AHT Ashford Hospitality Trust Inc

Ashford Hospitality Trust, Inc. (NYSE:AHT) today reported the following results and performance measures for the fourth quarter ended December 31, 2010. 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 97 hotels owned and included in continuing operations as of December 31, 2010. Unless otherwise stated, all reported results compare the fourth quarter ended December 31, 2010, with the fourth quarter ended December 31, 2009 (see discussion below). The reconciliation of non-GAAP financial measures is included in the financial tables accompanying this press release.

FINANCIAL HIGHLIGHTS

• RevPAR increased 7.5% for the hotels not under renovation
• Operating profit margin increased 384 basis points for the hotels not under renovation
• Net loss attributable to common shareholders was $111.5 million, or $2.17 per diluted share, compared with net loss attributable to common shareholders of $76.9 million, or $1.30 per diluted share, in the prior-year quarter
• Adjusted funds from operations (AFFO) was $0.40 per diluted share for the quarter
• Adjusted funds from operations (AFFO) was $1.50 per diluted share for the entire year
• Net debt to gross assets ratio improved to 55.0% compared with 59.0% a year ago
• Fixed charge coverage ratio was 1.70x under the senior credit facility covenant versus a required minimum of 1.25x
• Reinstates common stock quarterly dividend at $0.10 per share, or $0.40 per share annualized rate

CAPITAL ALLOCATION

• Capex invested in the quarter was $15.7 million and $62.2 million year to date

IMPAIRMENTS

During the fourth quarter due to assets being marketed for sale, the Company recorded impairments of $39.9 million for the Hilton Tucson and $23.6 million for the Hilton Rye Town. Also the Company took impairments of $21.6 million for its JER portfolio mezzanine loan six position and an impairment of $7.8 million for a partial write down of the Tharaldson portfolio mezzanine loan maturing in April 2011. In addition, the Company received in the fourth quarter a $4.4 million payoff of its mezzanine loan secured by interests in the Hotel La Jolla, which when combined with a payment of $1.8 million in the third quarter of 2010, resulted in a discounted payoff of 87.5%.

CAPITAL STRUCTURE

In October 2010, the Company converted its $1.8 billion interest rate swap to a fixed rate of 4.09%, resulting in locked-in annual interest expense savings of approximately $32 million for the remaining term of the swap. There was no cash cost to the Company in structuring the swap, and the Company's flooridors for 2010 and 2011, remained outstanding, the latter of which may provide additional benefit.

In November 2010, the Company closed a $105 million loan with Deutsche Bank secured by the Marriott Crystal Gateway in Arlington, VA. The new financing, which has a 10-year term and a fixed interest rate of 6.26%, replaced an existing $60.8 million loan on the property that had an initial maturity date in March 2012 and had an interest rate of 400 basis points over LIBOR. The excess loan proceeds were used to pay down the Company’s credit facility and for general corporate purposes.

In December 2010, the Company closed its underwritten public offering of 7.5 million shares of its common stock at a price to the public of $9.65 per share. In January 2011, the underwriter exercised its option to purchase an additional 300,000 shares of common stock at $9.65 per share. The proceeds were used for general corporate purposes.

PORTFOLIO REVPAR

As of December 31, 2010, the Company had a portfolio of direct hotel investments consisting of 97 properties classified in continuing operations. During the fourth quarter, 80 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 97 hotels) and proforma not-under-renovation basis (80 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 97 hotels in continuing operations. Details of each category are provided in the tables attached to this release.

• Proforma RevPAR increased 7.5% for hotels not under renovation on a 0.5% increase in ADR to $117.07 and a 429 basis point increase in occupancy
• Proforma RevPAR increased 5.3% for all hotels on a 0.2% increase in ADR to $122.80 and a 324 basis point increase in occupancy

HOTEL EBITDA MARGINS AND QUARTERLY SEASONALITY TRENDS

For the 80 hotels as of December 31, 2010, that were not under renovation, Proforma Hotel EBITDA increased 23.5% to $42.8 million. Proforma Hotel EBITDA margin (expressed as a percentage of Total Hotel Revenue) increased 384 basis points to 27.2%. For all 97 hotels included in continuing operations as of December 31, 2010, Proforma Hotel EBITDA increased 14.7% to $60.7 million and Hotel EBITDA margin increased 256 basis points to 26.9%.

Ashford believes year-over-year Hotel EBITDA and Hotel EBITDA margin comparisons are more meaningful to gauge the performance of the Company’s hotels than sequential quarter-over-quarter comparisons. Given the substantial seasonality in the Company’s portfolio and its active capital recycling, to help investors better understand this seasonality, the Company provides quarterly detail on its Proforma Hotel EBITDA and Proforma Hotel EBITDA margin for the current and certain prior-year periods based upon the number of core hotels in the portfolio as of the end of the current period. As Ashford’s portfolio mix changes from time to time so will the seasonality for Proforma Hotel EBITDA and Proforma Hotel EBITDA margin. The details of the quarterly calculations for the previous four quarters for the current portfolio of 97 hotels included in continuing operations are provided in the tables attached to this release.

