AHT Ashtead Group Plc

DALLAS, Nov. 4 /PRNewswire-FirstCall/ -- Ashford Hospitality Trust, Inc. (NYSE:AHT) today reported the following results and performance measures for the third quarter ended September 30, 2009. The proforma performance measurements for Occupancy, Average Daily Rate (ADR), revenue per available room (RevPAR), and Hotel Operating Profit (or Hotel EBITDA) include the Company's 103 hotels owned and included in continuing operations as of September 30, 2009. Unless otherwise stated, all reported results compare the third quarter ended September 30, 2009, with the third quarter ended September 30, 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 $197.9 million -- Total revenue decreased 22.7% to $220.6 million from $285.3 million -- Net loss available to common shareholders was $33.6 million, or $0.52 per diluted share, compared with net income of $1.8 million, or $0.01 per diluted share, in the prior-year quarter -- Adjusted funds from operations (AFFO) was $0.18 per diluted share -- Cash available for distribution (CAD) was $0.09 per diluted share -- Fixed charge ratio was 1.60x under the senior credit facility covenant versus a required minimum of 1.25x -- The company expects to close the refinancing of a $75 million loan, its sole 2010 hard debt maturity (excludes the $29 million Hyatt Dearborn loan due in 2010), together with a $65 million loan coming due in 2011. CAPITAL ALLOCATION -- Repurchased 6.3 million common shares in the quarter for a total of $19.4 million -- Capex invested in the quarter totaled $18.2 million LOAN IMPAIRMENT CHARGES During the third quarter of 2009, the Company elected to reserve for the remaining $9.1 million of its $18.2 million first mortgage participation in the Four Seasons Nevis due to additional uninsured costs incurred by the borrower and the delayed re-opening of the resort until 2010. The Company also announced it has signed a definitive agreement with the borrower on the Ritz Carlton Key Biscayne, subject to senior lender approval, to allow for a discounted payoff of the Company's $33.6 million loan that was to mature in 2017. If closing occurs, Ashford will receive $20 million in cash and a $4 million secured note that matures in 2017. The Company will reserve $10.7 million on this loan in anticipation of the discounted payoff. These reserves resulted in a non-cash impairment charge of $19.8 million, or $0.30 per diluted share, in the third quarter of 2009. CAPITAL STRUCTURE At September 30, 2009, the Company's net debt to total gross assets (as defined by the corporate credit facility) was 57.8%. As of September 30, 2009, the Company had $2.8 billion of gross debt with a blended average interest rate of 3.28%. Including its $1.8 billion interest rate swap, 97% of the Company's debt is variable-rate debt. The Company's weighted average debt maturity including extension options is 5.3 years and including the $29 million Hyatt Dearborn loan has only $104 million coming due before December 31, 2010 (the balance is in the process of being refinanced). On July 1, 2009, the Company purchased two, one-year flooridors. The first flooridor, which is for a notional amount of $1.8 billion, is for the period commencing December 14, 2009, and ending December 13, 2010. Under this flooridor, the counterparty will make payments to the Company when LIBOR is below 1.75% but only down to LIBOR of 1.25% such that the counterparty's liability is capped at LIBOR of 1.25%. The second flooridor, which is also for a notional amount of $1.8 billion, is for the period commencing December 13, 2010, and ending December 13, 2011. Under this flooridor, the counterparty will make payments to the Operating Partnership when LIBOR is below 2.75% but only down to LIBOR of 0.50% such that the counterparty's liability is capped at LIBOR of 0.50%. The Company paid a total of $22.3 million in upfront costs for the two flooridors and has no further liability under the flooridors to the counterparties. On October 13, 2009, the Company purchased an additional flooridor for a notional amount of $2.7 billion with a term commencing October 1, 2009, and ending December 31, 2009. Under this flooridor, the counterparty will make payments to the Operating Partnership when one-month LIBOR is below 2.00% but only down to LIBOR of 1.00% such that the counterparty's liability is capped at LIBOR of 1.00%. The Company has paid $6.9 million in upfront cost for the flooridor and has no further liability under the flooridor to the counterparty. PORTFOLIO REVPAR As of September 30, 2009, the Company had a portfolio of direct hotel investments consisting of 103 properties classified in continuing operations. During the third quarter, 98 of the hotels included in continuing operations were not under renovation. The Company believes reporting its operating metrics for continuing operations on a proforma total basis (all 103 hotels) and proforma not-under-renovation basis (98 hotels) is a measure that reflects a meaningful and focused comparison of the operating results in its direct hotel portfolio. The Company's reporting by region and brand includes the results of all 103 hotels in continuing operations. Details of each category are provided in the tables attached