Press Release

Ashford Trust Reports Third Quarter 2014 Results

12.4% RevPAR Increase for All Hotels for the Third Quarter

Pro Forma Hotel EBITDA Increased 18.1% over the Prior Year

Company Release - 10/30/2014 4:05 PM ET

DALLAS, Oct. 30, 2014 /PRNewswire/ -- Ashford Hospitality Trust, Inc. (NYSE: AHT) ("the Company" or "Ashford Trust") today reported financial results and performance measures for the third quarter ended September 30, 2014.  Prior to the third quarter of 2013, the Company reported its Legacy Portfolio and Highland Hospitality Portfolio pro forma hotel operating statistics separately.  In the third quarter 2013, the Company changed its reporting format and now combines the pro forma hotel operating statistics for its Legacy Portfolio and Ashford Trust's pro rata share of the Highland Hospitality Portfolio as the Ashford Trust Portfolio.  The performance measurements for Occupancy, Average Daily Rate (ADR), Revenue Per Available Room (RevPAR), and Hotel Operating Profit (or Hotel EBITDA) are pro forma.  Unless otherwise stated, all reported results compare the third quarter ended September 30, 2014, with the third quarter ended September 30, 2013 (see discussion below).  The reconciliation of non-GAAP financial measures is included in the financial tables accompanying this press release.

FINANCIAL AND OPERATING HIGHLIGHTS

  • RevPAR for the Ashford Trust Portfolio hotels increased 12.4% during the quarter
  • RevPAR for all Ashford Trust Portfolio hotels not under renovation increased 12.9% during the quarter
  • Hotel EBITDA increased 18.1% for all Ashford Trust Portfolio hotels
  • Hotel EBITDA flow-through was 48.2% for all Ashford Trust Portfolio hotels
  • Net loss attributable to common shareholders for the Company was $22.0 million, or $0.24 per diluted share, compared with net loss attributable to common shareholders of $24.8 million, or $0.31 per diluted share, in the prior-year quarter
  • Adjusted funds from operations (AFFO) for the Company was $0.25 per diluted share for the quarter as compared with $0.25 from the prior-year quarter
    • The prior year results include the operations of the Ashford Prime portfolio
  • On July 18, 2014, the Company closed on the $8.0 million acquisition of the 39-room Ashton Hotel in Fort Worth, TX
  • On July 28, 2014, the Company announced it had refinanced three mortgage loans with an outstanding balance of $325 million with new loans totaling $469 million resulting in approximately $104 million of excess proceeds after reserves and closing costs; the refinancing also unencumbered two hotels
  • On August 6, 2014, the Company closed on the $50.0 million acquisition of the 357-room Fremont Marriott Silicon Valley
  • At the end of the third quarter 2014, the Company had total net working capital of $547 million, including its pro rata share of the Highland Hospitality Portfolio net working capital and the market value of its OP Units in Ashford Prime

CAPITAL EXPENDITURES

  • Capex invested in the quarter for the Ashford Trust Portfolio was $41.3 million

CAPITAL STRUCTURE
At September 30, 2014, the Company had total assets of $2.9 billion in continuing operations, and $3.9 billion overall including the Highland Hospitality Portfolio which is not consolidated.  As of September 30, 2014, the Company had $2.0 billion of mortgage debt in continuing operations and $2.8 billion overall including the Highland Hospitality Portfolio.  Ashford Trust's total combined debt had a blended average interest rate of 5.3%.

On July 18, 2014, the Company closed on the acquisition of the 39-room Ashton Hotel in Fort Worth, Texas for $8.0 million.  The Ashton Hotel is a luxury, boutique hotel located in downtown Fort Worth, two blocks from the Company's Hilton Fort Worth.  The Company's affiliated property management company, Remington Lodging, took over management of the hotel at closing and will complex the executive staff with the Hilton.  During 2013, the Ashton Hotel achieved occupancy of 70% with an Average Daily Rate of $213.  The Company financed the hotel with a non-recourse, $5.5 million loan with a term of five years. 

On July 28, 2014, the Company announced it had successfully refinanced three mortgage loans with an outstanding balance of approximately $325 million.  The three previous mortgage loans that were refinanced include: the $135 million J.P. Morgan Floater loan; the $101 million UBS 1 loan; and the $89 million Merrill Lynch 3 loan.  The new loans total $469 million and include a $301 million loan with a two-year initial term and three one-year extension options that bears interest at a floating rate of LIBOR + 4.35%; a $62.9 million loan with a two-year initial term and three one-year extension options that bears interest at a floating rate of LIBOR + 4.35%; a $67.52 million loan with a ten-year term that bears interest at a fixed rate of 5.20%; a $12.5 million loan with a ten-year term that bears interest at a fixed rate of 4.85%; and a $24.98 million loan with a ten-year term that bears interest at a fixed rate of 4.90%.  In total, the refinancing resulted in excess net proceeds, after closing costs and capital expenditure reserves, of approximately $104 million, and unencumbered two hotels.