COMMON STOCK DIVIDEND REINSTATED

Ashford announced that the Board of Directors has declared a dividend on the Company’s common stock for the first quarter of 2011 of $0.10 per share and has given guidance that while each future quarter’s dividend, if any, will be definitively announced near the end of each quarter, the Company intends to maintain at least a $.10 per share dividend per quarter going forward. The dividend is payable on April 15, 2011, to shareholders of record as of March 31, 2011, and equates to an annualized yield of 4.1% based on today’s closing stock price.

Monty J. Bennett, Chief Executive Officer, commented, “The strong results for the fourth quarter continue to reflect the benefit of an improving lodging market and our ability to achieve better margin improvement through differentiated asset management strategies. Combined with our opportunistic capital market activities, we have been able to position our portfolio for better performance.”

INVESTOR CONFERENCE CALL AND SIMULCAST

Ashford Hospitality Trust, Inc. will conduct a conference call on Friday, February 25, 2011, at 11 a.m. ET. The number to call for this interactive teleconference is (212) 231-2906. A replay of the conference call will be available through Thursday, March 3, 2011, by dialing (402) 977-9140 and entering the confirmation number, 21508722.

The Company will also provide an online simulcast and rebroadcast of its fourth quarter 2010 earnings release conference call. The live broadcast of Ashford's quarterly conference call will be available online at the Company's website at www.ahtreit.com on Friday, February 25, 2011, 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, and Hotel Operating Profit. 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, nor Hotel Operating Profit 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, and Hotel Operating Profit 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 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 of 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, 2010 2009 (Unaudited) ASSETS Investment in hotel properties, net $ 3,023,736 $ 3,383,759 Cash and cash equivalents 217,690 165,168 Restricted cash 67,666 77,566 Accounts receivable, net 27,493 31,503 Inventories 2,909 2,975 Notes receivable 20,870 55,655 Investment in unconsolidated joint ventures 15,000 20,736 Assets held for sale 144,511 - Deferred costs, net 17,519 20,960 Prepaid expenses 12,727 13,234 Interest rate derivatives 106,867 94,645 Other assets 7,502 3,471 Intangible assets, net 2,899 2,988 Due from third-party hotel managers   49,135     41,838     Total assets $ 3,716,524   $ 3,914,498     LIABILITIES AND EQUITY Liabilities Indebtedness of continuing operations $ 2,518,164 $ 2,772,396 Indebtedness of assets held for sale 50,619 - Capital leases payable 36 83 Accounts payable and accrued expenses 79,248 91,387 Dividends payable 7,281 5,566 Unfavorable management contract liabilities 16,058 18,504 Due to related parties 2,400 1,009 Due to third-party hotel managers 1,870 1,563 Other liabilities 4,627 7,932 Other liabilities of assets held for sale   2,995     -     Total liabilities   2,683,298     2,898,440    

Series B-1 Cumulative Convertible Redeemable Preferred stock, 7,247,865 shares and 7,447,865 shares issued and outstanding at December 31, 2010 and 2009

72,986 75,000 Redeemable noncontrolling interests in operating partnership 126,722 85,167   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 issued and outstanding at December 31, 2010 and 2009

15 15

Series D Cumulative Preferred Stock, 8,966,797 shares and 5,666,797 shares issued and outstanding at December 31, 2010 and 2009

90 57

Common stock, $0.01 par value, 200,000,000 shares authorized, 123,403,893 shares and 122,748,859 shares issued at December 31, 2010 and 2009, 58,999,324 and 57,596,878 shares outstanding at December 31, 2010 and 2009

1,234 1,227 Additional paid-in capital 1,552,657 1,436,009 Accumulated other comprehensive loss (550 ) (897 ) Accumulated deficit (543,788 ) (412,011 )

Treasury stock, at cost (64,404,569 shares and 65,151,981 shares at December 31, 2010 and 2009)

  (192,850 )   (186,424 ) Total shareholders' equity of the Company 816,808 837,976 Noncontrolling interests in consolidated joint ventures   16,710     17,915     Total equity   833,518     855,891    

Total liabilities and equity

$ 3,716,524   $ 3,914,498       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,

