AHT Ashtead Group Plc

DALLAS, Aug. 5 /PRNewswire-FirstCall/ -- Ashford Hospitality Trust, Inc. (NYSE:AHT) today reported the following results and performance measures for the second quarter ended June 30, 2009. The proforma performance measurements for Occupancy, Average Daily Rate (ADR), revenue per available room (RevPAR), and Hotel Operating Profit (or Hotel EBITDA) include the Company's 103 hotels owned and included in continuing operations as of June 30, 2009. Unless otherwise stated, all reported results compare the second quarter ended June 30, 2009, with the second quarter ended June 30, 2008, and include the impact of non-cash impairment charges (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 available cash at the end of the quarter was $236.6 million -- Total revenue decreased 21.7% to $239.9 million from $306.5 million -- Net loss to common shareholders was $165.9 million or $2.34 per share -- Excluding the impairment charges as well as the unrealized loss on our swap, net loss available to common shareholders was $9.2 million, or $0.13 per diluted share, compared with a net income of $17.5 million, or $0.15 per diluted share, in the prior-year quarter -- Adjusted funds from operations (AFFO) was $0.31 per diluted share -- Cash available for distribution (CAD) was $0.22 per diluted share -- Fixed charge ratio was 1.63x under the senior credit facility covenant versus required minimum of 1.25x -- Repurchased 5.7 million common shares in the quarter for a total of $17.7 million -- Capex invested in the quarter totaled $13.7 million IMPAIRMENT CHARGES On June 15, 2009, the Company received notice that Extended Stay Hotels LLC ("ESH") was seeking Chapter 11 bankruptcy protection from its creditors. The Company holds a $164 million par value mezzanine loan participation that is secured by interests in 681 hotels held by Extended Stay, which was initially scheduled to mature June 12, 2009, with three 1-year renewal options. Prior to Extended Stay's bankruptcy filing, all payments on this loan were current; however, the Company anticipates that Extended Stay, through its bankruptcy filing, may attempt to impose a plan of reorganization that eliminates the Company's and all the other mezzanine creditors' investment. Accordingly, the Company has elected to write off the full amount of its investment, $109.4 million as of June 30, 2009, resulting in a non-cash impairment charge of $1.18 per diluted share, in the second quarter of 2009. The cash impact to the Company of this write-off with current LIBOR is less than $5.5 million per year. The Company is a member of the ESH creditors' committee. During the second quarter of 2009, the Company also elected to write off one-half of the full amount of its $18.2 million first mortgage participation in the Four Seasons Nevis, the full amount of its $4.0 million mezzanine loan secured by interests in the Sheraton Dallas and the full amount of its $7.0 million mezzanine loan secured by interests in the Le Meridien Dallas. These three write off's resulted in a non-cash impairment charge of $20.1 million, or $0.22 per diluted share, in the second quarter of 2009. In June 2009, the Company notified the servicer, who administers the $29.1 million first mortgage on the Company's Hyatt Regency Dearborn, that the Company would not make its June loan payment and would fully cooperate with the lender for a consensual foreclosure or a deed in favor of lender in lieu of foreclosure. As a result, the company took a non-cash impairment charge of $10.9 million, or $0.12 per diluted share, in the second quarter of 2009. In summary the Company took impairments totaling $140.3 million in the second quarter. Looking ahead with RevPAR at historically low levels on a comparative basis and the current general operating environment for hotels, more write downs are possible. CAPITAL STRUCTURE On June 8, 2009, the Company extended its $55.0 million first mortgage loan secured by the JW Marriott San Francisco to March 2011 with two 1-year extensions remaining with the final maturity March 2013 and paid down the loan balance by $2.5 million. At June 30, 2009, the Company's net debt to total gross assets (defined by the corporate credit facility) was 57.3%. As of June 30, 2009, the Company had $2.8 billion of gross debt with a blended average interest rate of 3.3% (including the benefit of the swap and flooridors). Including its $1.8 billion interest rate swap, 97% of the Company's debt is variable-rate debt. The Company's weighted average debt maturity including extension options is 5.5 years. On July 1, 2009, the Company purchased two, one-year "flooridors." The first flooridor, which is for a notional amount of $1.8 billion, is for the period commencing December 14, 2009 and ending December 13, 2010. Under this flooridor, the counterparty will make payments to the Company when LIBOR is below 1.75% but only down to LIBOR of 1.25% such that the counterparty's liability is capped at LIBOR of 1.25%. The second flooridor, which is also for a notional amount of $1.8 billion, is for the period commencing December 13, 2010, and ending December 13, 2011. Under this flooridor, the counterparty will make payments to the Operating Partnership when LIBOR is below 2.75% but only down to LIBOR of 0.50% such that the counterparty's liability is capped at LIBOR of 0.50%. The Company paid a total of $22.3 million in upfront costs for the two flooridors and has no further liability under the flooridors to the counterparties. The Company has no debt maturing in 2009 and $104.1 million due in 2010, of which $29.1 million is secured by the Hyatt Regency Dearborn, Michigan. The Company is currently actively