to this release. -- Proforma RevPAR decreased 19.4% for hotels not under renovation on a 12% decrease in ADR to $122.76 and a 626 basis point decline in occupancy -- Proforma RevPAR decreased 19.8% for all hotels on a 12.1% decrease in ADR to $122.25 and a 650 basis point decline in occupancy HOTEL EBITDA MARGINS AND QUARTERLY SEASONALITY TRENDS For the 98 hotels as of September 30, 2009, that were not under renovation, Proforma Hotel EBITDA decreased 32.8% to $48.6 million. Proforma Hotel EBITDA margin (expressed as a percentage of Total Hotel Revenue) declined 437 basis points to 23.1%. For all 103 hotels included in continuing operations as of September 30, 2009, Proforma Hotel EBITDA decreased 34.2% to $49.8 million and Hotel EBITDA margin decreased 474 basis points to 22.4%. Ashford believes year-over-year Hotel EBITDA and Hotel EBITDA margin comparisons are more meaningful to gauge the performance of the Company's hotels than sequential quarter-over-quarter comparisons. Given the substantial seasonality in the Company's portfolio and its active capital recycling, to help investors better understand this seasonality, the Company provides quarterly detail on its Proforma Hotel EBITDA and Proforma Hotel EBITDA margin for the current and certain prior-year periods based upon the number of core hotels in the portfolio as of the end of the current period. As Ashford's portfolio mix changes from time to time so will the seasonality for Proforma Hotel EBITDA and Proforma Hotel EBITDA margin. The details of the quarterly calculations for the previous four quarters for the current portfolio of 103 hotels included in continuing operations are provided in the tables attached to this release. Monty J. Bennett, Chief Executive Officer, commented, "There have been recent signs of life in the broader lodging market, but the operating environment remains incredibly challenging. We continue to tightly manage our cost structure and work with the property management teams to offset the declining RevPAR trends as much as possible through aggressive asset management strategies. Preserving liquidity and eliminating near-term debt maturities are also at the top of our agenda, and we continue to have success in refinancing upcoming maturities, offsetting RevPAR declines with flooridor transactions and allocating capital to maximize long-term shareholder returns." INVESTOR CONFERENCE CALL AND SIMULCAST Ashford Hospitality Trust, Inc. will conduct a conference call on Thursday, November 5, 2009, at 12 p.m. ET. The number to call for this interactive teleconference is (212) 231-2900. A replay of the conference call will be available through November 12, 2009, by dialing (402) 977-9140 and entering the confirmation number, 21438862. The Company will also provide an online simulcast and rebroadcast of its third 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, November 5, 2009, beginning at 12 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 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) September 30, December 31, 2009 2008 ---------- ---------- (Unaudited) ASSETS Investment in hotel properties, net $3,489,746 $3,568,215 Cash and cash equivalents 197,920 241,597 Restricted cash 65,270 69,806 Accounts receivable, net 39,471 41,110 Inventories 3,132 3,341 Notes receivable 66,652 212,815 Investment in unconsolidated joint venture 20,319 19,122 Deferred costs, net 19,458 24,211 Prepaid expenses 18,250 12,903 Interest rate derivatives 105,516 88,603 Other assets 4,520 6,766 Intangible assets, net 3,011 3,077 Due from third-party hotel managers 52,428 48,116 ---------- ---------- Total assets $4,085,693 $4,339,682 ========== ========== LIABILITIES AND EQUITY Liabilities Indebtedness $2,801,824 $2,790,364 Capital leases payable 105 207 Accounts payable and accrued expenses 115,335 93,476 Dividends payable 5,527 6,285 Unfavorable management contract liabilities 19,257 20,950 Due to related parties 1,403 2,378 Due to third-party hotel managers 2,024 3,855 Other liabilities 7,908 8,124 ---------- ---------- Total liabilities 2,953,383 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 84,947 107,469 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 September 30, 2009 and December 31, 2008 15 22 Series D Cumulative Preferred Stock, 5,666,797 shares and 6,394,347 shares issued and outstanding at September 30, 2009 and December 31, 2008 57 64 Common stock, $0.01 par value, 200,000,000 shares authorized, 122,748,859 shares issued, 63,890,831 shares and 86,555,149 shares outstanding at September 30, 2009 and December 31, 2008 1,227 1,227 Additional paid-in capital 1,434,161 1,450,146 Accumulated other comprehensive loss (732) (860) Accumulated deficit (321,853) (124,782) Treasury stock, at cost (58,858,028 shares and 36,193,710 shares at September 30, 2009 and December 31, 2008) (158,430) (113,598) ---------- ---------- Total stockholders' equity of the Company 954,445 1,212,219 Noncontrolling interests in consolidated joint ventures 17,918 19,355 ---------- ---------- Total equity 972,363 1,231,574 ---------- ---------- Total liabilities and equity $4,085,693 $4,339,682 ========== ========== ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) Three Months Nine Months Ended Ended