Ashford Hospitality Trust, Inc. (NYSE:AHT) today reported the
following results and performance measures for the first quarter
ended March 31, 2008. 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 109 hotels owned and included in continuing operations as
of March 31, 2008, which excludes 1 hotel asset as of that date.
Unless otherwise stated, all reported results compare the first
quarter ended March 31, 2008, with the first quarter ended March
31, 2007. The reconciliation of non-GAAP financial measures is
included in the financial tables accompanying this press release.
FINANCIAL HIGHLIGHTS Total revenue increased 111.4% to $314.5
million from $148.7 million Net loss available to common
shareholders was $833,000, or $0.01 per diluted share Adjusted
funds from operations (AFFO) increased 39.6% to $39.9 million AFFO
per diluted share was $0.29 Cash available for distribution (CAD)
increased 26.7% to $30.6 million CAD per diluted share was $0.22
Declared quarterly common dividend of $0.21 per diluted share AFFO
Dividend coverage was 136% for the quarter CAD Dividend coverage
was 105% STRONG INTERNAL GROWTH Proforma RevPAR increased 2.6% for
hotels not under renovation on a 3% increase in ADR to $145.53 and
a 26-basis point decline in occupancy Proforma RevPAR increased
0.8% for all hotels on a 3.3% increase in ADR to $147.43 and a
168-basis point decline in occupancy Proforma Hotel Operating
Profit for hotels not under renovation improved 6.5% Proforma Hotel
Operating Profit margin for hotels not under renovation improved 80
basis points CAPITAL RECYCLING AND ASSET ALLOCATION Capex invested
in the first quarter totaled $32.6 million Two hotels and one
office building sold in the first quarter for $81 million One hotel
under contract for sales price of $78 million PORTFOLIO REVPAR
GROWTH As of March 31, 2008, the Company had a portfolio of direct
hotel investments consisting of 109 properties classified in
continuing operations. During the first quarter, 96 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 109 hotels) and proforma
not-under-renovation basis (96 hotels) is a measure that reflects a
meaningful and focused comparison of the operating results in its
direct hotel portfolio. The Company's reporting by region and brand
includes the results of all 109 hotels in continuing operations.
Details of each category are provided in the tables attached to
this release. RevPAR growth by region was led by: New England (4
hotels) with 13.8%; Canada (1) with 10.4% ; East South Central (2)
with 5.9%; West South Central (11) with a 4.3% increase; Mountain
(8) with 2.2%; Middle Atlantic (10) with 1.2%; Pacific (22) with
0.5%; South Atlantic (38) with 0.4% decrease; East North Central
(10) with 1.4% decrease; and West North Central (3) with 4.6%
decrease. RevPAR growth by brand was led by: Radisson (2 hotels)
with 4.6%; Marriott (57) with 4.1%; Hyatt (4) with 0.9%; Hilton
(35) with 1.0% decrease; Starwood (7) with 3.5% decrease;
InterContinental (2) with 4.5% decrease; and independents (2) with
45.9% decrease. HOTEL EBITDA MARGINS AND QUARTERLY SEASONALITY
TRENDS For the 96 hotels as of March 31, 2008 that were not under
renovation, Proforma Hotel EBITDA (adjusted as if all hotels were
included throughout both periods) increased 6.5% to $80.4 million.
Proforma Hotel EBITDA margin (expressed as a percentage of Total
Hotel Revenue) improved 80 basis points to 30.0%. For all 109
hotels included in continuing operations as of March 31, 2008,
Proforma Hotel EBITDA increased 0.4% to $88.9 million and Hotel
EBITDA margin decreased 37 basis points to 28.2%. 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. The details
of the quarterly calculations for the previous four quarters for
the current portfolio of 109 hotels included in continuing
operations are provided in the tables attached to this release.