2010 2009 2010 2009 (Unaudited) REVENUE Rooms $ 166,901 $ 157,646 $ 643,694 $ 629,298 Food and beverage 42,187 41,894 151,105 152,366 Rental income from operating leases 1,708 1,820 5,436 5,650 Other   9,858     10,401     39,327     41,676     Total hotel revenue 220,654 211,761 839,562 828,990 Interest income from notes receivable 346 479 1,378 10,876 Asset management fees and other   113     174     425     726     Total Revenue   221,113     212,414     841,365     840,592     EXPENSES Hotel operating expenses Rooms 39,865 37,756 148,854 143,024 Food and beverage 28,474 28,926 105,229 106,909 Other direct 5,855 6,105 23,618 24,084 Indirect 64,925 63,990 243,508 243,825 Management fees   9,504     9,039     35,051     34,327     Total hotel operating expenses 148,623 145,816 556,260 552,169   Property taxes, insurance, and other 11,761 13,904 49,623 53,386 Depreciation and amortization 33,071 34,268 133,435 139,385 Impairment charges 47,667 (593 ) 46,404 148,679 Gain on insurance settlement - (1,329 ) - (1,329 ) Transaction acquisition and contract termination costs 7,001 - 7,001 - Corporate general and administrative: Stock/unit-based compensation 1,899 1,141 7,067 5,037 Other general and administrative   6,039     5,796     23,552     24,914     Total Operating Expenses   256,061     199,003     823,342     922,241     OPERATING INCOME (LOSS) (34,948 ) 13,411 18,023 (81,649 )   Equity in (loss) earnings of unconsolidated joint ventures (21,590 ) 623 (20,265 ) 2,486 Interest income 57 44 283 297 Other income 15,781 21,416 62,826 56,556 Interest expense (33,906 ) (32,608 ) (135,685 ) (126,110 ) Amortization of loan costs (1,079 ) (1,644 ) (4,924 ) (6,887 ) Write-off of premiums, loan costs, premiums and exit fees, net (3,893 ) (559 ) (3,893 ) 371 Unrealized (loss) gain on derivatives   (18,540 )   (17,616 )   12,284     (31,782 )   (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (98,118 ) (16,933 ) (71,351 ) (186,718 ) Income tax benefit (expense)   591     (1,136 )   155     (1,508 )   (LOSS) INCOME FROM CONTINUING OPERATIONS (97,527 ) (18,069 ) (71,196 ) (188,226 ) (Loss) income from discontinued operations   (24,658 )   (66,196 )   9,404     (100,434 )   NET (LOSS) INCOME (122,185 ) (84,265 ) (61,792 ) (288,660 ) Loss from consolidated joint ventures attributable to noncontrolling interests 262 136 1,683 765 Net loss (income) attributable to redeemable noncontrolling interests in operating partnership   16,979     12,085     8,369     37,653     NET (LOSS) INCOME ATTRIBUTABLE TO THE COMPANY (104,944 ) (72,044 ) (51,740 ) (250,242 ) Preferred dividends   (6,545 )   (4,830 )   (21,194 )   (19,322 )   NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS $ (111,489 ) $ (76,874 ) $ (72,934 ) $ (269,564 )   INCOME PER SHARE – BASIC AND DILUTED: Loss from continuing operations attributable to common shareholders $ (1.75 ) $ (0.34 ) $ (1.59 ) $ (2.66 ) (Loss) income from discontinued operations attributable to common shareholders   (0.42 )   (0.96 )   0.16     (1.27 )   Net loss attributable to common shareholders $ (2.17 ) $ (1.30 ) $ (1.43 ) $ (3.93 )   Weighted average common shares outstanding – basic and diluted   51,407     59,101     51,159     68,597     Amounts attributable to common shareholders: Loss from continuing operations, net of tax $ (83,621 ) $ (15,301 ) $ (60,066 ) $ (163,432 ) (Loss) income from discontinued operations, net of tax (21,323 ) (56,743 ) 8,326 (86,810 ) Preferred dividends   (6,545 )   (4,830 )   (21,194 )   (19,322 )   Net loss attributable to common shareholders $ (111,489 ) $ (76,874 ) $ (72,934 ) $ (269,564 )     ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES RECONCILIATION OF NET INCOME (LOSS) TO EBITDA (in thousands)           Three Months Ended Year Ended December 31, December 31, 2010 2009 2010 2009 (Unaudited)   Net (loss) income $ (122,185 ) $ (84,265 ) $ (61,792 ) $ (288,660 ) Loss from consolidated joint ventures attributable to noncontrolling interests 262 136 1,683 765 Net loss (income) attributable to redeemable noncontrolling interests in operating partnership   16,979     12,085     8,369     37,653   Net (loss) income attributable to the Company (104,944 ) (72,044 ) (51,740 ) (250,242 )   Interest income (57 ) (44 ) (273 ) (289 ) Interest expense and amortization of loan costs 35,819 36,945 147,233 145,171 Depreciation and amortization 34,706 37,341 141,547 153,907 Net (loss) income attributable to redeemable noncontrolling interests in operating partnership (16,979 ) (12,085 ) (8,369 ) (37,653 ) Income tax expense   (649 )   979     (132 )   1,565     EBITDA (52,104 ) (8,908 ) 228,266 12,459   Amortization of unfavorable management contract liabilities (753 ) (752 ) (2,447 ) (2,446 ) Loss (gain) on sale/disposition of properties - 511 (55,931 ) 511 Gain on insurance settlement - (1,329 ) - (1,329 ) Write-off of loan costs, premiums and exit fees, net 3,893 1,111 3,893 181 Income from interest rate derivatives (1) (15,786 ) (19,079 ) (62,906 ) (52,282 ) Impairment charges 71,249 58,735 82,055 218,878 Impairment charge in unconsolidated joint venture 21,590 - 21,590 - Transaction acquisition and contract termination costs 7,001 - 7,001 - Unrealized loss (gain) on derivatives 18,540 17,616 (12,284 ) 31,782         Adjusted EBITDA $ 53,630   $ 47,905   $ 209,237   $ 207,754       RECONCILIATION OF NET INCOME (LOSS) TO FUNDS FROM OPERATIONS ("FFO") (in thousands, except per share amounts)     Three Months Ended Year Ended December 31, December 31, 2010 2009 2010 2009 (Unaudited)   Net (loss) income $ (122,185 ) $ (84,265 ) $ (61,792 ) $ (288,660 ) Loss from consolidated joint ventures attributable to noncontrolling interests 262 136 1,683 765 Net loss (income) attributable to redeemable noncontrolling interests in operating partnership 16,979 12,085 8,369 37,653 Preferred dividends   (6,545 )   (4,830 )   (21,194 )   (19,322 )   Net loss attributable to common shareholders (111,489 ) (76,874 ) (72,934 ) (269,564 )   Depreciation and amortization on real estate 34,642 37,271 141,285 153,621 Loss (gain) on sale/disposition of properties - 511 (55,931 ) 511 Gain on insurance settlement - (1,329 ) - (1,329 ) Net income (loss) attributable to redeemable noncontrolling interests in operating partnership   (16,979 )   (12,085 )   (8,369 )   (37,653 )   FFO available to common shareholders (93,826 ) (52,506 ) 4,051 (154,414 )   Dividends on convertible preferred stock 1,015 1,043 4,143 4,171 Write-off of loan costs, premiums and exit fees, net 3,893 1,111 3,893 181 Impairment charges 71,249 58,735 82,055 218,878 Impairment charge in unconsolidated joint venture 21,590 - 21,590 - Transaction acquisition and contract termination costs 7,001 - 7,001 - Unrealized loss (gain) on derivatives   18,540     17,616     (12,284 )   31,782     Adjusted FFO $ 29,462   $ 25,999   $ 110,449   $ 100,598     Adjusted FFO per diluted share available to common shareholders $ 0.40   $ 0.32   $ 1.50   $ 1.12     Weighted average diluted shares   73,956     80,892     73,833     89,987     (1) Income from interest rate derivatives is excluded from the adjusted EBITDA calculations for all periods presented.               ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES SUMMARY OF INDEBTEDNESS OF CONTINUING OPERATIONS DECEMBER 31, 2010 (dollars in thousands) (Unaudited)   Fixed-Rate Floating-Rate Total Indebtedness Collateral Maturity Interest Rate Debt Debt Debt   Mortgage loan 1 hotel January 2011 8.32% $ 5,775

