AHT Ashford Hospitality Trust Inc

DALLAS, May 5 /PRNewswire-FirstCall/ -- Ashford Hospitality Trust, Inc. (NYSE:AHT) today reported the following results and performance measures for the first quarter ended March 31, 2009. 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 103 hotels owned and included in continuing operations as of March 31, 2009. Unless otherwise stated, all reported results compare the first quarter ended March 31, 2009, with the first quarter ended March 31, 2008. The reconciliation of non-GAAP financial measures is included in the financial tables accompanying this press release. FINANCIAL HIGHLIGHTS AND LIQUIDITY -- Corporate unrestricted available cash at the end of the quarter was $239.7 million -- Total revenue decreased 16.2% to $239.7 million from $286.0 million -- Net income available to common shareholders was $6.8 million, or $0.08 per diluted share, compared with a net loss of $833,000, or $0.01 loss per diluted share, in the prior-year quarter -- Adjusted funds from operations (AFFO) per diluted share increased 7% to $0.31 per diluted share -- Cash available for distribution (CAD) per diluted share increased 5% to $0.23 per diluted share -- Fixed charge ratios were 1.73x and 1.88x under the senior credit facility covenants and the Series B convertible preferred covenants, moving slightly higher from the previous quarter's results of 1.72x and 1.77x, versus required minimums of 1.25x each PORTFOLIO HIGHLIGHTS -- Proforma RevPAR was down 17.0% for hotels not under renovation on a 6.5% decrease in ADR to $139.95 and a 796-basis point decline in occupancy -- Proforma RevPAR was down 17.1% for all hotels on a 6.6% decrease in ADR to $139.36 and a 789-basis point decline in occupancy -- Proforma Hotel Operating Profit for hotels not under renovation declined by 25.5% -- Proforma Hotel Operating Profit margin for hotels not under renovation declined by 300 basis points CAPITAL ALLOCATION -- Repurchased 11.7 million common shares in the quarter for a total of $15.9 million, and repurchased 1.4 million shares of Series A and Series D preferred stock combined for a total of $10.6 million -- Capex invested in the quarter totaled $19.8 million CAPITAL STRUCTURE On February 20, 2009, the Company closed on the refinancing of the Gateway Marriott hotel in Washington D.C. for an amount of $60.8 million. The three year loan bears interest at a rate of 400 basis points over LIBOR and has two one-year extension options. The loan was used to retire a $47.0 million loan that was secured by the same asset. On March 23, 2009, the Company closed on the financing of the Residence Inn hotel in Jacksonville, Florida, for an amount of $7.0 million. The 25 year fully amortizing loan bears interest at the greater of 6.0% or prime plus 1%. This hotel was previously unencumbered. At March 31, 2009, the Company's net debt to total gross assets (defined by the corporate credit facility) was 56.9%. As of March 31, 2009, the Company had $2.8 billion of gross debt with a blended average interest rate of 3.37%. Including its $1.8 billion interest rate swap, 97% of the Company's debt is variable-rate debt. The Company's weighted average debt maturity including extension options is 5.8 years. PORTFOLIO REVPAR As of March 31, 2009, the Company had a portfolio of direct hotel investments consisting of 103 properties classified in continuing operations. During the first quarter, 99 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 103 hotels) and proforma not-under-renovation basis (99 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 103 hotels in continuing operations. Details of each category are provided in the tables attached to this release. -- Proforma RevPAR decreased 17.0% for hotels not under renovation on a 6.5% decrease in ADR to $139.95 and a 796-basis point decline in occupancy -- Proforma RevPAR