Monty J. Bennett, President and CEO, commented, "In the lodging
industry today we see RevPAR growth continuing to slow due to
economic headlines weighing heavily on both business and leisure
travelers. Historically a weaker seasonality period for our
portfolio, the first quarter comparisons also suffered from a shift
of the Easter holiday to March this year compared to April last
year. However, we were still able to execute our contingency plans
to deliver positive RevPAR and operating margin growth for our
hotels not under renovation." CAPITAL STRUCTURE On March 12, 2008,
the Company executed a five-year swap on $1.8 billion of fixed-rate
debt at a weighted average interest rate of 5.84% for a floating
interest rate of LIBOR plus 264 basis points, or an equivalent
savings of 34 basis points assuming the March 12 LIBOR rate of
2.86%. In conjunction with the swap execution, Ashford sold a
five-year LIBOR floor notional amount of $1.8 billion at 1.25% and
purchased a LIBOR cap notional amount of $1 billion at 3.75% for
the first three years. The net upfront cost of the swap, LIBOR cap,
and floor transactions was approximately $4.6 million and was
capitalized as an asset on the Balance Sheet. The unrealized change
in market value of this transaction will be reflected in the
Statement of Operations each quarter. The Company will continue to
monitor additional interest rate cap transactions as conditions
warrant. At March 31, 2008, the Company's net debt (defined as
total debt less unrestricted cash) to total gross assets (defined
as un-depreciated investment in hotel property plus notes
receivable) was 61.5%. Following the $1.8 billion interest rate
swap, the Company�s $2.7 billion debt balance, as of March 31,
2008, consisted of 89% of floating-rate debt, with a total weighted
average interest rate of 5.19%. The Company�s weighted average debt
maturity including extension options is 6.5 years. FIRST QUARTER
INVESTMENT ACTIVITY On January 2, 2008, the Company originated a
$7.1 million mezzanine loan secured by an interest in the Hotel La
Jolla in La Jolla, California. Maturing January 2011, the loan
bears interest at a rate of 900 basis points over LIBOR, with
interest-only payments through maturity. On January 11, 2008, the
Company sold its JW Marriott in New Orleans, Louisiana, for
approximately $67.5 million. As the Company acquired this property
on April 11, 2007, no gain or loss will be recognized on this sale.
In connection with this sale, the buyer assumed approximately $43.5
million mortgage debt, payable at an 8.08% interest rate, due
August 1, 2010. On January 22, 2008, the Company formed a joint
venture with Prudential Real Estate Investors (�PREI�) to invest in
structured debt and equity hotel investments in the United States.
The joint venture, which is expected to be funded over the next two
years, will ultimately be capitalized with $300 million from
investors in a fund managed by PREI and $100 million from the
Company. The Company and PREI will contribute the capital required
for each mezzanine investment on a 25%/75% basis, respectively. The
joint venture has currently funded $91.4 million of mezzanine
investments. The Company will be entitled to annual management and
sourcing fees, reimbursement of expenses, and a promoted yield
equal to a current 1.3x the venture yield subject to maximum
threshold limitations, but further enhanced by an additional
promote based upon a total net return to PREI. PREI�s equity will
be in a senior position on each investment. With limited
exceptions, the joint venture will be the primary vehicle for the
Company�s hotel lending efforts. The joint venture will have the
right of first refusal on all mezzanine investment opportunities
presented by the Company, provided the investment meets certain
criteria. On February 6, 2008, PREI acquired a 75% interest in the
Company�s $21.5 million Westin Tucson and Westin Hilton Head
mezzanine loan receivable, which the Company originated December 5,
2007, and matures January 2018. On February 6, 2008, the Company
acquired a $38.0 million mezzanine loan secured by the Ritz-Carlton
Key Biscayne in Miami, Florida, for approximately $33.0 million.
Maturing in June 2017, the loan bears interest at a rate of 9.66%
at par with an expected yield to the maturity to the Company of
approximately 12.5%. This loan is wholly owned by the Company. On
February 14, 2008, the Company�s joint venture with PREI acquired a
senior mezzanine loan secured by a 29-hotel portfolio of full- and
select-service hotels related to the JER Partners acquisition of
Highland Hospitality. The Company�s 25% of the joint venture
investment equals $17.5 million and is priced to yield
approximately 18.3% based upon the purchase price discount to par,
the forward LIBOR curve through the initial maturity of the loan,
and the joint venture promote. On February 29, 2009, the Company
sold its building held for sale in Fort Worth, Texas for
approximately $4.1 million. On March 25, 2008, the Company sold its
Sheraton Iowa City Hotel in Iowa City, Iowa, for approximately $9.5
million. SUBSEQUENT INVESTMENT ACTIVITY On March 26, 2008, the
Company placed under contract its Hyatt Dulles Airport in Herndon,
Virginia, for a sales price of $78 million. Accordingly this
property was reclassified to Discontinued Operations. The
transaction is expected to close in June 2008. INVESTMENT OUTLOOK
Mr. Bennett concluded, �We remain focused on two core strategies.
The first is to enhance dividend coverage by growing EBITDA and
swapping our debt to floating rate during these tougher economic
times. We look to grow EBITDA by implementing our hotel asset
contingency plans to cut costs, appealing all property tax
assessments, locking down our insurance for two years, and
continuing to lock down energy costs for 18 � 24 months. The second
strategy involves capital allocation. We continue to harvest or
preserve capital by selling hotel assets, cutting back on
discretionary capex programs, and creating joint ventures while
deploying capital into debt reduction, share buybacks, and
mezzanine investments. These strategies serve to protect the
dividend while also improving our asset profile.� INVESTOR
CONFERENCE CALL AND SIMULCAST Ashford Hospitality Trust, Inc. will
conduct a conference call on Thursday, May 1, 2008, at 11:00 a.m.
