DALLAS—Ashford Hospitality Trust Inc. has reported its financial results and performance measures for the first quarter ended March 31. The comparable performance measurements for occupancy, ADR, RevPAR and hotel EBITDA assume each of the hotel properties in the company’s hotel portfolio as of March 31, were owned as of the beginning of each of the periods presented. Unless otherwise stated, all reported results compare the first quarter ended March 31, 2019 with the first quarter ended March 31, 2018.
“We are pleased with our recent value-added strategy accomplishments,” stated Douglas A. Kessler, Ashford Trust president/CEO, in the company’s earnings report. “The successful continued utilization of the ERFP benefits our portfolio via the acquisition of higher quality, higher RevPAR hotels at very attractive returns. During the quarter, the refinancing furthered our prior achievements to improve debt terms and enhance our balance sheet; while asset management’s unwavering efforts concentrated on maximizing cash flow and unlocking embedded value. Looking ahead, we are focused on generating superior long term shareholder returns.”
Strategic Overview:
- Opportunistic focus on upper-upscale, full-service hotels
- Targets moderate leverage levels to enhance equity returns
- Highly aligned management team and advisory structure
- Attractive dividend yield of approximately 8.5%
- Targets 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.
Financial and Operating Highlights:
- Net loss attributable to common stockholders was $48.7 million or $0.49 per diluted share for the quarter.
- Comparable RevPAR for all hotels increased 1.9% to $122.10 during the quarter.
- Comparable RevPAR for all hotels not under renovation increased 2.7% to $119.90 during the quarter.
- Adjusted EBITDAre was $100.5 million for the quarter.
- Adjusted funds from operations (AFFO) was $0.26 per diluted share for the quarter.
- As of May 2, 2019, the company’s common stock is trading at an approximate 8.5% dividend yield.
- During the quarter, the company completed the acquisition of the 310-room Embassy Suites New York Midtown Manhattan in New York for $195 million.
- During the quarter, the company completed the acquisition of the 178-room Hilton Santa Cruz/Scotts Valley in Santa Cruz, CA for $50 million.
- During the quarter, the company refinanced a mortgage loan on two hotels for $240 million.
- CapEx invested during the quarter was $38.0 million.
