• Comparable RevPAR Growth: 3.1% for the fourth quarter.
• Comparable Total Revenue Growth: 4.6% for the fourth quarter.
• Comparable Hotel EBITDA Growth: 6.2% for the fourth quarter.
• Net Loss Attributable to Common Stockholders: $131.1 million for the fourth quarter; $82.5 million for the full year.
• Net Loss Per Diluted Share: $23.83 for the fourth quarter; $17.54 for the full year.
• Adjusted EBITDAre: $45.2 million for the fourth quarter; $235.9 million for the full year.
• Cash and Cash Equivalents: $112.9 million at the end of the fourth quarter.
• Restricted Cash: $107.6 million at the end of the fourth quarter.
• Consolidated Portfolio: 73 hotels with 17,644 rooms as of December 31, 2024.
• Group Revenue Increase: 5% for the fourth quarter over the prior year period.
• Gross Operating Margin Expansion: Approximately 141 basis points for the fourth quarter.
• Capital Expenditures: Approximately $106.5 million for the full year 2024.

• Warning! GuruFocus has detected 6 Warning Signs with AHT.

Release Date: February 26, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Ashford Hospitality Trust Inc (NYSE:AHT) reported a 3.1% growth in comparable RevPAR, 4.6% growth in total revenue, and 6.2% growth in hotel EBITDA for the fourth quarter.
• The company successfully converted the Laconia Hotel in Key West and La Pavion Hotel in New Orleans to Marriott's autograph collection and tribute portfolio, respectively, resulting in significant RevPAR premiums and revenue growth.
• Ashford Hospitality Trust Inc (NYSE:AHT) completed the refinancing of 16 assets, which allowed them to fully repay the remaining balance on their strategic financing.
• The company launched the Grow AHT initiative, focusing on GNA reduction, revenue maximization, and operational efficiency, aiming to add $50 million to their run rate corporate event.
• Ashford Hospitality Trust Inc (NYSE:AHT) reported strong group revenue growth and improved booking activity, with a 5% increase in group revenue for the fourth quarter.

Negative Points

• Ashford Hospitality Trust Inc (NYSE:AHT) reported a net loss attributable to common stockholders of $131.1 million for the fourth quarter and $82.5 million for the full year.
• The company has a high level of floating rate debt exposure, with 77% of their debt effectively floating, which poses a risk in a rising interest rate environment.
• Despite improvements, there remains a bid-ask spread in certain markets, which could impact the company's ability to transact optimally.
• Ashford Hospitality Trust Inc (NYSE:AHT) does not anticipate reinstating a common dividend in 2025, which may be a concern for income-focused investors.
• The company is still in the process of rolling out all initiatives under the Grow AHT program, with only half of the initiatives fully implemented, indicating potential delays in realizing full benefits.

Q & A Highlights

Q: Can you quantify the benefits seen from the growth initiatives and provide some color on the timeline and potential opportunities to reach the $50 million target? A: Chris Nixon, Executive Vice President and Head of Asset Management, explained that more than half of the initiatives have been rolled out and are already impacting performance positively. The remaining initiatives will be implemented throughout 2025, with ongoing identification of new opportunities to build on current successes.

Q: Regarding the conversions, are the assets stabilized, or is there additional ramp-up expected? Any thoughts on further conversions in the portfolio? A: Chris Nixon noted that the conversions have outperformed expectations, with significant revenue growth. There is still additional runway before stabilization, and the company is exploring further conversion opportunities to unlock value.

Q: Can you provide insights into the transaction environment and any changes in bid-ask spreads or differences in portfolio deals versus one-offs? A: Stephen Zsigray, President and CEO, mentioned improvements in financing and transaction markets, with optimism for 2025. The company plans to sell additional assets but will remain disciplined to ensure optimal value, acknowledging some bid-ask spread challenges.

Q: Has the floating rate exposure increased due to expiring swaps, and how is the company approaching fixed versus floating rate exposure? A: Deric Eubanks, CFO, explained that the increase in floating rate exposure is due to interest rate caps burning off and SOFR dropping below strike prices. The company prefers floating rate financing for its flexibility and natural hedge to the business, despite recent challenges.

Q: Are there any noticeable changes in the transaction environment or conversations regarding asset sales? A: Stephen Zsigray highlighted improvements in the financing markets, leading to better transaction prospects. The company plans to continue asset sales to deleverage and improve the balance sheet, while remaining cautious about market conditions.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.