Ashford Hospitality Trust, Inc. (NYSE:AHT) today reported the
following results and performance measures for the first quarter
ended March 31, 2007. 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 65 hotels owned as of March 31, 2007, which excludes 14
hotel assets held for sale as of that date. Unless otherwise
stated, all reported results compare the first quarter ended March
31, 2007, with the first quarter ended March 31, 2006. The
reconciliation of non-GAAP financial measures is included in the
financial tables accompanying this press release. FINANCIAL
HIGHLIGHTS Total revenue increased 52% to $153.3 million from
$101.0 million Net income available to common shareholders
increased 84% to $8.7 million compared with $4.7 million Diluted
net income available to common shareholders was $0.12 per share
compared with $0.09 per share Adjusted funds from operations (AFFO)
increased 48% to $28.5 million, or $0.31 per diluted share Cash
available for distribution (CAD) increased 44% to $25.9 million, or
$0.28 per diluted share Declared quarterly common dividend of $0.21
per diluted share CAD dividend coverage was 133% for the quarter
STRONG INTERNAL GROWTH Proforma RevPAR increased 11.1% for hotels
not under renovation on an 8.7% increase in ADR to $133.80 and a
160-basis point improvement in occupancy Proforma RevPAR increased
8.6% for all hotels on an 8.2% increase in ADR to $135.91 and a
32-basis point improvement in occupancy Proforma same-property
Hotel Operating Profit for hotels not under renovation improved 22%
Proforma same-property Hotel Operating Profit margin for hotels not
under renovation improved 286 basis points CAPITAL RECYCLING AND
ASSET ALLOCATION Two hotels sold in first quarter for $31.5 million
with a net gain of $1.4 million Three hotels sold to date in second
quarter with 10 other assets under contract Capex invested in first
quarter totaled $20 million Capex for 2007 now estimated to reach
$140 million PORTFOLIO REVPAR GROWTH As of March 31, 2007, the
Company had a portfolio of direct hotel investments consisting of
65 properties classified in continuing operations. During the first
quarter, 54 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 65
hotels) and proforma not-under-renovation basis (54 hotels) is a
measure that reflects a meaningful and more focused comparison of
the operating results in its direct hotel portfolio. The Company's
reporting by region and brand includes the results of all 66
hotels. Details of each category are provided in the tables
attached to this release. RevPAR growth by region was led by: New
England (2 hotels) with a 37.1% increase; West South Central (5)
with 29.3%; Pacific (10) with 15.3%; Mountain (4) with 10.3%; West
North Central (3) with 7.0%; Middle Atlantic (4) with 5.0%; South
Atlantic (27) with 3.5%; East North Central (8) with 1.9%; and East
South Central (2) with a 0.7% decrease. RevPAR growth by brand was
led by: Hilton (22 hotels) with 13.5%; Hyatt (2) with 12.8%;
InterContinental (2) with 11.8%; Starwood (6) with 9.4%; Marriott
(28) with 4.7%; Radisson (3) with 3.6%; and independents (2) with a
10.6% decrease. HOTEL EBITDA MARGINS AND QUARTERLY SEASONALITY
TRENDS For the 54 hotels as of March 31, 2007 that were not under
renovation, Proforma Hotel EBITDA (adjusted as if all hotels were
included in both periods) increased 22% to $35.6 million. Proforma
Hotel EBITDA margin (expressed as a percentage of Total Hotel
Revenue) improved 286 basis points to 29.2%. For all 65 hotels
included in continuing operations as of March 31, 2007, Hotel
EBITDA increased 16% to $42.3 million and Hotel EBITDA margin
increased 209 basis points to 28.3%. Ashford believes
year-over-year Hotel EBITDA and Hotel EBITDA margin comparisons are
more meaningful to gauge the performance of the Company�s hotels
than sequential quarter-over-quarter comparisons. Given the
substantial seasonality in the Company�s portfolio and its active
capital recycling, to help investors better understand this
seasonality the Company provides quarterly detail on its Proforma
Hotel EBITDA and Proforma Hotel EBITDA margin for the current and
certain prior-year periods based upon the number of core hotels in
the portfolio as of the end of the current period. As Ashford�s
portfolio mix changes from time to time so will the seasonality for
Proforma Hotel EBITDA and Proforma Hotel EBITDA margin. Investors
and analysts are encouraged to carefully consider our seasonality
table when forecasting our quarterly results. Details of the
quarterly calculations for the 2006 quarters for the current core
portfolio, including the 51 hotels acquired April 11, 2007, from
CNL Hotels and Resorts, are provided in tables attached to this
release. Monty J. Bennett, President and CEO, commented, "The
continued strong performance growth in RevPAR and hotel operating
margin contributed significantly to our solid year-over-year
improvement in AFFO performance and CAD. We once again point to
higher returns from our value-added capital investments and an
intense focus on internal growth strategies as the primary reasons