ET. The number to call for this interactive teleconference is (303)
262-2142. A replay of the conference call will be available through
May 8, 2008, by dialing (303)�590-3000 and entering the
confirmation number, 11111805#. The Company will also provide an
online simulcast and rebroadcast of its first quarter 2008 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 on Thursday, May 1, 2008, beginning at 11:00
a.m. ET. The online replay will follow shortly after the call and
continue for approximately one year. A direct link to the live
broadcast can be found at:
http://www.videonewswire.com/event.asp?id=47145. 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 assist 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 satisfy 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. AND SUBSIDIARIES CONSOLIDATED BALANCE
SHEETS (in thousands, except share amounts) � � � � March 31,
December 31, 2008 2007 (Unaudited) � ASSETS Investment in hotel
properties, net $ 3,824,097 $ 3,885,737 Cash and cash equivalents
94,424 92,271 Restricted cash 46,735 52,872 Accounts receivable,
net 63,968 51,314 Inventories 4,107 4,100 Assets held for sale
68,647 75,739 Notes receivable 112,462 94,225 Investment in
unconsolidated joint venture 23,557 - Deferred costs, net 23,597
25,714 Prepaid expenses 18,655 20,223 Other assets 14,281 6,027
Intangible assets, net 3,144 13,889 Due from third-party hotel
managers 55,991 � 59,505 � � Total assets $ 4,353,665 � $ 4,381,616
� � LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Indebtedness $
2,664,850 $ 2,639,546 Indebtedness related to assets held for sale
47,450 61,229 Capital leases payable 426 498 Accounts payable
50,254 55,177 Accrued expenses 68,768 69,519 Dividends payable
35,115 35,031 Deferred income 379 254 Deferred incentive management
fees 3,514 3,557 Unfavorable management contract liabilities 22,832
23,396 Other liabilities 4,565 4,703 Due to third-party hotel
managers 4,185 5,904 Due to related parties 3,356 � 2,732 � � Total
liabilities 2,905,694 � 2,901,546 � � Minority interest in
consolidated joint ventures 18,333 19,036 Minority interest in
operating partnership 98,804 101,031 Series B Cumulative
Convertible Redeemable Preferred stock, 7,447,865 issued and
outstanding 75,000 75,000 � Shareholders' Equity: Preferred stock,
$0.01 par value, 50,000,000 shares authorized: Series A Cumulative
Preferred Stock, 2,300,000 issued and outstanding 23 23 Series D
Cumulative Preferred Stock, 8,000,000 issued and outstanding 80 80
Common stock, $0.01 par value, 200,000,000 shares authorized,
122,754,192 shares issued and 119,723,972 shares outstanding at
March 31, 2008 and 122,765,691 shares issued and 120,376,055 shares
outstanding at December 31, 2007 � � 1,228 1,228 Additional paid-in
capital 1,456,886 1,455,917 Accumulated other comprehensive loss
(252 ) (115 ) Accumulated deficit (179,639 ) (153,664 ) Treasury
stock, at cost (3,030,220 shares at March 31, 2008 and 2,389,636
shares at December 31, 2007) (22,492 ) (18,466 ) � Total
shareholders' equity 1,255,834 � 1,285,003 � � Total liabilities
and owners' equity $ 4,353,665 � $ 4,381,616 � ASHFORD HOSPITALITY
TRUST, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts) � � � � Three Months Ended
March 31, � Ended 2008 2007 (Unaudited) REVENUE Rooms $ 225,602 $
110,000 Food and beverage 69,511 30,136 Rental income from
operating leases 1,347 - Other 14,253 � 4,923 � � Total hotel
revenue 310,713 145,059 Interest income from notes receivable 3,255
3,355 Asset management fees and other 522 � 331 � � Total Revenue
314,490 � 148,745 � � EXPENSES Hotel operating expenses Rooms
50,488 24,306 Food and beverage 49,186 21,828 Other direct 7,742
2,321 Indirect 86,481 42,066 Management fees 12,093 � 5,337 � �
Total hotel expenses 205,990 95,858 � Property taxes, insurance,
and other 16,227 7,769 Depreciation and amortization 45,570 16,237
Corporate general and administrative Stock-based compensation 1,609
1,059 Other general and administrative 6,095 � 3,535 � � Total
Operating Expenses 275,491 � 124,458 � � OPERATING INCOME 38,999
