Ashford Hospitality Trust, Inc. (NYSE:AHT) today reported the
following results and performance measures for the second quarter
ended June 30, 2007. The proforma performance measurements for
Occupancy, Average Daily Rate (ADR), revenue per available room
(RevPAR), and Hotel Operating Profit (or Hotel EBITDA) include the
Company's 118 hotels owned as of June 30, 2007, which excludes 3
hotel assets held for sale as of that date. Unless otherwise
stated, all reported results compare the second quarter ended June
30, 2007 with the second quarter ended June 30, 2006. The
reconciliation of non-GAAP financial measures is included in the
financial tables accompanying this press release. FINANCIAL
HIGHLIGHTS Total revenue increased 205% to $350.3 million from
$114.8 million Net income available to common shareholders
increased 69% to $14.1 million compared with $8.3 million in the
prior-year quarter Adjusted funds from operations (AFFO), not
including gain on sale, increased 126% to $56.5 million, or $0.44
per diluted share compared with $0.34 per diluted share in the
prior-year quarter Cash available for distribution (CAD) increased
100% to $45.4 million, or $0.35 per diluted share compared with
$0.31 per diluted share in the prior-year quarter Declared
quarterly common dividend of $0.21 per diluted share CAD dividend
coverage was 167% for the quarter STRONG INTERNAL GROWTH Proforma
RevPAR increased 6.5% for hotels not under renovation on a 5.9%
increase in ADR to $140.72 and a 41-basis point improvement in
occupancy Proforma RevPAR increased 5.8% for all hotels on a 5.8%
increase in ADR to $141.28 and a 3-basis point improvement in
occupancy Proforma same-property Hotel Operating Profit for hotels
not under renovation improved 8.7% Proforma same-property Hotel
Operating Profit margin for hotels not under renovation improved 73
basis points CAPITAL RECYCLING AND ASSET ALLOCATION Capex invested
in the second quarter totaled $25 million Capex for 2007 and 2008
estimated at $280 million for which the Company has adequate
resources to fund 11 hotels and one office building sold in the
second quarter for $115.8 million PORTFOLIO REVPAR GROWTH As of
June 30, 2007, the Company had a portfolio of direct hotel
investments consisting of 118 properties classified in continuing
operations. During the second quarter, 114 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 118 hotels) and proforma
not-under-renovation basis (114 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 118 hotels. Details of each
category are provided in the tables attached to this release.
RevPAR growth by region was led by: West South Central (12 hotels)
with a 14.5% increase; Middle Atlantic (10) with 10.0%; Pacific
(23) with 8.3%; West North Central (4) with 6.0%; Mountain (8) with
4.3%; East North Central (10) with 4.2%; South Atlantic (43) with
3.2%; New England (4) with 2.5%; East South Central (3) with a 0.9%
decrease; and Canada (1) with a 11.1% decrease. RevPAR growth by
brand was led by: InterContinental (2 hotels) with 9.9%; Hilton (38
hotels) with 8.2%; Starwood (6) with 7.1%; Hyatt (5) with 4.7%;
Marriott (62) with 4.7%; Radisson (3) with a 6.3% decrease; and
independents (2) with a 12.8% decrease. HOTEL EBITDA MARGINS AND
QUARTERLY SEASONALITY TRENDS For the 114 hotels as of June 30, 2007
that were not under renovation, Proforma Hotel EBITDA (adjusted as
if all hotels were included throughout both periods) increased 8.7%
to $112.9 million. Proforma Hotel EBITDA margin (expressed as a
percentage of Total Hotel Revenue) improved 73 basis points to
31.2%. For all 118 hotels included in continuing operations as of
June 30, 2007, Proforma Hotel EBITDA increased 7.2% to $117.3
million and Hotel EBITDA margin increased 49 basis points to 30.9%.