decreased 17.1% for all hotels on a 6.6% decrease in ADR to $139.36 and a 789-basis point decline in occupancy HOTEL EBITDA MARGINS AND QUARTERLY SEASONALITY TRENDS For the 99 hotels as of March 31, 2009, that were not under renovation, Proforma Hotel EBITDA decreased 25.5% to $60.9 million. Proforma Hotel EBITDA margin (expressed as a percentage of Total Hotel Revenue) declined 300 basis points to 27.3%. For all 103 hotels included in continuing operations as of March 31, 2009, Proforma Hotel EBITDA decreased 26.3% to $61.9 million and Hotel EBITDA margin decreased 315 basis points to 26.2%. 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 103 hotels included in continuing operations are provided in the tables attached to this release. Monty J. Bennett, Chief Executive Officer, commented, "The operating environment continues to redefine 'unprecedented,' yet we are successfully managing the challenges with a combination of aggressive portfolio management and disciplined capital allocation. Our strategies have mitigated somewhat the negative impact of substantial RevPAR declines, while improving the liquidity position and funding select share repurchases. We continue to focus on sustainability strategies and long term shareholder value enhancement with an emphasis on capital preservation, liquidity, and asset management." INVESTOR CONFERENCE CALL AND SIMULCAST Ashford Hospitality Trust, Inc. will conduct a conference call on Wednesday, May 6, 2009, at 11 a.m. ET. The number to call for this interactive teleconference is (212) 231-2902. A replay of the conference call will be available through May 13, 2009, by dialing (402) 977-9140 and entering the confirmation number, 21421024#. The Company will also provide an online simulcast and rebroadcast of its first quarter 2009 earnings release conference call. The live broadcast of Ashford's quarterly conference call will be available online at the Company's website at http://www.ahtreit.com/ on Wednesday, May 6, 2009, 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=57508 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, second mortgages, mezzanine loans and sale-leaseback transactions. Additional information can be found on the Company's web site at http://www.ahtreit.com/. Certain statements and assumptions in this press release contain or are based upon "forward-looking" information and are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties. When we use the words "will likely result," "may," "anticipate," "estimate," "should," "expect," "believe," "intend," or similar expressions, we intend to identify forward-looking statements. Such forward-looking statements include, but are not limited to, 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, 2009 2008 -------- ----------- (Unaudited) ASSETS Investment in hotel properties, net $3,545,933 $3,568,215 Cash and cash equivalents 239,705 241,597 Restricted cash 65,000 69,806 Accounts receivable, net 44,785 41,110 Inventories 3,371 3,341 Notes receivable 215,783 212,815 Investment in unconsolidated joint venture 19,493 19,122 Deferred costs, net 23,122 24,211 Prepaid expenses 11,235 12,903 Interest rate derivatives 115,086 88,603 Other assets 6,829 6,766 Intangible assets, net 3,055 3,077 Due from third-party hotel managers 48,453 48,116 ---------- ---------- Total assets $4,341,850 $4,339,682 ========== ========== LIABILITIES AND EQUITY Liabilities Indebtedness $2,807,383 $2,790,364 Capital leases payable 163 207 Accounts payable and accrued expenses 99,987 93,476 Dividends payable 5,527 6,285 Unfavorable management contract liabilities 20,386 20,950 Due to related parties 871 2,378 Due to third-party hotel managers 2,681 3,855 Other liabilities 8,052 8,124 --------- --------- Total liabilities 2,945,050 2,925,639 --------- --------- Series B-1 Cumulative Convertible Redeemable Preferred stock, 7,447,865 