On August 6, 2014, the Company closed on its acquisition of the 357-room Fremont Marriott Silicon Valley hotel at a purchase price of $50.0 million.  On a forward 12-month basis, the purchase price represents an estimated cap rate of 8.1% on net operating income, which equates to an expected 10.0x forward EBITDA multiple.  Located in the vibrant Silicon Valley submarket of the Bay Area in Northern California, the hotel features approximately 15,000 square feet of meeting space spread across 19 flexible meeting areas.  The Company financed the property with a $37.5 million non-recourse mortgage loan.  The loan has a term of two years with three one-year extension options and bears interest at a floating rate of LIBOR + 4.20%.  At closing, the management of the property was transferred to Remington Lodging. 

PORTFOLIO REVPAR
As of September 30, 2014, the Ashford Trust Portfolio consisted of direct hotel investments with 116 properties classified in continuing operations.  During the third quarter of 2014, 110 of the Ashford Trust Portfolio hotels included in continuing operations were not under renovation.  The Company believes reporting its operating metrics for the Ashford Trust Portfolio hotels in continuing operations on a pro forma total basis (all 116 hotels) and pro forma not under renovation basis (110 hotels) is a measure that reflects a meaningful and focused comparison of the operating results in its portfolio.  Details of each category are provided in the tables attached to this release.

  • Pro forma RevPAR increased 12.4% to $108.42 for all hotels in the Ashford Trust Portfolio on a 6.4% increase in ADR and a 5.6% increase in occupancy
  • Pro forma RevPAR increased 12.9% to $109.71 for hotels not under renovation in the Ashford Trust Portfolio on a 6.5% increase in ADR and a 6.1% increase in occupancy

HOTEL EBITDA MARGINS AND QUARTERLY SEASONALITY TRENDS
The Company 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 Hotel EBITDA and Hotel EBITDA Margin for the current and certain prior-year periods based upon the number of hotels in the Ashford Trust Portfolio, including its pro-rata share of the Highland Hospitality 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 Pro forma Hotel EBITDA and Pro forma Hotel EBITDA margin.  The details of the quarterly calculations for the previous four quarters for the 116 Ashford Trust Portfolio hotels are provided in the table attached to this release.

ASHFORD, INC. SPIN-OFF
As previously disclosed on February 27, 2014, Ashford Trust's Board of Directors unanimously approved a plan to spin-off its asset management business into a separate publicly traded company in the form of a taxable distribution.  The distribution will be comprised of common stock in Ashford, Inc. ("Ashford Inc."), a newly formed or successor company of the Company's existing advisor subsidiary, Ashford Hospitality Advisors LLC, which currently advises Ashford Hospitality Prime, Inc. (NYSE: AHP) ("Ashford Prime").  This distribution is currently anticipated to be declared sometime during November of 2014; however, it remains subject to the approval of the listing of shares by the NYSE MKT Exchange and other legal requirements.  The Company cannot be certain this distribution will proceed or proceed in the manner as currently anticipated.  Ashford Inc. has filed an application to list its shares of common stock on the NYSE MKT Exchange, under the symbol "AINC."  For additional information, please refer to the registration statement on Form S-4 of Ashford Inc., as declared effective by the SEC on October 7, 2014, and the information statement included in the Form 10, filed with the SEC on October 3, 2014.

COMMON STOCK DIVIDEND
On September 15, 2014, the Company announced that its Board of Directors had declared a quarterly cash dividend of $0.12 per diluted share for the Company's common stock for the third quarter ending September 30, 2014, payable on October 15, 2014, to shareholders of record as of September 30, 2014.

"Our hotel assets generated outstanding performance this past quarter as our RevPAR and EBITDA growth demonstrates.  In fact, the Hotel EBITDA growth in the third quarter for our two most recent acquisitions, the Ashton Hotel and the Fremont Marriott Silicon Valley was 301% and 63%, respectively.  At the same time, we completed several value-enhancing transactions for our shareholders including those two hotel acquisitions and three loan refinancings that resulted in significant excess proceeds," commented Monty J. Bennett, Ashford Trust's Chairman and Chief Executive Officer.  "Our portfolio continues to outperform as our team constantly explores new avenues to unlock further value from our existing assets while also utilizing current market conditions to seek out differentiated investments in the lodging sector.  This is a mainstay of Ashford Trust's strategy and has served us well throughout the years in delivering substantial returns for our shareholders."

INVESTOR CONFERENCE CALL AND SIMULCAST
Ashford Hospitality Trust, Inc. will conduct a conference call on Friday, October 31, 2014, at 11:00 a.m. ET.  The number to call for this interactive teleconference is (913) 312-0827.  A replay of the conference call will be available through Friday, November 7, 2014, by dialing (719) 457-0820 and entering the confirmation number, 2125268.