Ashford believes year-over-year Hotel EBITDA and 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 certain 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
Hotel EBITDA margin. Details of the quarterly calculations for the
last four quarters for the current portfolio, including the 53
hotels acquired during the second quarter, are provided in the
tables attached to this release. Monty J. Bennett, President and
CEO, commented, "The strong second quarter performance reflects
continued progress with our internal growth, asset management and
capital allocation strategies. With the integration of the acquired
CNL Hotels and Resorts� assets now complete, we are moving forward
with the $280 million of value-added investments to further enhance
the growth we are experiencing at our hotels. Over $100 million of
the planned cap-ex is expected to kick off in the second half of
the year. Our recent capital markets activities and asset sales
have also helped us reach our deleveraging target well ahead of
schedule and at very attractive terms in light of current market
conditions." FINANCING ACTIVITY On April 24, 2007, the Company
closed a follow-on offering of 48,875,000 shares of common stock at
$11.75 per share. The offering raised net proceeds of approximately
$548 million, which was used to pay off the following debt
associated with the purchase of 51 hotels from CNL Hotels and
Resorts: a $325 million term loan, $180 million of floating-rate
CMBS and $45 million of existing debt. At June 30, 2007, 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 57% based upon the Company's closing stock price
of $11.76. As of June 30, 2007, the Company�s $2.9 billion debt
balance consisted of 78% of fixed-rate debt, with a total weighted
average interest rate of 6.1%. The Company�s weighted average debt
maturity is 6.4 years. SECOND QUARTER INVESTMENT ACTIVITY On April
11, 2007, the Company completed the acquisition of a 51-hotel,
13,640-room (net after joint venture adjustment) hotel portfolio
from CNL Hotels and Resorts for approximately $2.4 billion in total
consideration ($177,000 per key). The estimated forward NOI cap
rate is 7.6% and the EBITDA yield is 9.0% resulting in an 11.1x
EBITDA multiple. On a trailing 12-month basis, the transaction�s
NOI cap rate is 7.0% with an EBITDA yield of 8.4% equating to an
11.9x EBITDA multiple. On May 21, 2007, the Company completed the
acquisition of a 120-room Residence Inn and a 118-room Hampton Inn
hotel in Jacksonville, Florida for $35.8 million. On a trailing
12-month basis, the transaction�s NOI cap rate is 8.3% with an
EBITDA yield of 9.1% equating to an 11.0x EBITDA multiple. The
primary source of capital for this transaction was the proceeds of
a 1031 tax-free exchange. On various dates throughout the quarter,
the Company completed the sale of eleven hotels and one office
building for a total of $115.8 million. The hotels sold include:
the seven asset TownePlace Suites portfolio, the Embassy Suites
Phoenix, Arizona, the Radisson Hotel Covington, Kentucky, the
Fairfield Inn Evansville, Indiana and the Radisson Airport Hotel
Indianapolis, Indiana. In connection with these sales, the Company
generated a net gain of $33.3 million. The tax on this gain of $6.9
million will be deferred through a section 1031 tax-free exchange.
SUBSEQUENT FINANCING AND INVESTMENT ACTIVITY On July 18, 2007, the
Company priced 8,000,000 shares of 8.45% Series D Cumulative
Preferred Stock at $25.00 per share. The annual distribution for
the preferred stock is $2.1125 per share, payable quarterly.
Ashford used the net proceeds of the offering to redeem the
Company�s Series C Preferred Stock. INVESTMENT OUTLOOK Mr. Bennett
concluded, "The concentration of our hotels in high-growth markets,
high-growth segments and in premier brands, as well as our ability
to assemble and integrate portfolios at attractive returns,
differentiates Ashford in today�s market. We will continue to
explore new opportunities to put this advantage to work for our
shareholders. However, our primary focus is internal growth
opportunities within our portfolio." INVESTOR CONFERENCE CALL AND
SIMULCAST Ashford Hospitality Trust, Inc. will conduct a conference
call at 11:00 a.m. ET on August 2, 2007, to discuss the second
quarter results. The number to call for this interactive