issued and outstanding 75,000 75,000 Redeemable noncontrolling interests in operating partnership 108,560 107,469 Equity: Shareholders' equity of the Company - Preferred stock, $0.01 par value, 50,000,000 shares authorized: Series A Cumulative Preferred Stock, 1,487,900 shares and 2,185,000 shares issued and outstanding at March 31, 2009 and December 31, 2008 15 22 Series D Cumulative Preferred Stock, 5,666,797 shares and 6,394,347 shares issued and outstanding at March 31, 2009 and December 31, 2008 57 64 Common stock, $0.01 par value, 200,000,000 shares authorized, 122,748,859 shares issued, 74,849,783 shares and 86,555,149 shares outstanding at March 31, 2009 and December 31, 2008 1,227 1,227 Additional paid-in capital 1,440,817 1,450,146 Accumulated other comprehensive loss (964) (860) Accumulated deficit (117,955) (124,782) Treasury stock, at cost (47,899,076 shares and 36,193,710 shares at March 31, 2009 and December 31, 2008) (129,755) (113,598) ---------- ---------- Total shareholders' equity of the Company 1,193,442 1,212,219 Noncontrolling interests in consolidated joint ventures 19,798 19,355 ---------- ---------- Total equity 1,213,240 1,231,574 ---------- ---------- Total liabilities and equity $4,341,850 $4,232,213 ========== ========== ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) Three Months Ended March 31, ----------------- 2009 2008 ------- ------ (Unaudited) REVENUE Rooms $172,754 $209,493 Food and beverage 47,384 58,599 Rental income from operating leases 1,189 1,347 Other 11,979 12,799 ------ ------ Total hotel revenue 233,306 282,238 Interest income from notes receivable 6,215 3,255 Asset management fees and other 174 522 ------- ------- Total Revenue 239,695 286,015 ------- ------- EXPENSES Hotel operating expenses Rooms 39,140 45,432 Food and beverage 34,008 41,573 Other direct 6,182 7,045 Indirect 68,547 78,838 Management fees 9,251 11,241 ------- ------- Total hotel expenses 157,128 184,129 Property taxes, insurance, and other 14,390 14,624 Depreciation and amortization 41,419 42,986 Corporate general and administrative: Stock-based compensation 1,556 1,609 Other general and administrative 5,290 6,095 ------- ------- Total Operating Expenses 219,783 249,443 ------- ------- OPERATING INCOME 19,912 36,572 Equity in earnings of unconsolidated joint venture 604 526 Interest income 105 546 Other income 10,698 296 Interest expense (34,490) (37,173) Amortization of loan costs (2,058) (1,696) Write-off of loan costs, premiums and exit fees 930 - Unrealized gain on derivatives 18,032 4,049 ------- ------- INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND REDEEMABLE NONCONTROLLING INTERESTS 13,733 3,120 Income tax expense (221) (338) Income from continuing operations attributable to redeemable noncontrolling interests in operating partnership (1,558) (330) ------- ------- INCOME FROM CONTINUING OPERATIONS 11,954 2,452 Income from discontinued operations attributable to controlling interests - 3,800 ------- ------- NET INCOME 11,954 6,252 Less: Net income attributable to noncontrolling interests in consolidated joint ventures (297) (67) ------- ------- NET INCOME ATTRIBUTABLE TO THE COMPANY 11,657 6,185 Preferred dividends (4,830) (7,018) ------- ------- NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS $6,827 $(833) ======= ======= INCOME (LOSS) PER SHARE - Basic and Diluted: Income (loss) from continuing operations attributable to common shareholders $0.08 $(0.04) Income from discontinued operations attributable to common shareholders - 0.03 ------- ------- Net income (loss) attributable to common shareholders $0.08 $(0.01) ======= ======= Weighted average common shares outstanding - basic and diluted 80,530 118,855 ======= ======= Amounts attributable to common shareholders: Income from continuing operations, net of tax $11,657 $2,385 Discontinued operations, net of tax - 3,800 