DALLAS, Feb. 24 /PRNewswire-FirstCall/ -- Ashford Hospitality
Trust, Inc. (NYSE:AHT) today reported the following results and
performance measures for the fourth quarter ended December 31,
2009. The proforma performance measurements for Occupancy, Average
Daily Rate (ADR), revenue per available room (RevPAR), and Hotel
Operating Profit (or Hotel EBITDA) include the Company's 102 hotels
owned and included in continuing operations as of December 31,
2009. Unless otherwise stated, all reported results compare the
fourth quarter ended December 31, 2009, with the fourth quarter
ended December 31, 2008 (see discussion below). The reconciliation
of non-GAAP financial measures is included in the financial tables
accompanying this press release. FINANCIAL HIGHLIGHTS AND LIQUIDITY
-- Corporate unrestricted cash at the end of the quarter was $165.2
million -- Total revenue decreased 18.3% to $234.6 million from
$287.3 million -- RevPAR decreased 13.5% for the quarter --
Operating profit margin decreased 297 basis points -- Net loss
available to common shareholders was $76.9 million, or $1.30 per
diluted share, compared with net income of $135.1 million, or $1.34
per diluted share, in the prior-year quarter -- Adjusted funds from
operations (AFFO) was $0.32 per diluted share -- Cash available for
distribution (CAD) was $0.22 per diluted share -- Fixed charge
coverage ratio was 1.69x under the senior credit facility covenant
versus a required minimum of 1.25x CAPITAL ALLOCATION --
Repurchased 6.3 million common shares in the quarter for $28.0
million and a total of 30.1 million shares for $81.3 million in
2009 -- Capex invested in the quarter was $17.4 million, for a
total of $69.2 million in 2009 -- Capital market hedging strategies
resulted in $52.3 million of interest expense savings in 2009
IMPAIRMENT During the fourth quarter, the Company recorded an
impairment of $59.3 million related to its Westin O'Hare in
suburban Chicago. The Company had suspended making mortgage
payments pursuant to grace periods granted by the lender under a
forbearance agreement and has been working with the special
servicer on the $101 million loan for a consensual deed in lieu of
foreclosure. The impairment represents the difference between the
asset's net book value and the current fair market value. Once the
deed in lieu of foreclosure to the lender is completed, which is
anticipated to be in the first or second quarter of 2010, the
Company will report a non cash gain of approximately $53.0 million
to the level of the non-recourse debt on the asset and effectively
a net impairment of $6.3 million. CAPITAL STRUCTURE At December 31,
2009, the Company's net debt to total gross assets (as defined by
the corporate credit facility) was 59.0%. As of December 31, 2009,
the Company had $2.8 billion of mortgage debt. Including the swap
and flooridors its blended average interest rate was 2.95%.
Including its $1.8 billion interest rate swap, 98% of the Company's
debt is variable-rate debt. The Company's weighted average debt
maturity including extension options is 5.2 years. On November 19,
2009, the Company closed on the refinancing of its remaining 2010
debt maturity and made significant progress on the Company's 2011
maturities through transactions with Prudential Mortgage Capital
Company and Wheelock Street Capital with a $145.0 million
non-recourse loan. The loan includes an A-Note from Prudential and
a B-Note from Wheelock Street with a combined interest rate of
12.26% and a term of six years. The loans are secured by the
Embassy Suites Crystal City, Embassy Suites Orlando Airport,
Embassy Suites Santa Clara, Embassy Suites Portland and the Hilton
Costa Mesa. The proceeds paid off a $75.0 million loan maturing in
2010 and a $65.0 million loan maturing in 2011, and provide $4.0
million for capital improvements to be drawn over a 24-month
period. The Hilton Auburn Hills and the Hilton Rye Town, which were
included in the maturing loans, are now unencumbered. On November
19, 2009, the Company also completed the sale of the Westin
Westminster mezzanine loan that was defeased by the original
borrower in 2007 as part of a refinancing. The total gross proceeds
received by the Company amounted to $13.6 million before
transaction costs. The loan had an outstanding balance of $11.0
million with a September 1, 2011 maturity. The Company negotiated
for the release of the portfolio of government agency securities
serving as the defeased loan collateral, and sold the actual
securities via an auction. The Company obtained pricing in excess
of the par amount due to the high pay coupon compared to current
market rates. Effective December 1, 2009, the Company and the
special servicer who is administering the $29.1 million first
mortgage on the Company's Hyatt Regency Dearborn mutually agreed to
transfer the Company's possession and control of the hotel to a
court-appointed receiver. As a result of the transfer, the Company
deconsolidated the hotel and its other net assets from its
financial reporting in the amount of $32.0 million (previously
impaired by $10.9 million in the second quarter of 2009) and the
hotel's $29.1 million mortgage indebtedness, and recognized a loss
on the deconsolidation of debt of $2.9 million in the fourth
quarter. Additionally, the Company reclassified the hotel's results
of operations through the effective date of the transfer to
discontinued operations on its statement of operations. Effective
December 29, 2009, the Company refinanced its $19.74 million loan
secured by the Hilton El Conquistador Hotel and Country Club in
Tucson, Arizona. The loan was set to mature in June 2011. The new
non-recourse financing with MetLife for the same amount bears
interest at the greater of 5.5% or LIBOR plus 350 basis points and
is interest only for a term of five years. During 2009, the Company
completed a total of $285 million in financings, re-financings and
loan modifications. The Company has no debt maturities in 2010 and
has $209 million of hard debt maturities in 2011, $203 million of
which matures in December 2011 and is secured by a portfolio of
hotels. SUBSEQUENT EVENTS On February 12, 2010, the Company
completed the previously disclosed discounted payoff with the
borrower on the Company's $33.6 million mezzanine loan, which was
secured by interests in the Ritz Carlton Key Biscayne and set to
mature in 2017. The Company received $20 million in cash and a $4
million note secured by interests in the property and that matures
in 2017. The Company had previously recorded an impairment of $10.7
million to account for the discounted payoff in the third quarter
of 2009. PORTFOLIO REVPAR As of December 31, 2009, the Company had
a portfolio of direct hotel investments consisting of 102
properties classified in continuing operations. During the fourth
quarter, 95 of the hotels included in continuing operations were
not under renovation. The Company believes reporting its operating
metrics for continuing operations on a proforma total basis (all
102 hotels) and proforma not-under-renovation basis (95 hotels) is
a measure that reflects a meaningful and focused comparison of the
operating results in its direct hotel portfolio. The Company's
reporting by region and brand includes the results of all 102
hotels in continuing operations. Details of each category are
provided in the tables attached to this release. -- Proforma RevPAR
decreased 13.3% for hotels not under renovation on a 10.8% decrease
in ADR to $123.61 and a 181 basis point decline in occupancy --
Proforma RevPAR decreased 13.5% for all hotels on a 10.6% decrease
in ADR to $124.26 and a 214 basis point decline in occupancy HOTEL
EBITDA MARGINS AND QUARTERLY SEASONALITY TRENDS For the 95 hotels
as of December 31, 2009, that were not under renovation, Proforma
Hotel EBITDA decreased 24.4% to $50.3 million. Proforma Hotel
EBITDA margin (expressed as a percentage of Total Hotel Revenue)
declined 276 basis points to 23.3%. For all 102 hotels included in
continuing operations as of December 31, 2009, Proforma Hotel
EBITDA decreased 25.5% to $55.8 million and Hotel EBITDA margin
decreased 297 basis points to 23.3%. Ashford believes
year-over-year Hotel EBITDA and Hotel EBITDA margin comparisons are
more meaningful to gauge the performance of the Company's hotels
than sequential quarter-over-quarter comparisons. Given the
substantial seasonality in the Company's portfolio and its active
capital recycling, to help investors better understand this
seasonality, the Company provides quarterly detail on its Proforma
Hotel EBITDA and Proforma Hotel EBITDA margin for the current and
certain prior-year periods based upon the number of core hotels in
the portfolio as of the end of the current period. As Ashford's
portfolio mix changes from time to time so will the seasonality for
Proforma Hotel EBITDA and Proforma Hotel EBITDA margin. The details
of the quarterly calculations for the previous four quarters for
the current portfolio of 102 hotels included in continuing
operations are provided in the tables attached to this release.