 (1)

$ - $ 5,775 Senior credit facility Notes receivable April 2011 LIBOR + 2.75% to 3.5% - 115,000

 (2) (3)

115,000 Mortgage loan 10 hotels May 2011 LIBOR + 1.65% - 167,202

 (2)

167,202 Mortgage loan 5 hotels December 2011 LIBOR + 1.72% - 203,400 203,400 Mortgage loan 2 hotels August 2013 LIBOR + 2.75% - 150,383 150,383 Mortgage loan 1 hotel December 2014 Greater of 5.5% or LIBOR + 3.5% - 19,740 19,740 Mortgage loan 8 hotels December 2014 5.75% 108,940 - 108,940 Mortgage loan 10 hotels July 2015 5.22% 159,001 - 159,001 Mortgage loan 8 hotels December 2015 5.70% 100,576 - 100,576 Mortgage loan 5 hotels December 2015 12.26% 148,013 - 148,013 Mortgage loan 5 hotels February 2016 5.53% 114,629 - 114,629 Mortgage loan 5 hotels February 2016 5.53% 95,062 - 95,062 Mortgage loan 5 hotels February 2016 5.53% 82,345 - 82,345 Mortgage loan 1 hotel April 2017 5.91% 35,000 - 35,000 Mortgage loan 2 hotels April 2017 5.95% 128,251 - 128,251 Mortgage loan 3 hotels April 2017 5.95% 260,980 - 260,980 Mortgage loan 5 hotels April 2017 5.95% 115,600 - 115,600 Mortgage loan 5 hotels April 2017 5.95% 103,906 - 103,906 Mortgage loan 5 hotels April 2017 5.95% 158,105 - 158,105 Mortgage loan 7 hotels April 2017 5.95% 126,466 - 126,466 TIF loan 1 hotel June 2018 12.85% 8,098 - 8,098 Mortgage loan 1 hotel November 2020 6.26% 104,901 - 104,901 Mortgage loan 1 hotel April 2034 Greater of 6% or Prime + 1% - 6,791 6,791       Total indebtedness of continuing operations $ 1,855,648 $ 662,516 $ 2,518,164   Percentage   73.7%   26.3%   100.0%   Weighted average interest rate at December 31, 2010   6.38%   2.57%   5.37%   Weighted average interest rate with the effect of interest rate swap and flooridor   3.18%

 (4)

  2.57%

 (4)

  3.02%

 (4)

  (1) We are currently working with the loan servicer for an extension or a restructure of the loan. (2) Each of these loans has a one-year extension option as of December 31, 2010. (3) 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, 2010. (4) These rates are calculated assuming the LIBOR rate stays at the December 31, 2010 level and with the effect of our interest rate derivatives.    

ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

INDEBTEDNESS OF CONTINUING OPERATIONS BY MATURITY ASSUMING EXTENSION OPTIONS NOT SUBJECT TO COVERAGE/LTV TESTS ARE EXERCISED DECEMBER 31, 2010 (in thousands) (Unaudited)                       2010 2011 2012 2013 2014 Thereafter Total   Mortgage loan secured by Manchester Courtyard $ - $ 5,775

 (1)

$ - $ - $ - $ - $ 5,775 Secured credit facility - 115,000

 (2)

- - - - 115,000 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 two hotel properties - - - 150,383 - - 150,383 Mortgage loan secured by El Conquistador Hilton - - - - 19,740 - 19,740 Mortgage loan secured by eight hotel properties, UBS Pool 1 - - - - 108,940 - 108,940 Mortgage loan secured by 10 hotel properties, Merrill Lynch Pool 1 - - - - - 159,001 159,001 Mortgage loan secured by eight hotel properties, UBS Pool 2 - - - - - 100,576 100,576 Mortgage loan secured by five hotel properties - - - - - 148,013 148,013 Mortgage loan secured by five hotel properties, Merrill Lynch Pool 2 - - - - - 114,629 114,629 Mortgage loan secured by five hotel properties, Merrill Lynch Pool 3 - 95,062 95,062 Mortgage loan secured by five hotel properties, Merrill Lynch Pool 7 - 82,345 82,345 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 - - - - - 8,098 8,098 Mortgage loan secured by Arlington Marriott - - - - - 104,901 104,901 Mortgage loan secured by Jacksonville Residence Inn - - - - - 6,791 6,791               Total indebtedness of continuing operations $ - $ 324,175 $ 167,202 $ 150,383 $ 128,680 $ 1,747,724 $ 2,518,164     NOTE: These maturities assume no event of default would occur.

(1) We are currently working with the loan servicer for an extension or a restructure of the loan.

(2) Extensions available but certain coverage tests have to be met.

              ASHFORD HOSPITALITY TRUST, INC. KEY PERFORMANCE INDICATORS - PRO FORMA (dollars in thousands) (Unaudited)     Three Months Ended Year Ended December 31, December 31, 2010 2009 % Variance 2010 2009 % Variance  

ALL HOTELS INCLUDED IN CONTINUING OPERATIONS:

Room revenues (in thousands) $ 172,678 $ 164,066 5.25% $ 662,019 $ 648,781 2.04% RevPAR $ 82.17 $ 78.07 5.25% $ 87.39 $ 85.64 2.04% Occupancy 66.92% 63.68% 3.24% 70.27% 66.73% 3.54% ADR $ 122.80 $ 122.60 0.16% $ 124.35 $ 128.35 -3.12%     NOTES:

(1) The above pro forma table assumes the 97 hotel properties owned and included in continuing operations as of December 31, 2010, were owned as of the beginning of the periods presented.

  Three Months Ended Year Ended December 31, December 31, 2010 2009 % Variance 2010 2009 % Variance  

ALL HOTELS NOT UNDER RENOVATION INCLUDED IN CONTINUING OPERATIONS:

Room revenues (in thousands) $ 123,891 $ 115,280 7.47% $ 468,444 $ 455,688 2.80% RevPAR $ 77.79 $ 72.39 7.46% $ 82.13 $ 79.90 2.79% Occupancy 66.45% 62.16% 4.29% 69.36% 65.28% 4.08% ADR $ 117.07 $ 116.45 0.53% $ 118.42 $ 122.39 -3.24%   NOTES:

(1)

The above pro forma table assumes the 80 hotel properties owned and included in continuing operations as of December 31, 2010, but not under renovation for the three months and year ended December 31, 2010, were owned as of the beginning of the periods presented.

 

(2)

Excluded Hotels Under Renovation: Capital Hilton, Courtyard Edison, Embassy Suites Philadelphia Airport, Embassy Suites Las Vegas Airport, Sheraton Anchorage, Hilton Costa Mesa, Sheraton Minneapolis West, Crowne Plaza Beverly Hills, Embassy Suites Crystal City-Reagan Airport, Hilton Minneapolis Airport, Marriott Seattle Waterfront, Fairfield Inn and Suites Kennesaw, Renaissance Tampa, Courtyard Crystal City Reagan Airport, Courtyard Philadelphia Downtown, Courtyard Louisville Airport, and Marriott Legacy Center.

 

(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 tables, all room revenues related to this hotel are reflected, which is consistent with the Company's other hotels.

