EXHIBIT 99.1
NEWS RELEASE
Contact: | Deric Eubanks | Jordan Jennings | Joe Calabrese |
Chief Financial Officer | Investor Relations | Financial Relations Board | |
(972) 490-9600 | (972) 778-9487 | (212) 827-3772 | |
ASHFORD TRUST REPORTS FIRST QUARTER 2020 RESULTS
DALLAS - May 20, 2020 - Ashford Hospitality Trust, Inc. (NYSE: AHT) (“Ashford Trust” or the “Company”) today reported financial results and performance measures for the first quarter ended March 31, 2020. The comparable performance measurements for Occupancy, Average Daily Rate (ADR), Revenue Per Available Room (RevPAR), and Hotel EBITDA assume each of the hotel properties in the Company’s hotel portfolio as of March 31, 2020 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, 2020 with the first quarter ended March 31, 2019 (see discussion below). The reconciliation of non-GAAP financial measures is included in the financial tables accompanying this press release.
Subsequent to the end of the quarter, J. Robison Hays, III was appointed President and Chief Executive Officer of the Company, effective May 14, 2020. Mr. Hays previously served as the Company’s Chief Strategy Officer, a position he held since May 2015. Mr. Hays has been with the Company since 2005.
COVID-19 UPDATE
On March 11, 2020, the World Health Organization declared COVID-19 a global pandemic. In the United States, federal and local government agencies implemented emergency declarations and issued restrictions on travel, implementation of social distancing protocols, stay at home orders, limitations on gatherings and mandates to close all non-essential businesses.
In response to the impact of COVID-19 on the hospitality industry, the Company is deploying numerous strategies and protocols to protect the health and safety of its employees, guests, partners, and communities where it operates. Additionally, the Company has taken steps to ensure that it has additional financial flexibility going forward to navigate this crisis, including:
• | Currently, the Company has temporarily suspended operations at 23 properties. The Company’s remaining 93 properties are operating at reduced levels. |
• | The Company worked proactively with its property managers to aggressively cut operating costs at its hotels ultimately resulting in an approximate 90% reduction in property-level staffing. |
• | The Company has significantly reduced its planned spend for capital expenditures for the year from a range of $125-$145 million to a range of $30-$50 million. |
• | The Company has suspended its common dividend conserving approximately $7 million per calendar quarter. |
• | The Company has taken proactive and aggressive actions to protect liquidity and reduce corporate expenses through compensation reductions and the curtailment of expenses resulting in an |
AHT Reports First Quarter Results
Page 2
May 20, 2020
approximate 25% reduction in corporate G&A and reimbursable expenses and will continue to take all necessary additional actions to preserve capital and liquidity.
• | The Company estimates that its current monthly cash burn at its hotels given their current state of either having suspended operations or operating in a limited capacity is approximately $20 million per month. The Company’s debt is all property-level, non-recourse debt and the monthly interest is currently approximately $13 million per month. The Company’s run rate for corporate G&A and Advisory Fees is approximately $4 million per month. |
• | The Company ended the quarter with cash and cash equivalents of $240 million and restricted cash of $127 million. The vast majority of the restricted cash is comprised of lender and manager held reserves. The Company is currently working with its property managers and lenders in order to utilize lender and manager held reserves to fund operating shortfalls. At the end of the quarter, there was also $19 million in due from third-party hotel managers, which is the Company’s cash held by one of its property managers which is also available to fund hotel operating costs. |
• | Beginning on April 1, 2020, the Company did not make principal or interest payments under nearly all of its loan agreements, which constituted an “Event of Default” as such term is defined under the applicable loan agreement. The Company is actively working with its lenders to arrange mutually agreeable forbearance agreements to reduce its near-term cash burn rate and improve liquidity. |
• | Additionally, the Company has partnered with local government agencies, medical staffing organizations, and hotel brands to support COVID-19 response efforts. To date, through various initiatives, 48 Ashford Trust hotels have provided temporary lodging for first responders, healthcare professionals, and other community residents impacted by the pandemic. |
The anticipated negative impact of the COVID-19 crisis on economic activity and the hospitality industry continues to evolve. The crisis is expected to continue to impact the Company’s financial results during the second quarter of 2020 and beyond. Given the severity of the COVID-19 crisis and the appointment of a new President and Chief Executive Officer, the Company anticipates doing a review of its long-term strategy after the crisis has passed, which may include material changes to its future leverage, capital structure, liquidity, and investment focus.
FINANCIAL AND OPERATING HIGHLIGHTS
• | Net loss attributable to common stockholders was $94.8 million or $0.94 per diluted share for the quarter. |
• | Comparable RevPAR for all hotels decreased 22.9% to $95.16 during the quarter. |
• | Adjusted EBITDAre was $47.4 million for the quarter. |
• | Adjusted funds from operations (AFFO) was $(0.12) per diluted share for the quarter. |
• | During the quarter, the Company refinanced its mortgage loan for the 226-room Le Pavillon Hotel in New Orleans, Louisiana. |
• | During the quarter, the Company sold the Crowne Plaza Annapolis for $5.1 million in cash proceeds. |
• | Capex invested during the quarter was $20.4 million. |
CAPITAL STRUCTURE
At March 31, 2020, the Company had total mortgage loans of $4.1 billion with a blended average interest rate of 4.4%.