seeking to refinance the $75 million loan due next year which is secured by the Embassy Suites Arlington, Virginia, the Embassy Suites Orlando, Florida, the Embassy Suites Santa Clara, California and the Hilton Rye Town, New York. PORTFOLIO REVPAR As of June 30, 2009, the Company had a portfolio of direct hotel investments consisting of 103 properties classified in continuing operations. During the second quarter, 101 of the hotels included in continuing operations were not under renovation. The Company believes reporting its operating metrics for continuing operations on a proforma total basis (all 103 hotels) and proforma not-under-renovation basis (101 hotels) is a measure that reflects a meaningful and focused comparison of the operating results in its direct hotel portfolio. The Company's reporting by region and brand includes the results of all 103 hotels in continuing operations. Details of each category are provided in the tables attached to this release. -- Proforma RevPAR decreased 20.6% for hotels not under renovation on a 10.9% decrease in ADR to $129.87 and an 844-basis point decline in occupancy -- Proforma RevPAR decreased 21.0% for all hotels on a 11.1% decrease in ADR to $129.83 and an 859-basis point decline in occupancy -- Proforma RevPAR Yield Index increased 140-basis points for all hotels to 118.9% HOTEL EBITDA MARGINS AND QUARTERLY SEASONALITY TRENDS For the 101 hotels as of June 30, 2009, that were not under renovation, Proforma Hotel EBITDA decreased 35.8% to $61.3 million. Proforma Hotel EBITDA margin (expressed as a percentage of Total Hotel Revenue) declined 599 basis points to 26.1%. For all 103 hotels included in continuing operations as of June 30, 2009, Proforma Hotel EBITDA decreased 36.6% to $62.1 million and Hotel EBITDA margin decreased 612 basis points to 25.7%. Ashford believes year-over-year Hotel EBITDA and Hotel EBITDA margin comparisons are more meaningful to gauge the performance of the Company's hotels than sequential quarter-over-quarter comparisons. Given the substantial seasonality in the Company's portfolio and its active capital recycling, to help investors better understand this seasonality, the Company provides quarterly detail on its Proforma Hotel EBITDA and Proforma Hotel EBITDA margin for the current and certain prior-year periods based upon the number of core hotels in the portfolio as of the end of the current period. As Ashford's portfolio mix changes from time to time, so will the seasonality for Proforma Hotel EBITDA and Proforma Hotel EBITDA margin. The details of the quarterly calculations for the previous four quarters for the current portfolio of 103 hotels included in continuing operations are provided in the tables attached to this release. Monty J. Bennett, Chief Executive Officer, commented, "Every decision we make is based on our primary goals of long-term sustainability and enhanced long-term shareholder value. The ongoing decline of the lodging market dictates disciplined capital allocation to ensure actions taken in this environment today will enhance the Company's future. We believe our capital allocation, asset management strategies and disciplined stock buyback strategy, which are in some cases different than the capital market philosophy prevalent today, will best position us to achieve our goals over the long term." INVESTOR CONFERENCE CALL AND SIMULCAST Ashford Hospitality Trust, Inc. will conduct a conference call on Thursday, August 6, 2009, at 11 a.m. ET. The number to call for this interactive teleconference is (212) 231-2908. A replay of the conference call will be available through August 13, 2009, by dialing (402) 977-9140 and entering the confirmation number, 21428096. The Company will also provide an online simulcast and rebroadcast of its second 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, August 6, 2009, beginning at 11:00 a.m. ET. The online replay will follow shortly after the call and continue for approximately one year. A direct link to the live broadcast can be found at: http://www.videonewswire.com/event.asp?id=59525. 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) June 30, December 31, 2009 2008 ---- ---- (Unaudited) ASSETS Investment in hotel properties, net $3,509,856 $3,568,215 Cash and cash equivalents 236,577 241,597 Restricted cash 67,283 69,806 Accounts receivable, net 43,088 41,110 Inventories 3,281 3,341 Notes receivable 86,395 212,815 Investment in unconsolidated joint venture 19,888 19,122 Deferred costs, net 21,427 24,211 Prepaid expenses 17,818 12,903 Interest rate derivatives 77,657 88,603 Other assets 5,340 6,766 Intangible assets, net 3,033 3,077 Due from third-party hotel managers 49,127 48,116 ------ ------ Total assets $4,140,770 $4,339,682 ========== ========== LIABILITIES AND EQUITY Liabilities Indebtedness $2,803,383 $2,790,364 Capital leases payable 125 207 Accounts payable and accrued expenses 107,975 93,476 Dividends payable 5,527 6,285 Unfavorable management contract liabilities 19,821 20,950 Due to related parties 1,040 2,378 Due to third-party hotel managers 4,287 3,855 Other liabilities 7,981 8,124 ----- ----- Total liabilities 2,950,139 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 85,433 107,469 Equity: Shareholders' equity of the Company Preferred stock, $0.01 par value, 50,000,000 shares authorized: Series A Cumulative Preferred Stock, 1,487,900 shares and 2,185,000 shares issued and outstanding at June 30, 2009 and December 31, 2008 15 22 Series D Cumulative Preferred Stock, 5,666,797 shares and 6,394,347 shares issued and outstanding at June 30, 2009 and December 31, 2008 57 64 Common stock, $0.01 par value, 200,000,000 shares authorized, 122,748,859 