Monty J. Bennett, Chief Executive Officer, commented, "Our
operations, capital markets, and share repurchase strategies
continued to address many of our top priorities for the year such
as offsetting declining RevPAR trends with interest expense
savings, eliminating near-term debt maturities and creating value
with a disciplined share repurchase strategy. Looking ahead to
2010, we still expect the operating environment to continue to be
extremely challenging, requiring a continued cost control focus."
INVESTOR CONFERENCE CALL AND SIMULCAST Ashford Hospitality Trust,
Inc. will conduct a conference call on Thursday, February 25, 2010,
at 11 a.m. ET. The number to call for this interactive
teleconference is (212) 231-2905. A replay of the conference call
will be available through March 4, 2010, by dialing (402) 977-9140
and entering the confirmation number, 21449088. The Company will
also provide an online simulcast and rebroadcast of its fourth
quarter 2009 earnings release conference call. The live broadcast
of Ashford's quarterly conference call will be available online at
the Company's website at http://www.ahtreit.com/ on Thursday,
February 25, 2010, beginning at 11 a.m. ET. The online replay will
follow shortly after the call and continue for approximately one
year. Substantially all of our non-current assets consist of real
estate investments and debt investments secured by real estate.
Historical cost accounting for real estate assets implicitly
assumes that the value of real estate assets diminishes predictably
over time. Since real estate values instead have historically risen
or fallen with market conditions, most industry investors consider
supplemental measures of performance, which are not measures of
operating performance under GAAP, to assist in evaluating a real
estate company's operations. These supplemental measures include
FFO, AFFO, EBITDA, Hotel Operating Profit, and CAD. FFO is computed
in accordance with our interpretation of standards established by
NAREIT, which may not be comparable to FFO reported by other REITs
that do not define the term in accordance with the current NAREIT
definition or that interpret the NAREIT definition differently than
us. Neither FFO, AFFO, EBITDA, Hotel Operating Profit, nor CAD
represents cash generated from operating activities as determined
by GAAP and should not be considered as an alternative to a) GAAP
net income (loss) as an indication of our financial performance or
b) GAAP cash flows from operating activities as a measure of our
liquidity, nor are such measures indicative of funds available to
satisfy our cash needs, including our ability to make cash
distributions. However, management believes FFO, AFFO, EBITDA,
Hotel Operating Profit, and CAD to be meaningful measures of a
REIT's performance and should be considered along with, but not as
an alternative to, net income and cash flow as a measure of our
operating performance. Ashford Hospitality Trust is a
self-administered real estate investment trust focused on investing
in the hospitality industry across all segments and at all levels
of the capital structure, including direct hotel investments,
second mortgages, mezzanine loans and sale-leaseback transactions.
Additional information can be found on the Company's web site at
http://www.ahtreit.com/. Certain statements and assumptions in this
press release contain or are based upon "forward-looking"
information and are being made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements are subject to risks and
uncertainties. When we use the words "will likely result," "may,"
"anticipate," "estimate," "should," "expect," "believe," "intend,"
or similar expressions, we intend to identify forward-looking
statements. Such forward-looking statements include, but are not
limited to, the timing for closing, the impact of the transaction
on our business and future financial condition, our business and
investment strategy, our understanding of our competition and
current market trends and opportunities and projected capital
expenditures. Such statements are subject to numerous assumptions
and uncertainties, many of which are outside Ashford's control.
These forward-looking statements are subject to known and unknown
risks and uncertainties, which could cause actual results to differ
materially from those anticipated, including, without limitation:
general volatility of the capital markets and the market price of
our common stock; changes in our business or investment strategy;
availability, terms and deployment of capital; availability of
qualified personnel; changes in our industry and the market in
which we operate, interest rates or the general economy; and the
degree and nature of our competition. These and other risk factors
are more fully discussed in Ashford's filings with the Securities
and Exchange Commission. EBITDA is defined as net income before
interest, taxes, depreciation and amortization. EBITDA yield is
defined as trailing twelve month EBITDA divided by the purchase
price. A capitalization rate is determined by dividing the
property's annual net operating income by the purchase price. Net
operating income is the property's funds from operations minus a
capital expense reserve of either 4% or 5% of gross revenues. Funds
from operations ("FFO"), as defined by the White Paper on FFO
approved by the Board of Governors of the National Association of
Real Estate Investment Trusts ("NAREIT") in April 2002, represents
net income (loss) computed in accordance with generally accepted
accounting principles ("GAAP"), excluding gains (or losses) from
sales or properties and extraordinary items as defined by GAAP,
plus depreciation and amortization of real estate assets, and net
of adjustments for the portion of these items related to
unconsolidated entities and joint ventures. The forward-looking
statements included in this press release are only made as of the
date of this press release. Investors should not place undue
reliance on these forward-looking statements. We are not obligated
to publicly update or revise any forward-looking statements,
whether as a result of new information, future events or
circumstances, changes in expectations or otherwise. ASHFORD
HOSPITALITY TRUST, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE
SHEETS (in thousands, except share amounts) December 31,
-------------- 2009 2008 ---- ---- (Unaudited) ASSETS Investment in
hotel properties, net $3,383,759 $3,568,215 Cash and cash
equivalents 165,168 241,597 Restricted cash 77,566 69,806 Accounts
receivable, net 31,503 41,110 Inventories 2,975 3,341 Notes