Preferred dividends (4,830) (7,018) ------- ------- Net income (loss) attributable to common shareholders $6,827 $(833) ======= ======= 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, ---------------- 2009 2008 ------- ------- (Unaudited) Net income $11,954 $6,252 Less: Net income attributable to noncontrolling interests in consolidated joint ventures (297) (67) ------ ------ Net income attributable to the Company 11,657 6,185 Interest income (99) (546) Interest expense and amortization of loan costs 36,072 40,590 Depreciation and amortization 40,642 46,326 Net income attributable to noncontrolling interests in operating partnership 1,558 631 Income tax expense 221 410 ------ ------ EBITDA 90,051 93,596 Amortization of unfavorable management contract liabilities (565) (565) Gain on sale of properties, net of related income taxes - (889) Write-off of loan costs, premiums and exit fees (1) (930) (1,862) Unrealized gain on derivatives (18,032) (4,049) ------- ------- Adjusted EBITDA $70,524 $86,231 ======= ======= RECONCILIATION OF NET INCOME TO FUNDS FROM OPERATIONS ("FFO") (in thousands) Three Months Ended March 31, ---------------- 2009 2008 ------- ------- (Unaudited) Net income $11,954 $6,252 Less: Net income attributable to noncontrolling interests in consolidated joint ventures (297) (67) Less: Preferred dividends (4,830) (7,018) ------- ------- Net income (loss) attributable to common shareholders 6,827 (833) Depreciation and amortization on real estate 40,566 45,298 Gain on sales of hotel properties, net of related income taxes - (889) Net income attributable to noncontrolling interests in operating partnership 1,558 631 ------- ------- FFO available to common shareholders 48,951 44,207 Dividends on convertible preferred stock 1,042 1,564 Write-off of loan costs, premiums and exit fees (1) (930) (1,862) Unrealized gain on derivatives (18,032) (4,049) ------- ------ Adjusted FFO $31,031 $39,860 ======= ======= Adjusted FFO per diluted share available to common shareholders $0.31 $0.29 ===== ===== Weighted average diluted shares 101,416 139,770 ======= ======= (1) The amounts include write-off of debt premiums of $1,341 for the refinancing of a mortgage loan for the quarter ended March 31, 2009 and $2,086 for the sale of a hotel property for the quarter ended March 31, 2008. ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES CASH AVAILABLE FOR DISTRIBUTION ("CAD") (in thousands, except per share amounts) Three Months Three Months Ended Per Ended Per March 31, Diluted March 31, Diluted 2009 Share 2008 Share ---- ----- ---- ----- Net income attributable to common shareholders $6,827 $0.07 $(833) $(0.01) Dividends on convertible preferred stock 1,042 0.01 1,564 0.01 ----- ---- ----- ---- Total 7,869 0.08 731 - Depreciation and amortization on real estate 40,566 0.40 45,298 0.33 Net income attributable to noncontrolling interests in operating partnership 1,558 0.01 631 0.01 Stock-based compensation 1,556 0.02 1,609 0.01 Amortization of loan costs 1,989 0.02 1,803 0.01 Write-off of loan costs, premiums and exit fees (1) (930) (0.01) (1,862) (0.01) Amortization of unfavorable management contract liabilities (565) (0.01) (565) - Gain on sales of properties, net of related income taxes - - (889) (0.01) Unrealized gain on derivatives (18,032) (0.18) (4,049) (0.03) Capital improvements reserve (10,284) (0.10) (12,099) (0.09) ------- ----- ------- ----- CAD $23,727 0.23 $30,608 $0.22 ======= ==== ======= ===== (1) The amounts include write-off of debt premiums of $1,341 for the refinancing of a mortgage loan for the quarter ended March 31, 2009 and $2,086 for the sale of a hotel property for the quarter ended March 31, 2008. ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES DEBT SUMMARY MARCH 31, 2009 (dollars in thousands) Fixed-Rate Floating-Rate Total Debt Debt Debt ------ ------ ------ Mortgage loan secured by 25 hotel properties, matures between July 1, 2005 and February 1, 2016, at an average interest rate of 5.42% $455,115 $- $455,115 Mortgage 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 2.75% to 3.5% depending on the loan- to-value ratio, with two one- year extension options - 250,000 250,000 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 - 203,400 203,400 Mortgage loan secured by 28 hotel properties, matures April 11, 2017, at an average blended interest rate of 5.95% 928,465 - 928,465 Mortgage loan secured by 10 hotel properties, matures May 9, 2009, at an interest rate of LIBOR plus 1.65%, with three one-year extension options - 167,202 167,202 Mortgage loan secured by one hotel property, matures January 1, 2011, at an interest rate of 8.32% 5,048 - 5,048 Mortgage loan secured by one hotel property, matures January 1, 2023, at an interest rate of 7.78% 4,732 - 4,732 TIF loan secured by one hotel property, matures June 30, 2018, at an interest rate of 12.85% 6,927 - 6,927 Mortgage loan secured by one hotel property, matures March 31, 2010, at an interest rate of 5.6% 29,262 - 29,262 Mortgage loan secured by three hotel properties, matures April 5, 2011, at an interest rate of 5.47% 66,035 - 66,035 Mortgage loan secured by four hotel properties, matures March 1, 2010, at an interest rate of 5.95% 75,000 - 75,000 Mortgage loan secured by one hotel property, matures June 1, 2011, at an interest rate of LIBOR plus 2% - 19,740 19,740 Mortgage loan secured by two hotel properties, matures August 8, 2011, at an interest rate of LIBOR plus 2.75%, with two one-year extension options - 118,950 118,950 Mortgage loan secured by one hotel properties, matures September 9, 2010, at an interest rate of LIBOR plus 3.75%, with two one- year extension options - 55,000 55,000 Mortgage loan secured by one hotel property, matures March 1, 2012, at an interest rate of LIBOR plus 4%, with two one-year extension options 60,800 60,800 Mortgage loan secured by one hotel property, matures April 1, 2034, bearing an interest rate at the greater of 6% or prime plus 1% 7,000 7,000 ----- ----- Total debt excluding premium 1,883,059 882,092 2,765,151 Plus: Debt attributable to joint venture partners 2,582 39,650 42,232 ----- ------ ------ Total debt Including premium and debt attributable to joint venture partners $1,885,641 $921,742 $2,807,383 ========== ======== ========== Percentage 67.2% 32.8% 100.0% ==== ==== ===== Weighted average interest rate at March 31, 2009 5.81% 3.14% 4.94% ==== ==== ==== Total with the effect of interest rate swap $85,641 $2,721,742 $2,807,383 ======= ========== ========== Percentage with the effect of interest rate swap 3.1% 96.9% 100.0% === ==== ===== Weighted average interest rate with the effect of interest rate swap 3.48% 3.14% 3.37% ==== ==== ==== ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES DEBT BY MATURITY ASSUMING EXTENSION OPTIONS NOT SUBJECT TO COVERAGE TESTS ARE EXERCISED MARCH 31, 2009 (in thousands) 2009 2010 2011 ---- ---- ---- Mortgage loan secured by Dearborn Hyatt Regency $- $29,262 $- Mortgage loan secured by Rye Town Hilton - 75,000 - Mortgage loan secured by Manchester Courtyard - - 5,048 Mortgage loan secured by Auburn Hills Hilton Suites, Costa Mesa Hilton and Portland Embassy Suites - - 66,035 Mortgage loan secured by El Conquistador Hilton - - 19,740 Mortgage loan secured by Anchorage Sheraton, Minneapolis Airport Hilton, San Diego Sheraton and Walnut Creek Embassy Suites - - 203,400 Secured credit facility - 250,000* - Mortgage loan secured by 10 hotel properties, Wachovia Floater 7 - - - Mortgage loan secured by JW Marriott San Francisco - 55,000* - Mortgage loan secured by La Jolla Hilton and Capital Hilton - - 118,950* Mortgage loan secured by eight hotel properties, UBS Pool 1 - - - Mortgage loan secured by eight hotel properties, UBS Pool 2 - - - Mortgage