shares issued, 70,194,803 shares and 86,555,149 shares outstanding at June 30, 2009 and December 31, 2008 1,227 1,227 Additional paid-in capital 1,433,420 1,450,146 Accumulated other comprehensive loss (771) (860) Accumulated deficit (283,845) (124,782) Treasury stock, at cost (52,554,056 shares and 36,193,710 shares at June 30, 2009 and December 31, 2008) (139,181) (113,598) -------- -------- Total shareholders' equity of the Company 1,010,922 1,212,219 Noncontrolling interests in consolidated joint ventures 19,276 19,355 ------ ------ Total equity 1,030,198 1,231,574 --------- --------- Total liabilities and equity $4,140,770 $4,339,682 ========== ========== ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) Three Months Ended Six Months Ended June 30, June 30, ---------- ---------- 2009 2008 2009 2008 ---- ---- ---- ---- (Unaudited) REVENUE Rooms $176,405 $223,915 $349,159 $433,408 Food and beverage 47,850 63,410 95,234 122,009 Rental income from operating leases 1,405 1,526 2,594 2,873 Other 11,663 13,522 23,642 26,321 ------ ------ ------ ------ Total hotel revenue 237,323 302,373 470,629 584,611 Interest income from notes receivable 2,421 3,216 8,636 6,471 Asset management fees and other 205 921 379 1,443 --- --- --- ----- Total Revenue 239,949 306,510 479,644 592,525 ------- ------- ------- ------- EXPENSES Hotel operating expenses Rooms 40,607 47,840 79,747 93,272 Food and beverage 33,527 43,196 67,535 84,769 Other direct 6,439 7,447 12,621 14,492 Indirect 69,712 79,456 138,259 158,294 Management fees 9,333 11,796 18,584 23,037 ----- ------ ------ ------ Total hotel expenses 159,618 189,735 316,746 373,864 Property taxes, insurance, and other 16,189 16,234 30,579 30,858 Depreciation and amortization 38,573 39,013 79,992 81,999 Impairment charges 140,327 - 140,327 - Corporate general and administrative: Stock-based compensation 1,201 1,860 2,757 3,469 Other general and administrative 5,710 6,505 11,000 12,600 ----- ----- ------ ------ - Total Operating Expenses 361,618 253,347 581,401 502,790 ------- ------- ------- ------- OPERATING INCOME (LOSS) (121,669) 53,163 (101,757) 89,735 Equity in earnings of unconsolidated joint venture 617 1,287 1,221 1,813 Interest income 92 351 197 897 Other income 11,214 2,569 21,912 2,865 Interest expense (34,586) (36,393) (69,076) (73,566) Amortization of loan costs (1,984) (1,638) (4,042) (3,334) Write-off of loan costs, premiums and exit fees - - 930 - Unrealized loss on derivatives (37,723) (55,438) (19,691) (51,389) ------- ------- ------- ------- LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND REDEEMABLE NONCONTROLLING INTERESTS (184,039) (36,099) (170,306) (32,979) Income tax expense (172) (319) (393) (657) Loss from continuing operations attributable to redeemable noncontrolling interests in operating partnership 22,702 3,059 21,144 2,729 ------ ----- ------ ----- LOSS FROM CONTINUING OPERATIONS (161,509) (33,359) (149,555) (30,907) Income from discontinued operations attributable to controlling interests - 9,572 - 13,372 - ----- - ------ NET LOSS (161,509) (23,787) (149,555) (17,535) Loss (income) from consolidated joint ventures attributable to noncontrolling interests 450 (2,717) 153 (2,784) --- ------ --- ------ NET LOSS ATTRIBUTABLE TO THE COMPANY (161,059) (26,504) (149,402) (20,319) Preferred dividends (4,831) (7,018) (9,661) (14,036) ------ ------ ------ ------- NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS $(165,890) $(33,522) $(159,063) $(34,355) ========= ======== ========= ======== INCOME (LOSS) PER SHARE - Basic and Diluted: Loss from continuing operations attributable to common shareholders $(2.34) $(0.36) $(2.10) $(0.40) Income from discontinued operations attributable to common shareholders - 0.08 - 0.11 - ---- - ---- Net loss attributable to common shareholders $(2.34) $(0.28) $(2.10) $(0.29) ====== ====== ====== ====== Weighted average common shares outstanding - basic and diluted 70,882 118,911 75,685 118,870 ====== ======= ====== ======= Amounts attributable to common shareholders: Loss from continuing operations, net of tax $(161,059) $(36,076) $(149,402) $(33,691) Income from discontinued operations, net of tax - 9,572 - 13,372 Preferred dividends (4,831) (7,018) (9,661) (14,036) ------ ------ ------ ------- Net loss attributable to common shareholders $(165,890) $(33,522) $(159,063) $(34,355) ========= ======== ========= ======== ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES RECONCILIATION OF NET INCOME TO EBITDA (in thousands, except per share amounts and ratios) Three Months Ended Six Months Ended June 30, June 30, ---------- ---------- 2009 2008 2009 2008 ---- ---- ---- ---- (Unaudited) Net loss $(161,509) $(23,787) $(149,555) $(17,535) Loss (income) from consolidated joint ventures attributable to noncontrolling interests 450 (2,717) 153 (2,784) --- ------ --- ------ Net loss attributable to the Company (161,059) (26,504) (149,402) (20,319) Interest income (91) (351) (191) (897) Interest expense and amortization of loan costs 36,090 39,148 72,162 79,738 Depreciation and amortization 37,783 41,203 78,426 87,528 Net loss attributable to noncontrolling interests in operating partnership (22,702) (2,225) (21,144) (1,594) Income tax expense 172 528 393 938 --- --- --- --- EBITDA (109,807) 51,799 (19,756) 145,394 Amortization of unfavorable management contract liabilities (564) (564) (1,129) (1,129) Gain on sale of properties, net of related income taxes - (6,015) - (6,903) Write-off of loan costs, premiums and exit fees (1) - 515 (930) (1,347) Impairment charges 140,327 - 140,327 - Unrealized loss on derivatives 37,723 55,438 19,691 51,389 ------- -------- -------- -------- Adjusted EBITDA $67,679 $101,173 $138,203 $187,404 ======= ======== ======== ======== RECONCILIATION OF NET INCOME TO FUNDS FROM OPERATIONS ("FFO") (in thousands) Three Months Ended Six Months Ended June 30, June 30, ---------- ---------- 2009 2008 2009 2008 ---- ---- ---- ---- (Unaudited) Net loss $(161,509) $(23,787) $(149,555) $(17,535) Loss (income) from consolidated joint ventures attributable to noncontrolling interests 450 (2,717) 153 (2,784) Preferred dividends (4,831) (7,018) (9,661) (14,036) ------ ------ ------ ------- Net loss attributable to common shareholders (165,890) (33,522) (159,063) (34,355) Depreciation and amortization on real estate 37,713 41,443 78,279 86,742 Gain on sales of hotel properties, net of related income taxes - (6,015) - (6,903) Net loss attributable to noncontrolling interests in operating partnership (22,702) (2,225) (21,144) (1,594) ------- ------ ------- ------ FFO available to common shareholders (150,879) (319) (101,928) 43,890 Dividends on convertible preferred stock 1,043 1,564 2,085 3,128 Write-off of loan costs, premiums and exit fees (1) - 515 (930) (1,347) Impairment charges 140,327 - 140,327 - Unrealized loss on derivatives 37,723 55,438 19,691 51,389 ------ ------ ------ ------ Adjusted FFO $28,214 $57,198 $59,245 $97,060 ======= ======= ======= ======= Adjusted FFO per diluted share available to common shareholders $0.31 $0.41 $0.61 $0.69 ===== ===== ===== ===== Weighted average diluted shares 92,284 140,757 96,829 140,250 ====== ======= ====== ======= (1) The amounts include write-off of debt premiums of $1,341 for the refinancing of a mortgage loan for the six months ended June 30, 2009 and $2,086 for the sale of a hotel property for the six months ended June 30, 2008. ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES CASH AVAILABLE FOR DISTRIBUTION ("CAD") (in thousands, except per share amounts) (Unaudited) Three Three Months Months Ended Per Ended Per June 30, Diluted June 30, Diluted 2009 Share 2008 Share ---- ----- ---- ----- Net loss attributable to common shareholders $(165,890) $(1.80) $(33,522) $(0.24) Dividends on convertible preferred stock 1,043 0.01 1,564 0.01 ----- ---- ----- ---- Total (164,847) (1.79) (31,958) (0.23) Depreciation and amortization on real estate 37,713 0.41 41,443 0.30 Net loss attributable to noncontrolling interests in operating partnership (22,702) (0.25) (2,225) (0.01) Stock-based compensation 1,201 0.01 1,860 0.01 Amortization of loan costs 1,914 0.02 1,682 0.01 Write-off of loan costs, premiums and exit fees (1) - - 515 - Amortization of unfavorable management contract liabilities (564) (0.01) (564) - Gain on sales of properties, net of related income taxes - - (6,015) (0.04) Impairment charge 140,327 1.52 - - Unrealized loss on derivatives 37,723 0.41 55,438 0.39 Capital improvements reserve (10,415) (0.11) (14,014) (0.10) ------- ----- ------- ----- CAD $20,350 $0.22 $46,162 $0.33 ======= ===== ======= ===== Six Six Months Months Ended Per Ended Per June 30, Diluted June 30, Diluted 2009 Share 2008 Share ---- ----- ---- ----- Net loss attributable to common shareholders $(159,063) $(1.64) $(34,355) $(0.24) Dividends on convertible preferred stock 2,085 0.02 3,128 0.02 ----- ---- ----- ---- Total (156,978) (1.62) (31,227) (0.22) Depreciation and amortization on real estate 78,279 0.81 86,742 0.62 Net loss attributable to noncontrolling interests in operating partnership (21,144) (0.22) (1,594) (0.01) Stock-based compensation 2,757 0.03 3,469 0.03 Amortization of loan costs 3,903 0.04 3,485 0.02 Write-off of loan costs, premiums and exit fees (1) (930) (0.01) (1,347) (0.01) Amortization of unfavorable management contract liabilities (1,129) (0.01) (1,129) (0.01) Gain on sales of properties, net of related income taxes - - (6,903) (0.05) Impairment charge 140,327 1.45 - - Unrealized loss on derivatives 19,691 0.20 51,389 0.37 Capital improvements reserve (20,699) (0.21) (26,113) (0.19) ------- ----- ------- ----- CAD $44,077 $0.46 $76,772 $0.55 ======= ===== ======= ===== (1) The amounts include write-off of debt premiums of $1,341 for the refinancing of a mortgage loan for the six months ended June 30, 2009 and $2,086 for the sale of a hotel property for the six months ended June 30, 2008. ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES DEBT SUMMARY JUNE 30, 2009 (dollars in thousands) (Unaudited) Fixed-Rate Floating-Rate Total Debt Debt Debt ------ ------ ------ Mortgage loan secured by ten hotel properties, matures July 2015, at an interest rate of 5.22% $160,490 $- $160,490 Mortgage loan secured by five hotel properties, matures February 2016, at an interest rate of 5.53% 115,645 - 115,645 Mortgage loan secured by five hotel properties, matures February 2016, at an interest rate of 5.53% 95,905 - 95,905 Mortgage loan secured by five hotel properties, matures February 2016, at an interest rate of 5.53% 83,075 - 83,075 Mortgage loan secured by eight hotel properties, matures December 2014, at an interest rate of 5.75% 110,899 - 110,899 Mortgage loan secured by eight hotel properties, matures December 2015, at an interest rate of 5.70% 100,576 - 100,576 Secured credit facility, matures April 2010, at an interest rate of LIBOR plus a range of 2.75% to 3.5% depending on the loan-to- value ratio, with two one- year extension options - 250,000 250,000 Mortgage loan secured by one hotel property, matures December 2016, at an interest rate of 5.81% 101,000 - 101,000 Mortgage loan secured by five hotel properties, matures December 2009, at an interest rate of LIBOR plus 1.72%, with two one-year extension options - 203,400 203,400 Mortgage loan secured by five hotel properties, matures April 2017, at an interest rate of 5.95% 115,600 - 115,600 Mortgage