24,287 � Equity earnings in unconsolidated joint venture 526 -
Interest income 546 498 Other income 296 - Interest expense (37,853
) (15,140 ) Amortization of loan costs (1,768 ) (635 ) Write-off of
loan costs and exit fees - (491 ) Unrealized gains (losses) on
derivatives 4,049 � (35 ) � INCOME BEFORE INCOME TAXES AND MINORITY
INTERESTS 4,795 8,484 Income tax (expense) benefit (410 ) 1,148
Minority interests in earnings of consolidated joint ventures (67 )
- Minority interests in earnings of operating partnership (400 )
(1,442 ) � INCOME FROM CONTINUING OPERATIONS 3,918 8,190 Income
from discontinued operations, net 2,267 � 3,301 � � NET INCOME
6,185 11,491 Preferred dividends (7,018 ) (2,793 ) � NET INCOME
(LOSS) AVAILABLE TO COMMON SHAREHOLDERS $ (833 ) $ 8,698 � � INCOME
(LOSS) AVAILABLE TO COMMON SHAREHOLDERS PER SHARE: Basic - (Loss)
income from continuing operations available to common shareholders
$ (0.03 ) $ 0.07 Income from continuing operations 0.02 � 0.05 � �
Net (loss) income available to common shareholders $ (0.01 ) $ 0.12
� Diluted - (Loss) income from continuing operations available to
common shareholders $ (0.03 ) $ 0.07 Income from continuing
operations 0.02 � 0.05 � � Net (loss) income available to common
shareholders $ (0.01 ) $ 0.12 � Weighted Average Common Shares
Outstanding: Basic 118,855 � 72,042 � Diluted 118,855 � 72,449 �
ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES RECONCILIATION OF
NET INCOME TO EBITDA (in thousands, except per share amounts and
ratios) � � � Three Months Ended March 31, 2008 2007 (Unaudited) �
Net income $ 6,185 $ 11,491 � Interest income (546 ) (498 )
Interest expense and amortization of loan costs 40,590 16,738
Depreciation and amortization 46,326 17,196 Minority interest in
earnings of operating partnership 631 1,827 Income tax expense
(benefit) 410 � (509 ) � EBITDA $ 93,596 � $ 46,245 � � � NOTE: For
the three months ended March 31, 2008, EBITDA has not been adjusted
to deduct the amortization of the unfavorable management contract
liabilities of $565,000, the gains on sales of properties of
$889,000, the unrealized gains on derivatives of $4.0 million, and
the write-off of loan costs, premiums and exit fees of $1.9
million. � � RECONCILIATION OF NET INCOME TO FUNDS FROM OPERATIONS
("FFO") (in thousands) � � Three Months Ended March 31, 2008 2007
(Unaudited) � Net income $ 6,185 $ 11,491 Preferred dividends
(7,018 ) (2,793 ) � Net (loss) income available to common
shareholders (833 ) 8,698 � Depreciation and amortization 45,298
17,116 Gains on sales of hotel properties, net of related income
taxes (889 ) (1,388 ) Minority interest in earnings of operating
partnership 631 � 1,827 � � FFO available to common shareholders
44,207 26,253 � Dividends on convertible preferred stock 1,564
1,564 Write-off of loan costs, premiums and exit fees(1) (1,862 )
703 Unrealized (gains) losses on derivatives (4,049 ) 35 � �
Adjusted FFO $ 39,860 � $ 28,555 � � Adjusted FFO per diluted share
available to common shareholders $ 0.29 � $ 0.31 � � Weighted
average diluted shares 139,770 � 93,409 � � Dividend coverage 136 %
146 % � � (1) For the three months ended March 31, 2008, the amount
includes a write-off of debt premium of $2,086,000 at the sale of
JW Marriott, New Orleans. As a result, it increased net income by
that amount. � ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES
CASH AVAILABLE FOR DISTRIBUTION ("CAD") (in thousands, except per
share amounts) � � � � � � Three Months Per Three Months Per Ended
Diluted Ended Diluted March 31, 2008 Share March 31, 2007 Share
(Unaudited) � Net (loss) income available to common shareholders $
(833 ) $ (0.01 ) $ 8,698 $ 0.09 Dividends on convertible preferred
stock 1,564 � 0.01 � 1,564 � 0.02 � � Total 731 0.01 10,262 0.11 �
Depreciation and amortization 45,298 0.32 17,116 0.18 Minority
interest in earnings of operating partnership 631 0.00 1,827 0.02
Stock-based compensation 1,609 0.01 1,059 0.01 Amortization of loan
costs 1,803 0.01 659 0.01 Write-off of loan costs, premiums and
exit fees(1) (1,862 ) (0.01 ) 703 0.01 Amortization of unfavorable