for this 286-basis point improvement in margins. We have high
expectations for the remaining $120 million in capital investments
we have budgeted for the year. We are committed to extracting the
greatest value from these properties with our asset management
strategies." FINANCING ACTIVITY At March 31, 2007, the Company's
net debt (defined as total debt less cash) to total enterprise
value (defined as net debt plus the market value of all common
shares, preferred shares and operating partnership units
outstanding) was 46% based upon the Company's closing stock price
of $11.94. As of March 31, 2007, the Company�s $1.1 billion debt
balance consisted of 79% of fixed-rate debt, with a total weighted
average interest rate of 5.9%. The Company�s weighted average debt
maturity is 7.4 years. FIRST QUARTER INVESTMENT ACTIVITY On
February 6, 2007, the Company sold the Marriott Trumbull in
Trumbull, Connecticut, for approximately $28.3 million. As the
Company acquired this property on December 7, 2006, no gain or loss
was recognized on the sale. On February 8, 2007, the Company sold
the Fairfield Inn in Princeton, Indiana, for approximately $3.2
million. In connection with this sale, the Company expects to
recognize a gain of approximately $1.4 million, the income tax
effects of which will be deferred through a 1031 like-kind
exchange. SUBSEQUENT FINANCING AND INVESTMENT ACTIVITY Subsequent
to the end of the first quarter, the Company completed the sale of
the Radisson Hotel Indianapolis Airport in Indianapolis, Indiana,
the Embassy Suites Phoenix Airport in Phoenix, Arizona, and the
Fairfield Inn Evansville West in Evansville, Indiana. The Company
also has its portfolio of seven TownePlace Suites along with two
other hotels and one office building under contract for sale, all
of which are expected to close in the second quarter of 2007. On
April�11, 2007, the Company acquired interests in a 51-property
hotel portfolio from CNL Hotels and Resorts for approximately
$2.4�billion in cash and assumed debt. The debt-financed portion
included approximately $928.5�million of ten-year fixed-rate CMBS
debt; approximately $555.1�million of two-year, floating-rate CMBS
debt; and a one-year $325.0�million variable rate term loan. The
Company also assumed approximately $436.9�million of fixed-rate
debt, not including the portions of debt attributable to minority
partners in joint ventures in which it acquired a majority
interest. The acquisition was partially funded with the private
placement of 8.0�million shares of Series�C Cumulative Redeemable
Preferred Stock for $200.0�million at a rate of LIBOR plus 2.5%. On
April 24, 2007, the Company closed a follow-on offering of
48,875,000 shares of common stock at $11.75 per share. The offering
raised net proceeds of approximately $549 million, which was used
to pay off the following debt associated with the purchase of 51
hotels from CNL Hotels and Resorts: a $325 million term loan, $180
million of floating-rate CMBS and $45 million of existing debt.
INVESTMENT OUTLOOK Mr. Bennett concluded, "We believe we are well
positioned to continue outpacing the industry in RevPAR growth and
to sustain year-over-year margin improvement. With our portfolio
heavily concentrated in the major metropolitan and coastal markets
with the strongest brands in the upper-upscale and upscale
segments, we have a significant opportunity and much larger
platform to execute on what we do best. We continue to accomplish
what we�ve set out to do in terms of growth and performance. With
the stated de-leveraging goal achieved and the intense focus on
internal growth, we look forward to reporting on our continued
progress throughout the rest of the year." INVESTOR CONFERENCE CALL
AND SIMULCAST Ashford Hospitality Trust, Inc. will conduct a
conference call at 1:00 p.m. ET on May 3, 2007, to discuss the
first quarter results. The number to call for this interactive
teleconference is (877)�704-5384. A seven-day replay of the
conference call will be available by dialing (719) 457-0820 and
entering the confirmation number, 1112467. The Company will also
provide an online simulcast and rebroadcast of its first quarter
2006 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 as well as on
http://www.videonewswire.com/event.asp?regd=y&id=38908 on May
3, 2007, beginning at 1:00 p.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 be helpful 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
fund our cash needs, including our ability to make cash
distributions. However, management believes FFO, AFFO, EBITDA,
Hotel Operating Profit, and CAD to be meaningful measures of a
REIT's performance and should be considered along with, but not as
an alternative to, net income and cash flow as a measure of our
operating performance. Ashford Hospitality Trust is a
self-administered real estate investment trust focused on investing
in the hospitality industry across all segments and at all levels
of the capital structure, including direct hotel investments, first
mortgages, mezzanine loans and sale-leaseback transactions.