loan secured by seven hotel properties, matures April 2017, at an interest rate of 5.95% 126,466 - 126,466 Mortgage loan secured by two hotel properties, matures April 2017, at an interest rate of 5.95% 128,408 - 128,408 Mortgage loan secured by five hotel properties, matures April 2017, at an interest rate of 5.95% 103,906 - 103,906 Mortgage loan secured by five hotel properties, matures April 2017, at an interest rate of 5.95% 158,105 - 158,105 Mortgage loan secured by three hotel properties, matures April 2017, at an interest rate of 5.95% 260,980 - 260,980 Mortgage loan secured by one hotel properties, matures April 2017, at an interest rate of 5.91% 31,150 - 31,150 Mortgage loan secured by 10 hotel properties, matures May 2010, at an interest rate of LIBOR plus 1.65%, with two one- year extension options - 167,202 167,202 Mortgage loan secured by one hotel property, matures January 2011, at an interest rate of 8.32% 5,018 - 5,018 Mortgage loan secured by one hotel property, matures January 2023, at an interest rate of 7.78% 4,454 - 4,454 TIF loan secured by one hotel property, matures June 2018, at an interest rate of 12.85% 6,927 - 6,927 Mortgage loan secured by one hotel property, matures March 2010, at an interest rate of 5.6% 29,135* - 29,135 Mortgage loan secured by three hotel properties, matures April 2011, at an interest rate of 5.47% 65,644 - 65,644 Mortgage loan secured by four hotel properties, matures March 2010, at an interest rate of 5.95% 75,000 - 75,000 Mortgage loan secured by one hotel property, matures June 2011, at an interest rate of LIBOR plus 2% - 19,740 19,740 Mortgage loan secured by two hotel properties, matures August 2011, at an interest rate of LIBOR plus 2.75%, with two one-year extension options - 118,500 118,500 Mortgage loan secured by one hotel properties, matures March 2011, at an interest rate of LIBOR plus 3.75% with a LIBOR floor of 2.5% and two one- year extension options - 52,500 52,500 Mortgage loan secured by one hotel property, matures March 2012, at an interest rate of LIBOR plus 4%, with two one- year extension options 60,800 60,800 Mortgage loan secured by one hotel property, matures April 2034, at an interest rate at the greater of 6% or prime plus 1% 6,980 6,980 ----- ----- Total debt excluding debt attributable to joint venture partners 1,878,383 879,122 2,757,505 Plus: Debt attributable to joint venture partners 6,378 39,500 45,878 ----- ------ ------ Total debt $1,884,761 $918,622 $2,803,383 ========== ======== ========== Percentage 67.2% 32.8% 100.0% ==== ==== ===== Weighted average interest rate at June 30, 2009 5.81% 2.97% 4.88% ==== ==== ==== Total with the effect of interest rate swap $84,761 $2,718,622 $2,803,383 ======= ========== ========== Percentage with the effect of interest rate swap 3.0% 97.0% 100.0% === ==== ===== Weighted average interest rate with the effect of interest rate swap 3.47% 2.97% 3.30% ==== ==== ==== * We have received a notice of default and acceleration of the loan and are cooperating with the lender for a deed-in-lieu or consensual foreclosure. ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES DEBT BY MATURITY ASSUMING EXTENSION OPTIONS NOT SUBJECT TO COVERAGE TESTS ARE EXERCISED JUNE 30, 2009 (in thousands) (Unaudited) 2009 2010 2011 2012 ---- ---- ---- ---- Mortgage loan secured by Dearborn Hyatt Regency $- $29,135* $- $- Mortgage loan secured by Rye Town Hilton and three Embassy Suites hotels in Arlington, VA; Orlando, FL; and Santa Clara, CA - 75,000 - - Mortgage loan secured by Manchester Courtyard - - 5,018 - Mortgage loan secured by Auburn Hills Hilton Suites, Costa Mesa Hilton and Portland Embassy Suites - - 65,644 - Mortgage loan secured by El Conquistador Hilton - - 19,740 - Mortgage loan secured by Anchorage Sheraton, Minneapolis Airport Hilton, San Diego Sheraton and Walnut Creek Embassy Suites - - 203,400 - Secured credit facility - 250,000 ** - - Mortgage loan secured by 10 hotel properties, Wachovia Floater 7 - - - 167,202 Mortgage loan secured by JW Marriott San Francisco - - 52,500 ** - Mortgage loan secured by La Jolla Hilton and Capital Hilton - - 118,500 ** - Mortgage loan secured by eight hotel properties, UBS Pool 1 - - - - Mortgage loan secured by eight hotel properties, UBS Pool 2 - - - - Mortgage loan secured by 25 hotel properties, Merrill Lynch Pool 1 - - - - Mortgage loan secured by Westin O'Hare - - - - Mortgage loan secured by 25 hotel properties, Merrill Lynch Pool 2, 3 and 7 - - - - Mortgage loan secured by Arlington Marriott - - - - Mortgage loan secured by five hotel properties, Wachovia pool 1 - - - - Mortgage loan secured by seven hotel properties, Wachovia pool 2 - - - - Mortgage loan secured by two hotel properties, Wachovia pool 3 - - - - Mortgage loan secured by five hotel properties, Wachovia pool 4 - - - - Mortgage loan secured by five hotel properties, Wachovia pool 5 - - - - Mortgage loan secured by three hotel properties, Wachovia pool 6 - - - - Mortgage loan secured by Philly Courtyard, Wachovia Stand-Alone - - - - TIF loan secured by Philly Courtyard - - - - Mortgage loan secured by Houston Hampton Inn - - - - Mortgage loan secured by Jacksonville Residence Inn - - - - - ------- ------- ------- - 354,135 464,802 167,202 Debt attributable to joint venture partners - - 40,386 - -- -------- -------- -------- Total $- $354,135 $505,188 $167,202 == ======== ======== ======== 2013 Thereafter Total ---- -------------- --------- Mortgage loan secured by Dearborn Hyatt Regency $- $- $29,135 Mortgage loan secured by Rye Town Hilton and three Embassy Suites hotels in Arlington, VA; Orlando, FL; and Santa Clara, CA - - 75,000 Mortgage loan secured by Manchester Courtyard - - 5,018 