loan secured by 25 hotel properties, Merrill Lynch Pool 1 - - - Mortgage loan secured by Westin O'Hare - - - Mortgage loan secured by 25 hotel properties, Merrill Lynch Pool 2, 3 and 7 - - - Mortgage loan secured by Arlington Marriott - - - Mortgage loan secured by 28 hotel properties, Wachovia Floaters 1 to 6 - - - Mortgage loan secured by Philly Courtyard, Wachovia Stand-Alone - - - TIF loan secured by Philly Courtyard - - - Mortgage loan secured by Houston Hampton Inn - - - Mortgage loan secured by Jacksonville Residence Inn - - - - ------- ------- - 409,262 413,173 Debt attributable to joint venture partners - - 40,541 -- -------- -------- Total $- $409,262 $453,714 == ======== ======== 2012 2013 Thereafter Total ---- ---- -------------- --------- Mortgage loan secured by Dearborn Hyatt Regency $- $- $- $29,262 Mortgage loan secured by Rye Town Hilton - - - 75,000 Mortgage loan secured by Manchester Courtyard - - - 5,048 Mortgage loan secured by Auburn Hills Hilton Suites, Costa Mesa Hilton and Portland Embassy Suites - - - 66,035 Mortgage loan secured by El Conquistador Hilton - - - 19,740 Mortgage loan secured by Anchorage Sheraton, Minneapolis Airport Hilton, San Diego Sheraton and Walnut Creek Embassy Suites - - - 203,400 Secured credit facility - - - 250,000 Mortgage loan secured by 10 hotel properties, Wachovia Floater 7 167,202 - - 167,202 Mortgage loan secured by JW Marriott San Francisco - - - 55,000 Mortgage loan secured by La Jolla Hilton and Capital Hilton - - - 118,950 Mortgage loan secured by eight hotel properties, UBS Pool 1 - - 110,899 110,899 Mortgage loan secured by eight hotel properties, UBS Pool 2 - - 100,576 100,576 Mortgage loan secured by 25 hotel properties, Merrill Lynch Pool 1 - - 160,490 160,490 Mortgage loan secured by Westin O'Hare - - 101,000 101,000 Mortgage loan secured by 25 hotel properties, Merrill Lynch Pool 2, 3 and 7 - - 294,625 294,625 Mortgage loan secured by Arlington Marriott - - 60,800 60,800 Mortgage loan secured by 28 hotel properties, Wachovia Floaters 1 to 6 - - 893,465 893,465 Mortgage loan secured by Philly Courtyard, Wachovia Stand-Alone - - 35,000 35,000 TIF loan secured by Philly Courtyard - - 6,927 6,927 Mortgage loan secured by Houston Hampton Inn - - 4,732 4,732 Mortgage loan secured by Jacksonville Residence Inn - - 7,000 7,000 ------- - --------- --------- 167,202 - 1,775,514 2,765,151 Debt attributable to joint venture partners - - 1,691 42,232 -------- -- ---------- ---------- Total $167,202 $- $1,777,205 $2,807,383 ======== == ========== ========== NOTE: These maturities assume no event of default would occur. * Extensions available but certain coverage tests have to be met. ASHFORD HOSPITALITY TRUST, INC. KEY PERFORMANCE INDICATORS - PRO FORMA (Unaudited) Three Months Ended March 31, --------------------------------- 2009 2008 % Variance ---- ---- ---------- ALL HOTELS INCLUDED IN CONTINUING OPERATIONS: Room revenues (in thousands) $176,654 $214,380 -17.60% RevPAR $86.82 $104.68 -17.06% Occupancy 62.30% 70.19% -7.89% ADR $139.36 $149.15 -6.56% Three Months Ended March 31, --------------------------------- 2009 2008 % Variance ---- ---- ---------- ALL HOTELS NOT UNDER RENOVATION INCLUDED IN CONTINUING OPERATIONS: Room revenues (in thousands) $168,039 $203,552 -17.45% RevPAR $88.18 $106.18 -16.95% Occupancy 63.01% 70.97% -7.96% ADR $139.95 $149.60 -6.45% Excluded Hotels Under Renovation: Sheraton Anchorage, Hilton Rye Town, Hilton Nassau Bay, Marriott Plano Legacy Town Center OTHER 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 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, -------------------------------- 2009 2008 % Variance ---- ---- ------------ REVENUE Rooms $176,654 $214,380 -17.6% Food and beverage 48,056 59,314 -19.0% Other 11,850 12,862 -7.9% ------ ------ ---- Total hotel revenue 236,560 286,556 -17.4% ------- ------- ----- EXPENSES