receivable 55,655 212,815 Investment in unconsolidated joint
venture 20,736 19,122 Deferred costs, net 20,960 24,211 Prepaid
expenses 13,234 12,903 Interest rate derivatives 94,645 88,603
Other assets 3,471 6,766 Intangible assets, net 2,988 3,077 Due
from third-party hotel managers 41,838 48,116 ------ ------ Total
assets $3,914,498 $4,339,682 ========== ========== LIABILITIES AND
EQUITY Liabilities Indebtedness $2,772,396 $2,790,364 Capital
leases payable 83 207 Accounts payable and accrued expenses 91,387
93,476 Dividends payable 5,566 6,285 Unfavorable management
contract liabilities 18,504 20,950 Due to related parties 1,009
2,378 Due to third-party hotel managers 1,563 3,855 Other
liabilities 7,932 8,124 ----- ----- Total liabilities 2,898,440
2,925,639 --------- --------- Series B-1 Cumulative Convertible
Redeemable Preferred stock, 7,447,865 issued and outstanding 75,000
75,000 Redeemable noncontrolling interests in operating partnership
85,167 107,469 Equity: Stockholders' equity of the Company
Preferred stock, $0.01 par value, 50,000,000 shares authorized:
Series A Cumulative Preferred Stock, 1,487,900 shares and 2,185,000
shares issued and outstanding at December 31, 2009 and 2008 15 22
Series D Cumulative Preferred Stock, 5,666,797 shares and 6,394,347
shares issued and outstanding at December 31, 2009 and 2008 57 64
Common stock, $0.01 par value, 200,000,000 shares authorized,
122,748,859 shares issued, 57,596,878 shares and 86,555,149 shares
outstanding at December 31, 2009 and 2008 1,227 1,227 Additional
paid-in capital 1,436,009 1,450,146 Accumulated other comprehensive
loss (897) (860) Accumulated deficit (412,011) (124,782) Treasury
stock, at cost (65,151,981 shares and 36,193,710 shares at December
31, 2009 and 2008) (186,424) (113,598) -------- -------- Total
stockholders' equity of the Company 837,976 1,212,219
Noncontrolling interests in consolidated joint ventures 17,915
19,355 ------ ------ Total equity 855,891 1,231,574 -------
--------- Total liabilities and equity $3,914,498 $4,339,682
========== ========== ASHFORD HOSPITALITY TRUST, INC. AND
SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands,
except per share amounts) Three Months Ended Year Ended December
31, December 31, -------------- -------------- 2009 2008 2009 2008
---- ---- ---- ---- (Unaudited) REVENUE Rooms $171,462 $204,562
$678,278 $831,029 Food and beverage 49,095 58,772 175,351 221,826
Rental income from operating leases 1,820 1,979 5,650 6,218 Other
11,571 13,138 45,714 51,324 ------ ------ ------ ------ Total hotel
revenue 233,948 278,451 904,993 1,110,397 Interest income from
notes receivable 479 8,777 10,876 24,050 Asset management fees and
other 174 60 726 2,013 --- --- --- ----- Total Revenue 234,601
287,288 916,595 1,136,460 ------- ------- ------- ---------
EXPENSES Hotel operating expenses Rooms 42,054 46,546 158,647
181,957 Food and beverage 34,175 41,374 125,343 156,540 Other
direct 6,436 7,418 25,383 28,359 Indirect 70,843 81,850 269,879
313,141 Management fees 9,654 11,507 36,431 44,518 ----- ------
------ ------ Total hotel expenses 163,162 188,695 615,683 724,515
Property taxes, insurance, and other 15,871 16,335 61,113 60,739
Depreciation and amortization 38,027 40,383 155,458 164,055
Impairment charges 58,735 - 208,007 - Gain on insurance settlement
(1,329) - (1,329) - Corporate general and administrative:
Stock-based compensation 1,141 1,646 5,037 6,834 Other general and
administrative 5,796 2,152 24,914 21,868 ----- ----- ------ ------
Total Operating Expenses 281,403 249,211 1,068,883 978,011 -------
------- --------- ------- OPERATING (LOSS) INCOME (46,802) 38,077
(152,288) 158,449 Equity (loss) in earnings of unconsolidated joint
venture 623 (4,509) 2,486 (2,205) Interest income 44 468 297 2,062
Other income 21,416 3,910 56,556 10,153 Interest expense (35,329)
(37,433) (137,871) (148,162) Amortization of loan costs (1,816)
(1,732) (7,679) (6,420) Write-off of premiums, loan costs, premiums
and exit fees, net (1,111) - (181) (1,226) Unrealized (loss) gain
on derivatives (17,616) 118,481 (31,782) 79,620 ------- -------
------- ------ (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE
INCOME TAXES (80,591) 117,262 (270,462) 92,271 Income tax (expense)
benefit (1,097) 238 (1,521) (657) ------ --- ------ ---- (LOSS)
INCOME FROM CONTINUING OPERATIONS (81,688) 117,500 (271,983) 91,614
(Loss) income from discontinued operations (2,577) 37,522 (16,677)
54,057 ------ ------ ------- ------ NET (LOSS) INCOME (84,265)
155,022 (288,660) 145,671 Loss (income) from consolidated joint
ventures attributable to noncontrolling interests 136 1,463 765
(1,444) Net loss (income) attributable to redeemable noncontrolling
interests in operating partnership 12,085 (15,771) 37,653 (15,033)
------ ------- ------ ------- NET (LOSS) INCOME ATTRIBUTABLE TO THE
COMPANY (72,044) 140,714 (250,242) 129,194 Preferred dividends
(4,830) (5,588) (19,322) (26,642) ------ ------ ------- ------- NET
(LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS $(76,874)
$135,126 $(269,564) $102,552 ======== ======== ========= ========
(LOSS) INCOME PER SHARE: Basic (Loss) income from continuing
operations attributable to common stockholders $(1.26) $1.09
$(3.72) $0.47 (Loss) income from discontinued operations
attributable to common stockholders (0.04) 0.36 (0.21) 0.44 -----
---- ----- ---- Net (loss) income attributable to common
stockholders $(1.30) $1.45 $(3.93) $0.91 ====== ===== ====== =====
Diluted (Loss) income from continuing operations attributable to
Ashford common stockholders $(1.26) $1.01 $(3.72) $0.47 (Loss)
income from discontinued operations attributable to Ashford common
stockholders (0.04) 0.33 (0.21) 0.44 ----- ---- ----- ---- Net
(loss) income attributable to Ashford common stockholders $(1.30)
$1.34 $(3.93) $0.91 ====== ===== ====== ===== Weighted average
common shares outstanding - basic 59,101 91,905 68,597 111,295
====== ====== ====== ======= Weighted average common shares
outstanding - diluted 59,101 112,801 68,597 111,295 ====== =======
====== ======= Amounts attributable to common stockholders: (Loss)
income from continuing operations, net of tax $(69,835) $106,958
$(235,655) $80,199 (Loss) income from discontinued operations, net
of tax (2,209) 33,756 (14,587) 48,995 Preferred dividends (4,830)
(5,588) (19,322) (26,642) ------ ------ ------- ------- Net (loss)
income attributable to common stockholders $(76,874) $135,126
$(269,564) $102,552 ======== ======== ========= ======== ASHFORD
HOSPITALITY TRUST, INC. AND SUBSIDIARIES RECONCILIATION OF NET