Mortgage loan secured by Auburn Hills Hilton Suites,Costa Mesa Hilton and Portland Embassy Suites - - 65,644 Mortgage loan secured by El Conquistador Hilton - - 19,740 Mortgage loan secured by Anchorage Sheraton, Minneapolis Airport Hilton, San Diego Sheraton and Walnut Creek Embassy Suites - - 203,400 Secured credit facility - - 250,000 Mortgage loan secured by 10 hotel properties, Wachovia Floater 7 - - 167,202 Mortgage loan secured by JW Marriott San Francisco - - 52,500 Mortgage loan secured by La Jolla Hilton and Capital Hilton - - 118,500 Mortgage loan secured by eight hotel properties, UBS Pool 1 - 110,899 110,899 Mortgage loan secured by eight hotel properties, UBS Pool 2 - 100,576 100,576 Mortgage loan secured by 25 hotel properties, Merrill Lynch Pool 1 - 160,490 160,490 Mortgage loan secured by Westin O'Hare - 101,000 101,000 Mortgage loan secured by 25 hotel properties, Merrill Lynch Pool 2, 3 and 7 - 294,625 294,625 Mortgage loan secured by Arlington Marriott - 60,800 60,800 Mortgage loan secured by five hotel properties, Wachovia pool 1 - 115,600 115,600 Mortgage loan secured by seven hotel properties, Wachovia pool 2 - 126,466 126,466 Mortgage loan secured by two hotel properties, Wachovia pool 3 - 128,408 128,408 Mortgage loan secured by five hotel properties, Wachovia pool 4 - 103,906 103,906 Mortgage loan secured by five hotel properties, Wachovia pool 5 - 158,105 158,105 Mortgage loan secured by three hotel properties, Wachovia pool 6 - 260,980 260,980 Mortgage loan secured by Philly Courtyard, Wachovia Stand-Alone - 31,150 31,150 TIF loan secured by Philly Courtyard - 6,927 6,927 Mortgage loan secured by Houston Hampton Inn - 4,454 4,454 Mortgage loan secured by Jacksonville Residence Inn - 6,980 6,980 - --------- --------- - 1,771,366 2,757,505 Debt attributable to joint venture partners - 5,492 45,878 -- ---------- ---------- Total $- $1,776,858 $2,803,383 == ========== ========== NOTE: These maturities assume no event of default would occur. * We have received a notice of default and acceleration of the loan and are cooperating with the lender for a deed-in-lieu or consensual foreclosure. ** Extensions available but certain coverage tests have to be met. ASHFORD HOSPITALITY TRUST, INC. KEY PERFORMANCE INDICATORS - PRO FORMA (Unaudited) Three Months Ended Six Months Ended June 30, June 30, -------- -------- % % 2009 2008 Variance 2009 2008 Variance ---- ---- -------- ---- ---- -------- ALL HOTELS INCLUDED IN CONTINUING OPERATIONS: Room revenues (in thousands) $181,515 $229,703 -20.98% $358,169 $444,083 -19.35% RevPAR $88.62 $112.18 -21.01% $87.72 $108.43 -19.10% Occupancy 68.25% 76.84% -8.59% 65.29% 73.51% -8.23% ADR $129.83 $145.99 -11.07% $134.36 $147.50 -8.91% Three Months Ended Six Months Ended June 30, June 30, -------- -------- % % 2009 2008 Variance 2009 2008 Variance ---- ---- -------- ---- ---- -------- ALL HOTELS NOT UNDER RENOVATION INCLUDED IN CONTINUING OPERATIONS: Room revenues (in thousands) $177,056 $223,006 -20.60% $349,753 $432,061 -19.05% RevPAR $89.18 $112.35 -20.62% $88.36 $108.83 -18.81% Occupancy 68.67% 77.11% -8.44% 65.73% 73.89% -8.16% ADR $129.87 $145.71 -10.87% $134.44 $147.28 -8.72% Excluded Hotels Under Renovation: Hilton Rye Town, Hilton Nassau Bay NOTE: As the Company's Courtyard by Marriott hotel in Philadelphia, Pennsylvania, is leased to a third-party tenant on a triple-net lease basis, the Company only records rental income related to this operating lease for GAAP purposes. However, in the above pro forma table, all room revenues related to this hotel are reflected, which is consistent with the Company's other hotels. ASHFORD HOSPITALITY TRUST, INC. PRO FORMA HOTEL OPERATING PROFIT (dollars in thousands) (Unaudited) ALL HOTELS INCLUDED IN CONTINUING OPERATIONS: Three Months Ended June 30, ------------ 2009 2008 % Variance ---- ---- -------------- REVENUE Rooms $181,515 $229,703 -21.0% Food and beverage 48,680 64,323 -24.3% Other 11,488 13,664 -15.9% ------ ------ ----- Total hotel revenue 241,683 307,690 -21.5% ------- ------- ----- EXPENSES Rooms 41,692 48,960 -14.8% Food and beverage 34,072 43,791 -22.2% Other direct 6,495 7,510 -13.5% Indirect 69,091 78,765 -12.3% Management fees, includes base and incentive fees 11,891 14,565 -18.4% ------ ------ ----- Total hotel operating expenses 163,241 193,591 -15.7% Property taxes, insurance, and other 16,388 16,227 1.0% ------ ------ --- HOTEL OPERATING PROFIT (Hotel EBITDA) 62,054 97,872 -36.6% Hotel EBITDA Margin 25.68% 31.80% -6.12% Minority interest in earnings of consolidated joint ventures 1,839 2,906 -36.7% ----- ----- ----- HOTEL OPERATING PROFIT (Hotel EBITDA), excluding minority interest in joint ventures $60,215 $94,966 -36.6% ======= ======= ===== Six Months Ended June 30, ------------ 2009 2008 % Variance ---- ---- -------------- REVENUE Rooms $358,169 $444,083 -19.3% Food and beverage 96,737 123,637 -21.8% Other 23,339 26,525 -12.0% ------ ------ ----- Total hotel revenue 478,245 594,245 -19.5% ------- ------- ----- EXPENSES Rooms 81,760 95,476 -14.4% Food and beverage 68,587 85,926 -20.2% Other direct 12,739 14,617 -12.8% Indirect 139,020 157,986 -12.0% Management fees, includes base and incentive fees 21,147 27,420 -22.9% ------ ------ ----- Total hotel operating expenses 323,253 381,425 -15.3% Property taxes, insurance, and other 31,009 30,887 0.4% ------ ------ --- HOTEL OPERATING PROFIT (Hotel EBITDA) 123,983 181,933 -31.9% Hotel EBITDA Margin 25.92% 30.61% -4.69% Minority interest in earnings of consolidated joint ventures 3,409 4,691 -27.3% ----- ----- ----- HOTEL OPERATING PROFIT (Hotel EBITDA), excluding minority interest in joint ventures $120,574 $177,242 -32.0% ======== ======== ===== ALL