September 30, September 30, ----------------- ----------------- 2009 2008 2009 2008 ------- ------- ------- ------- (Unaudited) REVENUE Rooms $167,494 $208,856 $516,653 $642,264 Food and beverage 38,630 53,143 133,864 175,153 Rental income from operating leases 1,236 1,367 3,830 4,239 Other 11,298 12,604 34,940 38,924 ------- ------- ------- ------- Total hotel revenue 218,658 275,970 689,287 860,580 Interest income from notes receivable 1,761 8,801 10,397 15,273 Asset management fees and other 173 510 552 1,953 ------- ------- ------- ------- Total Revenue 220,592 285,281 700,236 877,806 ------- ------- ------- ------- EXPENSES Hotel operating expenses Rooms 40,680 47,258 120,427 140,530 Food and beverage 30,284 39,468 97,819 124,237 Other direct 6,565 6,726 19,186 21,218 Indirect 66,792 80,110 205,051 238,405 Management fees 8,649 10,690 27,233 33,726 ------- ------- ------- ------- Total hotel expenses 152,970 184,252 469,716 558,116 Property taxes, insurance, and other 16,023 14,918 46,602 45,776 Depreciation and amortization 38,935 44,406 118,927 126,405 Impairment charges 19,816 - 160,143 - Corporate general and administrative: Stock-based compensation 1,139 1,719 3,896 5,188 Other general and administrative 8,118 7,115 19,118 19,715 ------- ------- ------- ------- Total Operating Expenses 237,001 252,410 818,402 755,200 ------- ------- ------- ------- OPERATING (LOSS) INCOME (16,409) 32,871 (118,166) 122,606 Equity in earnings of unconsolidated joint venture 642 491 1,863 2,304 Interest income 56 697 253 1,594 Other income 13,228 3,379 35,140 6,244 Interest expense (34,704) (38,436) (103,780) (112,004) Amortization of loan costs (1,841) (1,434) (5,883) (4,767) Write-off of loan costs, premiums and exit fees, net - (1,226) 930 (1,226) Unrealized gain (loss) on derivatives 5,525 12,528 (14,166) (38,861) ------- ------- ------- ------- (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (33,503) 8,870 (203,809) (24,110) Income tax expense (193) (421) (585) (1,150) ------- ------- ------- ------- (LOSS) INCOME FROM CONTINUING OPERATIONS (33,696) 8,449 (204,394) (25,260) Income from discontinued operations - 1,329 - 15,909 ------- ------- ------- ------- NET (LOSS) INCOME (33,696) 9,778 (204,394) (9,351) Loss (income) from consolidated joint ventures attributable to noncontrolling interests 476 (123) 629 (2,907) Net loss (income) attributable to redeemable noncontrolling interests in operating partnership 4,424 (856) 25,567 738 ------- ------- ------- ------- NET (LOSS) INCOME ATTRIBUTABLE TO THE COMPANY (28,796) 8,799 (178,198) (11,520) Preferred dividends (4,831) (7,018) (14,492) (21,054) ------- ------- ------- ------- NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS $(33,627) $1,781 $(192,690) $(32,574) ======== ====== ========= ======== (LOSS) INCOME PER SHARE - Basic and Diluted: (Loss) income from continuing operations attributable to common stockholders $(0.52) $- $(2.67) $(0.40) Income from discontinued operations attributable to common stockholders - 0.01 - 0.12 ------- ------- ------- ------- Net (loss) income attributable to common stockholders $(0.52) $0.01 $(2.67) $(0.28) ======= ======= ======= ======= Weighted average common shares outstanding - basic 65,266 115,819 72,167 117,828 ======= ======= ======= ======= Weighted average common shares outstanding - diluted 65,266 115,819 72,167 117,828 ======= ======= ======= ======= Amounts attributable to common stockholders: Income (loss) from continuing operations, net of tax $(28,796) $7,579 $(178,198) $(26,180) Income from discontinued operations, net of tax - 1,220 - 14,660 Preferred dividends (4,831) (7,018) (14,492) (21,054) ------- ------- ------- ------- Net (loss) income attributable to common stockholders $(33,627) $1,781 $(192,690) $(32,574) ======= ======= ======= ======= ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES RECONCILIATION OF NET INCOME TO EBITDA (in thousands) Three Months Ended Nine Months Ended September 30, September 30, ----------------- ----------------- 2009 2008 2009 2008 ------- ------- ------- ------- (Unaudited) Net (loss) income $(33,696) $9,778 $(204,394) $(9,351) Loss (income) from consolidated joint ventures attributable to noncontrolling interests 476 (123) 629 (2,907) Net loss (income) attributable to redeemable noncontrolling interests in operating partnership 4,424 (856) 25,567 738 ------- ------- ------- ------- Net (loss) income attributable to the Company (28,796) 8,799 (178,198) (11,520) Interest income (54) (697) (245) (1,594) Interest expense and amortization of loan costs 36,064 39,756 108,226 118,389 Depreciation and amortization 38,140 44,731 116,566 131,716 Net loss (income) attributable to redeemable noncontrolling interests in operating partnership (4,424) 856 (25,567) (738) Income tax expense 193 421 585 1,360 ------- ------- ------- ------- EBITDA 41,123 93,866 21,367 237,613 Amortization of unfavorable management contract liabilities (565) (565) (1,694) (1,693) Gain on sale of properties, net of related income taxes - (1,411) - (8,315) Write-off of loan costs, premiums and exit fees (1) - 1,354 (930) 8 Impairment charges 19,816 - 160,143 - Income from interest rate derivatives (2) (11,279) (3,379) (33,203) (6,244) Unrealized (gain) loss