Additional information can be found on the Company's web site at
www.ahtreit.com. Certain statements and assumptions in this press
release contain or are based upon "forward-looking" information and
are being made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. These
forward-looking statements are subject to risks and uncertainties.
When we use the words "will likely result," "may," "anticipate,"
"estimate," "should," "expect," "believe," "intend," or similar
expressions, we intend to identify forward-looking statements. Such
forward-looking statements include, but are not limited to, our
business and investment strategy, timing for closings, our
understanding of our competition, 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 the section entitled "Risk Factors" in
Ashford's Registration Statement on Form S-3, (File Number
333-131878), and from time to time, in Ashford's other filings with
the Securities and Exchange Commission. 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. CONSOLIDATED STATEMENTS OF OPERATIONS (In
Thousands, Except Share and Per Share Amounts) (Unaudited) � Three
Months Three Months Ended Ended March 31, 2007 March 31, 2006 �
REVENUE Rooms $ 113,391� $ 78,467� Food and beverage 31,210�
14,785� Other 5,014� 3,448� Total hotel revenue 149,615� 96,700� �
Interest income from notes receivable 3,355� 3,946� Asset
management fees from affiliates 331� 318� Total Revenue 153,301�
100,964� � EXPENSES Hotel operating expenses Rooms 25,120� 16,847�
Food and beverage 22,696� 11,501� Other direct 2,367� 1,592�
Indirect 43,232� 29,603� Management fees 5,521� 3,888� Total hotel
expenses 98,936� 63,431� � Property taxes, insurance, and other
8,011� 5,192� Depreciation and amortization 16,918� 10,008�
Corporate general and administrative: Stock-based compensation
1,059� 940� Other corporate and administrative 3,535� 3,870� Total
Operating Expenses 128,459� 83,441� � � OPERATING INCOME 24,842�
17,523� � Interest income 498� 494� Interest expense (16,079)
(11,432) Amortization of loan costs (659) (514) Write-off of loan
costs and exit fees (703) (687) INCOME BEFORE INCOME TAXES AND
MINORITY INTEREST 7,899� 5,384� Benefit from (provision for) income
taxes 1,223� (125) Minority interest (1,251) (922) INCOME FROM
CONTINUING OPERATIONS 7,871� 4,337� Income from discontinued
operations, net 3,620� 3,125� NET INCOME 11,491� 7,462� Preferred
dividends 2,793� 2,719� NET INCOME AVAILABLE TO COMMON SHAREHOLDERS
$ 8,698� $ 4,743� � Income From Continuing Operations Per Share
Available To Common Shareholders: Basic $ 0.07� $ 0.03� Diluted $
0.07� $ 0.03� Income From Discontinued Operations Per Share: Basic
$ 0.05� $ 0.06� Diluted $ 0.05� $ 0.06� Net Income Per Share
Available To Common Shareholders: Basic $ 0.12� $ 0.09� Diluted $
0.12� $ 0.09� Weighted Average Common Shares Outstanding: Basic
72,042,282� 51,924,540� Diluted 72,448,785� 52,412,048� � ASHFORD
HOSPITALITY TRUST, INC. CONSOLIDATED BALANCE SHEETS (In Thousands,
Except Share and Per Share Amounts) (Unaudited) � March 31,
December 31, 2007� 2006� � ASSETS Investment in hotel properties,
net $ 1,619,714� $ 1,632,946� Cash and cash equivalents 65,084�
73,343� Restricted cash 16,689� 9,413� Accounts receivable, net
30,544� 22,081� Inventories 2,062� 2,110� Assets held for sale
106,452� 119,342� Notes receivable 94,800� 102,833� Deferred costs,
