AHT Ashford Hospitality Trust Inc

DALLAS, Feb. 24 /PRNewswire-FirstCall/ -- Ashford Hospitality Trust, Inc. (NYSE:AHT) today reported the following results and performance measures for the fourth quarter ended December 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 102 hotels owned and included in continuing operations as of December 31, 2009. Unless otherwise stated, all reported results compare the fourth quarter ended December 31, 2009, with the fourth quarter ended December 31, 2008 (see discussion below). The reconciliation of non-GAAP financial measures is included in the financial tables accompanying this press release. FINANCIAL HIGHLIGHTS AND LIQUIDITY -- Corporate unrestricted cash at the end of the quarter was $165.2 million -- Total revenue decreased 18.3% to $234.6 million from $287.3 million -- RevPAR decreased 13.5% for the quarter -- Operating profit margin decreased 297 basis points -- Net loss available to common shareholders was $76.9 million, or $1.30 per diluted share, compared with net income of $135.1 million, or $1.34 per diluted share, in the prior-year quarter -- Adjusted funds from operations (AFFO) was $0.32 per diluted share -- Cash available for distribution (CAD) was $0.22 per diluted share -- Fixed charge coverage ratio was 1.69x under the senior credit facility covenant versus a required minimum of 1.25x CAPITAL ALLOCATION -- Repurchased 6.3 million common shares in the quarter for $28.0 million and a total of 30.1 million shares for $81.3 million in 2009 -- Capex invested in the quarter was $17.4 million, for a total of $69.2 million in 2009 -- Capital market hedging strategies resulted in $52.3 million of interest expense savings in 2009 IMPAIRMENT During the fourth quarter, the Company recorded an impairment of $59.3 million related to its Westin O'Hare in suburban Chicago. The Company had suspended making mortgage payments pursuant to grace periods granted by the lender under a forbearance agreement and has been working with the special servicer on the $101 million loan for a consensual deed in lieu of foreclosure. The impairment represents the difference between the asset's net book value and the current fair market value. Once the deed in lieu of foreclosure to the lender is completed, which is anticipated to be in the first or second quarter of 2010, the Company will report a non cash gain of approximately $53.0 million to the level of the non-recourse debt on the asset and effectively a net impairment of $6.3 million. CAPITAL STRUCTURE At December 31, 2009, the Company's net debt to total gross assets (as defined by the corporate credit facility) was 59.0%. As of December 31, 2009, the Company had $2.8 billion of mortgage debt. Including the swap and flooridors its blended average interest rate was 2.95%. Including its $1.8 billion interest rate swap, 98% of the Company's debt is variable-rate debt. The Company's weighted average debt maturity including extension options is 5.2 years. On November 19, 2009, the Company closed on the refinancing of its remaining 2010 debt maturity and made significant progress on the Company's 2011 maturities through transactions with Prudential Mortgage Capital Company and Wheelock Street Capital with a $145.0 million non-recourse loan. The loan includes an A-Note from Prudential and a B-Note from Wheelock Street with a combined interest rate of 12.26% and a term of six years. The loans are secured by the Embassy Suites Crystal City, Embassy Suites Orlando Airport, Embassy Suites Santa Clara, Embassy Suites Portland and the Hilton Costa Mesa. The proceeds paid off a $75.0 million loan maturing in 2010 and a $65.0 million loan maturing in 2011, and provide $4.0 million for capital improvements to be drawn over a 24-month period. The Hilton Auburn Hills and the Hilton Rye Town, which were included in the maturing loans, are now unencumbered. On November 19, 2009, the Company also completed the sale of the Westin Westminster mezzanine loan that was defeased by the original borrower in 2007 as part of a refinancing. The total gross proceeds received by the Company amounted to $13.6 million before transaction costs. The loan had an outstanding balance of $11.0 million with a September 1, 2011 maturity. The Company negotiated for the release of the portfolio of government agency securities serving as the defeased loan collateral, and sold the actual securities via an auction. The Company obtained pricing in excess of the par amount due to the high pay coupon compared to current market rates. Effective December 1, 2009, the Company and the special servicer who is administering the $29.1 million first mortgage on the Company's Hyatt Regency Dearborn mutually agreed to transfer the Company's possession and control of the hotel to a court-appointed receiver. As a result of the transfer, the Company deconsolidated the hotel and its other net assets from its financial reporting in the amount of $32.0 million (previously impaired by $10.9 million in the second quarter of 2009) and the hotel's $29.1 million mortgage indebtedness, and recognized a loss on the deconsolidation of debt of $2.9 million in the fourth quarter. Additionally, the Company reclassified the hotel's results of operations through the effective date of the transfer to discontinued operations on its statement of