOTELS NOT UNDER RENOVATION AND INCLUDED IN CONTINUING OPERATIONS AT DECEMBER 31, 2006 AS IF SUCH HOTELS WERE OWNED AS OF THE BEGINNING OF THE PERIODS PRESENTED: � � HOTEL OPERATING PROFIT (EBITDA) MARGIN: � 4th Quarter 2006 26.14% 4th Quarter 2005 � 24.08% Variance � 2.06% � HOTEL OPERATING PROFIT (EBITDA) MARGIN VARIANCE BREAKDOWN: � Rooms 0.38% Food & Beverage and Other Departmental 0.47% Administrative & General 0.18% Sales & Marketing 0.22% Hospitality -0.09% Repair & Maintenance 0.51% Energy 0.70% Franchise Fee -0.45% Management Fee 0.00% Incentive Management Fee 0.19% Insurance -0.16% Property Taxes 0.01% Leases/Other � 0.12% Total � 2.06% ASHFORD HOSPITALITY TRUST, INC. PRO FORMA SEASONALITY TABLE (In Thousands) (Unaudited) � � ALL 66 HOTELS OWNED AND INCLUDED IN CONTINUING OPERATIONS AS OF DECEMBER 31, 2006: � � � � � � 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year End � 2005� Total Hotel Revenue 129,114� 145,211� 140,148� 150,358� 564,832� Hotel EBITDA 35,652� 43,730� 38,969� 37,173� 155,524� Hotel EBITDA Margin 27.6% 30.1% 27.8% 24.7% 27.5% � � 2006� Total Hotel Revenue 142,436� 159,780� 148,420� 158,441� 609,077� Hotel EBITDA 37,517� 48,740� 41,734� 41,285� 169,276� Hotel EBITDA Margin 26.3% 30.5% 28.1% 26.1% 27.8% � � NOTE: The above pro forma table assumes that the 66 hotel properties owned and included in continuing operations as of December 31, 2006 were owned as of the beginning of the periods presented. ASHFORD HOSPITALITY TRUST, INC. Pro Forma Hotel Operating Profit by Region (In Thousands) (Unaudited) � Three Months Ended Twelve Months Ended Percent Change in December 31, December 31, Hotel Operating Profit Region Number of Hotels � Number of Rooms 2006� � % Total 2005� � % Total 2006� � % Total 2005� � % Total Quarter � YTD � Pacific (1) 10� 2,723� $8,700� 21.1% $7,307� 19.7% $35,064� 20.7% $32,993� 21.2% 19.1% 6.3% Mountain (2) 5� 869� $2,832� 6.9% $2,085� 5.6% $11,725� 6.9% $9,867� 6.3% 35.8% 18.8% West North Central (3) 3� 690� $2,152� 5.2% $1,947� 5.2% $9,201� 5.4% $8,017� 5.2% 10.5% 14.8% West South Central (4) 5� 987� $2,760� 6.7% $1,877� 5.0% $10,042� 5.9% $8,445� 5.4% 47.0% 18.9% East North Central (5) 8� 1,628� $4,823� 11.7% $4,001� 10.8% $20,709� 12.2% $18,003� 11.6% 20.5% 15.0% East South Central (6) 2� 236� $634� 1.5% $602� 1.6% $3,151� 1.9% $3,080� 2.0% 5.3% 2.3% Middle Atlantic (7) 4� 853� $2,024� 4.9% $1,503� 4.0% $8,536� 5.0% $6,403� 4.1% 34.7% 33.3% South Atlantic (8) 27� 5,036� $17,051� 41.3% $17,967� 48.3% $69,995� 41.3% $68,261� 43.9% -5.1% 2.5% New England (9) 2� 300� $309� 0.7% ($116) -0.3% $853� 0.5% $455� 0.3% 366.4% 87.5% � � � � � � � � � � � � � � � � � Total Portfolio 66� 13,322� $41,285� � 100.0% $37,173� � 100.0% $169,276� � 100.0% $155,524� � 100.0% 11.1% � 8.8% � � � (1) Includes Alaska and California (2) Includes Nevada, Arizona, New Mexico, and Utah (3) Includes Minnesota and Kansas (4) Includes Texas (5) Includes Ohio, Illinois, 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 66 hotel properties owned and included in continuing operations as of December 31, 2006 were owned as of the beginning of the periods presented. Ashford Hospitality Trust, Inc. Debt Summary As of December 31, 2006 (in millions) � Fixed-Rate Floating-Rate Total Debt Debt Debt � $487.1 million mortgage note payable secured by 32 hotel properties, matures between July 1, 2015 and February 1, 2016, at an average interest rate of 5.41% � $ 487.1� $ -� $ 487.1� $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� $150.0 million secured credit facility secured by 9 hotel properties, matures August 16, 2008, at an interest rate of LIBOR plus a range of 1.6% to 1.85% depending on the loan-to-value ratio � � -� 25.0� 25.0� $100.0 million secured credit facility secured by 6 mezzanine notes receivable, matures December 23, 2008, at an interest rate of LIBOR plus a