net 12,694� 14,143� Prepaid expenses 10,781� 11,154� Other assets
52,163� 7,826� Due from third-party hotel managers 18,222� 15,964�
Due from related parties 2,306� 757� Total assets $ 2,031,511� $
2,011,912� � � LIABILITIES AND OWNERS' EQUITY Indebtedness $
1,082,638� $ 1,091,150� Capital leases payable 106� 177� Accounts
payable 50,720� 16,371� Accrued expenses 34,838� 32,591� Dividends
payable 21,039� 19,975� Deferred income 283� 294� Deferred
incentive management fees 3,701� 3,744� Unfavorable management
contract liability 14,857� 15,281� Due to third-party hotel
managers 1,993� 1,604� Due to related parties 2,359� 4,152� Total
liabilities 1,212,534� 1,185,339� � Commitments and contingencies
Minority interest 108,926� 109,864� Preferred stock, $0.01 par
value: Series B Cumulative Convertible Redeemable Preferred Stock,
7,447,865 issued and outstanding at March 31, 2007 and December 31,
2006, respectively 75,000� 75,000� � Preferred stock, $0.01 par
value, 50,000,000 shares authorized: Series A Cumulative Preferred
Stock, 2,300,000 issued and outstanding at March 31, 2007 and
December 31, 2006, respectively 23� 23� � Common stock, $0.01 par
value, 200,000,000 shares authorized, 73,754,500 and 72,942,841
shares issued and outstanding at March 31, 2007 and December 31,
2006, respectively 737� 729� Additional paid-in capital 709,211�
708,420� Accumulated other comprehensive income (loss) (120) 111�
Accumulated deficit (74,360) (67,574) Treasury stock, at cost
(36,585 shares) (440) -� Total owners' equity 635,051� 641,709� � �
Total liabilities and owners' equity $ 2,031,511� $ 2,011,912� �
ASHFORD HOSPITALITY TRUST, INC. EBITDA (In Thousands) (Unaudited) �
Three Months Three Months Ended Ended March 31, 2007 March 31, 2006
� Net income $ 11,491� $ 7,462� � Add back: Interest income (498)
(494) Interest expense and amortization of loan costs 16,738�
11,946� Minority interest 1,827� 1,585� Depreciation and
amortization 17,196� 10,935� (Benefit from) provision for income
taxes (511) 153� 34,752� 24,125� � � EBITDA $ 46,243� $ 31,587� � �
For the three months ended March 31, 2007, EBITDA has not been
adjusted to deduct the amortization of the unfavorable management
contract liability of approximately $424,000, the write-off of loan
costs of approximately $703,000, and gains on sales of properties
of approximately $1.4 million. � For the three months ended March
31, 2006, EBITDA has not been adjusted to add back the write-off of
loan costs of approximately $687,000. � � ASHFORD HOSPITALITY
TRUST, INC. FFO and Adjusted FFO (In Thousands, Except Share And
Per Share Amounts) (Unaudited) � Three Months Three Months Ended
Ended March 31, 2007 March 31, 2006 � Net income available to
common shareholders $ 8,698� $ 4,743� � Plus real estate
depreciation and amortization 17,116� 10,725� Remove gains on sales
of properties (1,388) -� Remove minority interest 1,827� 1,585� FFO
available to common shareholders $ 26,253� $ 17,053� � Add back
dividends on convertible preferred stock 1,564� 1,490� Add back
write-off of loan costs and exit fees 703� 687� Adjusted FFO $
28,520� $ 19,230� � Adjusted FFO per diluted share available to
common shareholders $ 0.31� $ 0.27� � Diluted weighted average
shares outstanding 93,409,075� 70,931,242� � ASHFORD HOSPITALITY
TRUST, INC. CASH AVAILABLE FOR DISTRIBUTION ("CAD") (In Thousands,