teleconference is (913) 981-4911. A seven-day replay of the
conference call will be available by dialing (719) 457-0820 and
entering the confirmation number, 8263407. The Company will also
provide an online simulcast and rebroadcast of its first 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?regd=y&id=40824 on
August 2, 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, the timing for closing, the impact of the transaction
on our business and future financial condition, our business and
investment strategy, our understanding of our competition and
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 Ashford's filings with the Securities
and Exchange Commission. EBITDA is defined as net income before
interest, taxes, depreciation and amortization. EBITDA yield is
defined as trailing twelve month EBITDA divided by the purchase
price. A capitalization rate is determined by dividing the
property's annual net operating income by the purchase price. Net
operating income is the property's funds from operations minus a
capital expense reserve of either 4% or 5% of gross revenues. Funds
from operations ("FFO"), as defined by the White Paper on FFO
approved by the Board of Governors of the National Association of
Real Estate Investment Trusts ("NAREIT") in April 2002, represents
net income (loss) computed in accordance with generally accepted
accounting principles ("GAAP"), excluding gains (or losses) from
sales or properties and extraordinary items as defined by GAAP,
plus depreciation and amortization of real estate assets, and net
of adjustments for the portion of these items related to
unconsolidated entities and joint ventures. 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, 2007 June 30, 2006 June 30, 2007 June 30, 2006 � REVENUE
Rooms $ 250,772 $ 88,550 $ 364,163 $ 167,017 Food and beverage
79,116 17,754 110,326 32,540 Rental income from operating leases
1,184 - 1,184 - Other 16,006 � 4,263 � 21,020 � 7,711 � Total hotel
revenue 347,078 110,567 496,693 207,268 Interest income from notes
receivable 2,866 3,920 6,221 7,866 Asset management fees from
affiliates 331 � 318 � 663 � 636 � Total Revenue 350,275 114,805
503,577 215,770 � EXPENSES Hotel operating expenses Rooms 55,268
19,058 80,388 35,908 Food and beverage 55,366 13,114 78,062 24,615
Other direct 7,912 1,836 10,279 3,429 Indirect 88,976 31,032
132,209 60,632 Management fees 12,791 � 4,315 � 18,312 � 8,201 �
Total hotel expenses 220,313 69,355 319,250 132,785 � Property
taxes, insurance, and other 18,602 6,000 26,614 11,193 Depreciation
and amortization 60,213 11,148 77,132 21,155 Corporate general and
administrative: Stock-based compensation 1,907 1,770 2,966 2,710
Other corporate and administrative 5,241 � 3,569 � 8,775 � 7,439 �
Total Operating Expenses 306,276 � 91,842 � 434,737 � 175,282 �
OPERATING INCOME 43,999 22,963 68,840 40,488 � Interest income 975
566 1,473 1,060 Interest expense (43,206 ) (11,330 ) (59,284 )
(22,766 ) Amortization of loan costs (2,263 ) (461 ) (2,923 ) (975
) Write-off of loan costs and exit fees (5,264 ) (102 ) (5,966 )
(788 ) INCOME (LOSS) BEFORE INCOME TAXES AND MINORITY INTEREST
(5,759 ) 11,636 2,140 17,019 Benefit from (provision for) income
taxes (36 ) (103 ) 1,187 (228 ) Minority interest in consolidated
joint ventures 523 - 523 - Minority interest related to limited
partners 451 � (1,839 ) (800 ) (2,760 ) INCOME (LOSS) FROM
CONTINUING OPERATIONS (4,821 ) 9,694 3,050 14,031 Income from
discontinued operations, net: (including gains on sales net of
income taxes of approximately $26.5 million and $27.8 million for
the three and six months ended June 30, 2007, respectively) 25,905
� 1,329 � 29,525 � 4,454 � NET INCOME 21,084 11,023 32,575 18,485
Preferred dividends 7,033 � 2,719 � 9,826 � 5,438 � NET INCOME
AVAILABLE TO COMMON SHAREHOLDERS $ 14,051 � $ 8,304 � $ 22,749 � $
13,047 � � Income From Continuing Operations Per Share Available To
Common Shareholders: Basic $ (0.11 ) $ 0.13 � $ (0.08 ) $ 0.16 �
Diluted $ (0.11 ) $ 0.12 � $ (0.07 ) $ 0.16 � Income From
Discontinued Operations Per Share: Basic $ 0.24 � $ 0.02 � $ 0.33 �
$ 0.08 � Diluted $ 0.24 � $ 0.02 � $ 0.33 � $ 0.08 � Net Income Per
Share Available To Common Shareholders: Basic $ 0.13 � $ 0.15 � $
0.25 � $ 0.24 � Diluted $ 0.13 � $ 0.15 � $ 0.25 � $ 0.24 �
