DALLAS, Sept. 15, 2021 /PRNewswire/ -- Ashford
Hospitality Trust, Inc. (NYSE: AHT) ("Ashford Trust" or the
"Company") reported today preliminary portfolio occupancy of 61.3%
for the month of August with an average daily rate ("ADR") of
approximately $153.69 resulting in
RevPAR of approximately $94.16.
This RevPAR result represents an approximate decrease of 11% versus
July 2021 and an approximate decrease
of 27% versus August 2019.
Additionally, for the month of August, Hotel Net Income was
$0.9 million. Comparable Hotel EBITDA
for the month of August was $18.6
million, a 30% decrease over July's Comparable Hotel EBITDA
of $26.4 million and a 44% decrease
over August 2019's Comparable Hotel EBITDA of $33.3 million.
"While the results for August were impacted by the spike in
COVID-19 cases, we are optimistic that the cases seem to be
flattening or declining as we moved into September." commented
Rob Hays, Ashford Trust's President
and Chief Executive Officer. "While we are seeing softness in
mid-week corporate travel, we are encouraged by the continued
strength in weekend leisure demand at our properties."
We use certain non-GAAP measures, in addition to the required
GAAP presentations, as we believe these measures improve the
understanding of our operational results and make comparisons of
operating results among peer real estate investment trusts more
meaningful. Non-GAAP financial measures, which should not be relied
upon as a substitute for GAAP measures, used in this press release
are Hotel EBITDA. Please refer to our most recently filed Annual
Report on Form 10-K for a more detailed description of how these
non-GAAP measures are calculated. The reconciliations of non-GAAP
measures to the closest GAAP measures are provided below and
provide further details of our results for the period being
reported.
The following tables are reconciliations of the Company's Hotel
EBITDA for the months of August 2021,
July 2021 and August 2019:
ASHFORD HOSPITALITY TRUST, INC. AND
SUBSIDIARIES
|
RECONCILIATION OF
NET INCOME (LOSS) TO HOTEL EBITDA
|
(in
millions)
|
(unaudited)
|
|
|
August 2021
|
|
July 2021
|
|
August 2019
|
Net income
(loss)
|
$
|
0.9
|
|
|
$
|
7.9
|
|
|
$
|
15.0
|
|
Non-property
adjustments
|
(1.0)
|
|
|
—
|
|
|
(2.6)
|
|
Interest
expense
|
0.5
|
|
|
0.5
|
|
|
1.7
|
|
Amortization of loan
cost
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
Depreciation and
amortization
|
17.5
|
|
|
17.6
|
|
|
21.2
|
|
Non-hotel EBITDA
ownership expense
|
0.6
|
|
|
0.3
|
|
|
0.6
|
|
Hotel EBITDA
|
$
|
18.6
|
|
|
$
|
26.4
|
|
|
$
|
36.0
|
|
Non-comparable
adjustments
|
—
|
|
|
—
|
|
|
(2.7)
|
|
Comparable Hotel
EBITDA
|
$
|
18.6
|
|
|
$
|
26.4
|
|
|
$
|
33.3
|
|
________
|
The above comparable
information assumes the 100 hotel properties owned and included in
the Company's operations at August 31, 2021, were owned as of the
beginning of each of the periods presented. Non-comparable
adjustments include results from hotel properties disposed of
during the period.
|
Ashford Hospitality Trust is a real estate investment trust
(REIT) focused on investing predominantly in upper upscale,
full-service hotels.
Follow CEO Rob Hays on Twitter at
https://twitter.com/aht_rob or @aht_rob.
The preliminary estimated results for the months ended
July 31, 2021 and August 31, 2021 included in this release, which
are the responsibility of management, were prepared by the
Company's management in connection with the preparation of the
Company's financial statements and are based upon preliminary hotel
operating results and a number of subjective judgements and
assumptions. Additional items that may require adjustments to the
Company's preliminary estimated financial information may be
identified and could result in material changes to the Company's
preliminary estimated results. The Company's closing procedures for
the months ended July 31, 2021 and
August 31, 2021 are not yet complete
and, as a result, the Company's final results upon completion of
the closing procedures may vary from the preliminary estimates set
forth above. The Company's independent registered public accounting
firm, BDO USA, LLP, has not
audited, reviewed, compiled or performed any procedures with
respect to the preliminary estimated financial information, nor
have they expressed any opinion or any other form of assurance on
such information or its achievability, and assume no responsibility
for, and disclaim any association with, such preliminary estimated
financial information. Further, these preliminary estimated results
are not a comprehensive statement or estimate of the Company's
financial condition or operating results for the months ended
July 31, 2021 and August 31, 2021. These preliminary estimated
results should not be viewed as a substitute for complete quarterly
financial statements prepared in accordance with generally accepted
accounting principles ("GAAP") or as a measure of the Company's
performance. In addition, the preliminary estimated financial
information is not necessarily indicative of the results to be
achieved for any future period. Accordingly, investors are
cautioned not to place undue reliance on this preliminary estimated
financial information. See the information below under the heading
"Forward-Looking Statements" and "Risk Factors" and "Management's
Discussion of Financial Condition and Results of Operations" in the
Company's Annual Report on Form 10-K for the year ended
December 31, 2020.
Forward-Looking Statements
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. Forward-looking
statements in this press release include, among others, statements
about the Company's strategy and future plans. 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
statements are subject to numerous assumptions and uncertainties,
many of which are outside Ashford Trust'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: the impact of COVID-19, and the rate of adoption and
efficacy of vaccines to prevent COVID-19, on our business and
investment strategy; the timing and outcome of the Securities and
Exchange Commission's investigation; our ability to regain S-3
eligibility; our ability to repay, refinance, or restructure our
debt and the debt of certain of our subsidiaries; anticipated or
expected purchases or sales of assets; our projected operating
results; completion of any pending transactions; our understanding
of our competition; market trends; projected capital expenditures;
the impact of technology on our operations and business; general
volatility of the capital markets and the market price of our
common stock and preferred stock; availability, terms and
deployment of capital; availability of qualified personnel; changes
in our industry and the markets 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 Trust's 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. Such
forward-looking statements are based on our beliefs, assumptions,
and expectations of our future performance taking into account all
information currently known to us. These beliefs, assumptions, and
expectations can change as a result of many potential events or
factors, not all of which are known to us. If a change occurs, our
business, financial condition, liquidity, results of operations,
plans, and other objectives may vary materially from those
expressed in our forward-looking statements. You should carefully
consider these risks when you make an investment decision
concerning our securities. Investors should not place undue
reliance on these forward-looking statements. The Company can give
no assurance that these forward-looking statements will be attained
or that any deviation will not occur. 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, except to the extent
required by law.
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SOURCE Ashford Hospitality Trust, Inc.