INCOME TO EBITDA (in thousands) Three Months Ended Year Ended
December 31, December 31, -------------- -------------- 2009 2008
2009 2008 ---- ---- ---- ---- (Unaudited) Net (loss) income
$(84,265) $155,022 $(288,660) $145,671 Loss (income) from
consolidated joint ventures attributable to noncontrolling
interests 136 1,463 765 (1,444) Net loss (income) attributable to
redeemable noncontrolling interests in operating partnership 12,085
(15,771) 37,653 (15,033) ------ ------- ------ ------- Net (loss)
income attributable to the Company (72,044) 140,714 (250,242)
129,194 Interest income (44) (456) (289) (2,020) Interest expense
and amortization of loan costs 36,945 38,885 145,171 157,274
Depreciation and amortization 37,341 40,545 153,907 172,262 Net
loss (income) attributable to redeemable noncontrolling interests
in operating partnership (12,085) 15,771 (37,653) 15,033 Income tax
expense (benefit) 979 (267) 1,565 1,093 --- ---- ----- ----- EBITDA
(8,908) 235,192 12,459 472,836 Amortization of unfavorable
management contract liabilities (752) (753) (2,446) (2,446) Loss
(gain) on sale of note receivable/properties, net of taxes 511
(40,199) 511 (48,514) Gain on insurance settlement (1,329) -
(1,329) - Write-off of loan costs, premiums and exit fees(1) 1,111
789 181 798 Non-recurring severance payments - 582 - 582 Impairment
charges 58,735 5,461 218,878 5,461 Income from interest rate
derivatives (2) (19,079) (4,108) (52,282) (10,352) Unrealized loss
(gain) on derivatives 17,616 (118,481) 31,782 (79,620) -------
------- -------- -------- Adjusted EBITDA $47,905 $78,483 $207,754
$338,745 ======= ======= ======== ======== RECONCILIATION OF NET
INCOME TO FUNDS FROM OPERATIONS ("FFO") (in thousands, except per
share amounts) Three Months Ended Year Ended December 31, December
31, -------------- -------------- 2009 2008 2009 2008 ---- ----
---- ---- (Unaudited) Net (loss) income $(84,265) $155,022
$(288,660) $145,671 Loss (income) from consolidated joint ventures
attributable to noncontrolling interests 136 1,463 765 (1,444) Net
loss (income) attributable to redeemable noncontrolling interests
in operating partnership 12,085 (15,771) 37,653 (15,033) Preferred
dividends (4,830) (5,588) (19,322) (26,642) ------ ------ -------
------- Net loss attributable to common stockholders (76,874)
135,126 (269,564) 102,552 Depreciation and amortization on real
estate 37,271 40,441 153,621 171,791 Loss (gain) on sale of note
receivable/properties, net of taxes 511 (40,199) 511 (48,514) Gain
on insurance settlement (1,329) - (1,329) - Net loss (income)
attributable to redeemable noncontrolling interests in operating
partnership (12,085) 15,771 (37,653) 15,033 ------- ------ -------
------ FFO available to common stockholders (52,506) 151,139
(154,414) 240,862 Dividends on convertible preferred stock 1,043
1,043 4,171 5,735 Write-off of loan costs, premiums and exit
fees(1) 1,111 789 181 798 Non-recurring severance payments - 582 -
582 Impairment charges 58,735 5,461 218,878 5,461 Unrealized loss
(gain) on derivatives 17,616 (118,481) 31,782 (79,620) ------
-------- ------ ------- Adjusted FFO $25,999 $40,533 $100,598
$173,818 ======= ======= ======== ======== Adjusted FFO per diluted
share available to common stockholders $0.32 $0.36 $1.12 $1.31
===== ===== ===== ===== Weighted average diluted shares 80,892
112,802 89,987 132,677 ====== ======= ====== ======= (1) The
amounts include write-off of debt premiums of $1,341 for the
refinancing of a mortgage loan for the year ended December 31, 2009
and $2,086 for the sale of a hotel property for the year ended
December 31, 2008. (2) Cash income from interest rate derivatives
is excluded from the adjusted EBITDA calculations for all periods
presented. ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES CASH
AVAILABLE FOR DISTRIBUTION ("CAD") (in thousands, except per share
amounts) (Unaudited) Three Months Three Months Ended Per Ended Per
December 31, Diluted December 31, Diluted 2009 Share 2008 Share
------------ ------- ------------ ------- Net (loss) income
attributable to common stockholders $(76,874) $(0.95) $135,126
$1.20 Dividends on convertible preferred stock 1,043 0.01 1,043
0.01 ----- ---- ----- ---- Total (75,831) (0.94) 136,169 1.21
Depreciation and amortization on real estate 37,271 0.46 40,441
0.36 Net (loss) income attributable to redeemable noncontrolling
interests in operating partnership (12,085) (0.15) 15,771 0.14
Stock-based compensation 1,141 0.02 1,646 0.02 Amortization of loan
costs 1,748 0.02 1,686 0.01 Write-off of loan costs, premiums and
exit fees (1) 1,111 0.01 789 0.01 Amortization of unfavorable
management contract liabilities (752) (0.01) (753) (0.01) Loss
(gain) on sale of note receivable/properties, net of taxes 511 0.01
(40,199) (0.36) Gain on insurance settlement (1,329) (0.02) - -
Non-recurring severance payments - - 582 0.01 Impairment charges
58,735 0.73 5,461 0.05 Unrealized loss (gain) on derivatives 17,616
0.22 (118,481) (1.05) Capital improvements reserve (10,311) (0.13)
(12,047) (0.11) ------- ----- ------- ----- CAD $17,825 $0.22
$31,065 $0.28 ======= ===== ======= ===== Year Year Ended Per Ended
Per December 31, Diluted December 31, Diluted 2009 Share 2008 Share
----------- ------- ----------- ----- Net (loss) income
attributable to common stockholders $(269,564) $(3.00) $102,552
$0.77 Dividends on convertible preferred stock 4,171 0.05 5,735
0.05 ----- ---- ----- ---- Total (265,393) (2.95) 108,287 0.82
Depreciation and amortization on real estate 153,621 1.71 171,791
1.30 Net (loss) income attributable to redeemable noncontrolling
interests in operating partnership (37,653) (0.42) 15,033 0.11
Stock-based compensation 5,037 0.06 6,834 0.05 Amortization of loan
costs 7,427 0.08 6,610 0.05 Write-off of loan costs, premiums and
exit fees (1) 181 - 798 0.01 Amortization of unfavorable management
contract liabilities (2,446) (0.03) (2,446) (0.02) Loss (gain) on
sale of note receivable/properties, net of taxes 511 0.01 (48,514)
(0.36) Gain on insurance settlement (1,329) (0.01) - -
Non-recurring severance payments - - 582 - Impairment charges
218,878 2.43 5,461 0.04 Unrealized loss (gain) on derivatives
31,782 0.35 (79,620) (0.60) Capital improvements reserve (40,580)
(0.45) (50,108) (0.38) ------- ----- ------- ----- CAD $70,036
$0.78 $134,708 $1.02 ======= ===== ======== ===== (1) The amounts
include write-off of debt premiums of $1,341 for the refinancing of
a mortgage loan for the year ended December 31, 2009 and $2,086 for
the sale of a hotel property for the year ended December 31, 2008.
ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES DEBT SUMMARY
DECEMBER 31, 2009 (dollars in thousands) (Unaudited) Indebtedness
Collateral Maturity Interest Rate ------------ ---------- --------
------------- Senior credit facility Notes receivable April 2010
LIBOR + 2.75% to 3.5% Mortgage loan 10 hotels May 2010 LIBOR +
1.65% Mortgage loan 5 hotels December 2010 LIBOR + 1.72% Mortgage
loan 1 hotel January 2011 8.32% Mortgage loan 1 hotel March 2011
LIBOR (floor at 2.5%) + 3.75% Mortgage loan 2 hotel August 2011
LIBOR + 2.75% Mortgage loan 1 hotel March 2012 LIBOR + 4% Mortgage
loan 1 hotel December 2014 Greater of 5.5% or LIBOR + 3.5% Mortgage
loan 8 hotels December 2014 5.75% Mortgage loan 1 hotel January
2015 7.78% Mortgage loan 10 hotels July 2015 5.22% Mortgage loan 8
hotels December 2015 5.70% Mortgage loan 5 hotels December 2015
12.26% Mortgage loan 5 hotels February 2016 5.53% Mortgage loan 5
hotels February 2016 5.53% Mortgage loan 5 hotels February 2016
5.53% Mortgage loan 1 hotel December 2016 5.81% Mortgage loan 1
hotel April 2017 5.91% Mortgage loan 2 hotels April 2017 5.95%
Mortgage loan 3 hotels April 2017 5.95% Mortgage loan 5 hotels
April 2017 5.95% Mortgage loan 5 hotels April 2017 5.95% Mortgage
loan 5 hotels April 2017 5.95% Mortgage loan 7 hotels April 2017
5.95% TIF loan 1 hotel June 2018 12.85% Mortgage loan 1 hotel April
2034 Greater of 6% or Prime + 1% Indebtedness Fixed-Rate Debt
Floating-Rate Debt Total Debt ------------ ---------------
------------------ ---------- Senior credit $- $250,000 (1)(2)
$250,000 facility - 167,202 (1) 167,202 Mortgage loan - 203,400 (3)
203,400 Mortgage loan 5,816 - 5,816 Mortgage loan - 52,500 (1)
52,500 Mortgage loan - 156,600 (1) 156,600 Mortgage loan - 60,800
(1) 60,800 Mortgage loan - 19,740 19,740 Mortgage loan 110,899 -
110,899 Mortgage loan 4,345 - 4,345 Mortgage loan 160,490 - 160,490
Mortgage loan 100,576 - 100,576 Mortgage loan 141,402 - 141,402
Mortgage loan 115,645 - 115,645 Mortgage loan 95,905 - 95,905
Mortgage loan 83,075 - 83,075 Mortgage loan 101,000 (4) - 101,000
Mortgage loan 35,000 - 35,000 Mortgage loan 128,251 - 128,251
Mortgage loan 260,980 - 260,980 Mortgage loan 115,600 - 115,600
Mortgage loan 103,906 - 103,906 Mortgage loan 158,105 - 158,105
Mortgage loan 126,466 - 126,466 TIF loan 7,783 - 7,783 Mortgage
loan - 6,910 6,910 ---------- ---------- ---------- Total debt
$1,855,244 $917,152 $2,772,396 ========== ========== ==========
Percentage 66.9% 33.1% 100.0% ========== ========== ==========
Weighted average interest rate at December 31, 2009 6.30% 2.97%
5.19% ========== ========== ========== Total debt with the effect
of interest rate swap $55,244 $2,717,152 $2,772,396 ==========
========== ========== Percentage with the effect of interest rate
swap 2.0% 98.0% 100.0% ========== ========== ========== Weighted
average interest rate with the effect of interest rate swap 2.95%
2.97% 2.95% ========== ========== ========== (1) Each of these
loans has two one-year extension options. (2) Based on the
debt-to-assets ratio defined in the loan agreement, interest rate
on this debt was at LIBOR plus 3% as of December 31, 2009. (3) This
loan has a one-year extension option remaining. (4) We are
currently working with the lender for a deed-in-lieu of
foreclosure. ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES DEBT
BY MATURITY ASSUMING EXTENSION OPTIONS NOT SUBJECT TO COVERAGE/LTV
TESTS ARE EXERCISED DECEMBER 31, 2009 (in thousands) (Unaudited)
2010 2011 2012 2013 2014 Thereafter Total ---- ---- ---- ---- ----
------------ ------- Secured credit facility $250,000(1) $- $- $- -
$- $250,000 Mortgage loan secured by 10 hotel properties, Wachovia
Floater - - 167,202 - - - 167,202 Mortgage loan secured by five
hotel properties - 203,400 - - - - 203,400 Mortgage loan secured by
Manchester Courtyard - 5,816 - - - - 5,816 Mortgage loan secured by
JW Marriott San Francisco - - 52,500(1) - - - 52,500 Mortgage loan
secured by two hotel properties - 156,600(2) - - - - 156,600
Mortgage loan secured by Arlington Marriott - - - - 60,800 - 60,800
Mortgage loan secured by El Conquistador Hilton - - - - 19,740 -
19,740 Mortgage loan secured by eight hotel properties, UBS Pool 1
- - - - 110,899 - 110,899 Mortgage loan secured by 10 hotel
properties, Merrill Lynch Pool 1 - - - - - 160,490 160,490 Mortgage
loan secured by eight hotel properties, UBS Pool 2 - - - - -
100,576 100,576 Mortgage loan secured by five hotel properties - -
- - - 141,402 141,402 Mortgage loan secured by five hotel
properties, Merrill Lynch Pool 2 - - - - - 115,645 115,645 Mortgage
loan secured by five hotel properties, Merrill Lynch Pool 3 -
95,905 95,905 Mortgage loan secured by five hotel properties,
Merrill Lynch Pool 7 - 83,075 83,075 Mortgage loan secured by
Westin O'Hare - - - - - 101,000(3) 101,000 Mortgage loan secured by
Philadelphia Courtyard, Wachovia Stand-Alone - - - - - 35,000
35,000 Mortgage loan secured by two hotel properties, Wachovia
Fixed Rate Pool 3 - - - - - 128,251 128,251 Mortgage loan secured
by three hotel properties, Wachovia Fixed Rate Pool 7 - - - - -
260,980 260,980 Mortgage loan secured by five hotel properties,
Wachovia Fixed Rate Pool 1 - - - - - 115,600 115,600 Mortgage loan
secured by five hotel properties, Wachovia Fixed Rate Pool 5 - - -
- - 103,906 103,906 Mortgage loan secured by five hotel properties,
Wachovia Fixed Rate Pool 6 - - - - - 158,105 158,105 Mortgage loan
secured by seven hotel properties, Wachovia Fixed Rate Pool 2 - - -
- - 126,466 126,466 TIF loan secured by Philadelphia Courtyard - -
- - - 7,783 7,783 Mortgage loan secured by Houston Hampton Inn - -
- - - 4,345 4,345 Mortgage loan secured by Jacksonville Residence
Inn - - - - - 6,910 6,910 ---------------- -------- -------- ------
-------- ---------- ---------- $250,000 $365,816 $219,702 $-
$191,439 $1,745,439 $2,772,396 ======== ======== ======== ======
======== ========== ========== NOTE: These maturities assume no
event of default would occur. (1) Extensions available but certain
coverage tests have to be met. (2) Extensions available but certain
LTV tests have to be met. (3) We are currently working with the
lender for a deed-in-lieu of foreclosure. ASHFORD HOSPITALITY
TRUST, INC. KEY PERFORMANCE INDICATORS - PRO FORMA (Unaudited)
Three Months Ended Year Ended December 31, December 31,
------------------------ ----------------------- 2009 2008
%Variance 2009 2008 %Variance ---- ---- --------- ---- ----
--------- ALL HOTELS INCLUDED IN CONTINUING OPERATIONS: Room
revenues (in thousands) $177,882 $211,789 -16.01% $697,760 $853,895
-18.29% RevPAR $78.52 $90.76 -13.49% $85.10 $103.15 -17.50%
Occupancy 63.19% 65.33% -2.14% 65.87% 71.73% -5.86% ADR $124.26
$138.93 -10.56% $129.20 $143.80 -10.15% Three Months Ended Year
Ended December 31, December 31, ------------------------
----------------------- 2009 2008 %Variance 2009 2008 %Variance
---- ---- --------- ---- ---- --------- ALL HOTELS NOT UNDER
RENOVATION INCLUDED IN CONTINUING OPERATIONS: Room revenues (in
thousands) $161,977 $192,492 -15.85% $630,359 $771,261 -18.27%
RevPAR $78.10 $90.07 -13.29% $84.10 $101.90 -17.47% Occupancy
63.19% 65.00% -1.81% 65.54% 71.32% -5.78% ADR $123.61 $138.57
-10.80% $128.33 $142.87 -10.18% NOTES: (1) The above pro forma
table assumes the 95 hotel properties owned and included in
continuing operations at December 31, 2009, but not under
renovation for the three and twelve months ended December 31, 2009,
were owned as of the beginning of the periods presented. (2)
Excluded Hotels Under Renovation: Hilton Torrey Pines, Hilton
Nassau Bay, Residence Inn Orlando Sea World, Edison Courtyard,
Embassy Suites Orlando Airport, Marriott Bridgewater, Embassy
Suites Portland (3) As the Company's Courtyard by Marriott hotel in
Philadelphia, Pennsylvania, is leased to a third-party tenant on a
triple-net lease basis, the Company only records rental income
related to this operating lease for GAAP purposes. However, in the
above pro forma table, all room revenues related to this hotel are
reflected, which is consistent with the Company's other hotels.