management contract liabilities (565 ) (0.00 ) (424 ) (0.00 ) Gains
on sales of properties, net of related income taxes (889 ) (0.01 )
(1,388 ) (0.01 ) Unrealized (gains) losses on derivatives (4,049 )
(0.03 ) 35 0.00 Capital improvements reserve (12,099 ) (0.09 )
(5,687 ) (0.06 ) � CAD $ 30,608 � $ 0.22 � $ 24,162 � $ 0.26 � � �
(1) For the three months ended March 31, 2008, the amount includes
a write-off of debt premium of $2,086,000 at the sale of JW
Marriott, New Orleans. As a result, it increased net income by that
amount. ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES DEBT
SUMMARY MARCH 31, 2008 (dollars in thousands) (Unaudited) � � � � �
� Fixed-Rate Floating-Rate Total Debt Debt Debt � Mortgage loan
secured by 25 hotel properties, matures between July 1, 2015 and
February 1, 2016, at an average interest rate of 5.42% � $ 455,115
$ - $ 455,115 Term loan secured by 16 hotel properties, matures
between December 11, 2014 and December 11, 2015, at an average
interest rate of 5.73% � 211,475 - 211,475 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, with two
one-year extension options � - 140,000 140,000 Term loan secured by
one hotel property, matures October 10, 2008, at an interest rate
of LIBOR plus 2.0%, with three one-year three one-year extension
options � - 47,450 47,450 Mortgage loan secured by one hotel
property, matures December 1, 2017, at an interest rate of 7.39%
49,797 - 49,797 Mortgage loan secured by one hotel property,
matures December 8, 2016, at an interest rate of 5.81% 101,000 -
101,000 Mortgage loan secured by five hotel properties, matures
December 11, 2009, at an interest rate of LIBOR plus 1.72%, with
two one-year extension options � - 168,400 168,400 Mortgage loan
secured by 28 hotel properties, matures April 11, 2017, at an
average blended interest rate of 5.95% 928,465 - 928,465 Loan
secured by 13 hotel, matures May 9, 2009, at an interest rate of
LIBOR plus 1.65%, with three one-year extension options - 213,889
213,889 Mortgage loans secured by 15 hotel properties, mature
between 2008 and 2018, with an average blended interest rate of
5.86% 360,341 � - � 360,341 � � Total Debt Excluding Premium $
2,106,193 � $ 569,739 � 2,675,932 � Mark-to-Market Premium 1,584
Plus Debt Attributable to Joint Venture Partners 34,784 � � Total
Debt Including Premium $ 2,712,300 � � Percentage 78.7 % 21.3 %
100.0 % � Weighted average interest rate at March 31, 2008 5.52 % �
Total with the effect of interest rate swap at March 31, 2008 $
306,193 � $ 2,369,739 � $ 2,675,932 � � Percentage with the effect
of interest rate swap at March 31, 2008 11.4 % 88.6 % 100.0 % �
Weighted average interest rate with the effect of interest rate
swap at March 31, 2008 5.19 % ASHFORD HOSPITALITY TRUST, INC. KEY
PERFORMANCE INDICATORS - PRO FORMA (Unaudited) � � � � Three Months
Ended March 31, 2008 2007 % Variance � ALL HOTELS INCLUDED IN
CONTINUING OPERATIONS: � Room revenues (in thousands) $ 230,489 $
226,959 1.56 % RevPAR $ 102.33 $ 101.50 0.82 % Occupancy 69.41 %
71.09 % -1.68 % ADR $ 147.43 $ 142.78 3.26 % � � NOTE: The above
pro forma table assumes the 109 hotel properties owned and included
in continuing operations at March 31, 2008 were owned as of the
beginning of period presented. � � Three Months Ended March 31,
2008 2007 % Variance � ALL HOTELS NOT UNDER RENOVATION INCLUDED IN
CONTINUING OPERATIONS: � Room revenues (in thousands) $ 196,081 $
189,687 3.37 % RevPAR $ 102.85 $ 100.24 2.60 % Occupancy 70.67 %
70.93 % -0.26 % ADR $ 145.53 $ 141.32 2.98 % � � NOTE: The above
pro forma table assumes the 96 hotel properties owned and included
in continuing operations at March 31, 2008 but not under renovation
for the three months ended March 31, 2008 were owned as of the
beginning of the periods presented. � Excluded Hotels Under
Renovation: Sea Turtle Inn Jacksonville, Marriott at RTP Durham, JW
Marriott San Francisco, Marriott Gateway Arlington, Sheraton San
Diego Mission Valley, Hilton Minneapolis Airport, Embassy Suites
Philadelphia Airport, Embassy Suites Walnut Creek, Sheraton Hotel
Anchorage, Embassy Suites Santa Clara, Courtyard by Marriott