operations. Effective December 29, 2009, the Company refinanced its $19.74 million loan secured by the Hilton El Conquistador Hotel and Country Club in Tucson, Arizona. The loan was set to mature in June 2011. The new non-recourse financing with MetLife for the same amount bears interest at the greater of 5.5% or LIBOR plus 350 basis points and is interest only for a term of five years. During 2009, the Company completed a total of $285 million in financings, re-financings and loan modifications. The Company has no debt maturities in 2010 and has $209 million of hard debt maturities in 2011, $203 million of which matures in December 2011 and is secured by a portfolio of hotels. SUBSEQUENT EVENTS On February 12, 2010, the Company completed the previously disclosed discounted payoff with the borrower on the Company's $33.6 million mezzanine loan, which was secured by interests in the Ritz Carlton Key Biscayne and set to mature in 2017. The Company received $20 million in cash and a $4 million note secured by interests in the property and that matures in 2017. The Company had previously recorded an impairment of $10.7 million to account for the discounted payoff in the third quarter of 2009. PORTFOLIO REVPAR As of December 31, 2009, the Company had a portfolio of direct hotel investments consisting of 102 properties classified in continuing operations. During the fourth quarter, 95 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 102 hotels) and proforma not-under-renovation basis (95 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 102 hotels in continuing operations. Details of each category are provided in the tables attached to this release. -- Proforma RevPAR decreased 13.3% for hotels not under renovation on a 10.8% decrease in ADR to $123.61 and a 181 basis point decline in occupancy -- Proforma RevPAR decreased 13.5% for all hotels on a 10.6% decrease in ADR to $124.26 and a 214 basis point decline in occupancy HOTEL EBITDA MARGINS AND QUARTERLY SEASONALITY TRENDS For the 95 hotels as of December 31, 2009, that were not under renovation, Proforma Hotel EBITDA decreased 24.4% to $50.3 million. Proforma Hotel EBITDA margin (expressed as a percentage of Total Hotel Revenue) declined 276 basis points to 23.3%. For all 102 hotels included in continuing operations as of December 31, 2009, Proforma Hotel EBITDA decreased 25.5% to $55.8 million and Hotel EBITDA margin decreased 297 basis points to 23.3%. 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 102 hotels included in continuing operations are provided in the tables attached to this release. Monty J. Bennett, Chief Executive Officer, commented, "Our operations, capital markets, and share repurchase strategies continued to address many of our top priorities for the year such as offsetting declining RevPAR trends with interest expense savings, eliminating near-term debt maturities and creating value with a disciplined share repurchase strategy. Looking ahead to 2010, we still expect the operating environment to continue to be extremely challenging, requiring a continued cost control focus." INVESTOR CONFERENCE CALL AND SIMULCAST Ashford Hospitality Trust, Inc. will conduct a conference call on Thursday, February 25, 2010, at 11 a.m. ET. The number to call for this interactive teleconference is (212) 231-2905. A replay of the conference call will be available through March 4, 2010, by dialing (402) 977-9140 and entering the confirmation number, 21449088. The Company will also provide an online simulcast and rebroadcast of its fourth 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 Thursday, February 25, 2010, beginning at 11 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 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) December 31, -------------- 2009 2008 ---- ---- (Unaudited) ASSETS Investment in hotel properties, net $3,383,759 $3,568,215 Cash and cash equivalents 165,168 241,597 Restricted cash 77,566 69,806 Accounts receivable, net 31,503 41,110 Inventories 2,975 3,341 Notes receivable 55,655 212,815 Investment in unconsolidated joint venture 20,736 19,122 Deferred costs, net 20,960 24,211 Prepaid expenses 13,234 12,903 Interest rate derivatives 94,645 88,603 Other assets 3,471 6,766 Intangible assets, net 2,988 3,077 Due from third-party hotel managers 41,838 48,116 ------ ------ Total assets $3,914,498 $4,339,682 ========== ========== LIABILITIES AND EQUITY Liabilities Indebtedness $2,772,396 $2,790,364 Capital leases payable 83 207 Accounts payable and accrued expenses 91,387 93,476 Dividends payable 5,566 6,285 Unfavorable management contract liabilities 18,504 20,950 Due to related parties 1,009 2,378 Due to third-party hotel managers 1,563 3,855 Other liabilities 7,932 8,124 ----- ----- Total liabilities 2,898,440 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 85,167 107,469 Equity: Stockholders' 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 December 31, 2009 and 2008 15 22 Series D Cumulative Preferred Stock, 5,666,797 shares and 6,394,347 shares issued and outstanding at December 31, 2009 and 2008 57 64 Common stock, $0.01 par value, 200,000,000 shares authorized, 122,748,859 shares issued, 57,596,878 shares and 86,555,149 shares outstanding at December 31, 2009 and 2008 1,227 1,227 Additional paid-in capital 1,436,009 1,450,146 Accumulated