As of March 31, 2020, Ashford had cash and cash equivalents of $240.3 million.
In light of the economic uncertainty arising from the COVID-19 pandemic and to protect liquidity, the
AHT Reports First Quarter Results
Page 3
May 20, 2020
Company and its Board of Directors announced a suspension of its previously announced 2020 common stock dividend policy. Accordingly, the Company did not pay a dividend on its common stock and common units for the first quarter ending March 31, 2020. The Board of Directors will continue to monitor the situation and assess future quarterly common dividend declarations.
During the quarter, the Company refinanced its mortgage loan for the 226-room Le Pavillon Hotel in New Orleans, Louisiana, which had an existing outstanding balance of approximately $43.8 million, a floating interest rate of LIBOR + 5.10%, and a final maturity date in June 2020. The new, non-recourse loan totals $37 million and has a three-year initial term with two one-year extension options, subject to the satisfaction of certain conditions. The loan provides for a floating interest rate of LIBOR + 3.40%.
During the quarter, the Company sold the Crowne Plaza Annapolis for approximately $5.1 million in cash.
PORTFOLIO REVPAR
As of March 31, 2020, the portfolio consisted of 116 hotels.
• | Comparable RevPAR decreased 22.9% to $95.16 for all hotels on a 3.8% decrease in ADR and a 19.8% decrease in occupancy. |
HOTEL EBITDA MARGINS AND QUARTERLY SEASONALITY TRENDS
The Company believes year-over-year Comparable Hotel EBITDA and Comparable Hotel EBITDA Margin comparisons are more meaningful to gauge the performance of the Company’s hotels than sequential quarter-over-quarter comparisons. To help investors better understand the seasonality in the Company’s portfolio, the Company provides quarterly detail on its Comparable Hotel EBITDA and Comparable Hotel EBITDA Margin for the current and certain prior-year periods based upon the number of hotels in the Company’s portfolio as of the end of the current period. As the Company’s portfolio mix changes from time to time, so will the seasonality for Comparable Hotel EBITDA and Comparable Hotel EBITDA Margin.
“To address the unprecedented challenge of the COVID-19 pandemic, the Company has taken immediate actions to enhance its operational and financial flexibility,” commented J. Robison Hays, Ashford Trust’s President and Chief Executive Officer. “We have worked very closely with our property managers to minimize our operating costs. We remain steadfast in our approach to protect our hotels, safeguard the health of our associates and guests and establish a path to return our hotels to profitability.”
INVESTOR CONFERENCE CALL AND SIMULCAST
Ashford Hospitality Trust, Inc. will conduct a conference call on Thursday, May 21, 2020, at 11:00 a.m. ET. The number to call for this interactive teleconference is (201) 493-6725. A replay of the conference call will be available through Thursday, May 28, 2020, by dialing (412) 317-6671 and entering the confirmation number, 13702342.
The Company will also provide an online simulcast and rebroadcast of its first quarter 2020 earnings release conference call. The live broadcast of Ashford Hospitality Trust’s quarterly conference call will be available online at the Company’s web site, www.ahtreit.com on Thursday, May 21, 2020, beginning at 11:00 a.m. ET. The online replay will follow shortly after the call and continue for approximately one year.
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
AHT Reports First Quarter Results
Page 4
May 20, 2020
not be relied upon as a substitute for GAAP measures, used in this press release are FFO, AFFO, EBITDA, EBITDAre, Adjusted EBITDAre, and 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.
* * * * *
Ashford Hospitality Trust is a real estate investment trust (REIT) focused on investing predominantly in upper upscale, full-service hotels.
Ashford has created an Ashford App for the hospitality REIT investor community. The Ashford App is available for free download at Apple’s App Store and the Google Play Store by searching “Ashford.”
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 federal securities regulations. Forward-looking statements in this press release may include, among others, statements about the Company’s strategy and future plans. 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 on our business and investment strategy; anticipated or expected purchases or sales of assets; our projected operating results; completion of any pending transactions; our ability to obtain future financing arrangements or restructure existing property level indebtedness; our understanding of our competition; market trends; projected capital expenditures; and the impact of technology on our operations and business. 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 this risk when you make an investment decision concerning our securities. 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. 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.
ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)
(unaudited)
March 31, 2020 | December 31, 2019 | ||||||
ASSETS | |||||||
Investments in hotel properties, net | $ | 4,024,176 | $ | 4,108,443 | |||
Cash and cash equivalents | 240,316 | 262,636 | |||||
Restricted cash | 126,649 | 135,571 | |||||
Marketable securities | 437 | 14,591 | |||||
Accounts receivable, net of allowance of $794 and $698, respectively | 29,129 | 39,638 | |||||
Inventories | 4,288 | 4,346 | |||||
Notes receivable, net | 7,844 | 7,709 | |||||
Investment in OpenKey | 2,801 | 2,829 | |||||
Deferred costs, net | 2,786 | 2,897 | |||||
Prepaid expenses | 28,329 | 21,886 | |||||
Derivative assets, net | 1,629 | 1,691 | |||||
Operating lease right-of-use assets | 45,576 | 49,995 | |||||
Other assets | 27,783 | 17,932 | |||||
Intangible assets | 797 | 797 | |||||
Due from related parties, net | 4,399 | 3,019 | |||||
Due from third-party hotel managers | 19,183 | 17,368 | |||||
Total assets | $ | 4,566,122 | $ | 4,691,348 | |||
LIABILITIES AND EQUITY | |||||||
Liabilities: | |||||||
Indebtedness, net | $ | 4,103,658 | $ | 4,106,518 | |||
Accounts payable and accrued expenses | 135,993 | 134,341 | |||||
Dividends and distributions payable | 11,740 | 20,849 | |||||
Due to Ashford Inc., net | 5,229 | 6,570 | |||||
Due to third-party hotel managers | 3,021 | 2,509 | |||||
Intangible liabilities, net | 2,317 | 2,337 | |||||
Operating lease liabilities | 45,747 | 53,270 | |||||
Derivative liabilities, net | 350 | 42 | |||||
Other liabilities | 25,168 | 25,776 | |||||
Total liabilities | 4,333,223 | 4,352,212 | |||||
Redeemable noncontrolling interests in operating partnership | 35,229 | 69,870 | |||||
Equity: | |||||||
Preferred stock, $0.01 par value, 50,000,000 shares authorized : | |||||||
Series D Cumulative Preferred Stock 2,389,393 shares issued and outstanding at March 31, 2020 and December 31, 2019 | 24 | 24 | |||||
Series F Cumulative Preferred Stock 4,800,000 shares issued and outstanding at March 31, 2020 and December 31, 2019 | 48 | 48 | |||||
Series G Cumulative Preferred Stock 6,200,000 shares issued and outstanding at March 31, 2020 and December 31, 2019 | 62 | 62 | |||||
Series H Cumulative Preferred Stock 3,800,000 shares issued and outstanding at March 31, 2020 and December 31, 2019 | 38 | 38 | |||||
Series I Cumulative Preferred Stock 5,400,000 shares issued and outstanding at March 31, 2020 and December 31, 2019 | 54 | 54 | |||||
Common stock, $0.01 par value, 400,000,000 shares authorized, 105,115,965 and 102,103,602 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively | 1,051 | 1,021 | |||||
Additional paid-in capital | 1,829,396 | 1,825,553 | |||||
Accumulated deficit | (1,633,459 | ) | (1,558,038 | ) | |||
Total shareholders' equity of the Company | 197,214 | 268,762 | |||||
Noncontrolling interests in consolidated entities | 456 | 504 | |||||
Total equity | 197,670 | 269,266 | |||||
Total liabilities and equity | $ | 4,566,122 | $ | 4,691,348 | |||
5
ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
Three Months Ended | |||||||
March 31, | |||||||
2020 | 2019 | ||||||
REVENUE | |||||||
Rooms | $ | 215,807 | $ | 280,381 | |||
Food and beverage | 47,950 | 61,061 | |||||
Other | 17,348 | 16,204 | |||||
Total hotel revenue | 281,105 | 357,646 | |||||
Other | 772 | 1,072 | |||||
Total revenue | 281,877 | 358,718 | |||||
EXPENSES | |||||||
Hotel operating expenses | |||||||
Rooms | 52,466 | 60,647 | |||||
Food and beverage | 34,901 | 41,323 | |||||
Other expenses | 103,794 | 113,527 | |||||
Management fees | 10,549 | 12,989 | |||||
Total hotel operating expenses | 201,710 | 228,486 | |||||
Property taxes, insurance and other | 20,472 | 20,397 | |||||
Depreciation and amortization | 66,350 | 67,178 | |||||
Impairment charges | 27,613 | — | |||||
Advisory services fee: | |||||||
Base advisory fee | 8,917 | 8,989 | |||||
Reimbursable expenses | 1,831 | 2,390 | |||||
Non-cash stock/unit-based compensation | 4,551 | 4,289 | |||||
Incentive fee | — | 636 | |||||
Corporate, general and administrative: | |||||||