on derivatives (5,525) (12,528) 14,166 38,861 ------- ------- -------- -------- Adjusted EBITDA $43,570 $77,337 $159,849 $260,230 ======= ======= ======== ======== RECONCILIATION OF NET INCOME TO FUNDS FROM OPERATIONS ("FFO") (in thousands, except per share amounts) Three Months Ended Nine Months Ended September 30, September 30, ----------------- ------------------ 2009 2008 2009 2008 ------- ------- -------- -------- (Unaudited) Net (loss) income $(33,696) $9,778 $(204,394) $(9,351) Loss (income) from consolidated joint ventures attributable to noncontrolling interests 476 (123) 629 (2,907) Net loss (income) attributable to redeemable noncontrolling interests in operating partnership 4,424 (856) 25,567 738 Preferred dividends (4,831) (7,018) (14,492) (21,054) ------- ------- -------- -------- Net loss attributable to common stockholders (33,627) 1,781 (192,690) (32,574) Depreciation and amortization on real estate 38,071 44,609 116,350 131,351 Gain on sales of hotel properties, net of related income taxes - (1,411) - (8,315) Net loss (income) attributable to redeemable noncontrolling interests in operating partnership (4,424) 856 (25,567) (738) ------- ------- -------- -------- FFO available to common stockholders 20 45,835 (101,907) 89,724 Dividends on convertible preferred stock 1,043 1,564 3,128 4,692 Write-off of loan costs, Premiums and exit fees (1) - 1,354 (930) 8 Impairment charges 19,816 - 160,143 - Unrealized (gain) loss on derivatives (5,525) (12,528) 14,166 38,861 ------- ------- -------- -------- Adjusted FFO $15,354 $36,225 $74,600 $133,285 ======= ======= ======== ======== Adjusted FFO per diluted Share available to Common stockholders $0.18 $0.26 $0.80 $0.96 ======= ======= ======== ======== Weighted average diluted shares 86,747 137,690 93,424 139,372 ======= ======= ======== ======== (1) The amounts include write-off of debt premiums of $1,341 for the refinancing of a mortgage loan for the nine months ended September 30, 2009 and $2,086 for the sale of a hotel property for the nine months ended September 30, 2008. (2) Cash income from interest rate derivatives is excluded from the adjusted EBITDA calculations for all periods presented, which is a change from prior periods. ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES CASH AVAILABLE FOR DISTRIBUTION ("CAD") (in thousands, except per share amounts) (Unaudited) Three Three Months Months Ended Per Ended Per Sept. 30, Diluted Sept. 30, Diluted 2009 Share 2008 Share --------- -------- --------- -------- Net (loss) income attributable to common stockholders $(33,627) $(0.39) $1,781 $0.01 Dividends on convertible preferred stock 1,043 0.01 1,564 0.01 -------- ------ ------- ------ Total (32,584) (0.38) 3,345 0.02 Depreciation and amortization on real estate 38,071 0.44 44,609 0.33 Net (loss) income attributable to redeemable noncontrolling interests in operating partnership (4,424) (0.05) 856 0.01 Stock-based compensation 1,139 0.01 1,719 0.01 Amortization of loan costs 1,776 0.02 1,440 0.01 Write-off of loan costs, premiums and exit fees (1) - - 1,354 0.01 Amortization of unfavorable management contract liabilities (565) (0.01) (565) - Gain on sales of properties, net of related income taxes - - (1,411) (0.01) Impairment charge 19,816 0.23 - 0.00 Unrealized (gain) loss on derivatives (5,525) (0.06) (12,528) (0.09) Capital improvements reserve (9,570) (0.11) (11,948) (0.09) -------- ------ ------- ------ CAD $8,134 $0.09 $26,871 $0.20 ======== ====== ======= ====== Nine Nine Months Months Ended Per Ended Per Sept. 30, Diluted Sept. 30, Diluted 2009 Share 2008 Share --------- -------- --------- -------- Net (loss) income attributable to common stockholders $(192,690) $(2.06) $(32,574) $(0.23) Dividends on convertible preferred stock 3,128 0.03 4,692 0.03 -------- ------ ------- ------ Total (189,562) (2.03) (27,882) (0.20) Depreciation and amortization on real estate 116,350 1.25 131,351 0.94 Net (loss) income attributable to redeemable noncontrolling interests in operating partnership (25,567) (0.27) (738) (0.01) Stock-based compensation 3,896 0.04 5,188 0.04 Amortization of loan costs 5,679 0.06 4,924 0.04 Write-off of loan costs, premiums and exit fees (1) (930) (0.01) 8 - Amortization of unfavorable management contract liabilities (1,694) (0.02) (1,693) (0.01) Gain on sales of properties, net of related income taxes - - (8,315) (0.06) Impairment charge 160,143 1.71 - - Unrealized (gain) loss on derivatives 14,166 0.15 38,861 0.28 Capital improvements reserve (30,269) (0.32) (38,061) (0.27) -------- ------ ------- ------ CAD $52,212 $0.56 $103,643 $0.75 ======== ====== ======== ====== (1) The amounts include write-off of debt premiums of $1,341 for the refinancing of a mortgage loan for the nine months ended September 30, 2009 and $2,086 for the sale of a hotel property for the nine months ended September 30, 2008. ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES DEBT SUMMARY SEPTEMBER 30, 2009 (dollars in thousands) (Unaudited) Indebtedness Collateral Maturity Interest Rate ------------ ---------- ------------ ------------- Mortgage loan 10 hotels July 2015 5.22% 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 8 hotels December 2014 5.75% Mortgage loan 8 hotels December 2015 5.70% Senior credit Notes April 2010 LIBOR + 2.75% facility receivable to 3.5% Mortgage loan 1 hotel December 2016 5.81% Mortgage loan 5 hotels December 2009 LIBOR + 1.72% Mortgage loan 5 hotels April 2017 5.95% Mortgage loan 7 hotels April 2017 5.95% Mortgage loan 2 hotels April 2017 5.95% Mortgage loan 5 hotels April 2017 5.95% Mortgage loan 5 hotels April 2017 5.95% Mortgage loan 3 hotels April 2017 5.95% Mortgage loan 1 hotel April 2017 5.91% Mortgage loan 10 hotels May 2010 LIBOR + 1.65% Mortgage loan 1 hotel January 2011 8.32% Mortgage loan 1 hotel January 2023 7.78% TIF loan 1 hotel June 2018 12.85% Mortgage loan 1 hotel March 2010 5.60% Mortgage loan 3 hotels April 2011 5.47% Mortgage loan 4 hotels March 2010 5.95% Mortgage loan 1 hotel June 2011 LIBOR + 2% Mortgage loan 2 hotel August 2011 LIBOR + 2.75% Mortgage loan 1 hotel March 2011 LIBOR + 3.75% Mortgage loan 1 hotel March 2012 LIBOR + 4% Mortgage loan 1 hotel April 2034 Greater of 6% or Prime + 1% Fixed-Rate Floating-Rate Total Indebtedness Debt Debt Debt ------------ ---------- ------------- ---------- Mortgage loan $160,490 $- $160,490 Mortgage loan 115,645 - 115,645 Mortgage loan 95,905 - 95,905 Mortgage loan 83,075 - 83,075 Mortgage loan 110,899 - 110,899 Mortgage loan 100,576 - 100,576 Senior credit facility - 250,000(2)(3) 250,000 Mortgage loan 101,000 - 101,000 Mortgage loan - 203,400(2) 203,400 Mortgage loan 115,600 - 115,600 Mortgage loan 126,466 - 126,466 Mortgage loan 128,251 - 128,251 Mortgage loan 103,906 - 103,906 Mortgage loan 158,105 - 158,105 Mortgage loan 260,980 - 260,980 Mortgage loan 35,000 - 35,000 Mortgage loan - 167,202(2) 167,202 Mortgage loan 5,867 - 5,867 Mortgage loan 4,900 - 4,900 TIF loan 7,783 - 7,783 Mortgage loan 29,135(1) - 29,135 Mortgage loan 65,248 - 65,248 Mortgage loan 75,000 - 75,000 Mortgage loan 19,740 19,740 Mortgage loan 157,400(2) 157,400 Mortgage loan 52,500(2) 52,500 Mortgage loan 60,800(2) 60,800 Mortgage loan 6,951 6,951 Total debt $1,883,831 $917,993 $2,801,824 ========== ======== ========== Percentage 67.2% 32.8% 100.0% ========== ======== ========== Weighted average interest rate at September 30, 2009 5.81% 2.91% 4.86% ========== ======== ========== Total debt with the effect of interest rate swap $83,831 $2,717,993 $2,801,824 ========== ======== ========== Percentage with the effect of interest rate swap 3.0% 97.0% 100.0% ========== ======== ========== Weighted average interest rate with the effect of interest rate swap 3.47% 2.91% 3.28% ========== ======== ========== (1) We have received a notice of default and acceleration of the loan and are cooperating with the lender for a deed-in-lieu or consensual foreclosure. (2) Each of these loans has two one-year extension options. (3) Based on the debt-to-assets ratio defined in the loan agreement, interest rate on this debt was at LIBOR plus 3% as of September 30, 2009. ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES DEBT BY MATURITY ASSUMING EXTENSION OPTIONS NOT SUBJECT TO COVERAGE/LTV TESTS ARE EXERCISED SEPTEMBER 30, 2009 (in thousands) (Unaudited) 2009 2010 2011 2012 ---- ---- ---- ---- Mortgage loan secured by 10 hotel properties, Merrill Lynch Pool 1 $- $- $- $- Mortgage loan secured by five hotel properties, Merrill Lynch Pool 2 - - - - Mortgage loan secured by five hotel properties, Merrill Lynch Pool 3 Mortgage loan secured by five hotel properties, Merrill Lynch Pool 7 Mortgage loan secured by eight hotel properties, UBS Pool 1 - - - - Mortgage loan secured by eight hotel properties, UBS Pool 2 - - - - Secured credit facility - 250,000 (2) - - Mortgage loan secured by Westin O'Hare - - - - Mortgage loan secured by five hotel properties - - 203,400 - Mortgage loan secured by five hotel properties, Wachovia Fixed Rate Pool 1 - - - - Mortgage loan secured by seven hotel properties, Wachovia Fixed Rate Pool 2 - - - - Mortgage loan secured by two hotel properties, Wachovia Fixed Rate Pool 3 - - - - Mortgage loan secured by five hotel properties, Wachovia Fixed Rate Pool 5 - - - - Mortgage loan secured by five hotel properties, Wachovia Fixed Rate Pool 6 - - - - Mortgage loan secured by three hotel properties, Wachovia Fixed Rate Pool 7 - - - - Mortgage loan secured by Philadelphia Courtyard, Wachovia Stand-Alone - - - - Mortgage loan secured by 10 hotel properties, Wachovia Floater - - - 167,202 Mortgage loan secured by Manchester Courtyard - - 5,867 - Mortgage loan secured by Houston Hampton Inn - - - - TIF loan secured by Philadelphia Courtyard - - - - Mortgage loan secured by Dearborn Hyatt Regency - 29,135 (1) - - Mortgage loan secured by three hotel properties - - 65,248 - Mortgage loan secured by four hotel properties - 75,000 - - Mortgage loan secured by El Conquistador Hilton - - 19,740 - Mortgage loan secured by two hotel properties - - 157,400 (3) - Mortgage loan secured by JW Marriott San Francisco - - - 52,500 (2) Mortgage loan secured by Arlington Marriott - - - - Mortgage loan secured by Jacksonville Residence Inn - - - - -- -------- -------- -------- $- $354,135 $451,655 $219,702 == ======== ======== ======== 2013 Thereafter Total ---- -------------- --------- Mortgage loan secured by 10 hotel properties, Merrill Lynch Pool 1 $- $160,490 $160,490 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 