Weighted Average Common Shares Outstanding: Basic 108,138,363 �
55,711,214 � 90,275,311 � 53,828,335 � Diluted 108,204,298 �
55,924,733 � 90,739,244 � 54,365,854 � ASHFORD HOSPITALITY TRUST,
INC. CONSOLIDATED BALANCE SHEETS (In Thousands, Except Share and
Per Share Amounts) (Unaudited) � June 30, Dec. 31, 2007 2006 �
ASSETS Investment in hotel properties, net $ 4,279,054 $ 1,632,946
Cash and cash equivalents 157,175 73,343 Restricted cash 48,208
9,413 Accounts receivable, net 81,078 22,081 Inventories 4,522
2,110 Assets held for sale 26,553 119,342 Notes receivable 72,815
102,833 Deferred costs, net 34,066 14,143 Prepaid expenses 21,251
11,154 Other assets 7,193 7,826 Due from third-party hotel managers
39,097 15,964 Due from related parties 3,513 � 757 � Total assets $
4,774,525 � $ 2,011,912 � � � LIABILITIES AND OWNERS' EQUITY
Indebtedness $ 2,922,085 $ 1,091,150 Capital leases payable 815 177
Accounts payable 38,817 16,371 Accrued expenses 85,324 32,591
Dividends payable 34,842 19,975 Deferred income 270 294 Deferred
incentive management fees 3,658 3,744 Unfavorable management
contract liability 24,714 15,281 Other liabilities 3,084 - Due to
third-party hotel managers 5,583 1,604 Due to related parties 929 �
4,152 � Total liabilities 3,120,121 1,185,339 � Commitments and
contingencies Minority interest in consolidated joint ventures
103,624 - Minority interest related to limited partnership
interests 108,141 109,864 Preferred stock, $0.01 par value: Series
B Cumulative Convertible Redeemable Preferred Stock, 7,447,865
issued and outstanding at June 30, 2007 and December 31, 2006,
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 June 30, 2007 and December 31,
2006, respectively � 23 23 Series C Cumulative Preferred Stock,
8,000,000 issued and outstanding at June 30, 2007 80 - Common
stock, $0.01 par value, 200,000,000 shares authorized, 122,634,167
shares issued and 122,613,582 shares outstanding at June 30, 2007
and 72,942,841 shares issued and outstanding at December 31, 2006 �
� 1,226 729 Additional paid-in capital 1,452,629 708,420
Accumulated other comprehensive income (loss) (14 ) 111 Accumulated
deficit (86,058 ) (67,574 ) Treasury stock, at cost (20,585 shares)
(247 ) - � Total owners' equity 1,367,639 641,709 � � Total
liabilities and owners' equity $ 4,774,525 � $ 2,011,912 � ASHFORD
HOSPITALITY TRUST, INC. EBITDA (In Thousands) (Unaudited) � Three
Months Three Months Six Months Six Months Ended Ended Ended Ended
June 30, 2007 June 30, 2006 June 30, 2007 June 30, 2006 � Net
income $ 21,084 � $ 11,023 � $ 32,575 � $ 18,485 � � Add back:
Interest income (975 ) (566 ) (1,473 ) (1,060 ) Interest expense
and amortization of loan costs 45,469 11,791 62,207 23,741
Depreciation and amortization 60,213 12,374 77,409 23,308 Minority
interest relating to limited partners 1,979 2,091 3,806 3,675
Provision for income taxes 6,903 � 85 � 6,392 � 238 � 113,589
25,775 148,341 49,902 � � � � EBITDA $ 134,673 � $ 36,798 � $
180,916 � $ 68,387 � � For the three months ended June 30, 2007,
EBITDA has not been adjusted to deduct the amortization of the
unfavorable management contract liabilities of approximately
$512,000, the write-off of loan costs and exit fees of
approximately $5.3 million, and gains on sales of properties of
approximately $33.3 million. � For the three months ended June 30,
2006, EBITDA has not been adjusted to add back the write-off of
loan costs of approximately $102,000 and the loss from
reclassification from discontinued to continuing of approximately
$863,000. � For the six months ended June 30, 2007, EBITDA has not
been adjusted to deduct the amortization of the unfavorable
management contract liabilities of approximately $936,000, the
write-off of loan costs and exit fees of approximately $6.0
million, and gains on sales of properties of approximately $34.7
million. � For the six months ended June 30, 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. 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, 2007
June 30, 2006 June 30, 2007 June 30, 2006 � Net income available to
common shareholders $ 14,051 � $ 8,304 $ 22,749 � $ 13,047 � Plus
real estate depreciation and amortization 60,127 12,187 77,243
22,913 Remove gains on sales of properties, net of related income
taxes (26,450 ) - (27,839 ) - Remove minority interest relating to