other comprehensive loss (897) (860) Accumulated deficit (412,011) (124,782) Treasury stock, at cost (65,151,981 shares and 36,193,710 shares at December 31, 2009 and 2008) (186,424) (113,598) -------- -------- Total stockholders' equity of the Company 837,976 1,212,219 Noncontrolling interests in consolidated joint ventures 17,915 19,355 ------ ------ Total equity 855,891 1,231,574 ------- --------- Total liabilities and equity $3,914,498 $4,339,682 ========== ========== ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) Three Months Ended Year Ended December 31, December 31, -------------- -------------- 2009 2008 2009 2008 ---- ---- ---- ---- (Unaudited) REVENUE Rooms $171,462 $204,562 $678,278 $831,029 Food and beverage 49,095 58,772 175,351 221,826 Rental income from operating leases 1,820 1,979 5,650 6,218 Other 11,571 13,138 45,714 51,324 ------ ------ ------ ------ Total hotel revenue 233,948 278,451 904,993 1,110,397 Interest income from notes receivable 479 8,777 10,876 24,050 Asset management fees and other 174 60 726 2,013 --- --- --- ----- Total Revenue 234,601 287,288 916,595 1,136,460 ------- ------- ------- --------- EXPENSES Hotel operating expenses Rooms 42,054 46,546 158,647 181,957 Food and beverage 34,175 41,374 125,343 156,540 Other direct 6,436 7,418 25,383 28,359 Indirect 70,843 81,850 269,879 313,141 Management fees 9,654 11,507 36,431 44,518 ----- ------ ------ ------ Total hotel expenses 163,162 188,695 615,683 724,515 Property taxes, insurance, and other 15,871 16,335 61,113 60,739 Depreciation and amortization 38,027 40,383 155,458 164,055 Impairment charges 58,735 - 208,007 - Gain on insurance settlement (1,329) - (1,329) - Corporate general and administrative: Stock-based compensation 1,141 1,646 5,037 6,834 Other general and administrative 5,796 2,152 24,914 21,868 ----- ----- ------ ------ Total Operating Expenses 281,403 249,211 1,068,883 978,011 ------- ------- --------- ------- OPERATING (LOSS) INCOME (46,802) 38,077 (152,288) 158,449 Equity (loss) in earnings of unconsolidated joint venture 623 (4,509) 2,486 (2,205) Interest income 44 468 297 2,062 Other income 21,416 3,910 56,556 10,153 Interest expense (35,329) (37,433) (137,871) (148,162) Amortization of loan costs (1,816) (1,732) (7,679) (6,420) Write-off of premiums, loan costs, premiums and exit fees, net (1,111) - (181) (1,226) Unrealized (loss) gain on derivatives (17,616) 118,481 (31,782) 79,620 ------- ------- ------- ------ (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (80,591) 117,262 (270,462) 92,271 Income tax (expense) benefit (1,097) 238 (1,521) (657) ------ --- ------ ---- (LOSS) INCOME FROM CONTINUING OPERATIONS (81,688) 117,500 (271,983) 91,614 (Loss) income from discontinued operations (2,577) 37,522 (16,677) 54,057 ------ ------ ------- ------ NET (LOSS) INCOME (84,265) 155,022 (288,660) 145,671 Loss (income) from consolidated joint ventures attributable to noncontrolling interests 136 1,463 765 (1,444) Net loss (income) attributable to redeemable noncontrolling interests in operating partnership 12,085 (15,771) 37,653 (15,033) ------ ------- ------ ------- NET (LOSS) INCOME ATTRIBUTABLE TO THE COMPANY (72,044) 140,714 (250,242) 129,194 Preferred dividends (4,830) (5,588) (19,322) (26,642) ------ ------ ------- ------- NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS $(76,874) $135,126 $(269,564) $102,552 ======== ======== ========= ======== (LOSS) INCOME PER SHARE: Basic (Loss) income from continuing operations attributable to common stockholders $(1.26) $1.09 $(3.72) $0.47 (Loss) income from discontinued operations attributable to common stockholders (0.04) 0.36 (0.21) 0.44 ----- ---- ----- ---- Net (loss) income attributable to common stockholders $(1.30) $1.45 $(3.93) $0.91 ====== ===== ====== ===== Diluted (Loss) income from continuing operations attributable to Ashford common stockholders $(1.26) $1.01 $(3.72) $0.47 (Loss) income from discontinued operations attributable to Ashford common stockholders (0.04) 0.33 (0.21) 0.44 ----- ---- ----- ---- Net (loss) income attributable to Ashford common stockholders $(1.30) $1.34 $(3.93) $0.91 ====== ===== ====== ===== Weighted average common shares outstanding - basic 59,101 91,905 68,597 111,295 ====== ====== ====== ======= Weighted average common shares outstanding - diluted 59,101 112,801 68,597 111,295 ====== ======= ====== ======= Amounts attributable to common stockholders: (Loss) income from continuing operations, net of tax $(69,835) $106,958 $(235,655) $80,199 (Loss) income from discontinued operations, net of tax (2,209) 33,756 (14,587) 48,995 Preferred dividends (4,830) (5,588) (19,322) (26,642) ------ ------ ------- ------- Net (loss) income attributable to common stockholders $(76,874) $135,126 $(269,564) $102,552 ======== ======== ========= ======== ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES RECONCILIATION OF NET INCOME TO EBITDA (in thousands) Three Months Ended Year Ended December 31, December 31, -------------- -------------- 2009 2008 2009 2008 ---- ---- ---- ---- (Unaudited) Net (loss) income $(84,265) $155,022 $(288,660) $145,671 Loss (income) from consolidated joint ventures attributable to noncontrolling interests 136 1,463 765 (1,444) Net loss (income) attributable to redeemable noncontrolling interests in operating partnership 12,085 (15,771) 