eight hotel properties, UBS Pool 1 - 110,899 110,899 Mortgage loan secured by eight hotel properties, UBS Pool 2 - 100,576 100,576 Secured credit facility - - 250,000 Mortgage loan secured by Westin O'Hare - 101,000 101,000 Mortgage loan secured by five hotel properties - - 203,400 Mortgage loan secured by five hotel properties, Wachovia Fixed Rate Pool 1 - 115,600 115,600 Mortgage loan secured by seven hotel properties, Wachovia Fixed Rate Pool 2 - 126,466 126,466 Mortgage loan secured by two hotel properties, Wachovia Fixed Rate Pool 3 - 128,251 128,251 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 three hotel properties, Wachovia Fixed Rate Pool 7 - 260,980 260,980 Mortgage loan secured by Philadelphia Courtyard, Wachovia Stand-Alone - 35,000 35,000 Mortgage loan secured by 10 hotel properties, Wachovia Floater - - 167,202 Mortgage loan secured by Manchester Courtyard - - 5,867 Mortgage loan secured by Houston Hampton Inn - 4,900 4,900 TIF loan secured by Philadelphia Courtyard - 7,783 7,783 Mortgage loan secured by Dearborn Hyatt Regency - - 29,135 Mortgage loan secured by three hotel properties - - 65,248 Mortgage loan secured by four hotel properties - - 75,000 Mortgage loan secured by El Conquistador Hilton - - 19,740 Mortgage loan secured by two hotel properties - - 157,400 Mortgage loan secured by JW Marriott San Francisco - - 52,500 Mortgage loan secured by Arlington Marriott - 60,800 60,800 Mortgage loan secured by Jacksonville Residence Inn - 6,951 6,951 -- ---------- ---------- $- $1,776,332 $2,801,824 == ========== ========== NOTE: These maturities assume no event of default would occur. (1) We have received a notice of default and acceleration of the loan and are cooperating with the lender for a deed-in-lieu or consensual foreclosure. (2) Extensions available but certain coverage tests have to be met. (3) Extensions available but certain LTV tests have to be met. ASHFORD HOSPITALITY TRUST, INC. KEY PERFORMANCE INDICATORS - PRO FORMA (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, ------------- ------------- % % Vari- Vari- 2009 2008 ance 2009 2008 ance ---- ---- ------ ---- ---- ------ ALL HOTELS INCLUDED IN CONTINUING OPERATIONS: Room revenues (in thousands) $171,548 $213,820 -19.77% $529,716 $657,903 -19.48% RevPAR $83.22 $103.75 -19.79% $86.21 $106.86 -19.32% Occupancy 68.07% 74.57% -6.50% 66.12% 73.87% -7.75% ADR $122.25 $139.12 -12.13% $130.39 $144.67 -9.87% Three Months Ended Nine Months Ended September 30, September 30, ------------- ------------- % % Vari- Vari- 2009 2008 ance 2009 2008 ance ---- ---- ------ ---- ---- ------ ALL HOTELS NOT UNDER RENOVATION INCLUDED IN CONTINUING OPERATIONS: Room revenues (in thousands) $162,872 $202,020 -19.38% $502,428 $621,779 -19.20% RevPAR $83.99 $104.21 -19.40% $86.92 $107.35 -19.03% Occupancy 68.42% 74.68% -6.26% 66.38% 74.02% -7.64% ADR $122.76 $139.54 -12.03% $130.94 $145.03 -9.72% Excluded Hotels Under Renovation: Hilton Rye Town, Hilton Nassau Bay, Residence Inn Orlando Sea World, Courtyard Edison, Embassy Suites Orlando Airport OTHER NOTE: As the Company's Courtyard by Marriott hotel in Philadelphia, Pennsylvania, is leased to a third-party tenant on a triple-net lease basis, the Company only records rental income related to this operating lease for GAAP purposes. However, in the above pro forma table, all room revenues related to this hotel are reflected, which is consistent with the Company's other hotels. ASHFORD HOSPITALITY TRUST, INC. PRO FORMA HOTEL OPERATING PROFIT (dollars in thousands) (Unaudited) ALL HOTELS INCLUDED IN CONTINUING OPERATIONS: Three Months Ended Nine Months Ended September 30, September 30, ------------- ------------- 2009 2008 % Variance 2009 2008 % Variance ---- ---- ---------- ---- ---- ---------- REVENUE Rooms $171,548 $213,820 -19.8% $529,716 $657,903 -19.5% Food and beverage 39,428 53,853 -26.8% 136,164 177,490 -23.3% Other 11,172 10,850 3.0% 34,510 37,375 -7.7% ------ ------ ----- ------ ------ ----- Total hotel revenue 222,148 278,523 -20.2% 700,390 872,768 -19.8% ------ ------ ----- ------ ------ ----- EXPENSES Rooms 41,627 48,341 -13.9% 123,387 143,817 -14.2% Food and beverage 30,817 40,017 -23.0% 99,404 125,943 -21.1% Other direct 6,622 6,792 -2.5% 19,361 21,410 -9.6% Indirect 67,805 79,150 -14.3% 206,824 237,135 -12.8% Management fees, includes base and incentive fees 9,213 13,376 -31.1% 30,360 40,796 -25.6% ------ ------ ----- ------ ------ ----- Total hotel operating expenses 156,084 187,676 -16.8% 479,336 569,101 -15.8% Property taxes, insurance, and other 16,250 15,182 7.0% 47,259 46,069 2.6% ------ ------ ----- ------ ------ ----- HOTEL OPERATING PROFIT (Hotel EBITDA) 49,814 75,665 -34.2% 173,795 257,598 -32.5% Hotel EBITDA Margin 22.42% 27.16% -4.74% 24.81% 29.51% -4.70% Minority interest in earnings of consolidated joint ventures 1,139 1,676 -32.0% 4,548 6,368 -28.6% ------ ------ ----- ------ ------ ----- HOTEL OPERATING PROFIT (Hotel EBITDA), excluding minority interest in joint ventures $48,675 $73,989 -34.2% $169,247 $251,230 -32.6% ====== ====== ===== ======= ======= ===== ALL HOTELS NOT UNDER RENOVATION INCLUDED IN CONTINUING OPERATIONS: Three Months Ended Nine Months Ended September 30, September 30, ------------- ------------- 