limited partners 1,979 � 2,091 3,806 � 3,675 FFO available to
common shareholders $ 49,707 � $ 22,582 $ 75,959 � $ 39,635 � Add
back dividends on convertible preferred stock 1,564 1,490 3,128
2,979 Add back write-off of loan costs and exit fees 5,264 102
5,966 788 Add back loss from reclassification of discontinued to
continuing - � 863 - � 863 Adjusted FFO $ 56,535 � $ 25,037 $
85,053 � $ 44,265 � Adjusted FFO per diluted share available to
common shareholders $ 0.44 � $ 0.34 $ 0.76 � $ 0.61 � Diluted
weighted average shares outstanding 129,164,588 � 74,163,787
111,699,534 � 72,744,204 ASHFORD HOSPITALITY TRUST, INC. CASH
AVAILABLE FOR DISTRIBUTION ("CAD") (In Thousands, Except Per Share
Amounts) (Unaudited) � Three Months Three Months Ended Ended June
30, 2007 (per diluted share) June 30, 2006 (per diluted share) �
Net income available to common shareholders $ 14,051 $ 0.11 $ 8,304
$ 0.11 Add back dividends on convertible preferred stock 1,564 �
0.01 � 1,490 � 0.02 � Total $ 15,615 $ 0.12 $ 9,794 $ 0.13 � Plus
real estate depreciation and amortization 60,127 $ 0.47 12,187 $
0.16 Remove minority interest relating to limited partners 1,979
0.02 2,091 0.03 Plus stock-based compensation 1,907 0.01 1,770 0.02
Plus amortization of loan costs 2,263 0.02 461 0.01 Plus write-off
of loan costs and exit fees 5,264 0.04 102 0.00 Plus loss from
reclassification of discontinued to continuing - 0.00 863 0.01 Less
amortization of unfavorable management contract liabilities (512 )
(0.00 ) - 0.00 Less gains on sales of properties, net of related
income taxes (26,450 ) (0.20 ) - 0.00 Less capital improvements
reserve (14,804 ) (0.11 ) (4,560 ) (0.06 ) CAD $ 45,389 � $ 0.35 �
$ 22,708 � $ 0.31 � � � Six Months Six Months Ended Ended June 30,
2007 (per diluted share) June 30, 2006 (per diluted share) � Net
income available to common shareholders $ 22,749 $ 0.20 $ 13,047 $
0.18 Add back dividends on convertible preferred stock 3,128 � 0.03
� 2,979 � 0.04 � Total $ 25,877 $ 0.23 $ 16,026 $ 0.22 � Plus real
estate depreciation and amortization 77,243 $ 0.69 22,913 $ 0.31
Remove minority interest relating to limited partners 3,806 0.03
3,675 0.05 Plus stock-based compensation 2,966 0.03 2,710 0.04 Plus
amortization of loan costs 2,923 0.03 975 0.01 Plus write-off of
loan costs and exit fees 5,966 0.05 788 0.01 Plus loss from
reclassification of discontinued to continuing - 0.00 863 0.01 Less
amortization of unfavorable management contract liabilities (936 )
(0.01 ) - 0.00 Less gains on sales of properties, net of related
income taxes (27,839 ) (0.25 ) - 0.00 Less capital improvements
reserve (20,491 ) (0.18 ) (7,953 ) (0.11 ) CAD $ 69,515 � $ 0.62 �
$ 39,997 � $ 0.55 � ASHFORD HOSPITALITY TRUST, INC. KEY PERFORMANCE
INDICATORS - PRO FORMA (Unaudited) � Three Months Ended Six Months
Ended June 30, June 30, � 2007 � 2006 � % Variance 2007 � 2006 � %
Variance � � ALL HOTELS INCLUDED IN CONTINUING OPERATIONS: � Room
revenues(1) $ 277,105,842 $ 261,681,090 5.89 % $ 534,569,682 $
505,953,006 5.66 % RevPAR(1) $ 110.44 $ 104.35 5.83 % $ 106.89 $
100.81 6.03 % Occupancy 78.17 % 78.14 % 0.04 % 74.85 % 75.22 %
-0.50 % ADR $ 141.28 $ 133.54 5.79 % $ 142.82 $ 134.02 6.56 % � �
NOTE: The above pro forma table assumes the 118 hotel properties
owned and included in continuing operations at June 30, 2007 were
owned as of the beginning of the periods presented. � � Three
Months Ended Six Months Ended June 30, June 30, � 2007 � 2006 � %
Variance 2007 � 2006 � % Variance � � ALL HOTELS NOT UNDER
RENOVATION INCLUDED IN CONTINUING OPERATIONS: � Room revenues(1) $
264,663,966 $ 248,466,431 6.52 % $ 511,262,362 $ 481,892,097 6.09 %
RevPAR(1) $ 110.24 $ 103.55 6.47 % $ 106.84 $ 100.33 6.49 %
Occupancy 78.34 % 77.93 % 0.53 % 75.03 % 75.16 % -0.17 % ADR $
140.72 $ 132.88 5.90 % $ 142.41 $ 133.50 6.67 % � � NOTE: The above
pro forma table assumes the 114 hotel properties owned and included
in continuing operations at June 30, 2007 but not under renovation
for the three and six months ended June 30, 2007 were owned as of
the beginning of the periods presented. � Excluded Hotels Under
Renovation: Radisson City Center - Indianapolis, Sea Turtle Inn
Jacksonville, Hyatt Dulles, JW Marriott San Francisco � (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 months ended March 31, 2007 compared to the same 2006 period.