Non-cash stock/unit-based compensation | 142 | 99 | |||||
Other general and administrative | 3,350 | 2,502 | |||||
Total operating expenses | 334,936 | 334,966 | |||||
Gain (loss) on sale of assets and hotel properties | 3,623 | 233 | |||||
OPERATING INCOME (LOSS) | (49,436 | ) | 23,985 | ||||
Equity in earnings (loss) of unconsolidated entities | (79 | ) | (1,063 | ) | |||
Interest income | 611 | 781 | |||||
Other income (expense), net | 1,522 | (316 | ) | ||||
Interest expense, net of premium amortization | (50,503 | ) | (58,908 | ) | |||
Amortization of loan costs | (6,582 | ) | (7,258 | ) | |||
Write-off of premiums, loan costs and exit fees | (95 | ) | (2,062 | ) | |||
Unrealized gain (loss) on marketable securities | (1,477 | ) | 808 | ||||
Unrealized gain (loss) on derivatives | 4,422 | (2,994 | ) | ||||
INCOME (LOSS) BEFORE INCOME TAXES | (101,617 | ) | (47,027 | ) | |||
Income tax benefit (expense) | (303 | ) | 405 | ||||
NET INCOME (LOSS) | (101,920 | ) | (46,622 | ) | |||
(Income) loss attributable to noncontrolling interest in consolidated entities | 48 | 26 | |||||
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership | 17,671 | 8,579 | |||||
NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY | (84,201 | ) | (38,017 | ) | |||
Preferred dividends | (10,644 | ) | (10,644 | ) | |||
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ | (94,845 | ) | $ | (48,661 | ) | |
INCOME (LOSS) PER SHARE – BASIC AND DILUTED | |||||||
Basic: | |||||||
Net income (loss) attributable to common stockholders | $ | (0.94 | ) | $ | (0.49 | ) | |
Weighted average common shares outstanding – basic | 100,470 | 99,407 | |||||
Diluted: | |||||||
Net income (loss) attributable to common stockholders | $ | (0.94 | ) | $ | (0.49 | ) | |
Weighted average common shares outstanding – diluted | 100,470 | 99,407 | |||||
Dividends declared per common share: | $ | — | $ | 0.12 | |||
6
ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES
RECONCILIATION OF NET INCOME (LOSS) TO EBITDA, EBITDAre AND ADJUSTED EBITDAre
(in thousands)
(unaudited)
Three Months Ended | |||||||
March 31, | |||||||
2020 | 2019 | ||||||
Net income (loss) | $ | (101,920 | ) | $ | (46,622 | ) | |
Interest expense and amortization of premiums and loan costs, net | 57,085 | 66,166 | |||||
Depreciation and amortization | 66,350 | 67,178 | |||||
Income tax expense (benefit) | 303 | (405 | ) | ||||
Equity in (earnings) loss of unconsolidated entities | 79 | 1,063 | |||||
Company's portion of EBITDA of Ashford Inc. | — | 1,874 | |||||
Company's portion of EBITDA of OpenKey | (78 | ) | (115 | ) | |||
EBITDA | 21,819 | 89,139 | |||||
Impairment charges on real estate | 27,613 | — | |||||
(Gain) loss on sale of assets and hotel properties | (3,623 | ) | (233 | ) | |||
EBITDAre | 45,809 | 88,906 | |||||
Amortization of unfavorable contract liabilities | 49 | (39 | ) | ||||
(Gain) loss on insurance settlements | — | (36 | ) | ||||
Write-off of premiums, loan costs and exit fees | 95 | 2,062 | |||||
Other (income) expense, net | (1,491 | ) | 362 | ||||
Transaction and conversion costs | 741 | 446 | |||||
Legal, advisory and settlement costs | 145 | 417 | |||||
Unrealized (gain) loss on marketable securities | 1,477 | (808 | ) | ||||
Unrealized (gain) loss on derivatives | (4,422 | ) | 2,994 | ||||
Dead deal costs | 101 | 32 | |||||
Non-cash stock/unit-based compensation | 4,906 | 4,590 | |||||
Advisory services incentive fee | — | 636 | |||||
Company's portion of adjustments to EBITDAre of Ashford Inc. | — | 913 | |||||
Company's portion of adjustments to EBITDAre of OpenKey | 6 | 21 | |||||
Adjusted EBITDAre | $ | 47,416 | $ | 100,496 | |||
ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES
RECONCILIATION OF NET INCOME (LOSS) TO FUNDS FROM OPERATIONS (“FFO”) AND ADJUSTED FFO
(in thousands, except per share amounts)
(unaudited)
Three Months Ended | |||||||
March 31, | |||||||
2020 | 2019 | ||||||
Net income (loss) | $ | (101,920 | ) | $ | (46,622 | ) | |
(Income) loss attributable to noncontrolling interest in consolidated entities | 48 | 26 | |||||