            ASHFORD HOSPITALITY TRUST, INC. PRO FORMA HOTEL OPERATING PROFIT (dollars in thousands) (Unaudited)       ALL HOTELS INCLUDED IN CONTINUING OPERATIONS:   Three Months Ended Year Ended December 31, December 31, 2010 2009 % Variance 2010 2009 % Variance REVENUE Rooms $ 172,678 $ 164,066 5.2% $ 662,019 $ 648,781 2.0% Food and beverage 43,192 43,017 0.4% 154,175 155,789 -1.0% Other   9,752   10,219 -4.6%   38,919   41,064 -5.2% Total hotel revenue   225,622   217,302 3.8%   855,113   845,634 1.1%   EXPENSES Rooms 41,121 39,056 5.3% 153,091 147,284 3.9% Food and beverage 29,123 29,637 -1.7% 107,320 109,205 -1.7% Other direct 5,883 6,190 -5.0% 23,717 24,343 -2.6% Indirect 65,909 65,633 0.4% 245,823 247,345 -0.6% Management fees, includes base and incentive fees   10,698   9,864 8.5%   39,508   38,175 3.5% Total hotel operating expenses 152,734 150,380 1.6% 569,459 566,352 0.5% Property taxes, insurance, and other   12,173   14,006 -13.1%   50,617   54,145 -6.5% HOTEL OPERATING PROFIT (Hotel EBITDA) 60,715 52,916 14.7% 235,037 225,137 4.4% Hotel EBITDA Margin 26.91% 24.35% 2.56% 27.49% 26.62% 0.87%   Minority interest in earnings of consolidated joint ventures   1,445   1,427 1.3%   5,546   5,787 -4.2%

 

HOTEL OPERATING PROFIT (Hotel EBITDA), excluding minority interest in joint ventures

$ 59,270 $ 51,489 15.1% $ 229,491 $ 219,350 4.6%   NOTE:

The above pro forma table assumes the 97 hotel properties owned and included in continuing operations as of December 31, 2010 were owned as of the beginning of the periods presented.

    ALL HOTELS NOT UNDER RENOVATION INCLUDED IN CONTINUING OPERATIONS:   Three Months Ended Year Ended December 31, December 31, 2010 2009 % Variance 2010 2009 % Variance REVENUE Rooms $ 123,891 $ 115,280 7.5% $ 468,444 $ 455,688 2.8% Food and beverage 26,704 26,034 2.6% 93,949 95,653 -1.8% Other   7,015   7,312 -4.1%   28,137   29,492 -4.6% Total hotel revenue   157,610   148,626 6.0%   590,530   580,833 1.7%   EXPENSES Rooms 29,251 27,716 5.5% 107,619 103,720 3.8% Food and beverage 17,951 18,135 -1.0% 66,070 67,229 -1.7% Other direct 4,201 4,431 -5.2% 17,210 17,522 -1.8% Indirect 45,983 45,713 0.6% 172,148 173,169 -0.6% Management fees, includes base and incentive fees   8,482   7,837 8.2%   30,982   30,302 2.2% Total hotel operating expenses 105,868 103,832 2.0% 394,029 391,942 0.5% Property taxes, insurance, and other   8,921   10,128 -11.9%   36,531   39,248 -6.9% HOTEL OPERATING PROFIT (Hotel EBITDA) 42,821 34,666 23.5% 159,970 149,643 6.9% Hotel EBITDA Margin 27.17% 23.32% 3.84% 27.09% 25.76% 1.33%   Minority interest in earnings of consolidated joint ventures   558   307 81.8%   2,030   1,603 26.6%

 

HOTEL OPERATING PROFIT (Hotel EBITDA), excluding minority interest in joint ventures

$ 42,263 $ 34,359 23.0% $ 157,940 $ 148,040 6.7%   NOTES: (1)

The above pro forma table assumes the 80 hotel properties owned and included in continuing operations as of December 31, 2010, but not under renovation during the three and twelve months ended December 31, 2010 were owned as of the beginning of the periods presented.

  (2)

Excluded Hotels Under Renovation: Capital Hilton, Courtyard Edison, Embassy Suites Philadelphia Airport, Embassy Suites Las Vegas Airport, Sheraton Anchorage, Hilton Costa Mesa, Sheraton Minneapolis West, Crowne Plaza Beverly Hills, Embassy Suites Crystal City-Reagan Airport, Hilton Minneapolis Airport, Marriott Seattle Waterfront, Fairfield Inn and Suites Kennesaw, Renaissance Tampa, Courtyard Crystal City Reagan Airport, Courtyard Philadelphia Downtown, Courtyard Louisville Airport, and Marriott Legacy Center.

  (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 tables, all room revenues related to this hotel are reflected, which is consistent with the Company's other hotels.