ASHFORD HOSPITALITY TRUST, INC. PRO FORMA HOTEL OPERATING PROFIT
(dollars in thousands) (Unaudited) ALL HOTELS INCLUDED IN
CONTINUING OPERATIONS: Three Months Ended December 31,
------------------ 2009 2008 % Variance ---- ---- --------------
REVENUE Rooms $177,882 $211,789 -16.0% Food and beverage 50,217
60,111 -16.5% Other 11,389 12,903 -11.7% ------ ------ ----- Total
hotel revenue 239,488 284,803 -15.9% ------- ------- ----- EXPENSES
Rooms 43,354 47,943 -9.6% Food and beverage 34,887 42,188 -17.3%
Other direct 6,520 7,486 -12.9% Indirect 72,434 82,133 -11.8%
Management fees, includes base and incentive fees 10,531 13,566
-22.4% ------ ------ ----- Total hotel operating expenses 167,726
193,316 -13.2% Property taxes, insurance, and other 15,972 16,644
-4.0% ------ ------ ---- HOTEL OPERATING PROFIT (Hotel EBITDA)
55,790 74,843 -25.5% Hotel EBITDA Margin 23.30% 26.27% -2.97%
Minority interest in earnings of consolidated joint ventures 1,482
1,778 -16.6% ----- ----- ----- HOTEL OPERATING PROFIT (Hotel
EBITDA), excluding minority interest in joint ventures $54,308
$73,065 -25.7% ======= ======= ===== Year Ended December 31,
---------------- 2009 2008 % Variance ---- ---- --------------
REVENUE Rooms $697,760 $853,895 -18.3% Food and beverage 178,773
225,503 -20.7% Other 45,103 49,540 -9.0% ------ ------ ---- Total
hotel revenue 921,636 1,128,938 -18.4% ------- --------- -----
EXPENSES Rooms 162,908 186,641 -12.7% Food and beverage 127,640
159,061 -19.8% Other direct 25,642 28,617 -10.4% Indirect 273,243
312,155 -12.5% Management fees, includes base and incentive fees
40,435 53,646 -24.6% ------ ------ ----- Total hotel operating
expenses 629,868 740,120 -14.9% Property taxes, insurance, and
other 61,871 61,342 0.9% ------ ------ --- HOTEL OPERATING PROFIT
(Hotel EBITDA) 229,897 327,476 -29.8% Hotel EBITDA Margin 24.94%
29.00% -4.06% Minority interest in earnings of consolidated joint
ventures 6,030 8,146 -26.0% ----- ----- ----- HOTEL OPERATING
PROFIT (Hotel EBITDA), excluding minority interest in joint
ventures $223,867 $319,330 -29.9% ======== ======== ===== NOTE: The
above pro forma table assumes the 102 hotel properties owned and
included in continuing operations at December 31, 2009 were owned
as of the beginning of the periods presented. ALL HOTELS NOT UNDER
RENOVATION INCLUDED IN CONTINUING OPERATIONS: Three Months Ended
December 31, ---------------- 2009 2008 % Variance ----- -----
-------------- REVENUE Rooms (1) $161,977 $192,492 -15.9% Food and
beverage 44,190 51,621 -14.4% Other 9,762 11,157 -12.5% -----
------ ----- Total hotel revenue 215,929 255,270 -15.4% -------
------- ----- EXPENSES Rooms (1) 39,709 43,732 -9.2% Food and
beverage 30,980 37,044 -16.4% Other direct 5,603 6,406 -12.5%
Indirect 65,304 73,967 -11.7% Management fees, includes base and
incentive fees 9,722 12,468 -22.0% ----- ------ ----- Total hotel
operating expenses 151,318 173,617 -12.8% Property taxes,
insurance, and other 14,301 15,125 -5.4% ------ ------ ---- HOTEL
OPERATING PROFIT (Hotel EBITDA) 50,310 66,528 -24.4% Hotel EBITDA
Margin 23.30% 26.06% -2.76% Minority interest in earnings of
consolidated joint ventures 1,482 1,778 -16.6% ----- ----- -----
HOTEL OPERATING PROFIT (Hotel EBITDA), excluding minority interest
in joint ventures $48,828 $64,750 -24.6% ======= ======= ===== Year
Ended December 31, ---------------- 2009 2008 % Variance -----
----- -------------- REVENUE Rooms (1) $630,359 $771,261 -18.3%
Food and beverage 156,565 194,007 -19.3% Other 38,869 42,418 -8.4%
------ ------ ---- Total hotel revenue 825,793 1,007,686 -18.1%
------- --------- ----- EXPENSES Rooms (1) 148,428 169,560 -12.5%
Food and beverage 113,202 139,410 -18.8% Other direct 22,092 24,466
-9.7% Indirect 245,602 280,320 -12.4% Management fees, includes
base and incentive fees 37,154 49,145 -24.4% ------ ------ -----
Total hotel operating expenses 566,478 662,901 -14.5% Property
taxes, insurance, and other 55,153 55,368 -0.4% ------ ------ ----
HOTEL OPERATING PROFIT (Hotel EBITDA) 204,162 289,417 -29.5% Hotel
EBITDA Margin 24.72% 28.72% -4.00% Minority interest in earnings of
consolidated joint ventures 6,030 8,146 -26.0% ----- ----- -----
HOTEL OPERATING PROFIT (Hotel EBITDA), excluding minority interest
in joint ventures $198,132 $281,271 -29.6% ======== ======== =====
NOTES: (1) The above pro forma table assumes the 95 hotel
properties owned and included in continuing operations at December
31, 2009, but not under renovation for the three and twelve months
ended December 31, 2009, were owned as of the beginning of the
periods presented. (2) Excluded Hotels Under Renovation: Hilton
Torrey Pines, Hilton Nassau Bay, Residence Inn Orlando Sea World,
Edison Courtyard, Embassy Suites Orlando Airport, Marriott
Bridgewater, Embassy Suites Portland (3) As the Company's Courtyard
by Marriott hotel in Philadelphia, Pennsylvania, is leased to a
third-party tenant on a triple-net lease basis, the Company only
records rental income related to this operating lease for GAAP
purposes. However, in the above pro forma table, all room revenues
related to this hotel are reflected, which is consistent with the
Company's other hotels. ASHFORD HOSPITALITY TRUST, INC. PRO FORMA
HOTEL REVPAR BY REGION (Unaudited) Three Months Ended Year Ended
Number Number December 31, December 31, of of ---------------------