Basking Ridge, TownePlace Suites by Marriott Manhattan Beach,
Courtyard by Marriott San Francisco � OTHER NOTE: As the Company's
Courtyard by Marriott hotel in Philadephia, Pennsylvania, is leased
to a third-party tenant on a triple-net lease basis, the Company
only records rental income related to this operating lease for GAAP
purposes. However, the above pro forma tables, all room revenues
related to this hotel are reflected, which is consistent with the
Company's other hotels. ASHFORD HOSPITALITY TRUST, INC. PRO FORMA
HOTEL OPERATING PROFIT (dollars in thousands) (Unaudited) � � � �
ALL HOTELS INCLUDED IN CONTINUING OPERATIONS: � Three Months Ended
March 31, 2008 2007 % Variance REVENUE Rooms $ 230,489 $ 226,959
1.6 % Food and beverage 70,225 67,594 3.9 % Other 14,316 15,004
-4.6 % Total hotel revenue 315,030 309,557 1.8 % � EXPENSES Rooms
51,571 50,793 1.5 % Food and beverage 49,748 49,617 0.3 % Other
direct 7,804 7,769 0.5 % Indirect 86,832 82,552 5.2 % Management
fees, includes base and incentive fees 13,708 13,517 1.4 % Total
hotel operating expenses 209,663 204,248 2.7 % Property taxes,
insurance, and other 16,496 16,830 -2.0 % HOTEL OPERATING PROFIT
(Hotel EBITDA) 88,871 88,479 0.4 % Minority interest in earnings of
consolidated joint ventures 1,754 1,657 5.9 % HOTEL OPERATING
PROFIT (Hotel EBITDA), excluding minority interest in joint
ventures $ 87,117 $ 86,822 0.3 % � � NOTE: The above pro forma
table assumes the 109 hotel properties owned and included in
continuing operations at March 31, 2008 were owned as of the
beginning of the periods presented. � � ALL HOTELS NOT UNDER
RENOVATION INCLUDED IN CONTINUING OPERATIONS: � Three Months Ended
March 31, 2008 2007 % Variance REVENUE Rooms(1) $ 196,081 $ 189,687
3.4 % Food and beverage 58,959 55,400 6.4 % Other 12,645 13,088
-3.4 % Total hotel revenue 267,685 258,175 3.7 % � EXPENSES
Rooms(1) 42,772 41,782 2.4 % Food and beverage 40,849 40,356 1.2 %
Other direct 6,713 6,702 0.2 % Indirect 70,962 68,723 3.3 %
Management fees, includes base and incentive fees 12,053 11,043 9.1
% Total hotel operating expenses 173,349 168,606 2.8 % Property
taxes, insurance, and other 13,962 14,109 -1.0 % HOTEL OPERATING
PROFIT (Hotel EBITDA) 80,374 75,460 6.5 % Minority interest in
earnings of consolidated joint ventures 1,754 1,657 5.9 % HOTEL
OPERATING PROFIT (Hotel EBITDA), excluding minority interest in
joint ventures $ 78,620 $ 73,803 6.5 % � � (1) The above pro forma
table assumes the 96 hotel properties owned and included in
continuing operations at March 31, 2008 but not under renovation
during the three months ended March 31, 2008 were owned as of the
beginning of the periods presented. � NOTE: As the Company�s
Courtyard by Marriott hotel in Philadelphia, Pennsylvania, is
leased to a third-party tenant on a triple-net lease basis, the
Company only records rental income related to this operating lease
for GAAP purposes. However, in the above pro forma tables, all
operating results related to this hotel are reflected, which is
consistent with the Company's other hotels. ASHFORD HOSPITALITY
TRUST, INC. PRO FORMA HOTEL REVPAR BY REGION (Unaudited) � � � � �
� � Three Months Ended Number of Number of March 31, Region Hotels
Rooms 2008 2007 % Change � Pacific(1) 22 5,864 $ 110.43 $ 109.85
0.5 % Mountain(2) 8 1,704 $ 127.24 $ 124.47 2.2 % West North
Central(3) 3 690 $ 79.43 $ 83.24 -4.6 % West South Central(4) 11
2,586 $ 105.38 $ 101.01 4.3 % East North Central(5) 10 2,624 $
72.68 $ 73.70 -1.4 % East South Central(6) 2 236 $ 89.91 $ 84.90
5.9 % Middle Atlantic(7) 10 2,669 $ 89.00 $ 87.91 1.2 % South
Atlantic(8) 38 7,727 $ 113.35 $ 113.77 -0.4 % New England(9) 4 458
$ 62.41 $ 54.85 13.8 % Canada 1 607 $ 56.41 $ 51.10 10.4 % � � � �
� Total Portfolio 109 25,165 $ 102.33 $ 101.50 0.8 % � � (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 � � OTHER NOTES: (1) The above pro forma
table assumes the 109 hotel properties owned and included in
continuing operations as of March 31, 2008 were owned as of the
beginning of the periods presented. (2) As the Company's Courtyard
by Marriott hotel in Philadelphia, Pennsylvania, is leased to a