    ASHFORD HOSPITALITY TRUST, INC. PRO FORMA HOTEL REVPAR BY REGION (Unaudited)                     Three Months Ended Year Ended Number of Number of December 31, December 31, Region Hotels Rooms 2010 2009 % Change 2010 2009 % Change   Pacific (1) 20 4,867 $ 84.28 $ 78.83 6.9% $ 92.49 $ 86.95 6.4% Mountain (2) 8 1,704 67.75 65.37 3.6% 75.89 74.34 2.1% West North Central (3) 3 690 72.33 65.45 10.5% 75.35 70.38 7.1% West South Central (4) 9 1,936 82.92 78.28 5.9% 84.63 84.65 0.0% East North Central (5) 7 1,103 64.00 61.43 4.2% 66.70 64.61 3.2% East South Central (6) 2 236 82.05 64.85 26.5% 86.97 75.19 15.7% Middle Atlantic (7) 8 2,035 90.70 91.18 -0.5% 90.95 90.96 0.0% South Atlantic (8) 38 7,728 84.68 80.39 5.3% 90.60 91.10 -0.5% New England (9) 2 159 77.60 71.32 8.8% 77.98 69.14 12.8%                 Total Portfolio 97 20,458 $ 82.17 $ 78.07 5.3% $ 87.39 $ 85.64 2.0%     (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 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 Connecticut     NOTES: (1)

The above pro forma table assumes the 97 hotel properties owned and included in continuing operations as of December 31, 2010 were owned as of the beginning of the periods presented.

  (2)

As the Company's Courtyard by Marriott hotel in Philadelphia, Pennsylvania, is leased to a third-party tenant on a triple-net lease basis, the Company only records rental income related to this operating lease for GAAP purposes. However, in the above pro forma table, all room revenues related to this hotel are reflected, which is consistent with the Company's other hotels.

              ASHFORD HOSPITALITY TRUST, INC. PRO FORMA HOTEL REVPAR BY BRAND (Unaudited)         Three Months Ended Year Ended Number of Number of December 31, December 31, Brand Hotels Rooms 2010 2009 % Change 2010 2009 % Change   Hilton 31 6,693 $ 87.92 $ 84.73 3.8% $ 94.97 $ 94.06 1.0% Hyatt 1 242 114.02 101.35 12.5% 113.04 105.06 7.6% InterContinental 2 420 125.31 128.85 -2.7% 133.23 129.49 2.9% Independent 2 317 64.18 60.14 6.7% 76.96 69.10 11.4% Marriott 56 11,376 80.39 75.52 6.4% 83.25 81.55 2.1% Starwood 5 1,410 56.75 54.77 3.6% 67.98 64.80 4.9%                 Total Portfolio 97 20,458 $ 82.17 $ 78.07 5.3% $ 87.39 $ 85.64 2.0%     NOTES: (1)

The above pro forma table assumes the 97 hotel properties owned and included in continuing operations as of December 31, 2010 were owned as of the beginning of the periods presented.

  (2)

As the Company's Courtyard by Marriott hotel in Philadelphia, Pennsylvania, is leased to a third-party tenant on a triple-net lease basis, the Company only records rental income related to this operating lease for GAAP purposes. However, in the above pro forma table, all room revenues related to this hotel are reflected, which is consistent with the Company's other hotels.

                  ASHFORD HOSPITALITY TRUST, INC. PRO FORMA HOTEL OPERATING PROFIT BY REGION (dollars in thousands) (Unaudited)             Three Months Ended Year Ended Number of Number of December 31, December 31, Region Hotels Rooms 2010   % Total 2009   % Total % Change 2010   % Total 2009   % Total % Change   Pacific (1) 20 4,867 $ 15,452 25.5% $ 12,670 23.9% 22.0% $ 61,414 26.1% $ 54,714 24.3% 12.2% Mountain (2) 8 1,704 2,634 4.3% 2,150 4.1% 22.5% 13,053 5.6% 12,771 5.7% 2.2% West North Central (3) 3 690 1,977 3.3% 1,563 2.9% 26.5% 7,786 3.3% 6,654 2.9% 17.0% West South Central (4) 9 1,936 6,368 10.5% 5,178 9.8% 23.0% 22,641 9.6% 21,969 9.8% 3.1% East North Central (5) 7 1,103 2,375 3.9% 2,106 4.0% 12.8% 9,459 4.0% 8,422 3.7% 12.3% East South Central (6) 2 236 711 1.2% 362 0.7% 96.4% 3,161 1.3% 2,412 1.1% 31.1% Middle Atlantic (7) 8 2,035 7,659 12.6% 7,813 14.8% -2.0% 24,810 10.6% 24,934 11.1% -0.5% South Atlantic (8) 38 7,728 23,202 38.2% 20,736 39.2% 11.9% 91,206 38.8% 92,124 40.9% -1.0% New England (9) 2 159 337 0.5% 338 0.6% -0.3% 1,507 0.6% 1,137 0.5% 32.5%                                 Total Portfolio 97 20,458 $ 60,715   100.0% $ 52,916   100.0% 14.7% $ 235,037   100.0% $ 225,137   100.0% 4.4%     (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 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 Connecticut     NOTES: (1) The above pro forma table assumes the 97 hotel properties owned and included in continuing operations as of December 31, 2010 were owned as of the beginning of the periods presented.   (2)

As the Company's Courtyard by Marriott hotel in Philadelphia, Pennsylvania, is leased to a third-party tenant on a triple-net lease basis, the Company only records rental income related to this operating lease for GAAP purposes. However, in the above pro forma table, all room revenues related to this hotel are reflected, which is consistent with the Company's other hotels.