Except Per Share Amounts) (Unaudited) � Three Months Ended March
31, 2007 (per diluted share) Three Months Ended March 31, 2006 (per
diluted share) � Net income available to common shareholders $
8,698� $ 0.09� $ 4,743� $ 0.07� Add back dividends on convertible
preferred stock 1,564� 0.02� 1,490� 0.02� Total $ 10,262� $ 0.11� $
6,233� $ 0.09� � Plus real estate depreciation and amortization
17,116� $ 0.18� 10,725� $ 0.15� Remove minority interest 1,827�
0.02� 1,585� 0.02� Plus stock-based compensation 1,059� 0.01� 940�
0.01� Plus amortization of loan costs 659� 0.01� 514� 0.01� Plus
write-off of loan costs 703� 0.01� 687� 0.01� Less capital
improvements reserve (5,687) (0.06) (3,393) (0.05) CAD $ 25,939� $
0.28� $ 17,291� $ 0.24� � ASHFORD HOSPITALITY TRUST, INC. KEY
PERFORMANCE INDICATORS - PRO FORMA (Unaudited) � � Three Months
Ended March 31, 2007� 2006� % Variance � ALL HOTELS INCLUDED IN
CONTINUING OPERATIONS: � Room revenues (1) $ 113,390,979� $
106,115,190� 6.86% RevPAR (1) $ 98.08� $ 90.28� 8.64% Occupancy
72.17% 71.85% 0.44% ADR $ 135.91� $ 125.65� 8.16% � NOTE: The above
pro forma table assumes the 65 hotel properties owned and included
in continuing operations at March 31, 2007 were owned as of the
beginning of the periods presented. � � Three Months Ended March
31, 2007� 2006� % Variance � ALL HOTELS NOT UNDER RENOVATION
INCLUDED IN CONTINUING OPERATIONS: � Room revenues (1) $
93,009,340� $ 85,395,926� 8.92% RevPAR (1) $ 98.06� $ 88.26� 11.10%
Occupancy 73.29% 71.69% 2.23% ADR $ 133.80� $ 123.11� 8.68% � �
NOTE: The above pro forma table assumes the 54 hotel properties
owned and included in continuing operations at March 31, 2007 but
not under renovation for the three months ended March 31, 2007 were
owned as of the beginning of the periods presented. � Excluded
Hotels Under Renovation: Residence Inn Evansville, Sea Turtle Inn
Jacksonville, Hilton Santa Fe, SpringHill Suites BWI Airport,
SpringHill Suites Centreville, Hyatt Dulles, SpringHill Suites
Gaithersburg, Courtyard Overland Park, Marriott at Research
Triangle Park, Marriott Crystal Gateway, Hilton Garden Inn
Jacksonville � (1) On March 26, 2006, the Company converted its
Radisson hotel in Ft. Worth, Texas, to a Hilton hotel, which
resulted in a room count reduction from 517 to 294. Consequently,
the increase in pro forma RevPAR exceeded the increase in pro forma
room revenues for the three months ended March 31, 2007 compared to
the same 2006 period. � ASHFORD HOSPITALITY TRUST, INC. Pro Forma
Hotel RevPAR by Region (Unaudited) � Three Months EndedMarch 31,
Percent Change in RevPAR Region Number of Hotels Number of Rooms
2007� 2006� Quarter � Pacific (1) 10� 2,723� $108.66 $94.27 15.3%
Mountain (2) 4� 640� $105.45 $95.65 10.3% West North Central (3) 3�
690� $83.24 $77.80 7.0% West South Central (4) 5� 987� $106.27
$82.18 29.3% East North Central (5) 8� 1,628� $74.01 $72.63 1.9%
East South Central (6) 2� 236� $84.90 $85.54 -0.7% Middle Atlantic
(7) 4� 853� $76.89 $73.21 5.0% South Atlantic (8) 27� 5,036�
$107.40 $103.77 3.5% New England (9) 2� 300� $45.02 $32.84 37.1% �
� � � � Total Portfolio 65� 13,093� $98.08� $90.28� 8.6% � � � (1)
Includes Alaska and California (2) Includes Nevada, Arizona, New
Mexico, and Utah (3) Includes Minnesota and Kansas (4) Includes
Texas (5) Includes Ohio, Illinois, and Indiana (6) Includes