HOTELS NOT UNDER RENOVATION INCLUDED IN CONTINUING OPERATIONS: Three Months Ended June 30, ------------ 2,009 2,008 % Variance ----- ----- -------------- REVENUE Rooms (1) $177,056 $223,006 -20.6% Food and beverage 46,314 60,874 -23.9% Other 11,372 13,362 -14.9% ------ ------ ----- Total hotel revenue 234,742 297,242 -21.0% ------- ------- ----- EXPENSES Rooms (1) 40,558 47,450 -14.5% Food and beverage 32,372 41,362 -21.7% Other direct 6,405 7,382 -13.2% Indirect 66,571 75,741 -12.1% Management fees, includes base and incentive fees 11,629 14,253 -18.4% ------ ------ ----- Total hotel operating expenses 157,535 186,188 -15.4% Property taxes, insurance, and other 15,925 15,654 1.7% ------ ------ --- HOTEL OPERATING PROFIT (Hotel EBITDA) 61,282 95,400 -35.8% Hotel EBITDA Margin 26.11% 32.10% -5.99% Minority interest in earnings of consolidated joint ventures 1,839 2,906 -36.7% ----- ----- ----- HOTEL OPERATING PROFIT (Hotel EBITDA), excluding minority interest in joint ventures $59,443 $92,494 -35.7% ======= ======= ===== Six Months Ended June 30, ------------ 2,009 2,008 % Variance ----- ----- -------------- REVENUE Rooms (1) $349,753 $432,061 -19.1% Food and beverage 92,633 117,712 -21.3% Other 23,095 25,939 -11.0% ------ ------ ----- Total hotel revenue 465,481 575,712 -19.1% ------- ------- ----- EXPENSES Rooms (1) 79,510 92,581 -14.1% Food and beverage 65,248 81,201 -19.6% Other direct 12,549 14,369 -12.7% Indirect 133,867 152,175 -12.0% Management fees, includes base and incentive fees 20,712 26,867 -22.9% ------ ------ ----- Total hotel operating expenses 311,886 367,193 -15.1% Property taxes, insurance, and other 30,031 29,543 1.7% ------ ------ --- HOTEL OPERATING PROFIT (Hotel EBITDA) 123,564 178,976 -31.0% Hotel EBITDA Margin 26.55% 31.09% -4.54% Minority interest in earnings of consolidated joint ventures 3,409 4,691 -27.3% ----- ----- ----- HOTEL OPERATING PROFIT (Hotel EBITDA), excluding minority interest in joint ventures $120,155 $174,285 -31.1% ======== ======== ===== (1) Excluded hotels under renovation: Hilton Rye Town, Hilton Nassau Bay NOTE: As the Company's Courtyard by Marriott hotel in Philadelphia, Pennsylvania, is leased to a third-party tenant on a triple-net lease basis, the Company only records rental income related to this operating lease for GAAP purposes. However, in the above pro forma table, all room revenues related to this hotel are reflected, which is consistent with the Company's other hotels. ASHFORD HOSPITALITY TRUST, INC. PRO FORMA HOTEL REVPAR BY REGION (Unaudited) ALL HOTELS INCLUDED IN CONTINUING OPERATIONS Three Months Ended Six Months Ended June 30, June 30, ---------------- -------------------- Number of Number of % % Region Hotels Rooms 2009 2008 Change 2009 2008 Change ------ ------ ----- ---- ---- ------ ---- ---- ------ Pacific (1) 21 5,205 $91.09 $122.14 -25.4% $88.32 $116.27 -24.0% Mountain (2) 8 1,704 70.05 103.59 -32.4% 82.81 115.42 -28.3% West North Central (3) 3 690 72.00 91.22 -21.1% 67.53 85.33 -20.9% West South Central (4) 10 2,086 86.07 108.80 -20.9% 89.34 108.47 -17.6% East North Central (5) 10 2,624 64.32 90.55 -29.0% 57.17 81.62 -30.0% East South Central (6) 2 236 82.58 99.43 -16.9% 80.61 94.67 -14.9% Middle Atlantic (7) 9 2,481 90.79 112.85 -19.5% 84.09 102.57 -18.0% South Atlantic (8) 38 7,728 101.49 118.30 -14.2% 102.26 115.82 -11.7% New England (9) 2 159 72.06 93.25 -22.7% 65.94 88.39 -25.4% --- ------ ------ ------- ----- ------ ------- ----- Total Portfolio 103 22,913 $88.62 $112.18 -21.0% $87.72 $108.43 -19.1% === ====== ====== ======= ===== ====== ======= ===== (1) Includes Alaska, California, Oregon, and Washington (2) Includes Nevada, Arizona, New Mexico, and Utah (3) Includes Minnesota and Kansas (4) Includes Texas (5) Includes Ohio, Michigan, Illinois, and Indiana (6) Includes Kentucky and Alabama (7) Includes New York, New Jersey, and Pennsylvania (8) Includes Virginia, Florida, Georgia, Maryland, District of Columbia, and North Carolina (9) Includes Massachusetts and Connecticut NOTE: As the Company's Courtyard by Marriott hotel in Philadelphia, Pennsylvania, is leased to a third-party tenant on a triple-net lease basis, the Company only records rental income related to this operating lease for GAAP purposes. However, in the above pro forma table, all room revenues related to this hotel are reflected, which is consistent with the Company's other hotels. ASHFORD HOSPITALITY TRUST, INC. PRO FORMA HOTEL REVPAR BY BRAND (Unaudited) ALL HOTELS INCLUDED IN CONTINUING OPERATIONS Three Months Ended June 30, Number of Number of ------------------- Brand Hotels Rooms 2009 2008 % Change ------------ ------ ------ ------ ------ ------- Hilton 34 7,513 $93.82 $120.46 -22.1% Hyatt 2 1,014 68.04 97.17 -30.0% InterContinental 2 420 124.80 150.98 -17.3% Independent 2 317 80.74 66.68 21.1% Marriott 57 11,714 89.21 109.18 -18.3% Starwood 6 1,935 68.75 103.02 -33.3% ------ ------ ------ ------- ------- Total Portfolio 103 22,913 $88.62 $112.18 -21.0% ====== ====== ====== ======= ======= Six Months Ended June 30, --------------------------- Brand 2009 2008 % Change ----------- ------- ------- -------- Hilton $94.84 $116.79 -18.8% Hyatt 65.44 99.92 -34.5% InterContinental 130.66 157.05 -16.8% Independent 71.71 50.82 41.1% Marriott 88.29 106.99 -17.5% Starwood 61.07 86.60 -29.5% ------ ------- ----- Total Portfolio $87.72 $108.43 -19.1% ====== ======= ===== NOTE: As the Company's Courtyard by Marriott hotel in Philadelphia, Pennsylvania, is leased to a third-party tenant on a triple-net lease basis, the Company only records rental income related to this operating lease for GAAP purposes. However, in the above pro forma table, all room revenues related