--------------------- Region Hotels Rooms 2009 2008 % Change 2009
2008 % Change ------ ------ ----- ---- ---- -------- ---- ----
-------- Pacific(1) 21 5,205 $84.86 $99.83 -15.0% $91.08 $115.52
-21.2% Mountain(2) 8 1,704 65.37 77.17 -15.3% 74.34 96.63 -23.1%
West North Central(3) 3 690 65.45 73.97 -11.5% 70.38 86.48 -18.6%
West South Central(4) 10 2,086 77.43 98.66 -21.5% 83.69 103.50
-19.1% East North Central(5) 9 1,852 59.78 69.68 -14.2% 62.47 81.48
-23.3% East South Central(6) 2 236 64.85 70.61 -8.2% 75.19 88.22
-14.8% Middle Atlantic(7) 9 2,481 86.46 94.50 -8.5% 85.12 101.32
-16.0% South Atlantic (8) 38 7,728 80.39 90.71 -11.4% 91.10 104.10
-12.5% New England(9) 2 159 71.32 79.25 -10.0% 69.14 85.76 -19.4%
--- ------ ------ ------ ----- ------ ------- ----- Total Portfolio
102 22,141 $78.52 $90.76 -13.5% $85.10 $103.15 -17.5% === ======
====== ====== ===== ====== ======= ===== (1) Includes Alaska,
California, Oregon, and Washington (2) Includes Nevada, Arizona,
New Mexico, and Utah (3) Includes Minnesota and Kansas (4) Includes
Texas (5) Includes Ohio, Michigan, Illinois, and Indiana (6)
Includes Kentucky and Alabama (7) Includes New York, New Jersey,
and Pennsylvania (8) Includes Virginia, Florida, Georgia, Maryland,
District of Columbia, and North Carolina (9) Includes Massachusetts
and Connecticut NOTES: (1) The above pro forma table assumes the
102 hotel properties owned and included in continuing operations at
December 31, 2009 were owned as of the beginning of the periods
presented. (3) As the Company's Courtyard by Marriott hotel in
Philadelphia, Pennsylvania, is leased to a third-party tenant on a
triple-net lease basis, the Company only records rental income
related to this operating lease for GAAP purposes. However, in the
above pro forma table, all room revenues related to this hotel are
reflected, which is consistent with the Company's other hotels.
ASHFORD HOSPITALITY TRUST, INC. PRO FORMA HOTEL REVPAR BY BRAND
(Unaudited) Three Months Ended Year Ended Number Number December
31, December 31, of of --------------------- ----------------------
Brand Hotels Rooms 2009 2008 % Change 2009 2008 % Change -----
------ ----- ---- ---- -------- ---- ---- -------- Hilton 34 7,513
$81.69 $94.09 -13.2% $90.05 $109.09 -17.5% Hyatt 1 242 101.35 97.22
4.2% 105.06 132.65 -20.8% Inter- Continental 2 420 128.85 123.26
4.5% 129.49 145.12 -10.8% Independent 2 317 60.14 55.87 7.6% 69.10
55.66 24.1% Marriott 57 11,714 78.18 91.74 -14.8% 83.56 100.93
-17.2% Starwood 6 1,935 57.52 67.83 -15.2% 65.11 88.01 -26.0% ---
------ ------ ------ ----- ------ ------- ----- Total Portfolio 102
22,141 $78.52 $90.76 -13.5% $85.10 $103.15 -17.5% === ====== ======
====== ===== ====== ======= ===== NOTES: (1) The above pro forma
table assumes the 102 hotel properties owned and included in
continuing operations at December 31, 2009 were owned as of the
beginning of the periods presented. (3) As the Company's Courtyard
by Marriott hotel in Philadelphia, Pennsylvania, is leased to a
third-party tenant on a triple-net lease basis, the Company only
records rental income related to this operating lease for GAAP
purposes. However, in the above pro forma table, all room revenues
related to this hotel are reflected, which is consistent with the
Company's other hotels. ASHFORD HOSPITALITY TRUST, INC. PRO FORMA
HOTEL OPERATING PROFIT BY REGION (dollars in thousands) (Unaudited)
Number of Number of Region Hotels Rooms ------ ------ ----- Pacific
(1) 21 5,205 Mountain (2) 8 1,704 West North Central (3) 3 690 West
South Central (4) 10 2,086 East North Central (5) 9 1,852 East
South Central (6) 2 236 Middle Atlantic (7) 9 2,481 South Atlantic
(8) 38 7,728 New England (9) 2 159 --- ------ Total Portfolio 102
22,141 === ====== Three Months Ended December 31, ------------
Region 2009 % Total 2008 % Total % Change ------ ---- ------- ----
------- -------- Pacific (1) $14,348 25.7% $20,688 27.6% -30.6%
Mountain (2) 2,150 3.8% 3,652 4.9% -41.1% West North Central (3)
1,563 2.8% 1,995 2.7% -21.7% West South Central (4) 5,552 10.0%
8,372 11.2% -33.7% East North Central (5) 2,874 5.2% 3,516 4.7%
-18.3% East South Central (6) 362 0.6% 553 0.7% -34.5% Middle
Atlantic (7) 7,868 14.1% 8,925 11.9% -11.8% South Atlantic (8)
20,735 37.2% 26,702 35.7% -22.3% New England (9) 338 0.6% 440 0.6%
-23.2% ------- ----- ------- ----- ----- Total Portfolio $55,790
100.0% $74,843 100.0% -25.5% ======= ===== ======= ===== ===== Year
Ended December 31, ------------ Region 2009 % Total 2008 % Total %
Change ------ ---- ------- ---- ------- -------- Pacific (1)
$57,508 25.0% $91,489 27.9% -37.1% Mountain (2) 12,771 5.6% 22,238
6.8% -42.6% West North Central (3) 6,654 2.9% 9,498 2.9% -29.9%
West South Central (4) 23,590 10.3% 31,633 9.7% -25.4% East North
Central (5) 10,398 4.5% 21,025 6.4% -50.5% East South Central (6)
2,412 1.0% 3,154 1.0% -23.5% Middle Atlantic (7) 23,304 10.1%
32,747 10.0% -28.8% South Atlantic (8) 92,123 40.1% 113,896 34.8%
-19.1% New England (9) 1,137 0.5% 1,796 0.5% -36.7% -------- -----
-------- ----- ----- Total Portfolio $229,897 100.0% $327,476
100.0% -29.8% ======== ===== ======== ===== ===== (1) Includes
Alaska, California, Oregon, and Washington (2) Includes Nevada,
Arizona, New Mexico, and Utah (3) Includes Minnesota and Kansas (4)
Includes Texas (5) Includes Ohio, Michigan, Illinois, and Indiana
(6) Includes Kentucky and Alabama (7) Includes New York, New