� ASHFORD HOSPITALITY TRUST, INC. Pro Forma Hotel RevPAR by Region
(Unaudited) � Three Months Ended Six Months Ended Percent June 30,
June 30, Change in RevPAR Region Number of Hotels � Number of Rooms
2007 2006 2007 2006 � Quarter YTD � Pacific(1) 23 5,818 $119.61
$110.42 $114.63 $106.17 8.3% 8.0% Mountain(2) 8 1,597 $103.52
$99.22 $113.96 $108.36 4.3% 5.2% West North Central(3) 4 786 $91.25
$86.08 $85.86 $81.38 6.0% 5.5% West South Central(4) 12 2,955
$103.63 $90.47 $104.10 $90.23 14.5% 15.4% East North Central(5) 10
2,557 $85.92 $82.47 $79.85 $79.87 4.2% 0.0% East South Central(6) 3
441 $92.06 $92.87 $88.77 $88.27 -0.9% 0.6% Middle Atlantic(7) 10
2,558 $112.75 $102.49 $100.36 $92.79 10.0% 8.2% South Atlantic(8)
43 9,195 $118.46 $114.77 $117.36 $112.62 3.2% 4.2% New England(9) 4
458 $72.71 $70.91 $63.83 $58.08 2.5% 9.9% Canada 1 607 $111.78
$125.75 $81.61 $91.02 -11.1% -10.3% � � � � � � � � Total Portfolio
118 26,971 $110.44 $104.35 $106.89 $100.81 5.8% 6.0% � (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 118 hotel properties owned and included in continuing
operations as of June 30, 2007 were owned as of the beginning of
the periods presented. ASHFORD HOSPITALITY TRUST, INC. Pro Forma
Hotel RevPAR by Brand (Unaudited) � Three Months Ended Six Months
Ended Percent June 30, June 30, Change in RevPAR Brand Number of
Hotels Number of Rooms � 2007 2006 2007 2006 � Quarter YTD � Hilton
38 8,227 $117.84 $108.90 $116.72 $106.50 8.2% 9.6% Hyatt 5 2,591
$103.29 $98.64 $99.24 $96.00 4.7% 3.4% InterContinental 2 420
$151.24 $137.66 $160.94 $145.13 9.9% 10.9% Independent 2 317 $82.77
$94.93 $73.77 $83.71 -12.8% -11.9% Marriott 62 12,988 $108.72
$103.88 $104.97 $101.07 4.7% 3.9% Radisson 3 686 $68.06 $72.66
$59.01 $60.47 -6.3% -2.4% Starwood 6 1,742 $104.20 $97.27 $89.49
$82.82 7.1% 8.1% � � � � � � � � Total Portfolio 118 26,971 $110.44
$104.35 $106.89 $100.81 5.8% 6.0% � NOTE: The above pro forma table
assumes the 118 hotel properties owned and included in continuing
operations as of June 30, 2007 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, 2007 � June 30, 2006 � % Variance June 30, 2007 �
June 30, 2006 � % Variance � REVENUE Rooms(1) $ 277,106 $ 261,681
5.89% $ 534,570 $ 505,953 5.66% Food and beverage 84,889 80,805
5.05% 162,222 153,489 5.69% Other 17,387 17,212 1.02% 33,995 33,475
1.55% Total hotel revenue 379,382 359,698 5.47% 730,787 692,917
5.47% � EXPENSES Hotel operating expenses Rooms(1) 59,656 58,554
1.88% 115,461 114,087 1.20% Food and beverage 59,461 57,418 3.56%
116,585 111,853 4.23% Other direct 8,828 9,101 -3.00% 17,191 17,685
-2.79% Indirect 95,811 89,347 7.23% 188,934 178,659 5.75%
Management fees, includes base and incentive fees 18,227 17,025
7.06% 32,862 31,253 5.15% Total hotel operating expenses 241,983
231,445 4.55% 471,033 453,537 3.86% � Property taxes, insurance,
and other 20,130 18,846 6.81% 39,289 36,048 8.99% � � � � � � HOTEL
OPERATING PROFIT (Hotel EBITDA) $ 117,269 $ 109,407 7.19% $ 220,465
$ 203,332 8.43% � Minority interest in consolidated joint ventures
$ 7,656 $ 7,048 8.63% $ 15,206 $ 13,901 9.39% HOTEL OPERATING
PROFIT (Hotel EBITDA), excluding minority interest in joint
ventures $ 109,613 $ 102,359 7.09% $ 205,259 $ 189,431 8.36% � �
NOTE: The above pro forma table assumes the 118 hotel properties
owned and included in continuing operations at June 30, 2007 were
owned as of the beginning of the periods presented. � � ALL HOTELS
NOT UNDER RENOVATION INCLUDED IN CONTINUING OPERATIONS: � Three
Months Ended Six Months Ended June 30, 2007 � June 30, 2006 � %
Variance June 30, 2007 � June 30, 2006 � % Variance � REVENUE
Rooms(1) $ 264,664 $ 248,466 6.52% $ 511,262 $ 481,892 6.09% Food
and beverage 80,355 75,550 6.36% 153,689 144,063 6.68% Other 16,495
16,449 0.28% 32,357 31,908 1.41% Total hotel revenue 361,514
340,465 6.18% 697,308 657,863 6.00% � EXPENSES Hotel operating
expenses Rooms(1) 56,674 55,404 2.29% 109,531 108,224 1.21% Food
and beverage 56,006 53,411 4.86% 109,924 104,544 5.15% Other direct