third-party tenant on a triple-net lease basis, the Company only
records rental income related to this operating lease for GAAP
purposes. However, in the above pro forma table, all room revenues
related to this hotel are reflected, which is consistent with the
Company's other hotels. ASHFORD HOSPITALITY TRUST, INC. PRO FORMA
HOTEL REVPAR BY BRAND (Unaudited) � � � � � � � Three Months Ended
Number of Number of March 31, Brand Hotels Rooms 2008 2007 % Change
� Hilton 35 8,012 $ 111.98 $ 113.09 -1.0 % Hyatt 4 2,275 $ 92.65 $
91.80 0.9 % InterContinental 2 420 $ 163.12 $ 170.75 -4.5 %
Independent 2 317 $ 34.96 $ 64.67 -45.9 % Marriott 57 11,713 $
104.79 $ 100.70 4.1 % Radisson 2 315 $ 47.05 $ 44.98 4.6 % Starwood
7 2,113 $ 68.55 $ 71.00 -3.5 % � � � � � Total Portfolio 109 25,165
$ 102.33 $ 101.50 0.8 % � � NOTES: (1) The above pro forma table
assumes the 109 hotel properties owned and included in continuing
operations as of March 31, 2008 were owned as of the beginning of
the periods presented. (2) As the Company's Courtyard by Marriott
hotel in Philadelphia, Pennsylvania, is leased to a third-party
tenant on a triple-net lease basis, the Company only records rental
income related to this operating lease for GAAP purposes. However,
in the above pro forma table, all room revenues related to this
hotel are reflected, which is consistent with the Company's other
hotels. ASHFORD HOSPITALITY TRUST, INC. PRO FORMA HOTEL OPERATING
PROFIT BY REGION (dollas in thousands) (Unaudited) � � � � � � � �
� Three Months Ended Number of Number of March 31, Region Hotels
Rooms 2008 � %Total 2007 � %Total %Change � Pacific(1) 22 5,864 $
24,190 27.2 % $ 23,733 26.8 % 1.9 % Mountain(2) 8 1,704 9,999 11.3
% 10,007 11.3 % -0.1 % West North Central(3) 3 690 1,937 2.2 %
2,191 2.5 % -11.6 % West South Central(4) 11 2,586 11,116 12.5 %
9,936 11.2 % 11.9 % East North Central(5) 10 2,624 4,940 5.6 %
4,574 5.2 % 8.0 % East South Central(6) 2 236 830 0.9 % 811 0.9 %
2.3 % Middle Atlantic(7) 10 2,669 5,074 5.7 % 5,933 6.7 % -14.5 %
South Atlantic(8) 38 7,727 32,005 36.0 % 32,366 36.6 % -1.1 % New
England(9) 4 458 178 0.2 % 57 0.1 % 212.3 % Canada 1 607 (1,398 )
-1.6 % (1,129 ) -1.3 % 23.8 % � � � � � � � Total Portfolio 109
25,165 $ 88,871 � 100.0 % $ 88,479 � 100.0 % 0.4 % � � (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 � � OTHER NOTES: (1) � The above pro forma
table assumes the 109 hotel properties owned and included in
continuing operations as of March 31, 2008 were owned as of the
beginning of the periods presented. (2) As the Company�s Courtyard
by Marriott hotel in Philadelphia, Pennsylvania, is leased to a
third-party tenant on a triple-net lease basis, the Company only
records rental income related to this operating lease for GAAP
purposes. However, in the above pro forma table, all operating
results related to this hotel are reflected, which is consistent
with the Company's other hotels. ASHFORD HOSPITALITY TRUST, INC.
PRO FORMA HOTEL OPERATING PROFIT MARGIN (Unaudited) � � 96 HOTELS
NOT UNDER RENOVATION AND INCLUDED IN CONTINUING OPERATIONS AT MARCH
31, 2008 AS IF SUCH HOTELS WERE OWNED AS OF THE BEGINNING OF THE
PERIODS PRESENTED: � � HOTEL OPERATING PROFIT (HOTEL EBITDA)
MARGIN: � 1st Quarter 2008 30.03% 1st Quarter 2007 29.23% Variance
0.80% � HOTEL OPERATING PROFIT (HOTEL EBITDA) MARGIN VARIANCE
BREAKDOWN: � Rooms 0.24% Food & Beverage and Other Departmental
0.46% Administrative & General 0.04% Sales & Marketing
-0.15% Hospitality -0.03% Repair & Maintenance 0.05% Energy
0.18% Franchise Fee -0.20% Management Fee 0.00% Incentive
Management Fee -0.22% Insurance 0.20% Property Taxes 0.05%
Leases/Other 0.19% Total 0.80% � � NOTE: As the Company�s Courtyard
by Marriott hotel in Philadelphia, Pennsylvania, is leased to a
third-party tenant on a triple-net lease basis, the Company only
records rental income related to this operating lease for GAAP
purposes. However, in the above pro forma table, all operating
results related to this hotel are reflected, which is consistent
with the Company�s other hotels. ASHFORD HOSPITALITY TRUST, INC.