Rooms 40,068 46,515 -13.9% Food and beverage 34,515 42,135 -18.1% Other direct 6,244 7,107 -12.1% Indirect 69,928 79,221 -11.7% Management fees, includes base and incentive fees 9,256 12,855 -28.0% ----- ------ ----- Total hotel operating expenses 160,011 187,833 -14.8% Property taxes, insurance, and other 14,621 14,660 -0.3% ------ ------ ---- HOTEL OPERATING PROFIT (Hotel EBITDA) 61,928 84,063 -26.3% Hotel EBITDA Margin 26.18% 29.33% -3.15% Minority interest in earnings of consolidated joint ventures 1,570 1,786 -12.1% ----- ----- ----- HOTEL OPERATING PROFIT (Hotel EBITDA), excluding minority interest in joint ventures $60,358 $82,277 -26.6% ======= ======= ===== ALL HOTELS NOT UNDER RENOVATION INCLUDED IN CONTINUING OPERATIONS: Three Months Ended March 31, -------------------------------- 2009 2008 % Variance ----- ----- ------------ REVENUE Rooms (1) $168,039 $203,552 -17.4% Food and beverage 43,261 53,464 -19.1% Other 11,308 12,210 -7.4% ------ ------ ---- Total hotel revenue 222,608 269,226 -17.3% ------- ------- ----- EXPENSES Rooms (1) 37,713 43,773 -13.8% Food and beverage 31,003 37,727 -17.8% Other direct 5,902 6,801 -13.2% Indirect 64,742 73,697 -12.2% Management fees, includes base and incentive fees 8,842 12,123 -27.1% ----- ------ ----- Total hotel operating expenses 148,202 174,121 -14.9% Property taxes, insurance, and other 13,547 13,416 1.0% ------ ------ --- HOTEL OPERATING PROFIT (Hotel EBITDA) 60,859 81,689 -25.5% Hotel EBITDA Margin 27.34% 30.34% -3.00% Minority interest in earnings of consolidated joint ventures 1,570 1,786 -12.1% ----- ----- ----- HOTEL OPERATING PROFIT (Hotel EBITDA), excluding minority interest in joint ventures $59,289 $79,903 -25.8% ======= ======= ===== NOTES: (1) Excluded hotels under renovation: Sheraton Anchorage, Hilton Rye Town, Hilton Nassau Bay Marriott Plano Legacy Town Center (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 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 March 31, Number of Number of ----------------------- Region Hotels Rooms 2009 2008 % Change ------ ------ ----- ---- ---- -------- Pacific (1) 21 5,205 $85.54 $110.40 -22.5% Mountain (2) 8 1,704 95.63 127.24 -24.8% West North Central (3) 3 690 63.03 79.43 -20.6% West South Central (4) 10 2,086 92.63 108.14 -14.3% East North Central (5) 10 2,624 49.94 72.68 -31.3% East South Central (6) 2 236 78.61 89.91 -12.6% Middle Atlantic (7) 9 2,481 77.36 92.30 -16.2% South Atlantic (8) 38 7,728 103.04 113.35 -9.1% New England (9) 2 159 59.75 83.53 -28.5% --- ------ ------ ------- ----- Total Portfolio 103 22,913 $86.82 $104.68 -17.1% === ====== ====== ======= ===== (1) Includes Alaska, California, Oregon, and Washington (2) Includes Nevada, Arizona, New Mexico, and Utah (3) Includes Minnesota and Kansas (4) Includes Texas (5) Includes Ohio, Michigan, Illinois, and Indiana (6) Includes Kentucky and Alabama (7) Includes New York, New Jersey, and Pennsylvania (8) Includes Virginia, Florida, Georgia, Maryland, District of Columbia, And North Carolina (9) Includes Massachusetts and Connecticut 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 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 March 31, Number of Number of --------------------- Brand Hotels Rooms 2009 2008 % Change ----- ------ ----- ---- ---- -------- Hilton 34 7,513 $95.87 $113.12 -15.2% Hyatt 2 1,014 62.81 102.68 -38.8% InterContinental 2 420 136.59 163.12 -16.3% Independent 2 317 62.59 34.96 79.0% Marriott 57 11,714 87.37 104.79 -16.6% Starwood 6 1,935 53.31 70.19 -24.0% --- ------ ------ ------- ----- Total Portfolio 103 22,913 $86.82 $104.68 -17.1% === ====== ====== ======= ===== 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 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 (dollars in thousands) (Unaudited) Three Months Ended March 31, Number of Number of ------------------ Region Hotels Rooms 2009 ------ ------ ----- ---- Pacific (1) 21 5,205 $12,893 Mountain (2) 8 1,704 6,962 West North Central (3) 3 690 1,110 West South Central (4) 10 2,086 7,127 East North Central (5) 10 2,624 439 East South Central (6) 2 236 694 Middle Atlantic (7) 9 2,481 3,326 South Atlantic (8) 38 7,728 29,251 New England (9) 2 159 126 --- ------ ------- Total Portfolio 103 22,913 $61,928 === ====== ======= Three Months Ended March 31, --------------------------------------- Region % Total 2008 % Total % Change ------ ------- ---- ------- -------- Pacific (1) 20.8% $20,028 23.8% -35.6% Mountain (2) 11.3% 9,999 11.9% -30.4% West North Central (3) 1.8% 1,937 2.3% -42.7% West South Central (4) 11.5% 8,704 10.4% -18.1% East North Central (5) 0.7% 4,908 5.8% -91.1% East South Central (6) 1.1% 830 1.0% -16.4% Middle Atlantic (7) 5.4% 5,213 6.2% -36.2% South Atlantic (8) 47.2% 32,187 38.3% -9.1% New England (9) 0.2% 256 0.3% -50.8% ----- ------- ----- ----- Total Portfolio 100.0% $84,062 100.0% -26.3% ===== ======= ===== ===== (1) Includes Alaska, California, Oregon, and Washington (2) Includes Nevada, Arizona, New Mexico, and Utah (3) Includes Minnesota and Kansas (4) Includes Texas (5) Includes Ohio, Michigan, Illinois, and Indiana (6) Includes Kentucky and Alabama (7) Includes New York, New Jersey, and Pennsylvania (8) Includes Virginia, Florida, Georgia, Maryland, District of Columbia, And North Carolina (9) Includes Massachusetts and Connecticut 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 HOTEL OPERATING PROFIT MARGIN (Unaudited) 99 HOTELS NOT UNDER RENOVATION AND INCLUDED IN CONTINUING OPERATIONS AT MARCH 31, 2009 AS IF SUCH HOTELS WERE OWNED AS OF THE BEGINNING OF THE PERIODS PRESENTED: HOTEL OPERATING PROFIT (HOTEL EBITDA) MARGIN: 1st Quarter 2009 27.34% 1st Quarter 2008 30.34% ----- Variance -3.00% ===== HOTEL OPERATING PROFIT (HOTEL EBITDA) MARGIN VARIANCE BREAKDOWN: Rooms -0.67% Food & Beverage and Other Departmental -0.04% Administrative & General -0.50% Sales & Marketing -0.46% Hospitality -0.01% Repair & Maintenance -0.51% Energy -0.70% Franchise Fee -0.07% Management Fee 0.01% Incentive Management Fee 0.52% Insurance -0.14% Property Taxes -0.83% Other Taxes -0.14% Leases/Other 0.54% ---- Total -3.00% ===== 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 103 HOTELS OWNED AND INCLUDED IN CONTINUING OPERATIONS AS OF MARCH 31, 2009: 2009 2008 2008 2008 1st Quarter 4th Quarter 3rd Quarter 2nd Quarter TTM ----------- ----------- ----------- ----------- --- Total Hotel Revenue $236,560 $292,566 $278,523 $307,691 $1,115,340 Hotel EBITDA $61,928 $75,069 $75,373 $97,530 $309,900 Hotel EBITDA Margin 26.2% 25.7% 27.1% 31.7% 27.8% EBITDA % of Total TTM 20.0% 24.2% 24.3% 31.5% 100.0% JV Interests in EBITDA $1,570 $1,732 $1,644 $2,868 $7,814 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. Capital Expenditures Calendar 103 Core Hotels (a) ----------------------------------------------- 2009 ----------------------------------------------- Actual Estimated Estimated Estimated Rooms 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter ----- ----------- ----------- ----------- ----------- Sheraton Anchorage 370 x Marriott Legacy Center 404 x Hilton Rye Town 446 x x Hilton Nassau Bay - Clear Lake 243 x x x Embassy Suites Portland - Downtown 276 x x Residence Inn Orlando Sea World 350 x x Capital Hilton 408 x x Hilton La Jolla Torrey Pines 296 x Marriott Bridgewater 347 x Marriott Seattle Waterfront 358 x (a) Only hotels which have had or are expected to have significant capital expenditures during 2009 are included in this table. DATASOURCE: Ashford Hospitality Trust, Inc. CONTACT: David Kimichik, Chief Financial Officer, +1-972-490-9600; or Tripp Sullivan of Corporate Communications, Inc., +1-615-254-7318, for Ashford Hospitality Trust, Inc. Web Site: http://www.ahtreit.com/

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