range of 1.5% to 2.75% depending on the loan-to-value ratio and collateral pledged � � -� -� -� $47.5 million secured credit facility secured by 1 hotel property, matures October 10, 2008, at an interest rate of LIBOR plus 1.0% to 1.5% depending on the outstanding balance � � -� -� -� Mortgage note payable secured by one hotel property, matures December 1, 2017, at an interest rate of 7.24% through December 31, 2007 and 7.39% thereafter � 52.6� -� 52.6� Mortgage note payable secured by one hotel property, matures December 8, 2016, at an interest rate of 5.81% 101.0� -� 101.0� Mortgage note payable secured by seven hotel properties, matures December 11, 2009, at an interest rate of LIBOR plus 1.72% -� 212.0� 212.0� Total Debt Excluding Premium $ 852.2� $ 237.0� $ 1,089.2� Mark-to-Market Premium 2.0� Total Debt Including Premium $ 1,091.2� � Percentage of Total 78.24% 21.76% 100.00% � Weighted Average Interest Rate at December 31, 2006 5.93% ASHFORD HOSPITALITY TRUST, INC. Capital Expenditures Calendar 66 Core Hotels � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 2004� � 2005� � 2006� � 2007� Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Estimated Estimated Estimated Estimated Rooms � 1st Quarter � 2nd Quarter � 3rd Quarter � 4th Quarter � 1st Quarter � 2nd Quarter � 3rd Quarter � 4th Quarter � 1st Quarter � 2nd Quarter � 3rd Quarter � 4th Quarter � 1st Quarter � 2nd Quarter � 3rd Quarter � 4th Quarter � Doubletree Suites Columbus 194� x x x Embassy Suites East Syracuse 215� x x x Embassy Suites Phoenix Airport 229� x x x Sheraton Bucks County 187� x x x x Hyatt Regency Orange County 654� x x x Hampton Inn Mall of Georgia 92� x x Radisson Milford 173� x x x x Hampton Inn Terre Haute 112� x x x Hampton Inn Evansville 141� x x x Hilton St. Petersburg Bayfront 333� x x x Courtyard Bloomington 117� x x x Courtyard Columbus Tipton Lakes 90� x x x x Residence Inn Evansville 78� x x x x x Residence Inn Salt Lake City 144� x Hilton Fort Worth 294� x x x x Residence Inn Palm Desert 130� x x Historic Inns of Annapolis 124� x x x x Embassy Suites Houston 150� x x Radisson Rockland 127� x x Residence Inn San Diego Sorrento Mesa 150� x x Hilton Nassau Bay - Clear Lake 243� x x Crowne Plaza Beverly Hills 260� x x Radisson City Center - Indianapolis 371� x x x x Sheraton Minneapolis West 222� x x x Embassy Suites West Palm Beach 160� x x x Residence Inn Fairfax Merrifield 159� x Courtyard Crystal City Reagan Airport 272� x x Courtyard Palm Desert 151� x SpringHill Suites Kennesaw 90� x x SpringHill Suites Jacksonville 102� x x Courtyard Atlanta Alpharetta 154� x x Sea Turtle Inn Jacksonville 193� x x x x x x SpringHill Suites BWI Airport 133� x x SpringHill Suites Centreville 136� x x SpringHill Suites Gaithersburg 162� x x Courtyard Overland Park 168� x x Hilton Santa Fe 157� x x x Marriott at Research Triangle Park 225� x x Marriott Crystal Gateway 697� x x Hilton Garden Inn Jacksonville 119� x x Homewood Suites Mobile 86� x x Hyatt Dulles 316� x x x JW Marriott San Francisco 338� x x x Embassy Suites Las Vegas Airport 220� x x Embassy Suites Philadelphia Airport 263� x x Embassy Suites Walnut Creek 249� x x Hilton Minneapolis Airport 300� x x Sheraton San Diego Mission Valley 260� x x Westin O'Hare 525� x x Sheraton Anchorage 375� x Residence Inn Lake Buena Vista 210� x Courtyard Louisville Airport 150� x SpringHill Suites Charlotte 136� x SpringHill Suites Raleigh Airport 120� x SpringHill Suites Mall of Georgia 96� Hampton Inn Lawrenceville 86� Courtyard Ft. Lauderdale Weston 174� Courtyard Foothill Ranch Irvine 156� Embassy Suites Austin Arboretum 150� Embassy Suites Dallas Galleria 150� Embassy Suites Dulles Int'l 150� Embassy Suites Flagstaff 119� Fairfield Inn and Suites Kennesaw 87� Crowne Plaza La Concha - Key West 160� Radisson Hotel MacArthur Airport 188� Residence Inn Orlando Sea World 350