PRO FORMA SEASONALITY TABLE (dollars in thousands) (Unaudited) � �
� � � � � ALL 109 HOTELS OWNED AND INCLUDED IN CONTINUING
OPERATIONS AS OF MARCH 31, 2008: � � 2008 2007 2007 2007 1st
Quarter 2nd Quarter 3rd Quarter 4th Quarter TTM � Total Hotel
Revenue $ 315,030 $ 337,211 $ 308,924 $ 342,989 $ 1,304,154 Hotel
EBITDA $ 88,871 $ 104,062 $ 82,278 $ 91,820 $ 367,031 Hotel EBITDA
Margin 28.2 % 30.9 % 26.6 % 26.8 % 28.1 % � EBITDA % of Total TTM
23.8 % 27.8 % 22.0 % 24.5 % 100.0 % � JV Interests in EBITDA $
1,754 $ 2,330 $ 1,577 $ 1,567 $ 7,228 � � NOTES: (1) The above pro
forma table assumes that the 109 hotel properties owned and
included in continuing operations as of March 31, 2008 were owned
as of the beginning of the periods presented. (2) As the Company�s
Courtyard by Marriott hotel in Philadelphia, Pennsylvania, is
leased to a third-party tenant on a triple-net lease basis, the
Company only records rental income related to this operating lease
for GAAP purposes. However, in the above pro-forma table, all
operating results related to this hotel are reflected, which is
consistent with the Company's other hotels. ASHFORD HOSPITALITY
TRUST, INC. Capital Expenditures Calendar 109 Core Hotels(a) � � �
� � � � � � � � � � � � � � � 2007 � 2008 Actual � Actual � Actual
� Actual � Actual � Estimated � Estimated � Estimated Rooms � 1st
Quarter � 2nd Quarter � 3rd Quarter � 4th Quarter � 1st Quarter �
2nd Quarter � 3rd Quarter � 4th Quarter � Residence Inn Evansville
78 x SpringHill Suites BWI Airport 133 x SpringHill Suites
Centreville 136 x SpringHill Suites Gaithersburg 162 x Courtyard
Overland Park 168 x Hilton Santa Fe 157 x Hilton Garden Inn
Jacksonville 119 x Marriott at Research Triangle Park 225 x x x
Marriott Crystal Gateway 697 x x x x Sea Turtle Inn Jacksonville
193 x x x x x x Sheraton City Center - Indianapolis 371 x x x JW
Marriott San Francisco 338 x x x x x Embassy Suites Las Vegas
Airport 220 x Homewood Suites Mobile 86 x x Residence Inn Lake
Buena Vista 210 x x Embassy Suites Walnut Creek 249 x x x Embassy
Suites Philadelphia Airport 263 x x x x Residence Inn Jacksonville
120 x Hilton Tucson El Conquistador Golf Resort 428 x x x Sheraton
San Diego Mission Valley 260 x x Hilton Minneapolis Airport 300 x x
x Courtyard San Francisco Downtown 405 x Courtyard Basking Ridge
235 x TownePlace Suites Manhattan Beach 144 x Embassy Suites Santa
Clara - Silicon Valley 257 x x Sheraton Anchorage 375 x x x Hampton
Inn Jacksonville 118 x x Hampton Inn Houston Galleria 150 x x
Hampton Inn Lawrenceville 86 x x Hilton Dallas - Lincoln Centre 500
x x Embassy Suites West Palm Beach 160 x x Marriott Legacy Center
404 x x Hyatt Regency Coral Gables 242 x x Courtyard Ft. Lauderdale
Weston 174 x x Doubletree Suites Columbus 194 x Hilton Rye Town 446
x Hyatt Regency Orange County 654 x Courtyard Louisville Airport
150 x SpringHill Suites Manhattan Beach 164 x SpringHill Suites
Charlotte 136 x SpringHill Suites Raleigh Airport 120 x SpringHill
Suites Mall of Georgia 96 x SpringHill Suites Richmond 136 x Hilton
Nassau Bay - Clear Lake 243 x Hilton Costa Mesa 486 x Courtyard
Edison 146 x SpringHill Suites Philadelphia 199 x Capital Hilton
408 � � � � � � � � � � � � � � � x � � � (a) Only hotels which
have had or are expected to have significant capital expenditures
during 2007 or 2008 are included in this table. This table excludes
a possible $50.0 million related to ROI projects.
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