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership | 17,671 | 8,579 | |||||
Preferred dividends | (10,644 | ) | (10,644 | ) | |||
Net income (loss) attributable to common stockholders | (94,845 | ) | (48,661 | ) | |||
Depreciation and amortization on real estate | 66,298 | 67,121 | |||||
(Gain) loss on sale of assets and hotel properties | (3,623 | ) | (233 | ) | |||
Net income (loss) attributable to redeemable noncontrolling interests in operating partnership | (17,671 | ) | (8,579 | ) | |||
Equity in (earnings) loss of unconsolidated entities | 79 | 1,063 | |||||
Impairment charges on real estate | 27,613 | — | |||||
Company's portion of FFO of Ashford Inc. | — | (635 | ) | ||||
Company's portion of FFO of OpenKey | (79 | ) | (100 | ) | |||
FFO available to common stockholders and OP unitholders | (22,228 | ) | 9,976 | ||||
Write-off of premiums, loan costs and exit fees | 95 | 2,062 | |||||
(Gain) loss on insurance settlements | — | (36 | ) | ||||
Other (income) expense, net | (1,491 | ) | 362 | ||||
Transaction and conversion costs | 741 | 446 | |||||
Legal, advisory and settlement costs | 145 | 417 | |||||
Unrealized (gain) loss on marketable securities | 1,477 | (808 | ) | ||||
Unrealized (gain) loss on derivatives | (4,422 | ) | 2,994 | ||||
Dead deal costs | 101 | 32 | |||||
Non-cash stock/unit-based compensation | 4,906 | 4,590 | |||||
Amortization of loan costs | 6,580 | 7,256 | |||||
Advisory services incentive fee | — | 636 | |||||
Company's portion of adjustments to FFO of Ashford Inc. | — | 2,441 | |||||
Company's portion of adjustments to FFO of OpenKey | 6 | 22 | |||||
Adjusted FFO available to common stockholders and OP unitholders | $ | (14,090 | ) | $ | 30,390 | ||
Adjusted FFO per diluted share available to common stockholders and OP unitholders | $ | (0.12 | ) | $ | 0.26 | ||
Weighted average diluted shares | 120,096 | 118,287 | |||||
7
ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES
SUMMARY OF INDEBTEDNESS
MARCH 31, 2020
(dollars in thousands)
(unaudited)
Indebtedness | Maturity | Interest Rate | Fixed-Rate Debt | Floating-Rate Debt | Total Debt | |||||||||||
BAML Highland Pool - 19 hotels | April 2020 | LIBOR + 3.20% | $ | — | $ | 907,030 | (1) | $ | 907,030 | |||||||
KEYS Pool A - 7 hotels | June 2020 | LIBOR + 3.65% | — | 180,720 | (2) | 180,720 | ||||||||||
KEYS Pool B - 7 hotels | June 2020 | LIBOR + 3.39% | — | 174,400 | (2) | 174,400 | ||||||||||
KEYS Pool C - 5 hotels | June 2020 | LIBOR + 3.73% | — | 221,040 | (2) | 221,040 | ||||||||||
KEYS Pool D - 5 hotels | June 2020 | LIBOR + 4.02% | — | 262,640 | (2) | 262,640 | ||||||||||
KEYS Pool E - 5 hotels | June 2020 | LIBOR + 2.73% | — | 160,000 | (2) | 160,000 | ||||||||||
KEYS Pool F - 5 hotels | June 2020 | LIBOR + 3.68% | — | 215,120 | (2) | 215,120 | ||||||||||
Morgan Stanley Ann Arbor - 1 hotel | July 2020 | LIBOR + 4.40% | — | 35,200 | (3) | 35,200 | ||||||||||
Morgan Stanley - 8 hotels | July 2020 | LIBOR + 4.33% | — | 144,000 | (3) | 144,000 | ||||||||||
GACC Gateway - 1 hotel | November 2020 | 6.26% | 91,046 | — | 91,046 | |||||||||||
JPMorgan Chase La Posada - 1 hotel | November 2020 | LIBOR + 2.55% | — | 25,000 | (4) | 25,000 | ||||||||||
Morgan Stanley Pool - 17 hotels | November 2020 | LIBOR + 3.00% | — | 419,000 | (5) | 419,000 | ||||||||||
JPMorgan Chase - 8 hotels | February 2021 | LIBOR + 2.92% | — | 395,000 | (6) | 395,000 | ||||||||||
BAML Princeton/Nashville - 2 hotels | March 2021 | LIBOR + 2.75% | — | 240,000 | (2) | 240,000 | ||||||||||
SPT Embassy Suites New York Manhattan Times Square - 1 hotel | February 2022 | LIBOR + 3.90% | — | 145,000 | (7) | 145,000 | ||||||||||
Prudential Boston Back Bay - 1 hotel | November 2022 | LIBOR + 2.00% | — | 97,000 | 97,000 | |||||||||||
BAML Indigo Atlanta - 1 hotel | December 2022 | LIBOR + 2.25% | — | 16,100 | (7) | 16,100 | ||||||||||
Aareal Le Pavillon - 1 hotel | January 2023 | LIBOR + 3.40% | — | 37,000 | (7) | 37,000 | ||||||||||
Deutsche Bank W Minneapolis - 1 hotel | May 2023 | 5.46% | 51,582 | — | 51,582 | |||||||||||