Jersey, and Pennsylvania (8) Includes Virginia, Florida, Georgia,
Maryland, District of Columbia, and North Carolina (9) Includes
Massachusetts and Connecticut NOTES: (1) The above pro forma table
assumes the 102 hotel properties owned and included in continuing
operations at December 31, 2009 were owned as of the beginning of
the periods presented. (3) As the Company's Courtyard by Marriott
hotel in Philadelphia, Pennsylvania, is leased to a third-party
tenant on a triple-net lease basis, the Company only records rental
income related to this operating lease for GAAP purposes. However,
in the above pro forma table, all room revenues related to this
hotel are reflected, which is consistent with the Company's other
hotels. ASHFORD HOSPITALITY TRUST, INC. PRO FORMA HOTEL OPERATING
PROFIT MARGIN (Unaudited) 95 HOTELS NOT UNDER RENOVATION AND
INCLUDED IN CONTINUING OPERATIONS AT DECEMBER 31, 2009 AS IF SUCH
HOTELS WERE OWNED AS OF THE BEGINNING OF THE PERIODS PRESENTED:
HOTEL OPERATING PROFIT (HOTEL EBITDA) MARGIN: 4th Quarter 2009
23.30% 4th Quarter 2008 26.06% ----- Variance -2.76% ===== HOTEL
OPERATING PROFIT (HOTEL EBITDA) MARGIN VARIANCE BREAKDOWN: Rooms
-1.20% Food & Beverage and Other Departmental 0.08%
Administrative & General -0.25% Sales & Marketing 0.35%
Hospitality -0.05% Repair & Maintenance -0.45% Energy -0.47%
Franchise Fee -0.19% Management Fee 0.02% Incentive Management Fee
0.36% Insurance -0.46% Property Taxes -0.53% Other Taxes 0.28%
Leases/Other -0.25% ----- Total -2.76% ===== NOTE: As the Company's
Courtyard by Marriott hotel in Philadelphia, Pennsylvania, is
leased to a third-party tenant on a triple-net lease basis, the
Company only records rental income related to this operating lease
for GAAP purposes. However, in the above pro forma table, all
operating results related to this hotel are reflected, which is
consistent with the Company's other hotels. ASHFORD HOSPITALITY
TRUST, INC. PRO FORMA SEASONALITY TABLE (dollars in thousands)
(Unaudited) ALL 102 HOTELS OWNED AND INCLUDED IN CONTINUING
OPERATIONS AS OF DECEMBER 31, 2009: 2009 2009 2009 2009 4th Quarter
3rd Quarter 2nd Quarter 1st Quarter TTM ----------- -----------
----------- ----------- --- Total Hotel Revenue $239,488 $216,433
$233,947 $231,768 $921,636 Hotel EBITDA $55,790 $50,049 $61,126
$62,932 $229,897 Hotel EBITDA Margin 23.3% 23.1% 26.1% 27.2% 24.9%
EBITDA % of Total TTM 24.3% 21.8% 26.6% 27.4% 100.0% JV Interests
in EBITDA $1,482 $1,139 $1,839 $1,570 $6,030 NOTES: (1) The above
pro forma table assumes the 102 hotel properties owned and included
in continuing operations at December 31, 2009 were owned as of the
beginning of the periods presented. (3) As the Company's Courtyard
by Marriott hotel in Philadelphia, Pennsylvania, is leased to a
third-party tenant on a triple-net lease basis, the Company only
records rental income related to this operating lease for GAAP
purposes. However, in the above pro forma table, all room revenues
related to this hotel are reflected, which is consistent with the
Company's other hotels. ASHFORD HOSPITALITY TRUST, INC. Capital
Expenditures Calendar 102 Hotels (a) 2009
------------------------------------- Actual Actual Actual Actual
1st 2nd 3rd 4th Rooms Quarter Quarter Quarter Quarter ----- -------
------- ------- ------- Sheraton Anchorage 370 x Marriott Legacy
Center 404 x Hilton Rye Town 446 x x x Hilton Nassau Bay - Clear
Lake 243 x x x x Residence Inn Orlando Sea World 350 x x Courtyard
Edison 146 x x Embassy Suites Orlando Airport 174 x x Embassy
Suites Portland - Downtown 276 x Hilton La Jolla Torrey Pines 296 x
Marriott Bridgewater 347 x Capital Hilton 408 Sheraton City Center
- Indianapolis 371 Embassy Suites Philadelphia Airport 263 Hilton
Costa Mesa 486 Embassy Suites Las Vegas Airport 220 Sheraton
Minneapolis West 222 Crowne Plaza Beverly Hills 260 Hilton Tucson
El Conquistador Golf Resort 428 Embassy Suites Crystal City -
Reagan Airport 267 Hilton Minneapolis Airport 300 Marriott Seattle
Waterfront 358 Embassy Suites Austin Arboretum 150 Fairfield Inn
and Suites Kennesaw 87 ----- 2010 Estimated Estimated Estimated
Estimated 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter -------
------- ------- ------- Sheraton Anchorage x Marriott Legacy Center
x Hilton Rye Town Hilton Nassau Bay - Clear Lake x x Residence Inn
Orlando Sea World Courtyard Edison Embassy Suites Orlando Airport
Embassy Suites Portland - Downtown x Hilton La Jolla Torrey Pines x
Marriott Bridgewater x x Capital Hilton x x x Sheraton City Center
- Indianapolis x x Embassy Suites Philadelphia Airport x Hilton
Costa Mesa x x Embassy Suites Las Vegas Airport x x Sheraton
Minneapolis West x x Crowne Plaza Beverly Hills x x Hilton Tucson
El Conquistador Golf Resort x x Embassy Suites Crystal City -
Reagan Airport x Hilton Minneapolis Airport x Marriott Seattle
Waterfront x Embassy Suites Austin Arboretum x Fairfield Inn and
Suites Kennesaw x (a) Only hotels which have had or are expected to
have significant capital expenditures that could result in
displacement during 2009 and 2010 are included in this table.
DATASOURCE: Ashford Hospitality Trust, Inc. CONTACT: David
Kimichik, Chief Financial Officer, +1-972-490-9600; Tripp Sullivan,
Corporate Communications, Inc., +1-615-254-7318 Web Site:
http://www.ahtreit.com/
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