    ASHFORD HOSPITALITY TRUST, INC. PRO FORMA HOTEL OPERATING PROFIT MARGIN (Unaudited)      

80 HOTELS NOT UNDER RENOVATION INCLUDED IN CONTINUING OPERATIONS AT DECEMBER 31, 2010. SUCH HOTELS WERE OWNED AS OF THE BEGINNING OF THE PERIODS PRESENTED:

    HOTEL OPERATING PROFIT (HOTEL EBITDA) MARGIN:   Fourth Quarter 2010 27.17% Fourth Quarter 2009 23.32% Variance 3.85%   HOTEL OPERATING PROFIT (HOTEL EBITDA) MARGIN VARIANCE BREAKDOWN:   Rooms 0.13% Food & Beverage and Other Departmental 1.13% Administrative & General 0.28% Sales & Marketing -0.06% Hospitality -0.04% Repair & Maintenance 0.45% Energy 0.30% Franchise Fee -0.05% Management Fee -0.02% Incentive Management Fee -0.09% Insurance 0.20% Property Taxes 0.97% Other Taxes -0.03% Leases/Other 0.67% Total 3.85%     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 97 HOTELS OWNED AND INCLUDED IN CONTINUING OPERATIONS AS OF DECEMBER 31, 2010:     2010 2010 2010 2010 4th Quarter 3rd Quarter 2nd Quarter 1st Quarter TTM   Total Hotel Revenue $ 225,622 $ 205,526 $ 222,040 $ 201,925 $ 855,113 Hotel EBITDA $ 60,715 $ 54,567 $ 65,318 $ 54,437 $ 235,037 Hotel EBITDA Margin 26.9% 26.5% 29.4% 27.0% 27.5%   EBITDA % of Total TTM 25.8% 23.2% 27.8% 23.2% 100.0%   JV Interests in EBITDA $ 1,445 $ 1,125 $ 1,892 $ 1,084 $ 5,546     NOTES: (1)

The above pro forma table assumes the 97 hotel properties owned and included in continuing operations as of December 31, 2010 were owned as of the beginning of the periods presented.

  (2)

As the Company's Courtyard by Marriott hotel in Philadelphia, Pennsylvania, is leased to a third-party tenant on a triple-net lease basis, the Company only records rental income related to this operating lease for GAAP purposes. However, in the above pro forma table, all room revenues related to this hotel are reflected, which is consistent with the Company's other hotels.

    ASHFORD HOSPITALITY TRUST, INC. Anticipated Capital Expenditures Calendar 100 Core Hotels (a)                                           2010   2011 Rooms 1st Quarter   2nd Quarter   3rd Quarter   4th Quarter 1st Quarter   2nd Quarter   3rd Quarter   4th Quarter   Actual Actual Actual Actual Estimated Estimated Estimated Estimated Hilton Nassau Bay - Clear Lake 243 x x x Hilton La Jolla Torrey Pines 296 x Embassy Suites Portland - Downtown 276 x x Marriott Bridgewater 347 x x Capital Hilton 408 x x x x Sheraton City Center - Indianapolis 371 x x Embassy Suites Austin Arboretum 150 x Embassy Suites Philadelphia Airport 263 x x Embassy Suites Las Vegas Airport 220 x Sheraton Anchorage 370 x Courtyard Edison 146 x x Hilton Costa Mesa 486 x x x Sheraton Minneapolis West 222 x x Crowne Plaza Beverly Hills 260 x x Embassy Suites Crystal City - Reagan Airport 267 x x Hilton Minneapolis Airport 300 x x Marriott Seattle Waterfront 358 x x Fairfield Inn and Suites Kennesaw 87 x x Renaissance Tampa 293 x x Courtyard Crystal City Reagan Airport 272 x x Courtyard Philadelphia Downtown 498 x x Courtyard Louisville Airport 150 x x x x Marriott Legacy Center 404 x x x Embassy Suites Walnut Creek 249 x x Hilton Fort Worth 294 x x Marriott Suites Dallas Market Center 266 x x Residence Inn Jacksonville 120 x x Residence Inn Las Vegas 256 x x Residence Inn Newark 168 x x Residence Inn Phoenix Airport 200 x x SpringHill Suites Richmond 136 x x Crowne Plaza La Concha - Key West 160 x x Courtyard Legacy Park 153 x Courtyard Oakland Airport 156 x Courtyard Old Town Scottsdale 180 x Courtyard Newark 181 x Courtyard Basking Ridge 235 x Courtyard Foothill Ranch Irvine 156 x Courtyard Hartford - Manchester 90 x Courtyard Seattle Downtown 250 x SpringHill Suites Mall of Georgia 96 x SpringHill Suites Philadelphia 199 x SpringHill Suites Manhattan Beach 164 x Embassy Suites Dallas Galleria 150 x Embassy Suites Houston 150                               x       (a) Only hotels which have had or are expected to have significant capital expenditures that could result in displacement during 2010 and 2011 are included in this table.