8,604 8,831 -2.57% 16,764 17,190 -2.48% Indirect 90,714 84,948
6.79% 179,322 169,869 5.56% Management fees, includes base and
incentive fees 17,498 16,219 7.89% 31,526 29,755 5.95% Total hotel
operating expenses 229,496 218,813 4.88% 447,067 429,582 4.07% �
Property taxes, insurance, and other 19,083 17,767 7.41% 37,165
34,126 8.91% � � � � � � HOTEL OPERATING PROFIT (Hotel EBITDA) $
112,935 $ 103,885 8.71% $ 213,076 $ 194,155 9.75% � Minority
interest in consolidated joint ventures $ 7,656 $ 7,048 8.63% $
15,206 $ 13,901 9.39% HOTEL OPERATING PROFIT (Hotel EBITDA),
excluding minority interest in joint ventures $ 105,279 $ 96,837
8.72% $ 197,870 $ 180,254 9.77% � � NOTE: The above pro forma table
assumes the 114 hotel properties owned and included in continuing
operations at June 30, 2007 but not under renovation during the
three and six months ended June 30, 2007 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 six months ended June
30, 2007 compared to the same 2006 period. � ASHFORD HOSPITALITY
TRUST, INC. Pro Forma Hotel Operating Profit by Region (In
Thousands) (Unaudited) � Three Months Ended Six Months Ended
Percent Change June 30, June 30, in Hotel Operating Profit Region
Number of Hotels Number of Rooms 2007 � % Total 2006 � % Total 2007
� % Total 2006 � % Total Quarter YTD � Pacific(1) 23 5,818 $28,645
24.4% $25,493 23.3% $53,651 24.3% $48,052 23.6% 12.4% 11.7%
Mountain(2) 8 1,597 $5,937 5.1% $6,292 5.8% $16,015 7.3% $15,345
7.5% -5.6% 4.4% West North Central(3) 4 786 $2,841 2.4% $2,641 2.4%
$5,129 2.3% $4,574 2.2% 7.6% 12.1% West South Central(4) 12 2,955
$11,378 9.7% $7,813 7.1% $23,091 10.5% $17,545 8.6% 45.6% 31.6%
East North Central(5) 10 2,557 $8,661 7.4% $7,946 7.3% $13,235 6.0%
$14,592 7.2% 9.0% -9.3% East South Central(6) 3 441 $1,395 1.2%
$1,567 1.4% $2,712 1.2% $2,847 1.4% -11.0% -4.7% Middle Atlantic(7)
10 2,558 $11,117 9.5% $9,842 9.0% $17,215 7.8% $14,175 7.0% 13.0%
21.4% South Atlantic(8) 43 9,195 $44,162 37.7% $43,885 40.1%
$87,240 39.6% $83,123 40.9% 0.6% 5.0% New England(9) 4 458 $993
0.8% $1,007 0.9% $1,166 0.5% $707 0.3% -1.4% 64.9% Canada 1 607
$2,140 1.8% $2,921 2.7% $1,011 0.5% $2,372 1.2% -26.7% -57.4% � � �
� � � � � � � � � � � � � Total Portfolio 118 26,971 $117,269 �
100.0% $109,407 � 100.0% $220,465 � 100.0% $203,332 � 100.0% 7.2%
8.4% � � (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 118 hotel properties owned and included in
continuing operations as of June 30, 2007 were owned as of the
beginning of the periods presented. ASHFORD HOSPITALITY TRUST, INC.
PRO FORMA HOTEL OPERATING PROFIT MARGIN (Unaudited) � � 114 HOTELS
NOT UNDER RENOVATION AND INCLUDED IN CONTINUING OPERATIONS AT JUNE
30, 2007 AS IF SUCH HOTELS WERE OWNED AS OF THE BEGINNING OF THE
PERIODS PRESENTED: � � HOTEL OPERATING PROFIT (HOTEL EBITDA)
MARGIN: � 2nd Quarter 2007 31.24% 2nd Quarter 2006 30.51% Variance
0.73% � HOTEL OPERATING PROFIT (HOTEL EBITDA) MARGIN VARIANCE
BREAKDOWN: � Rooms 0.60% Food & Beverage and Other Departmental
0.41% Administrative & General 0.00% Sales & Marketing
0.18% Hospitality -0.06% Repair & Maintenance 0.07% Energy
0.14% Franchise Fee -0.30% Management Fee 0.00% Incentive
Management Fee -0.07% Insurance 0.27% Property Taxes -0.33%
Leases/Other -0.17% Total 0.73% ASHFORD HOSPITALITY TRUST, INC. PRO
FORMA SEASONALITY TABLE (In Thousands) (Unaudited) � � ALL 118
HOTELS OWNED AND INCLUDED IN CONTINUING OPERATIONS AS OF JUNE 30,
2007: � � 2006 2006 2007 2007 � 3rd Quarter 4th Quarter 1st Quarter
2nd Quarter TTM � Total Hotel Revenue 327,260 370,042 351,405
379,382 1,428,088 Hotel EBITDA 86,379 98,299 103,196 117,269
405,144 Hotel EBITDA Margin 26.4% 26.6% 29.4% 30.9% 28.4% � EBITDA
% of Total TTM 21.3% 24.3% 25.5% 28.9% 100.0% � JV Interests in
EBITDA 4,678 5,670 7,550 7,656 25,554 � � NOTE: The above pro forma
table assumes that the 118 hotel properties owned and included in
continuing operations as of June 30, 2007 were owned as of the
beginning of the periods presented. Ashford Hospitality Trust, Inc.