Kentucky and Alabama (7) Includes New York and Pennsylvania (8)
Includes Virginia, Florida, Georgia, Maryland, and North Carolina
(9) Includes Massachusetts � NOTE: The above pro forma table
assumes the 65 hotel properties owned and included in continuing
operations as of March 31, 2007 were owned as of the beginning of
the periods presented. � ASHFORD HOSPITALITY TRUST, INC. Pro Forma
Hotel RevPAR by Brand (Unaudited) � Three Months Ended March 31,
Percent Change in RevPAR Brand Number of Hotels Number of Rooms
2007� 2006� Quarter � Hilton 22� 3,983� $101.17� $89.13� 13.5%
Hyatt 2� 970� $112.82� $100.01� 12.8% InterContinental 2� 420�
$170.75� $152.68� 11.8% Independent 2� 317� $64.67� $72.36� -10.6%
Marriott 28� 4,975� $103.90� $99.22� 4.7% Radisson 3� 686� $49.87�
$48.15� 3.6% Starwood 6� 1,742� $74.62� $68.21� 9.4% � � � � �
Total Portfolio 65� 13,093� $98.08� $90.28� 8.6% � � � NOTE: The
above pro forma table assumes the 65 hotel properties owned and
included in continuing operations as of March 31, 2007 were owned
as of the beginning of the periods presented. � ASHFORD HOSPITALITY
TRUST, INC. PRO FORMA HOTEL OPERATING PROFIT (In Thousands)
(Unaudited) � ALL HOTELS INCLUDED IN CONTINUING OPERATIONS: � Three
Months Ended March 31, 2007 March 31, 2006 % Variance � REVENUE
Rooms (1) $ 113,391� $ 106,115� 6.86% Food and beverage 31,210�
27,943� 11.69% Other 5,051� 5,407� -6.58% Total hotel revenue
149,652� 139,465� 7.30% � EXPENSES Hotel operating expenses Rooms
(1) 23,691� 23,562� 0.55% Food and beverage 22,696� 21,200� 7.06%
Other direct 2,366� 2,579� -8.26% Indirect 43,360� 41,799� 3.73%
Management fees, includes base and incentive fees 7,265� 6,332�
14.73% Total hotel operating expenses 99,378� 95,472� 4.09% �
Property taxes, insurance, and other 7,997� 7,504� 6.57% � � �
HOTEL OPERATING PROFIT (Hotel EBITDA) $ 42,277� $ 36,489� 15.86% �
NOTE: The above pro forma table assumes the 65 hotel properties
owned and included in continuing operations at March 31, 2007 were
owned as of the beginning of the periods presented. � � ALL HOTELS
NOT UNDER RENOVATION INCLUDED IN CONTINUING OPERATIONS: � Three
Months Ended March 31, 2007 March 31, 2006 % Variance � REVENUE
Rooms (1) $ 93,009� $ 85,396� 8.91% Food and beverage 24,532�
20,912� 17.31% Other 4,208� 4,549� -7.50% Total hotel revenue
121,749� 110,857� 9.83% � EXPENSES Hotel operating expenses Rooms
(1) 18,841� 18,621� 1.18% Food and beverage 17,587� 15,907� 10.56%
Other direct 1,860� 2,047� -9.14% Indirect 36,022� 34,319� 4.96%
Management fees, includes base and incentive fees 5,112� 4,461�
14.59% Total hotel operating expenses 79,422� 75,355� 5.40% �
Property taxes, insurance, and other 6,722� 6,254� 7.48% � � �
HOTEL OPERATING PROFIT (Hotel EBITDA) $ 35,605� $ 29,248� 21.73% �
NOTE: The above pro forma table assumes the 54 hotel properties
owned and included in continuing operations at March 31, 2007 but
not under renovation during the three months ended March 31, 2007
were owned as of the beginning of the periods presented. � � (1) On
March 26, 2006, the Company converted its Radisson hotel in Ft.
Worth, Texas, to a Hilton hotel, which resulted in a room count
reduction from 517 to 294. Consequently, the increase in pro forma
RevPAR exceeded the increase in pro forma room revenues for the
three months ended March 31, 2007 compared to the same 2006 period.