2009 2008 % Variance 2009 2008 % Variance ---- ---- ---------- ---- ---- ---------- REVENUE Rooms (1) $162,872 $202,020 -19.4% $502,428 $621,779 -19.2% Food and beverage 36,817 50,681 -27.4% 128,362 167,061 -23.2% Other 10,854 10,601 2.4% 33,580 36,172 -7.2% ------ ------ ---- ------ ------ ----- Total hotel revenue 210,543 263,302 -20.0% 664,370 825,012 -19.5% ------ ------ ---- ------ ------ ----- EXPENSES Rooms (1) 39,227 45,503 -13.8% 116,441 135,363 -14.0% Food and beverage 28,767 37,562 -23.4% 93,236 117,884 -20.9% Other direct 6,362 6,500 -2.1% 18,583 20,528 -9.5% Indirect 63,697 74,503 -14.5% 194,428 223,083 -12.8% Management fees, includes base and incentive fees 8,736 12,745 -31.5% 28,860 38,831 -25.7% ------ ------ ---- ------ ------ ----- Total hotel operating expenses 146,789 176,813 -17.0% 451,548 535,689 -15.7% Property taxes, insurance, and other 15,142 14,199 6.6% 44,360 43,015 3.1% ------ ------ ---- ------ ------ ----- HOTEL OPERATING PROFIT (Hotel EBITDA) 48,612 72,290 -32.8% 168,462 246,308 -31.6% Hotel EBITDA Margin 23.09% 27.46% -4.37% 25.36% 29.86% -4.50% Minority interest in earnings of consolidated joint ventures 1,139 1,676 -32.0% 4,548 6,368 -28.6% ------ ------ ---- ------ ------ ----- HOTEL OPERATING PROFIT (Hotel EBITDA), excluding minority interest in joint ventures $47,473 $70,614 -32.8% $163,914 $239,940 -31.7% ======= ====== ===== ======= ======= ==== NOTES: (1) Excluded Hotels Under Renovation: Hilton Rye Town, Hilton Nassau Bay, Residence Inn Orlando Sea World, Courtyard Edison, Embassy Suites Orlando Airport 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 Nine Months Ended Sept. 30, Sept. 30, ---------------- -------------------- Number Number of of % % Region Hotels Rooms 2009 2008 Change 2009 2008 Change ------ ------ ----- ---- ---- ------ ---- ---- ------ Pacific (1) 21 5,205 $103.78 $132.97 -22.0% $93.50 $121.86 -23.3% Mountain (2) 8 1,704 67.81 82.26 -17.6% 77.78 104.32 -25.4% West North Central (3) 3 690 81.31 102.46 -20.6% 72.16 91.07 -20.8% West South Central (4) 10 2,086 79.65 99.32 -19.8% 86.09 105.41 -18.3% East North Central (5) 10 2,624 61.04 83.59 -27.0% 58.48 82.28 -28.9% East South Central (6) 2 236 74.87 93.07 -19.6% 78.67 94.13 -16.4% Middle Atlantic (7) 9 2,481 85.59 107.01 -20.0% 84.60 104.06 -18.7% South Atlantic (8) 38 7,728 81.37 96.81 -15.9% 95.25 109.46 -13.0% New England (9) 2 159 73.26 87.06 -15.9% 68.41 87.94 -22.2% --- ------ ------ ------- ----- ------ ------- ----- Total Portfolio 103 22,913 $83.22 $103.75 -19.8% $86.21 $106.86 -19.3% === ====== ====== ======= ===== ====== ======= ===== (1) Includes Alaska, California, Oregon, and Washington (2) Includes Nevada, Arizona, New Mexico, and Utah (3) Includes Minnesota and Kansas (4) Includes Texas (5) Includes Ohio, Michigan, Illinois, and Indiana (6) Includes Kentucky and Alabama (7) Includes New York, New Jersey, and Pennsylvania (8) Includes Virginia, Florida, Georgia, Maryland, District of Columbia, and North Carolina (9) Includes Massachusetts and Connecticut NOTE: As the Company's Courtyard by Marriott hotel in Philadelphia, Pennsylvania, is leased to a third-party tenant on a triple-net lease basis, the Company only records rental income related to this operating lease for GAAP purposes. However, in the above pro forma table, all room revenues related to this hotel are reflected, which is consistent with the Company's other hotels. ASHFORD HOSPITALITY TRUST, INC. PRO FORMA HOTEL REVPAR BY BRAND (Unaudited) Three Months Ended September 30, Number of Number of ------------- Brand Hotels Rooms 2009 2008 % Change ----- ------ ----- ---- ---- -------- Hilton 34 7,513 $88.99 $108.86 -18.3% Hyatt 2 1,014 53.06 74.48 -28.8% InterContinental 2 420 127.82 143.38 -10.9% Independent 2 317 72.92 65.03 12.1% Marriott 57 11,714 80.98 101.14 -19.9% Starwood 6 1,935 80.66 111.01 -27.3% --- ------ ------ ------- ----- Total Portfolio 103 22,913 $83.22 $103.75 -19.8% === ====== ====== ======= ===== Nine Months Ended September 30, ------------- Brand 2009 2008 % Change ----- ---- ---- -------- Hilton $92.87 $114.13 -18.6% Hyatt 61.26 91.38 -33.0% InterContinental 129.71 152.46 -14.9% Independent 72.12 55.59 29.7% Marriott 85.85 105.04 -18.3% Starwood 67.67 94.78 -28.6% ------ ------- ----- Total Portfolio $86.21 $106.86 -19.3% ====== ======= ===== NOTE: As the Company's Courtyard by Marriott hotel in Philadelphia, Pennsylvania, is leased to a third-party tenant on a triple-net lease basis, the Company only records rental income related to this operating lease for GAAP purposes. However, in the above pro forma table, all room revenues related to this hotel are reflected, which is consistent with the Company's other hotels. ASHFORD HOSPITALITY TRUST, INC. PRO FORMA HOTEL OPERATING PROFIT BY REGION (dollars in thousands) (Unaudited) Number of Number of Region Hotels Rooms ------ ------ ----- Pacific (1) 21 5,205 Mountain (2) 8 1,704 West North Central (3) 3 690 West South Central (4) 10 2,086 East North Central (5) 10 2,624 East South Central (6) 2 236 Middle Atlantic (7) 9 2,481 South Atlantic (8) 38 7,728 New England (9) 2 159 --- ------ Total Portfolio 103 22,913 === ====== Three Months Ended September 30, ------------- Region 2009 % Total 2008 % Total % Change ------ ---- ------- ---- ------- -------- Pacific (1) $16,721 33.6% $26,196 34.6% -36.2% Mountain (2) 1,490 3.0% 2,600 3.4% -42.7% West North Central (3) 2,209 4.4% 2,952 3.9% -25.2% West South Central (4) 4,771 9.6% 5,974 7.9% -20.1% East North Central (5) 3,099 6.2% 7,769 10.3% -60.1% East South Central (6) 626 1.2% 848 1.1% -26.2% Middle Atlantic (7) 5,282 10.6% 8,333 11.0% -36.6% South Atlantic (8) 15,235 30.6% 20,538 27.2% -25.8% New England (9) 381 0.8% 455 0.6% -16.3% ------- ----- ------- ----- ----- Total Portfolio $49,814 100.0% $75,665 100.0% -34.2% ======= ===== ======= ===== ===== Nine Months Ended September 30, ------------- Region 2009 % Total 2008 % Total % Change ------ ---- ------- ---- ------- -------- Pacific (1) $43,161 24.8% $70,801 27.5% -39.0% Mountain (2) 10,621 6.1% 18,586 7.2% -42.9% West North Central (3) 5,091 2.9% 7,503 2.9% -32.1% West South Central (4) 18,039 10.4% 23,261 9.0% -22.4% East North Central (5) 7,212 4.1% 22,477 8.7% -67.9% East South Central (6) 2,050 1.2% 2,602 1.0% -21.2% Middle Atlantic (7) 15,436 8.9% 23,822 9.3% -35.2% South Atlantic (8) 71,386 41.1% 87,190 33.9% -18.1% New England (9) 799 0.5% 1,356 0.5% -41.1% -------- ----- -------- ----- ----- Total Portfolio $173,795 100.0% $257,598 100.0% -32.5% ======== ===== ======== ===== ===== (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 NOTE: As the Company's Courtyard by Marriott hotel in Philadelphia, Pennsylvania, is leased to a third-party tenant on a triple-net lease basis, the Company only records rental income related to this operating lease for GAAP purposes. However, in the above pro forma table, all room revenues related to this hotel are reflected, which is consistent with the Company's other hotels. ASHFORD HOSPITALITY TRUST, INC. PRO FORMA HOTEL OPERATING PROFIT MARGIN (Unaudited) 98 HOTELS NOT UNDER RENOVATION AND INCLUDED IN CONTINUING OPERATIONS AT SEPTEMBER 30, 2009 AS IF SUCH HOTELS WERE OWNED AS OF THE BEGINNING OF THE PERIODS PRESENTED: HOTEL OPERATING PROFIT (HOTEL EBITDA) MARGIN: 3rd Quarter 2009 23.09% 3rd Quarter 2008 27.46% ----- Variance -4.37% ===== HOTEL OPERATING PROFIT (HOTEL EBITDA) MARGIN VARIANCE BREAKDOWN: Rooms -1.30% Food & Beverage and Other Departmental 0.05% Administrative & General -0.60% Sales & Marketing 0.01% Hospitality -0.05% Repair & Maintenance -0.38% Energy -0.57% Franchise Fee -0.17% Management Fee -0.05% Incentive Management Fee 0.74% Insurance -0.48% Property Taxes -1.17% Other Taxes -0.16% Leases/Other -0.24% ----- Total -4.37% ===== NOTE: As the Company's Courtyard by Marriott hotel in Philadelphia, Pennsylvania, is leased to a third-party tenant on a triple-net lease basis, the Company only records rental income related to this operating lease for GAAP purposes. However, in the above pro forma table, all operating results related to this hotel are reflected, which is consistent with the Company's other hotels. ASHFORD HOSPITALITY TRUST, INC. PRO FORMA SEASONALITY TABLE (dollars in thousands) (Unaudited) ALL 103 HOTELS OWNED AND INCLUDED IN CONTINUING OPERATIONS AS OF SEPTEMBER 30, 2009: 2009 2009 2009 2008 3rd Quarter 2nd Quarter 1st Quarter 4th Quarter TTM ----------- ----------- ----------- ----------- --- Total Hotel Revenue $222,148 $241,684 $236,560 $292,566 $992,958 Hotel EBITDA $49,814 $62,054 $61,928 $75,069 $248,865 Hotel EBITDA Margin 22.4% 25.7% 26.2% 25.7% 25.1% EBITDA % of Total TTM 20.0% 24.9% 24.9% 30.2% 100.0% JV Interests in EBITDA $1,139 $1,839 $1,570 $1,732 $6,280 NOTE: As the Company's Courtyard by Marriott hotel in Philadelphia, Pennsylvania, is leased to a third-party tenant on a triple-net lease basis, the Company only records rental income related to this operating lease for GAAP purposes. However, in the above pro-forma table, all operating results related to this hotel are reflected, which is consistent with the Company's other hotels. ASHFORD HOSPITALITY TRUST, INC. Capital Expenditures Calendar 103 Core Hotels (a) (Unaudited) 2009 ---- Actual Actual Actual Estimated Rooms 1st Quarter 2nd Quarter 3rd Quarter 4th 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 x Hilton Costa Mesa 486 Hilton Tucson El Conquistador Golf Resort 428 Courtyard Louisville Airport 150 Embassy Suites Crystal City - Reagan Airport 267 Embassy Suites Philadelphia Airport 263 Hilton Minneapolis Airport 300 Marriott Seattle Waterfront 358 Sheraton Minneapolis West 222 Westin O'Hare 525 2010 ---- Estimated Estimated Estimated Estimated 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter ----------- ----------- ----------- ----------- Sheraton Anchorage x Marriott Legacy Center x Hilton Rye Town Hilton Nassau Bay - Clear Lake 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 Hilton Costa Mesa x x Hilton Tucson El Conquistador Golf Resort x Courtyard Louisville Airport x Embassy Suites Crystal City -Reagan Airport x Embassy Suites Philadelphia Airport x Hilton Minneapolis Airport x x Marriott Seattle Waterfront x Sheraton Minneapolis West x Westin O'Hare x 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, or Tripp Sullivan, +1-615-254-7318, both of Corporate Communications, Inc., for Ashford Hospitality Trust, Inc. Web Site: http://www.ahtreit.com/

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