DALLAS—In the second quarter, Ashford Hospitality Trust’s strategy consisted of an opportunistic focus on upper-upscale, full-service hotels. The REIT targeted moderate leverage levels to enhance equity returns and maintained a highly aligned management team and advisory structure.
The company is targeting cash and cash equivalents at a level of 25-35% of total equity market capitalization for the purposes of working capital needs at property and corporate levels; providing a hedge in the event of uncertain economic times; and being prepared to pursue accretive investments or stock buybacks as those opportunities arise.
“We are pleased with the operational results for the recent quarter and believe that the company remains well positioned,” commented Douglas A. Kessler, president/CEO, Ashford Hospitality Trust. “We have seen strong results from several of our recent acquisitions and continue to benefit from our diversified, high-quality collection of hotels. Our current focus is on value-added initiatives, and looking ahead, we’re committed to increasing the performance of our portfolio to generate superior shareholder returns.”
Among the second quarter highlights:
- Net loss attributable to common stockholders was $26.9 million or $0.27 per diluted share for the quarter.
- Actual RevPAR for all hotels increased 2.8% to $140.58 during the quarter.
- Comparable RevPAR for all hotels increased 1.4% to $140.58 during the quarter.
- Comparable RevPAR for all hotels not under renovation increased 1.6% to $138.84 during the quarter.
- Comparable Total RevPAR for all hotels increased 1.9% during the quarter.
- Adjusted EBITDAre was $132.1 million for the quarter, an increase of 5.8% over the prior-year quarter.
- Adjusted funds from operations (AFFO) was $0.47 per diluted share for the quarter.
- As of August 1, 2019, the company’s common stock is trading at an approximate 9.4% dividend yield.
- CapEx invested during the quarter was $43.6 million.
As of June 30, the portfolio consisted of 121 properties. During the second quarter of 2019, 117 of the company’s hotels were not under renovation. Ashford Hospitality Trust believes reporting its operating metrics for its hotels on a comparable total basis (all 121 hotels), and comparable not under renovation basis (117 hotels), is a measure that reflects a meaningful and focused comparison of the operating results in its portfolio.
Comparable RevPAR increased 1.4% to $140.58 for all hotels on a 1.5% increase in ADR and relatively flat occupancy. Comparable RevPAR increased 1.6% to $138.84 for all hotels not under renovation on a 1.3% increase in ADR and a 0.3% increase in occupancy.