Aareal Hilton Alexandria - 1 hotel | June 2023 | LIBOR + 2.45% | — | 73,450 | 73,450 | |||||||||||
GACC Manchester RI - 1 hotel | January 2024 | 5.49% | 6,727 | — | 6,727 | |||||||||||
GACC Jacksonville RI - 1 hotel | January 2024 | 5.49% | 9,818 | — | 9,818 | |||||||||||
Key Bank Manchester CY - 1 hotel | May 2024 | 4.99% | 6,260 | — | 6,260 | |||||||||||
Southside Bank Ashton - 1 hotel | June 2024 | LIBOR + 2.00% | — | 8,881 | 8,881 | |||||||||||
Morgan Stanley Pool C1 - 3 hotels | August 2024 | 5.20% | 64,022 | — | 64,022 | |||||||||||
Morgan Stanley Pool C2 - 2 hotels | August 2024 | 4.85% | 11,809 | — | 11,809 | |||||||||||
Morgan Stanley Pool C3 - 3 hotels | August 2024 | 4.90% | 23,611 | — | 23,611 | |||||||||||
BAML Pool 5 - 2 hotels | February 2025 | 4.45% | 19,369 | — | 19,369 | |||||||||||
BAML Pool 3 - 3 hotels | February 2025 | 4.45% | 50,098 | — | 50,098 | |||||||||||
US Bank Hilton Santa Cruz/Scotts Valley - 1 hotel | March 2025 | 4.66% | 24,794 | — | 24,794 | |||||||||||
Total | $ | 359,136 | $ | 3,756,581 | $ | 4,115,717 | ||||||||||
Percentage | 8.7 | % | 91.3 | % | 100.0 | % | ||||||||||
Weighted average interest rate | 5.30 | % | 4.27 | % | 4.36 | % | ||||||||||
All indebtedness is non-recourse.
(1) | This mortgage loan has five one-year extension options, subject to satisfaction of certain conditions. |
(2) | This mortgage loan has five one-year extension options, subject to satisfaction of certain conditions. |
(3) | This mortgage loan has three one-year extension options, subject to satisfaction of certain conditions. The third one-year extension period began in July 2019. |
(4) | This mortgage loan has three one-year extension options, subject to satisfaction of certain conditions. |
(5) | This mortgage loan has five one-year extension options, subject to satisfaction of certain conditions. The first one-year extension period began in November 2019. |
(6) | This mortgage loan has five one-year extension options, subject to satisfaction of certain conditions. The first one-year extension period began in February 2020. |
(7) | This mortgage loan has two one-year extension options, subject to satisfaction of certain conditions. |
8
ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES
INDEBTEDNESS BY MATURITY ASSUMING EXTENSION OPTIONS ARE EXERCISED
MARCH 31, 2020
(dollars in thousands)
(unaudited)
2020 | 2021 | 2022 | 2023 | 2024 | Thereafter | Total | ||||||||||||||||||||||
Morgan Stanley - 8 hotels | $ | 144,000 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 144,000 | ||||||||||||||
Morgan Stanley Ann Arbor - 1 hotel | 35,200 | — | — | — | — | — | 35,200 | |||||||||||||||||||||
GACC Gateway - 1 hotel | 89,886 | — | — | — | — | — | 89,886 | |||||||||||||||||||||
Prudential Boston Back Bay - 1 hotel | — | — | 97,000 | — | — | — | 97,000 | |||||||||||||||||||||
Deutsche Bank W Minneapolis - 1 hotel | — | — | — | 48,182 | — | — | 48,182 | |||||||||||||||||||||
Aareal Hilton Alexandria - 1 hotel | — | — | — | 73,450 | — | — | 73,450 | |||||||||||||||||||||
JPMorgan Chase La Posada - 1 hotel | — | — | — | 25,000 | — | — | 25,000 | |||||||||||||||||||||
GACC Jacksonville RI - 1 hotel | — | — | — | — | 9,036 | — | 9,036 | |||||||||||||||||||||
GACC Manchester RI - 1 hotel | — | — | — | — | 6,191 | — | 6,191 | |||||||||||||||||||||
SPT Embassy Suites New York Manhattan Times Square - 1 hotel | — | — | — | — | 145,000 | — | 145,000 | |||||||||||||||||||||
Key Bank Manchester CY - 1 hotel | — | — | — | — | 5,671 | — | 5,671 | |||||||||||||||||||||
Southside Bank Ashton - 1 hotel | — | — | — | — | 8,881 | — | 8,881 | |||||||||||||||||||||
Morgan Stanley Pool C1 - 3 hotels | — | — | — | — | 58,612 | — | 58,612 | |||||||||||||||||||||
Morgan Stanley Pool C2 - 2 hotels | — | — | — | — | 10,755 | — | 10,755 | |||||||||||||||||||||
Morgan Stanley Pool C3 - 3 hotels | — | — | — | — | 21,522 | — | 21,522 | |||||||||||||||||||||
Morgan Stanley Pool - 17 hotels | — | — | — | — | 419,000 | — | 419,000 | |||||||||||||||||||||