� ASHFORD HOSPITALITY TRUST, INC. Pro Forma Hotel Operating Profit
by Region (In Thousands) (Unaudited) � Three Months EndedMarch 31,
Percent Change inHotel Operating Profit Region Number of Hotels
Number of Rooms 2007� % Total 2006� % Total Quarter � Pacific (1)
10� 2,723� $10,189� 24.1% $7,615� 20.9% 33.8% Mountain (2) 4� 640�
$2,207� 5.2% $1,724� 4.7% 28.0% West North Central (3) 3� 690�
$2,191� 5.2% $1,848� 5.1% 18.6% West South Central (4) 5� 987�
$3,394� 8.0% $2,258� 6.2% 50.3% East North Central (5) 8� 1,628�
$3,513� 8.3% $3,615� 9.9% -2.8% East South Central (6) 2� 236�
$811� 1.9% $855� 2.3% -5.1% Middle Atlantic (7) 4� 853� $957� 2.3%
$868� 2.4% 10.3% South Atlantic (8) 27� 5,036� $19,182� 45.4%
$18,121� 49.7% 5.9% New England (9) 2� 300� ($167) -0.4% ($415)
-1.1% -59.8% � � � � � � � Total Portfolio 65� 13,093� $42,277�
100.0% $36,489� 100.0% 15.9% � � � (1) Includes Alaska and
California (2) Includes Nevada, Arizona, New Mexico, and Utah (3)
Includes Minnesota and Kansas (4) Includes Texas (5) Includes Ohio,
Illinois, and Indiana (6) Includes Kentucky and Alabama (7)
Includes New York and Pennsylvania (8) Includes Virginia, Florida,
Georgia, Maryland, and North Carolina (9) Includes Massachusetts �
� NOTE: The above pro forma table assumes the 65 hotel properties
owned and included in continuing operations as of March 31, 2007
were owned as of the beginning of the periods presented. � ASHFORD
HOSPITALITY TRUST, INC. PRO FORMA HOTEL OPERATING PROFIT MARGIN
(Unaudited) � � 54 HOTELS NOT UNDER RENOVATION AND INCLUDED IN
CONTINUING OPERATIONS AT MARCH 31, 2007 AS IF SUCH HOTELS WERE
OWNED AS OF THE BEGINNING OF THE PERIODS PRESENTED: � � HOTEL
OPERATING PROFIT (HOTEL EBITDA) MARGIN: � 1st Quarter 2007 29.24%
1st Quarter 2006 � 26.38% Variance � 2.86% � HOTEL OPERATING PROFIT
(HOTEL EBITDA) MARGIN VARIANCE BREAKDOWN: � Rooms 1.32% Food &
Beverage and Other Departmental 0.22% Administrative & General
-0.13% Sales & Marketing 1.11% Hospitality -0.05% Repair &
Maintenance 0.27% Energy 0.27% Franchise Fee -0.31% Management Fee
-0.15% Incentive Management Fee -0.02% Insurance -0.11% Property
Taxes 0.23% Leases/Other � 0.20% Total � 2.86% � ASHFORD
HOSPITALITY TRUST, INC. PRO FORMA SEASONALITY TABLE (In Thousands)
(Unaudited) � � ALL 65 HOTELS OWNED AND INCLUDED IN CONTINUING
OPERATIONS AS OF MARCH 31, 2007 COMBINED WITH 51 HOTELS ACQUIRED
FROM CNL HOTELS AND RESORTS ON APRIL 11, 2007: � � � � � � 1st
Quarter 2nd Quarter 3rd Quarter 4th Quarter Year End � 2006� Total
Hotel Revenue 332,115� 359,049� 325,487� 368,229� 1,384,881� Hotel
EBITDA 92,984� 109,061� 85,537� 97,401� 384,983� Hotel EBITDA
Margin 28.0% 30.4% 26.3% 26.5% 27.8% � JV Interests in EBITDA
6,864� 7,060� 4,678� 5,670� 24,272� � � NOTE: The above pro forma
table assumes that the 65 hotel properties owned and included in
continuing operations as of March 31, 2007 and the 51 hotels
acquired from CNL Hotels and Resorts on April 11, 2007 were owned
as of the beginning of the periods presented. Ashford Hospitality
Trust, Inc. Debt Summary As of March 31, 2007 (in millions) �
Fixed-Rate Floating-Rate Total Debt Debt Debt � $487.1 million
mortgage note payable secured by 32 hotel properties, matures
between July 1, 2015 and February 1, 2016, at an average interest
rate of 5.41% $ 487.1� $ -� $ 487.1� $211.5 million term loan
secured by 16 hotel properties, matures between December 11, 2014
and December 11, 2015, at an average interest rate of 5.73% 211.5�
-� 211.5� $150.0 million secured credit facility secured by 9 hotel