37,653 (15,033) ------ ------- ------ ------- Net (loss) income attributable to the Company (72,044) 140,714 (250,242) 129,194 Interest income (44) (456) (289) (2,020) Interest expense and amortization of loan costs 36,945 38,885 145,171 157,274 Depreciation and amortization 37,341 40,545 153,907 172,262 Net loss (income) attributable to redeemable noncontrolling interests in operating partnership (12,085) 15,771 (37,653) 15,033 Income tax expense (benefit) 979 (267) 1,565 1,093 --- ---- ----- ----- EBITDA (8,908) 235,192 12,459 472,836 Amortization of unfavorable management contract liabilities (752) (753) (2,446) (2,446) Loss (gain) on sale of note receivable/properties, net of taxes 511 (40,199) 511 (48,514) Gain on insurance settlement (1,329) - (1,329) - Write-off of loan costs, premiums and exit fees(1) 1,111 789 181 798 Non-recurring severance payments - 582 - 582 Impairment charges 58,735 5,461 218,878 5,461 Income from interest rate derivatives (2) (19,079) (4,108) (52,282) (10,352) Unrealized loss (gain) on derivatives 17,616 (118,481) 31,782 (79,620) ------- ------- -------- -------- Adjusted EBITDA $47,905 $78,483 $207,754 $338,745 ======= ======= ======== ======== RECONCILIATION OF NET INCOME TO FUNDS FROM OPERATIONS ("FFO") (in thousands, except per share amounts) Three Months Ended Year Ended December 31, December 31, -------------- -------------- 2009 2008 2009 2008 ---- ---- ---- ---- (Unaudited) Net (loss) income $(84,265) $155,022 $(288,660) $145,671 Loss (income) from consolidated joint ventures attributable to noncontrolling interests 136 1,463 765 (1,444) Net loss (income) attributable to redeemable noncontrolling interests in operating partnership 12,085 (15,771) 37,653 (15,033) Preferred dividends (4,830) (5,588) (19,322) (26,642) ------ ------ ------- ------- Net loss attributable to common stockholders (76,874) 135,126 (269,564) 102,552 Depreciation and amortization on real estate 37,271 40,441 153,621 171,791 Loss (gain) on sale of note receivable/properties, net of taxes 511 (40,199) 511 (48,514) Gain on insurance settlement (1,329) - (1,329) - Net loss (income) attributable to redeemable noncontrolling interests in operating partnership (12,085) 15,771 (37,653) 15,033 ------- ------ ------- ------ FFO available to common stockholders (52,506) 151,139 (154,414) 240,862 Dividends on convertible preferred stock 1,043 1,043 4,171 5,735 Write-off of loan costs, premiums and exit fees(1) 1,111 789 181 798 Non-recurring severance payments - 582 - 582 Impairment charges 58,735 5,461 218,878 5,461 Unrealized loss (gain) on derivatives 17,616 (118,481) 31,782 (79,620) ------ -------- ------ ------- Adjusted FFO $25,999 $40,533 $100,598 $173,818 ======= ======= ======== ======== Adjusted FFO per diluted share available to common stockholders $0.32 $0.36 $1.12 $1.31 ===== ===== ===== ===== Weighted average diluted shares 80,892 112,802 89,987 132,677 ====== ======= ====== ======= (1) The amounts include write-off of debt premiums of $1,341 for the refinancing of a mortgage loan for the year ended December 31, 2009 and $2,086 for the sale of a hotel property for the year ended December 31, 2008. (2) Cash income from interest rate derivatives is excluded from the adjusted EBITDA calculations for all periods presented. ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES CASH AVAILABLE FOR DISTRIBUTION ("CAD") (in thousands, except per share amounts) (Unaudited) Three Months Three Months Ended Per Ended Per December 31, Diluted December 31, Diluted 2009 Share 2008 Share ------------ ------- ------------ ------- Net (loss) income attributable to common stockholders $(76,874) $(0.95) $135,126 $1.20 Dividends on convertible preferred stock 1,043 0.01 1,043 0.01 ----- ---- ----- ---- Total (75,831) (0.94) 136,169 1.21 Depreciation and amortization on real estate 37,271 0.46 40,441 0.36 Net (loss) income attributable to redeemable noncontrolling interests in operating partnership (12,085) (0.15) 15,771 0.14 Stock-based compensation 1,141 0.02 1,646 0.02 Amortization of loan costs 1,748 0.02 1,686 0.01 Write-off of loan costs, premiums and exit fees (1) 1,111 0.01 789 0.01 Amortization of unfavorable management contract liabilities (752) (0.01) (753) (0.01) Loss (gain) on sale of note receivable/properties, net of taxes 511 0.01 (40,199) (0.36) Gain on insurance settlement (1,329) (0.02) - - Non-recurring severance payments - - 582 0.01 Impairment charges 58,735 0.73 5,461 0.05 Unrealized loss (gain) on derivatives 17,616 0.22 (118,481) (1.05) Capital improvements reserve (10,311) (0.13) (12,047) (0.11) ------- ----- ------- ----- CAD $17,825 $0.22 $31,065 $0.28 ======= ===== ======= ===== Year Year Ended Per Ended Per December 31, Diluted December 31, Diluted 2009 Share 2008 Share ----------- ------- ----------- ----- Net (loss) income attributable to common stockholders $(269,564) $(3.00) $102,552 $0.77 Dividends on convertible preferred stock 4,171 0.05 5,735 0.05 ----- ---- ----- ---- Total (265,393) (2.95) 108,287 0.82 Depreciation and amortization on real estate 153,621 1.71 171,791 1.30 Net (loss) income attributable to redeemable noncontrolling interests in operating partnership (37,653) (0.42) 15,033 0.11 Stock-based compensation 5,037 0.06 6,834 0.05 Amortization of loan costs 7,427 0.08 6,610 0.05 Write-off of loan costs, premiums and exit fees (1) 181 - 798 0.01 Amortization of unfavorable management contract liabilities (2,446) (0.03) (2,446) (0.02) Loss (gain) on sale of note receivable/properties, net of taxes 511 0.01 (48,514) (0.36) Gain on insurance settlement (1,329) (0.01) - - Non-recurring severance payments - - 582 - Impairment charges 218,878 2.43 5,461 0.04 Unrealized loss (gain) on derivatives 31,782 0.35 (79,620) (0.60) Capital improvements reserve (40,580) (0.45) (50,108) (0.38) ------- ----- ------- ----- CAD $70,036 $0.78 $134,708 $1.02 ======= ===== ======== ===== (1) The amounts include write-off of debt premiums of $1,341 for the refinancing of a mortgage loan for the year ended December 31, 2009 and $2,086 for the sale of a hotel property for the year ended December 31, 2008. ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES DEBT SUMMARY DECEMBER 31, 2009 (dollars in thousands) (Unaudited) Indebtedness Collateral Maturity Interest Rate ------------ ---------- -------- ------------- Senior credit facility Notes receivable April 2010 LIBOR + 2.75% to 3.5% Mortgage loan 10 hotels May 2010 LIBOR + 1.65% Mortgage loan 5 hotels December 2010 LIBOR + 1.72% Mortgage loan 1 hotel January 2011 8.32% Mortgage loan 1 hotel March 2011 LIBOR (floor at 2.5%) + 3.75% Mortgage loan 2 hotel August 2011 LIBOR + 2.75% Mortgage loan 1 hotel March 2012 LIBOR + 4% Mortgage loan 1 hotel December 2014 Greater of 5.5% or LIBOR + 3.5% Mortgage loan 8 hotels December 2014 5.75% Mortgage loan 1 hotel January 2015 7.78% Mortgage loan 10 hotels July 2015 5.22% Mortgage loan 8 hotels December 2015 5.70% Mortgage loan 5 hotels December 2015 12.26% Mortgage loan 5 hotels February 2016 5.53% Mortgage loan 5 hotels February 2016 5.53% Mortgage loan 5 hotels February 2016 5.53% Mortgage loan 1 hotel December 2016 5.81% Mortgage loan 1 hotel April 2017 5.91% Mortgage loan 2 hotels April 2017 5.95% Mortgage loan 3 hotels April 2017 5.95% Mortgage loan 5 hotels April 2017 5.95% Mortgage loan 5 hotels April 2017 5.95% Mortgage loan 5 hotels April 2017 5.95% Mortgage loan 7 hotels April 2017 5.95% TIF loan 1 hotel June 2018 12.85% Mortgage loan 1 hotel April 2034 Greater of 6% or Prime + 1% Indebtedness Fixed-Rate Debt Floating-Rate Debt Total Debt ------------ --------------- ------------------ ---------- Senior credit $- $250,000 (1)(2) $250,000 facility - 167,202 (1) 167,202 Mortgage loan - 203,400 (3) 203,400 Mortgage loan 5,816 - 5,816 Mortgage loan - 52,500 (1) 52,500 Mortgage loan - 156,600 (1) 156,600 Mortgage loan - 60,800 (1) 60,800 Mortgage loan - 19,740 19,740 Mortgage loan 110,899 - 110,899 Mortgage loan 4,345 - 4,345 Mortgage loan 160,490 - 160,490 Mortgage loan 100,576 - 100,576 Mortgage loan 141,402 - 141,402 Mortgage loan 115,645 - 115,645 Mortgage loan 95,905 - 95,905 Mortgage loan 83,075 - 83,075 Mortgage loan 101,000 (4) - 101,000 Mortgage loan 35,000 - 35,000 Mortgage loan 128,251 - 128,251 Mortgage loan 260,980 - 260,980 Mortgage loan 115,600 - 115,600 Mortgage loan 103,906 - 103,906 Mortgage loan 158,105 - 158,105 Mortgage loan 126,466 - 126,466 TIF loan 7,783 - 7,783 Mortgage loan - 6,910 6,910 ---------- ---------- ---------- Total debt $1,855,244 $917,152 $2,772,396 ========== ========== ========== Percentage 66.9% 33.1% 100.0% ========== ========== ========== Weighted average interest rate at December 31, 2009 6.30% 2.97% 5.19% ========== ========== ========== Total debt with the effect of interest rate swap $55,244 $2,717,152 $2,772,396 ========== ========== ========== Percentage with the effect of interest rate swap 2.0% 98.0% 100.0% ========== ========== ========== Weighted average interest rate with the effect of interest rate swap 2.95% 2.97% 2.95% ========== ========== ========== (1) Each of these loans has two one-year extension options. (2) Based on the debt-to-assets ratio defined in the loan agreement, interest rate on this debt was at LIBOR plus 3% as of December 31, 2009. (3) This loan has a one-year extension option remaining. (4) We are currently working with the lender for a deed-in-lieu of foreclosure. ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES DEBT BY MATURITY ASSUMING EXTENSION OPTIONS NOT SUBJECT TO COVERAGE/LTV TESTS ARE EXERCISED DECEMBER 31, 2009 (in thousands) (Unaudited) 2010 2011 2012 2013 2014 Thereafter Total ---- ---- ---- ---- ---- ------------ ------- Secured credit facility $250,000(1) $- $- $- - $- $250,000 Mortgage loan secured by 10 hotel properties, Wachovia Floater - - 167,202 - - - 167,202 Mortgage loan secured by five hotel properties - 203,400 - - - - 203,400 Mortgage loan secured by Manchester Courtyard - 5,816 - - - - 5,816 Mortgage loan secured by JW Marriott San Francisco - - 52,500(1) - - - 52,500 Mortgage loan secured by two hotel properties - 156,600(2) - - - - 156,600 Mortgage loan secured by Arlington Marriott - - - - 60,800 - 60,800 Mortgage loan secured by El Conquistador Hilton - - - - 19,740 - 19,740 Mortgage loan secured by eight hotel properties, UBS Pool 1 - - - - 110,899 - 110,899 Mortgage loan secured by 10 hotel properties, Merrill Lynch Pool 1 - - - - - 160,490 160,490 Mortgage loan secured by eight hotel properties, UBS Pool 2 - - - - - 100,576 100,576 Mortgage loan secured by five hotel properties - - - - - 141,402 141,402 Mortgage loan secured by five hotel properties, Merrill Lynch