Debt Summary As of June 30, 2007 (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 5.42% � $
455.1 $ - $ 455.1 $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 $300.0
million secured credit facility, matures April 9, 2010, at an
interest rate of LIBOR plus a range of 1.55% to 1.95% depending on
the loan-to-value ratio � - 50.0 50.0 $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 � 51.7 - 51.7
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 six hotel properties, matures
December 11, 2009, at an interest rate of LIBOR plus 1.72% - 184.0
184.0 $928.5 million mortgage loan secured by 28 hotel properties,
matures April 11, 2017, at an average blended interest rate of
5.95% 928.5 - 928.5 $375.0 million loan secured by 18 hotels and
mezzanine notes receivable, matures May 9, 2009, at an interest
rate of LIBOR plus 1.65% - 375.0 375.0 Mortgage loans assumed with
acquisition of CNL portfolio, maturing between 2008 and 2025, with
an average blended interest rate of 5.61% � 436.0 � - � 436.0 �
Total Debt Excluding Premium $ 2,183.8 � $ 609.0 � $ 2,792.8
Mark-to-Market Premium 4.3 Plus Debt Attributable to Joint Venture
Partners 125.0 � Net Debt Including Premium $ 2,922.1 � �
Percentage of Total 78.19 % 21.81 % 100.00 % � Weighted Average
Interest Rate at June 30, 2007 6.09 % ASHFORD HOSPITALITY TRUST,
INC. Capital Expenditures Calendar 118 Core Hotels (a) � � � � � �
� � � � � � � � � 2006 � 2007 Actual Actual Actual Actual Actual
Actual Estimated Estimated Rooms � 1st Quarter � 2nd Quarter � 3rd
Quarter � 4th Quarter � 1st Quarter � 2nd Quarter � 3rd Quarter �
4th Quarter � Doubletree Suites Columbus 194 Embassy Suites East
Syracuse 215 Sheraton Bucks County 187 Hampton Inn Mall of Georgia
92 Sheraton Milford 173 x Hampton Inn Terre Haute 112 Hampton Inn
Evansville 141 Hilton St. Petersburg Bayfront 333 Courtyard
Bloomington 117 Residence Inn Salt Lake City 144 Hilton Fort Worth
294 x Residence Inn Palm Desert 130 Embassy Suites Houston 150 x
Radisson Rockland 127 x Residence Inn San Diego Sorrento Mesa 150 x
Hilton Nassau Bay - Clear Lake 243 x Crowne Plaza Beverly Hills 260
x Radisson City Center - Indianapolis 371 x x x Sheraton
Minneapolis West 222 x x Embassy Suites West Palm Beach 160 x x
Historic Inns of Annapolis 124 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 Courtyard Columbus Tipton
Lakes 90 x Residence Inn Evansville 78 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 Hilton Garden Inn Jacksonville 119 x Marriott at
Research Triangle Park 225 x x Marriott Crystal Gateway 697 x x
Hyatt Dulles 316 x x x x JW Marriott San Francisco 338 x x x
Embassy Suites Las Vegas Airport 220 x x Homewood Suites Mobile 86
x x Hilton Tucson El Conquistador Golf Resort 321 x x Residence Inn
Lake Buena Vista 210 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 Courtyard
Marriott Village LBV 312 x x Sheraton Anchorage 375 x Courtyard
Louisville Airport 150 x Hilton Costa Mesa 340 x Courtyard San
Francisco Downtown 405 x Courtyard Basking Ridge 235 x TownePlace
Suites Manhattan Beach 144 x Embassy Suites Santa Clara - Silicon
Valley 193 x Hampton Inn Jacksonville 118 x Residence Inn
Jacksonville 120 x Hyatt Regency Orange County 654 � � � � � � � �
� � � � � � � x � (a) Only hotels which have had or are expected to
have significant capital expenditures during 2006 or 2007 are
included in this table.
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