BAML Indigo Atlanta - 1 hotel | — | — | — | — | 15,781 | — | 15,781 | |||||||||||||||||||||
Aareal Le Pavillon - 1 hotel | — | — | — | — | — | 36,200 | 36,200 | |||||||||||||||||||||
JPMorgan Chase - 8 hotels | — | — | — | — | — | 395,000 | 395,000 | |||||||||||||||||||||
BAML Pool 3 - 3 hotels | — | — | — | — | — | 44,413 | 44,413 | |||||||||||||||||||||
BAML Pool 5 - 2 hotels | — | — | — | — | — | 17,073 | 17,073 | |||||||||||||||||||||
US Bank Hilton Santa Cruz/Scotts Valley - 1 hotel | — | — | — | — | — | 22,030 | 22,030 | |||||||||||||||||||||
BAML Highland Pool - 19 hotels | — | — | — | — | — | 907,030 | 907,030 | |||||||||||||||||||||
KEYS Pool A - 7 hotels | — | — | — | — | — | 180,720 | 180,720 | |||||||||||||||||||||
KEYS Pool B - 7 hotels | — | — | — | — | — | 174,400 | 174,400 | |||||||||||||||||||||
KEYS Pool C - 5 hotels | — | — | — | — | — | 221,040 | 221,040 | |||||||||||||||||||||
KEYS Pool D - 5 hotels | — | — | — | — | — | 262,640 | 262,640 | |||||||||||||||||||||
KEYS Pool E - 5 hotels | — | — | — | — | — | 160,000 | 160,000 | |||||||||||||||||||||
KEYS Pool F - 5 hotels | — | — | — | — | — | 215,120 | 215,120 | |||||||||||||||||||||
BAML Princeton/Nashville - 2 hotels | — | — | — | — | — | 240,000 | 240,000 | |||||||||||||||||||||
Principal due in future periods | 269,086 | — | 97,000 | 146,632 | 700,449 | 2,875,666 | 4,088,833 | |||||||||||||||||||||
Scheduled amortization payments remaining | 5,078 | 5,485 | 5,767 | 5,402 | 4,850 | 302 | 26,884 | |||||||||||||||||||||
Total indebtedness | $ | 274,164 | $ | 5,485 | $ | 102,767 | $ | 152,034 | $ | 705,299 | $ | 2,875,968 | $ | 4,115,717 | ||||||||||||||
9
ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES
KEY PERFORMANCE INDICATORS
(unaudited)
ALL HOTELS: | ||||||||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||||||||
Actual | Non-comparable Adjustments | Comparable | Actual | Non-comparable Adjustments | Comparable | Actual | Comparable | |||||||||||||||||||||||
2020 | 2020 | 2020 | 2019 | 2019 | 2019 | % Variance | % Variance | |||||||||||||||||||||||
Rooms revenue (in thousands) | $ | 214,776 | $ | (490 | ) | $ | 214,286 | $ | 279,196 | $ | (4,382 | ) | $ | 274,814 | (23.07 | )% | (22.03 | )% | ||||||||||||
RevPAR | $ | 94.81 | $ | (36.61 | ) | $ | 95.16 | $ | 122.16 | $ | 74.91 | $ | 123.41 | (22.39 | )% | (22.89 | )% | |||||||||||||
Occupancy | 58.45 | % | (37.06 | )% | 58.58 | % | 72.85 | % | 65.38 | % | 73.04 | % | (19.77 | )% | (19.81 | )% | ||||||||||||||
ADR | $ | 162.21 | $ | (98.80 | ) | $ | 162.45 | $ | 167.70 | $ | 114.58 | $ | 168.95 | (3.27 | )% | (3.84 | )% | |||||||||||||
NOTES:
(1) | The above comparable information assumes the 116 hotel properties owned and included in the Company’s operations at March 31, 2020, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period. |
(2) | All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition. |
(3) | The above information does not reflect the operations of Orlando WorldQuest Resort. |
10
ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES
HOTEL EBITDA
(dollars in thousands)
(unaudited)
ALL HOTELS: | Three Months Ended | |||||||||
March 31, | ||||||||||
2020 | 2019 | % Variance | ||||||||
Total hotel revenue | $ | 279,703 | $ | 356,052 | (21.44 | )% | ||||
Non-comparable adjustments | (649 | ) | (5,864 | ) | ||||||
Comparable total hotel revenue | $ | 279,054 | $ | 350,188 | (20.31 | )% | ||||
Hotel EBITDA | $ | 65,789 | $ | 111,909 | (41.21 | )% | ||||
Non-comparable adjustments | 254 | (1,622 | ) | |||||||
Comparable hotel EBITDA | $ | 66,043 | $ | 110,287 | (40.12 | )% | ||||
Hotel EBITDA margin | 23.52 | % | 31.43 | % | (7.91 | )% | ||||
Comparable hotel EBITDA margin | 23.67 | % | 31.49 | % | (7.82 | )% | ||||
Hotel EBITDA adjustments attributable to consolidated noncontrolling interests | $ | 37 | $ | 60 | (38.33 | )% | ||||
Hotel EBITDA attributable to the Company and OP unitholders | $ | 65,752 | $ | 111,849 | (41.21 | )% | ||||
Comparable hotel EBITDA attributable to the Company and OP unitholders | $ | 66,006 | $ | 110,227 | (40.12 | )% | ||||
NOTES:
(1) | The above comparable information assumes the 116 hotel properties owned and included in the Company’s operations at March 31, 2020, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period. |
(2) | All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition. |
(3) | The above information does not reflect the operations of Orlando WorldQuest Resort. |
(4) | See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA. |
11
Exhibit 1
ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES
RECONCILIATION OF NET INCOME (LOSS) TO HOTEL EBITDA
(in thousands)
(unaudited)
Three Months Ended March 31, 2020 | ||||||||||||||||
Hotel Total | Orlando WorldQuest Resort | Corporate / Allocated | Ashford Hospitality Trust, Inc. | |||||||||||||
Net income (loss) | $ | (35,819 | ) | $ | 120 | $ | (66,221 | ) | $ | (101,920 | ) | |||||
Non-property adjustments | 23,990 | — | (23,990 | ) | — | |||||||||||
Interest income | (37 | ) | — | 37 | — | |||||||||||
Interest expense | 4,843 | — | 45,660 | 50,503 | ||||||||||||
Amortization of loan cost | 553 | — | 6,029 | 6,582 | ||||||||||||
Depreciation and amortization | 66,139 | 162 | 49 | 66,350 | ||||||||||||
Income tax expense (benefit) | 19 | — | 284 | 303 | ||||||||||||
Non-hotel EBITDA ownership expense | 6,102 | 17 | (6,119 | ) | — | |||||||||||
Hotel EBITDA including amounts attributable to noncontrolling interest | 65,790 | 299 | (44,271 | ) | 21,818 | |||||||||||
Less: EBITDA adjustments attributable to consolidated noncontrolling interest | (37 | ) | — | 37 | — | |||||||||||
Equity in (earnings) loss of unconsolidated entities | — | — | 79 | 79 | ||||||||||||
Company's portion of EBITDA of OpenKey | — | — | (78 | ) | (78 | ) | ||||||||||
Hotel EBITDA attributable to the Company and OP unitholders | $ | 65,753 | $ | 299 | $ | (44,233 | ) | $ | 21,819 | |||||||
Non-comparable adjustments | 253 | |||||||||||||||
Comparable hotel EBITDA | $ | 66,043 | ||||||||||||||
NOTES:
(1) | The above comparable information assumes the 116 hotel properties owned and included in the Company’s operations at March 31, 2020, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period. |
(2) | All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition. |
12
Exhibit 1
ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES
RECONCILIATION OF NET INCOME (LOSS) TO HOTEL EBITDA
(in thousands)
(unaudited)
Three Months Ended March 31, 2019 | |||||||||||||||
Hotel Total | Orlando WorldQuest Resort | Corporate / Allocated | Ashford Hospitality Trust, Inc. | ||||||||||||
Net income (loss) | $ | 38,235 | $ | 269 | $ | (85,126 | ) | $ | (46,622 | ) | |||||
Non-property adjustments | (268 | ) | — | 268 | — | ||||||||||
Interest income | (76 | ) | — | 76 | — | ||||||||||
Interest expense | 4,423 | — | 54,485 | 58,908 | |||||||||||
Amortization of loan cost | 424 | — | 6,834 | 7,258 | |||||||||||
Depreciation and amortization | 66,987 | 142 | 49 | 67,178 | |||||||||||
Income tax expense (benefit) | 43 | — | (448 | ) | (405 | ) | |||||||||
Non-hotel EBITDA ownership expense | 2,141 | 9 | (2,150 | ) | — | ||||||||||
Hotel EBITDA including amounts attributable to noncontrolling interest | 111,909 | 420 | (26,012 | ) | 86,317 | ||||||||||
Less: EBITDA adjustments attributable to consolidated noncontrolling interest | (60 | ) | — | 60 | — | ||||||||||
Equity in (earnings) loss of unconsolidated entities | — | — | 1,063 | 1,063 | |||||||||||
Company's portion of EBITDA of Ashford Inc. | — | — | 1,874 | 1,874 | |||||||||||
Company's portion of EBITDA of OpenKey | — | — | (115 | ) | (115 | ) | |||||||||
Hotel EBITDA attributable to the Company and OP unitholders | $ | 111,849 | $ | 420 | $ | (23,130 | ) | $ | 89,139 | ||||||
Non-comparable adjustments | (1,622 | ) | |||||||||||||
Comparable hotel EBITDA | $ | 110,287 | |||||||||||||
NOTES:
(1) | The above comparable information assumes the 116 hotel properties owned and included in the Company’s operations at March 31, 2020, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period. |
(2) | All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition. |
13