Pool 2 - - - - - 115,645 115,645 Mortgage loan secured by five hotel properties, Merrill Lynch Pool 3 - 95,905 95,905 Mortgage loan secured by five hotel properties, Merrill Lynch Pool 7 - 83,075 83,075 Mortgage loan secured by Westin O'Hare - - - - - 101,000(3) 101,000 Mortgage loan secured by Philadelphia Courtyard, Wachovia Stand-Alone - - - - - 35,000 35,000 Mortgage loan secured by two hotel properties, Wachovia Fixed Rate Pool 3 - - - - - 128,251 128,251 Mortgage loan secured by three hotel properties, Wachovia Fixed Rate Pool 7 - - - - - 260,980 260,980 Mortgage loan secured by five hotel properties, Wachovia Fixed Rate Pool 1 - - - - - 115,600 115,600 Mortgage loan secured by five hotel properties, Wachovia Fixed Rate Pool 5 - - - - - 103,906 103,906 Mortgage loan secured by five hotel properties, Wachovia Fixed Rate Pool 6 - - - - - 158,105 158,105 Mortgage loan secured by seven hotel properties, Wachovia Fixed Rate Pool 2 - - - - - 126,466 126,466 TIF loan secured by Philadelphia Courtyard - - - - - 7,783 7,783 Mortgage loan secured by Houston Hampton Inn - - - - - 4,345 4,345 Mortgage loan secured by Jacksonville Residence Inn - - - - - 6,910 6,910 ---------------- -------- -------- ------ -------- ---------- ---------- $250,000 $365,816 $219,702 $- $191,439 $1,745,439 $2,772,396 ======== ======== ======== ====== ======== ========== ========== NOTE: These maturities assume no event of default would occur. (1) Extensions available but certain coverage tests have to be met. (2) Extensions available but certain LTV tests have to be met. (3) We are currently working with the lender for a deed-in-lieu of foreclosure. ASHFORD HOSPITALITY TRUST, INC. KEY PERFORMANCE INDICATORS - PRO FORMA (Unaudited) Three Months Ended Year Ended December 31, December 31, ------------------------ ----------------------- 2009 2008 %Variance 2009 2008 %Variance ---- ---- --------- ---- ---- --------- ALL HOTELS INCLUDED IN CONTINUING OPERATIONS: Room revenues (in thousands) $177,882 $211,789 -16.01% $697,760 $853,895 -18.29% RevPAR $78.52 $90.76 -13.49% $85.10 $103.15 -17.50% Occupancy 63.19% 65.33% -2.14% 65.87% 71.73% -5.86% ADR $124.26 $138.93 -10.56% $129.20 $143.80 -10.15% Three Months Ended Year Ended December 31, December 31, ------------------------ ----------------------- 2009 2008 %Variance 2009 2008 %Variance ---- ---- --------- ---- ---- --------- ALL HOTELS NOT UNDER RENOVATION INCLUDED IN CONTINUING OPERATIONS: Room revenues (in thousands) $161,977 $192,492 -15.85% $630,359 $771,261 -18.27% RevPAR $78.10 $90.07 -13.29% $84.10 $101.90 -17.47% Occupancy 63.19% 65.00% -1.81% 65.54% 71.32% -5.78% ADR $123.61 $138.57 -10.80% $128.33 $142.87 -10.18% NOTES: (1) The above pro forma table assumes the 95 hotel properties owned and included in continuing operations at December 31, 2009, but not under renovation for the three and twelve months ended December 31, 2009, were owned as of the beginning of the periods presented. (2) Excluded Hotels Under Renovation: Hilton Torrey Pines, Hilton Nassau Bay, Residence Inn Orlando Sea World, Edison Courtyard, Embassy Suites Orlando Airport, Marriott Bridgewater, Embassy Suites Portland (3) 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 December 31, ------------------ 2009 2008 % Variance ---- ---- -------------- REVENUE Rooms $177,882 $211,789 -16.0% Food and beverage 50,217 60,111 -16.5% Other 11,389 12,903 -11.7% ------ ------ ----- Total hotel revenue 239,488 284,803 -15.9% ------- ------- ----- EXPENSES Rooms 43,354 47,943 -9.6% Food and beverage 34,887 42,188 -17.3% Other direct 6,520 7,486 -12.9% Indirect 72,434 82,133 -11.8% Management fees, includes base and incentive fees 10,531 13,566 -22.4% ------ ------ ----- Total hotel operating expenses 167,726 193,316 -13.2% Property taxes, insurance, and other 15,972 16,644 -4.0% ------ ------ ---- HOTEL OPERATING PROFIT (Hotel EBITDA) 55,790 74,843 -25.5% Hotel EBITDA Margin 23.30% 26.27% -2.97% Minority interest in earnings of consolidated joint ventures 1,482 1,778 -16.6% ----- ----- ----- HOTEL OPERATING PROFIT (Hotel EBITDA), excluding minority interest in joint ventures $54,308 $73,065 -25.7% ======= ======= ===== Year Ended December 31, ---------------- 2009 2008 % Variance ---- ---- -------------- REVENUE Rooms $697,760 $853,895 -18.3% Food and beverage 178,773 225,503 -20.7% Other 45,103 49,540 -9.0% ------ ------ ---- Total hotel revenue 921,636 1,128,938 -18.4% ------- --------- ----- EXPENSES Rooms 162,908 186,641 -12.7% Food and beverage 127,640 159,061 -19.8% Other direct 25,642 28,617 -10.4% Indirect 273,243 312,155 -12.5% Management fees, includes base and incentive fees 40,435 53,646 -24.6% ------ ------ ----- Total hotel operating expenses 629,868 740,120 -14.9% Property taxes, insurance, and other 61,871 61,342 0.9% ------ ------ --- HOTEL OPERATING PROFIT (Hotel EBITDA) 229,897 327,476 -29.8% Hotel EBITDA Margin 24.94% 29.00% -4.06% Minority interest in earnings of consolidated joint ventures 6,030 8,146 -26.0% ----- ----- ----- HOTEL OPERATING PROFIT (Hotel EBITDA), excluding minority interest in joint ventures $223,867 $319,330 -29.9% ======== ======== ===== NOTE: The above pro forma table assumes the 102 hotel properties owned and included in continuing operations at December 31, 2009 were owned as of the beginning of the periods presented. ALL