to this hotel are reflected, which is consistent with the Company's other hotels. ASHFORD HOSPITALITY TRUST, INC. PRO FORMA HOTEL OPERATING PROFIT BY REGION (dollars in thousands) (Unaudited) ALL HOTELS INCLUDED IN CONTINUING OPERATIONS 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) 10 2,624 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 103 22,913 ===== ====== Three Months Ended June 30, -------------------------------------------------------------- Region 2009 % Total 2008 % Total % Change ------------ ------- ------- ------- ------- -------- Pacific (1) $13,547 21.8% $24,577 25.1% -44.9% Mountain (2) 2,169 3.5% 5,987 6.1% -63.8% West North Central (3) 1,771 2.8% 2,614 2.7% -32.2% West South Central (4) 6,140 9.9% 8,584 8.8% -28.5% East North Central (5) 3,673 5.9% 9,800 10.0% -62.5% East South Central (6) 730 1.2% 924 0.9% -21.0% Middle Atlantic (7) 6,828 11.0% 10,277 10.5% -33.6% South Atlantic (8) 26,903 43.4% 34,464 35.2% -21.9% New England (9) 293 0.5% 645 0.7% -54.6% ------- ------- ------- ------- -------- Total Portfolio $62,054 100.0% $97,872 100.0% -36.6% ======= ===== ======= ======= ======== Six Months Ended June 30, -------------------------------------------------------------- Region 2009 % Total 2008 % Total % Change ----------- ------- ------- ------- ------- --------- Pacific (1) $26,440 21.3% $44,605 24.5% -40.7% Mountain (2) 9,131 7.4% 15,986 8.8% -42.9% West North Central (3) 2,881 2.3% 4,551 2.5% -36.7% West South Central (4) 13,268 10.7% 17,288 9.5% -23.3% East North Central (5) 4,112 3.3% 14,708 8.1% -72.0% East South Central (6) 1,424 1.2% 1,753 1.0% -18.8% Middle Atlantic (7) 10,153 8.2% 15,490 8.5% -34.5% South Atlantic (8) 56,155 45.3% 66,651 36.6% -15.7% New England (9) 418 0.3% 901 0.5% -53.6% ------- ------- ------- ------- -------- Total Portfolio $123,982 100.0% $181,933 100.0% -31.9% ======= ===== ======= ======= ======== (1) Includes Alaska, California, Oregon, and Washington (2) Includes Nevada, Arizona, New Mexico, and Utah (3) Includes Minnesota and Kansas (4) Includes Texas (5) Includes Ohio, Michigan, Illinois, and Indiana (6) Includes Kentucky and Alabama (7) Includes New York, New Jersey, and Pennsylvania (8) Includes Virginia, Florida, Georgia, Maryland, District of Columbia, and North Carolina (9) Includes Massachusetts and Connecticut NOTE: As the Company's Courtyard by Marriott hotel in Philadelphia, Pennsylvania, is leased to a third-party tenant on a triple-net lease basis, the Company only records rental income related to this operating lease for GAAP purposes. However, in the above pro forma table, all room revenues related to this hotel are reflected, which is consistent with the Company's other hotels. ASHFORD HOSPITALITY TRUST, INC. PRO FORMA HOTEL OPERATING PROFIT MARGIN (Unaudited) 101 HOTELS NOT UNDER RENOVATION AND INCLUDED IN CONTINUING OPERATIONS AT JUNE 30, 2009 AS IF SUCH HOTELS WERE OWNED AS OF THE BEGINNING OF THE PERIODS PRESENTED: HOTEL OPERATING PROFIT (HOTEL EBITDA) MARGIN: 2nd Quarter 2009 26.11% 2nd Quarter 2008 32.10% ------ Variance -5.99% ====== HOTEL OPERATING PROFIT (HOTEL EBITDA) MARGIN VARIANCE BREAKDOWN: Rooms -1.25% Food & Beverage and Other Departmental -0.12% Administrative & General -0.77% Sales & Marketing -0.35% Hospitality -0.06% Repair & Maintenance -0.56% Energy -0.59% Franchise Fee -0.15% Management Fee -0.02% Incentive Management Fee -0.13% Insurance -0.37% Property Taxes -1.11% Other Taxes -0.05% Leases/Other -0.46% ------ Total -5.99% ====== NOTE: As the Company's Courtyard by Marriott hotel in Philadelphia, Pennsylvania, is leased to a third-party tenant on a triple- net lease basis, the Company only records rental income related to this operating lease for GAAP purposes. However, in the above pro forma table, all operating results related to this hotel are reflected, which is consistent with the Company's other hotels. ASHFORD HOSPITALITY TRUST, INC. PRO FORMA SEASONALITY TABLE (dollars in thousands) (Unaudited) ALL 103 HOTELS OWNED AND INCLUDED IN CONTINUING OPERATIONS AS OF JUNE 30, 2009: 2009 2009 2008 2008 2nd 1st 4th 3rd Quarter Quarter Quarter Quarter TTM --------- --------- --------- --------- ------ Total Hotel Revenue $241,684 $236,560 $292,566 $278,523 $1,049,333 Hotel EBITDA $62,054 $61,928 $75,069 $75,373 $274,424 Hotel EBITDA Margin 25.7% 26.2% 25.7% 27.1% 26.2% EBITDA % of Total TTM 22.6% 22.6% 27.4% 27.5% 100.0% JV Interests in EBITDA $1,839 $1,570 $1,732 $1,644 $6,785 NOTE: As the Company's Courtyard by Marriott hotel in Philadelphia, Pennsylvania, is leased to a third-party tenant on a triple-net lease basis, the Company only records rental income related to this operating lease for GAAP purposes. However, in the above pro-forma table, all operating results related to this hotel are reflected, which is consistent with the Company's other hotels. ASHFORD HOSPITALITY TRUST, INC. Capital Expenditures Calendar 103 Core Hotels (a) (Unaudited) 2009 -------------------------------------------- Actual Actual Estimated Estimated 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 Embassy Suites Portland -Downtown 276 x x Residence Inn Orlando Sea World 350 x x Capital Hilton 408 x x Courtyard Edison 146 x x Embassy Suites Orlando Airport 174 x x Hilton La Jolla Torrey Pines 296 x Marriott Bridgewater 347 x Marriott Seattle Waterfront 358 x (a) Only hotels which have had or are expected to have significant capital expenditures during 2009 are included in this table. DATASOURCE: Ashford Hospitality Trust, Inc. CONTACT: David Kimichik, Chief Financial Officer, +1-972-490-9600, or Tripp Sullivan, Corporate Communications, Inc., +1-615-254-7318

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