properties, matures August 16, 2008, at an interest rate of LIBOR
plus a range of 1.6% to 1.85% depending on the loan-to-value ratio
-� 45.0� 45.0� $47.5 million secured credit facility secured by 1
hotel property, matures October 10, 2008, at an interest rate of
LIBOR plus 1.0% to 1.5% depending on the outstanding balance -� -�
-� Mortgage note payable secured by one hotel property, matures
December 1, 2017, at an interest rate of 7.24% through December 31,
2007 and 7.39% thereafter 52.1� -� 52.1� Mortgage note payable
secured by one hotel property, matures December 8, 2016, at an
interest rate of 5.81% 101.0� -� 101.0� Mortgage note payable
secured by six hotel properties, matures December 11, 2009, at an
interest rate of LIBOR plus 1.72% -� 184.0� 184.0� Total Debt
Excluding Premium $ 851.7� $ 229.0� $ 1,080.7� Mark-to-Market
Premium 1.9� Total Debt Including Premium $ 1,082.6� � Percentage
of Total 78.81% 21.19% 100.00% � Weighted Average Interest Rate at
March 31, 2007 5.92% � ASHFORD HOSPITALITY TRUST, INC. Capital
Expenditures Calendar 116 Core Hotels (a) � � � � � � � � � � � � �
� � 2006� � 2007� Actual Actual Actual Actual Actual Estimated
Estimated Estimated Rooms 1st Quarter � 2nd Quarter � 3rd Quarter �
4th Quarter � 1st Quarter � 2nd Quarter � 3rd Quarter � 4th Quarter
� Doubletree Suites Columbus 194� Embassy Suites East Syracuse 215�
Sheraton Bucks County 187� Hyatt Regency Orange County 654� x x
Hampton Inn Mall of Georgia 92� Sheraton Milford 173� x Hampton Inn
Terre Haute 112� Hampton Inn Evansville 141� Hilton St. Petersburg
Bayfront 333� Courtyard Bloomington 117� Courtyard Columbus Tipton
Lakes 90� x Residence Inn Evansville 78� x x Residence Inn Salt
Lake City 144� Hilton Fort Worth 294� x Residence Inn Palm Desert
130� Historic Inns of Annapolis 124� x x Embassy Suites Houston
150� x Radisson Rockland 127� x Residence Inn San Diego Sorrento
Mesa 150� x Hilton Nassau Bay - Clear Lake 243� x Crowne Plaza
Beverly Hills 260� x Radisson City Center - Indianapolis 371� x x x
Sheraton Minneapolis West 222� x x Embassy Suites West Palm Beach
160� x x Residence Inn Fairfax Merrifield 159� x Courtyard Crystal
City Reagan Airport 272� x x Courtyard Palm Desert 151� x
SpringHill Suites Kennesaw 90� x x SpringHill Suites Jacksonville
102� x x Courtyard Atlanta Alpharetta 154� x x Sea Turtle Inn
Jacksonville 193� x x x x x x SpringHill Suites BWI Airport 133� x
x SpringHill Suites Centreville 136� x x SpringHill Suites
Gaithersburg 162� x x Courtyard Overland Park 168� x x Hilton Santa
Fe 157� x x x Marriott at Research Triangle Park 225� x x Marriott
Crystal Gateway 697� x x Hilton Garden Inn Jacksonville 119� x x
Hyatt Dulles 316� x x x Homewood Suites Mobile 86� x x Embassy
Suites Las Vegas Airport 220� x x JW Marriott San Francisco 338� x
x x Residence Inn Lake Buena Vista 210� x x Embassy Suites
Philadelphia Airport 263� x x Embassy Suites Walnut Creek 249� x x
Hilton Minneapolis Airport 300� x x Sheraton San Diego Mission
Valley 260� x x Courtyard Marriott Village LBV 312� x x Sheraton
Anchorage 375� x Courtyard Louisville Airport 150� x SpringHill
Suites Charlotte 136� x SpringHill Suites Raleigh Airport 120� x
Courtyard San Francisco Downtown 405� x Courtyard Basking Ridge
235� x TownePlace Suites Manhattan Beach 144� x Embassy Suites
Santa Clara - Silicon Valley 257� � � � � � � � � � � � � � � x �
(a) Only hotels which have had or are expected to have significant
capital expenditures during 2006 or 2007 are included in this
table.
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