HOTELS NOT UNDER RENOVATION INCLUDED IN CONTINUING OPERATIONS: Three Months Ended December 31, ---------------- 2009 2008 % Variance ----- ----- -------------- REVENUE Rooms (1) $161,977 $192,492 -15.9% Food and beverage 44,190 51,621 -14.4% Other 9,762 11,157 -12.5% ----- ------ ----- Total hotel revenue 215,929 255,270 -15.4% ------- ------- ----- EXPENSES Rooms (1) 39,709 43,732 -9.2% Food and beverage 30,980 37,044 -16.4% Other direct 5,603 6,406 -12.5% Indirect 65,304 73,967 -11.7% Management fees, includes base and incentive fees 9,722 12,468 -22.0% ----- ------ ----- Total hotel operating expenses 151,318 173,617 -12.8% Property taxes, insurance, and other 14,301 15,125 -5.4% ------ ------ ---- HOTEL OPERATING PROFIT (Hotel EBITDA) 50,310 66,528 -24.4% Hotel EBITDA Margin 23.30% 26.06% -2.76% Minority interest in earnings of consolidated joint ventures 1,482 1,778 -16.6% ----- ----- ----- HOTEL OPERATING PROFIT (Hotel EBITDA), excluding minority interest in joint ventures $48,828 $64,750 -24.6% ======= ======= ===== Year Ended December 31, ---------------- 2009 2008 % Variance ----- ----- -------------- REVENUE Rooms (1) $630,359 $771,261 -18.3% Food and beverage 156,565 194,007 -19.3% Other 38,869 42,418 -8.4% ------ ------ ---- Total hotel revenue 825,793 1,007,686 -18.1% ------- --------- ----- EXPENSES Rooms (1) 148,428 169,560 -12.5% Food and beverage 113,202 139,410 -18.8% Other direct 22,092 24,466 -9.7% Indirect 245,602 280,320 -12.4% Management fees, includes base and incentive fees 37,154 49,145 -24.4% ------ ------ ----- Total hotel operating expenses 566,478 662,901 -14.5% Property taxes, insurance, and other 55,153 55,368 -0.4% ------ ------ ---- HOTEL OPERATING PROFIT (Hotel EBITDA) 204,162 289,417 -29.5% Hotel EBITDA Margin 24.72% 28.72% -4.00% Minority interest in earnings of consolidated joint ventures 6,030 8,146 -26.0% ----- ----- ----- HOTEL OPERATING PROFIT (Hotel EBITDA), excluding minority interest in joint ventures $198,132 $281,271 -29.6% ======== ======== ===== NOTES: (1) The above pro forma table assumes the 95 hotel properties owned and included in continuing operations at December 31, 2009, but not under renovation for the three and twelve months ended December 31, 2009, were owned as of the beginning of the periods presented. (2) Excluded Hotels Under Renovation: Hilton Torrey Pines, Hilton Nassau Bay, Residence Inn Orlando Sea World, Edison Courtyard, Embassy Suites Orlando Airport, Marriott Bridgewater, Embassy Suites Portland (3) 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 REGION (Unaudited) Three Months Ended Year Ended Number Number December 31, December 31, of of --------------------- --------------------- Region Hotels Rooms 2009 2008 % Change 2009 2008 % Change ------ ------ ----- ---- ---- -------- ---- ---- -------- Pacific(1) 21 5,205 $84.86 $99.83 -15.0% $91.08 $115.52 -21.2% Mountain(2) 8 1,704 65.37 77.17 -15.3% 74.34 96.63 -23.1% West North Central(3) 3 690 65.45 73.97 -11.5% 70.38 86.48 -18.6% West South Central(4) 10 2,086 77.43 98.66 -21.5% 83.69 103.50 -19.1% East North Central(5) 9 1,852 59.78 69.68 -14.2% 62.47 81.48 -23.3% East South Central(6) 2 236 64.85 70.61 -8.2% 75.19 88.22 -14.8% Middle Atlantic(7) 9 2,481 86.46 94.50 -8.5% 85.12 101.32 -16.0% South Atlantic (8) 38 7,728 80.39 90.71 -11.4% 91.10 104.10 -12.5% New England(9) 2 159 71.32 79.25 -10.0% 69.14 85.76 -19.4% --- ------ ------ ------ ----- ------ ------- ----- Total Portfolio 102 22,141 $78.52 $90.76 -13.5% $85.10 $103.15 -17.5% === ====== ====== ====== ===== ====== ======= ===== (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 NOTES: (1) The above pro forma table assumes the 102 hotel properties owned and included in continuing operations at December 31, 2009 were owned as of the beginning of the periods presented. (3) 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 Year Ended Number Number December 31, December 31, of of --------------------- ---------------------- Brand Hotels Rooms 2009 2008 % Change 2009 2008 % Change ----- ------ ----- ---- ---- -------- ---- ---- -------- Hilton 34 7,513 $81.69 $94.09 -13.2% $90.05 $109.09 -17.5% Hyatt 1 242 101.35 97.22 4.2% 105.06 132.65 -20.8% Inter- Continental 2 420 128.85 123.26 4.5% 129.49 145.12 -10.8% Independent 2 317 60.14 55.87 7.6% 69.10 55.66 24.1% Marriott 57 11,714 78.18 91.74 -14.8% 83.56 100.93 -17.2% Starwood 6 1,935 57.52 67.83 -15.2% 65.11 88.01 -26.0% --- ------ ------ ------ ----- ------ ------- ----- Total Portfolio 102 22,141 $78.52 $90.76 -13.5% $85.10 $103.15 -17.5% === ====== ====== ====== ===== ====== ======= ===== NOTES: (1) The above pro forma table assumes the 102 hotel properties owned and included in continuing operations at December 31, 2009 were owned as of the beginning of the periods presented. (3) 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) Number of Number of Region Hotels Rooms ------ ------ ----- Pacific (1) 21 5,205 Mountain (2) 8 1,704 West North Central (3) 3 690 West South Central (4) 10 2,086 East North Central (5) 9 1,852 East South Central (6) 2 236 Middle Atlantic (7) 9 2,481 South Atlantic (8) 38 7,728 New England (9) 2 159 --- ------ Total Portfolio 102 22,141 === ====== Three Months Ended December 31, ------------ Region 2009 % Total 2008 % Total % Change ------ ---- ------- ---- ------- -------- Pacific (1) $14,348 25.7% $20,688 27.6% -30.6% Mountain (2) 2,150 3.8% 3,652 4.9% -41.1% West North Central (3) 1,563 2.8% 1,995 2.7% -21.7% West South Central (4) 5,552 10.0% 8,372 11.2% -33.7% East North Central (5) 2,874 5.2% 3,516 4.7% -18.3% East South Central (6) 362 0.6% 553 0.7% -34.5% Middle Atlantic (7) 7,868 14.1% 8,925 11.9% -11.8% South Atlantic (8) 20,735 37.2% 26,702 35.7% -22.3% New England (9) 338 0.6% 440 0.6% -23.2% ------- ----- ------- ----- ----- Total Portfolio $55,790 100.0% $74,843 100.0% -25.5% ======= ===== ======= ===== ===== Year Ended December 31, ------------ Region 2009 % Total 2008 % Total % Change ------ ---- ------- ---- ------- -------- Pacific (1) $57,508 25.0% $91,489 27.9% -37.1% Mountain (2) 12,771 5.6% 22,238 6.8% -42.6% West North Central (3) 6,654 2.9% 9,498 2.9% -29.9% West South Central (4) 23,590 10.3% 31,633 9.7% -25.4% East North Central (5) 10,398 4.5% 21,025 6.4% -50.5% East South Central (6) 2,412 1.0% 3,154 1.0% -23.5% Middle Atlantic (7) 23,304 10.1% 32,747 10.0% -28.8% South Atlantic (8) 92,123 40.1% 113,896 34.8% -19.1% New England (9) 1,137 0.5% 1,796 0.5% -36.7% -------- ----- -------- ----- ----- Total Portfolio $229,897 100.0% $327,476 100.0% -29.8% ======== ===== ======== ===== ===== (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 NOTES: (1) The above pro forma table assumes the 102 hotel properties owned and included in continuing operations at December 31, 2009 were owned as of the beginning of the periods presented. (3) 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 MARGIN (Unaudited) 95 HOTELS NOT UNDER RENOVATION AND INCLUDED IN CONTINUING OPERATIONS AT DECEMBER 31, 2009 AS IF SUCH HOTELS WERE OWNED AS OF THE BEGINNING OF THE PERIODS PRESENTED: HOTEL OPERATING PROFIT (HOTEL EBITDA) MARGIN: 4th Quarter 2009 23.30% 4th Quarter 2008 26.06% ----- Variance -2.76% ===== HOTEL OPERATING PROFIT (HOTEL EBITDA) MARGIN VARIANCE BREAKDOWN: Rooms -1.20% Food & Beverage and Other Departmental 0.08% Administrative & General -0.25% Sales & Marketing 0.35% Hospitality -0.05% Repair & Maintenance -0.45% Energy -0.47% Franchise Fee -0.19% Management Fee 0.02% Incentive Management Fee 0.36% Insurance -0.46% Property Taxes -0.53% Other Taxes 0.28% Leases/Other -0.25% ----- Total -2.76% ===== 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 102 HOTELS OWNED AND INCLUDED IN CONTINUING OPERATIONS AS OF DECEMBER 31, 2009: 2009 2009 2009 2009 4th Quarter 3rd Quarter 2nd Quarter 1st Quarter TTM ----------- ----------- ----------- ----------- --- Total Hotel Revenue $239,488 $216,433 $233,947 $231,768 $921,636 Hotel EBITDA $55,790 $50,049 $61,126 $62,932 $229,897 Hotel EBITDA Margin 23.3% 23.1% 26.1% 27.2% 24.9% EBITDA % of Total TTM 24.3% 21.8% 26.6% 27.4% 100.0% JV Interests in EBITDA $1,482 $1,139 $1,839 $1,570 $6,030 NOTES: (1) The above pro forma table assumes the 102 hotel properties owned and included in continuing operations at December 31, 2009 were owned as of the beginning of the periods presented. (3) 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. Capital Expenditures Calendar 102 Hotels (a) 2009 ------------------------------------- Actual Actual Actual Actual 1st 2nd 3rd 4th Rooms Quarter Quarter Quarter Quarter ----- ------- ------- ------- ------- Sheraton Anchorage 370 x Marriott Legacy Center 404 x Hilton Rye Town 446 x x x Hilton Nassau Bay - Clear Lake 243 x x x x Residence Inn Orlando Sea World 350 x x Courtyard Edison 146 x x Embassy Suites Orlando Airport 174 x x Embassy Suites Portland - Downtown 276 x Hilton La Jolla Torrey Pines 296 x Marriott Bridgewater 347 x Capital Hilton 408 Sheraton City Center - Indianapolis 371 Embassy Suites Philadelphia Airport 263 Hilton Costa Mesa 486 Embassy Suites Las Vegas Airport 220 Sheraton Minneapolis West 222 Crowne Plaza Beverly Hills 260 Hilton Tucson El Conquistador Golf Resort 428 Embassy Suites Crystal City - Reagan Airport 267 Hilton Minneapolis Airport 300 Marriott Seattle Waterfront 358 Embassy Suites Austin Arboretum 150 Fairfield Inn and Suites Kennesaw 87 ----- 2010 Estimated Estimated Estimated Estimated 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter ------- ------- ------- ------- Sheraton Anchorage x Marriott Legacy Center x Hilton Rye Town Hilton Nassau Bay - Clear Lake x x Residence Inn Orlando Sea World Courtyard Edison Embassy Suites Orlando Airport Embassy Suites Portland - Downtown x Hilton La Jolla Torrey Pines x Marriott Bridgewater x x Capital Hilton x x x Sheraton City Center - Indianapolis x x Embassy Suites Philadelphia Airport x Hilton Costa Mesa x x Embassy Suites Las Vegas Airport x x Sheraton Minneapolis West x x Crowne Plaza Beverly Hills x x Hilton Tucson El Conquistador Golf Resort x x Embassy Suites Crystal City - Reagan Airport x Hilton Minneapolis Airport x Marriott Seattle Waterfront x Embassy Suites Austin Arboretum x Fairfield Inn and Suites Kennesaw x (a) Only hotels which have had or are expected to have significant capital expenditures that could result in displacement during 2009 and 2010 are included in this table. DATASOURCE: Ashford Hospitality Trust, Inc. CONTACT: David Kimichik, Chief Financial Officer, +1-972-490-9600; Tripp Sullivan, Corporate Communications, Inc., +1-615-254-7318 Web Site: http://www.ahtreit.com/

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