The Company will also provide an online simulcast and rebroadcast of its third quarter 2014 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 Friday, October 31, 2014, beginning at 11:00 a.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, and Hotel Operating Profit.  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, nor Hotel Operating Profit 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, and Hotel Operating Profit 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 real estate investment trust (REIT) focused on investing opportunistically in the hospitality industry across all segments and at all levels of the capital structure primarily within the United States. 

Follow Chairman and CEO Monty Bennett on Twitter at www.twitter.com/MBennettAshford or @MBennettAshford. 

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 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 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:  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; the degree and nature of our competition; and the satisfaction of conditions to, or the completion of, the proposed spin-off of Ashford Inc.  These and other risk factors are more fully discussed in Ashford Trust'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.  Hotel EBITDA flow-through is the change in Hotel EBITDA divided by the change in total revenues.  Hotel EBITDA Margin is Hotel EBITDA divided by total 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 of 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,






2014


2013






 (unaudited) 

ASSETS





Cash and cash equivalents

$         280,574


$        128,780


Marketable securities

44,273


29,601



Total cash, cash equivalents and marketable securities

324,847


158,381


Investments in hotel properties, net

2,143,642


2,164,389


Restricted cash

107,356


61,498


Accounts receivable, net of allowance of $274 and $242, respectively

29,153


21,791


Inventories

2,118


1,946


Notes receivable, net of allowance of $7,627 and $7,937, respectively

3,509


3,384


Investment in Highland Hospitality

145,405


139,302


Investment in Ashford Prime OP

55,589


56,243


Deferred costs, net

14,453


10,155


Prepaid expenses

11,151


7,519


Derivative assets

413


19


Other assets

4,674


4,303


Due from Ashford Prime, net

3,815


13,042


Due from affiliates

1,748


1,302


Due from related parties

1,200


-


Due from third-party hotel managers

14,635


33,728











Total assets

$      2,863,708


$     2,677,002









LIABILITIES AND EQUITY




Liabilities:





Indebtedness

$      1,959,608


$     1,818,929


Capital leases payable

-


28


Accounts payable and accrued expenses

93,536


70,683


Dividends payable

21,889


20,735


Unfavorable management contract liabilities

5,824


7,306


Due to related party

1,461


270


Due to third-party hotel managers

1,629


958


Liabilities associated with marketable securities and other

4,302


3,764


Other liabilities

5,103


1,286











Total liabilities

2,093,352


1,923,959









Redeemable noncontrolling interests in operating partnership

177,743


134,206









Equity:







Preferred stock, $0.01 par value, 50,000,000 shares authorized - Series A Cumulative Preferred Stock, 1,657,206 shares issued and outstanding at September 30, 2014 and December 31, 2013











17


17



Series D Cumulative Preferred Stock, 9,468,706 shares issued and outstanding at September 30, 2014 and December 31, 2013






95


95



Series E Cumulative Preferred Stock, 4,630,000 shares issued and outstanding at September 30, 2014 and December 31, 2013






46


46



Common stock, $0.01 par value, 200,000,000 shares authorized, 124,896,765 shares issued, 89,449,342 and 80,565,563 shares outstanding, respectively 






1,249


1,249



Additional paid-in capital

1,729,338


1,652,743



Accumulated other comprehensive loss

(110)


(197)



Accumulated deficit

(1,013,529)


(896,110)



Treasury stock, at cost (35,447,423 shares and 44,331,202 shares, respectively)

(125,700)


(140,054)




Total shareholders' equity of the Company

591,406


617,789


Noncontrolling interests in consolidated entities

1,207


1,048











Total equity

592,613


618,837












Total liabilities and equity

$      2,863,708


$     2,677,002

 

 

ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)










 Three Months Ended 


 Nine Months Ended 





 September 30, 


 September 30, 





2014


2013


2014


2013





 (unaudited) 


 (unaudited) 

REVENUE









Rooms

$ 165,623


$ 197,067


$ 491,542


$ 586,276


Food and beverage

25,268


34,444


82,521


117,328


Other

7,055


10,364


20,088


28,509














Total hotel revenue

197,946


241,875


594,151


732,113


Advisory services

3,127


-


9,266


-


Other

1,072


149


3,213


392














Total revenue

202,145


242,024


606,630


732,505












EXPENSES









Hotel operating expenses










Rooms

37,547


45,079


108,640


132,310



Food and beverage

18,628


25,860


57,330


80,651



Other expenses

64,349


74,275


195,469


215,923



Management fees 

7,838


9,888


23,734


30,467















Total hotel operating expenses

128,362


155,102


385,173


459,351













Property taxes, insurance and other

10,451


12,474


29,052


36,385


Depreciation and amortization

28,421


32,777


81,262


98,099


Impairment charges

(105)


(101)


(310)


(296)


Transaction costs

533


126


616


1,296


Corporate, general and administrative:










Non-cash stock/unit-based compensation

4,734


4,156


16,964


17,049



Other general and administrative

10,370


9,309


30,326


25,631















Total operating expenses

182,766


213,843


543,083


637,515












OPERATING INCOME

19,379


28,181


63,547


94,990













Equity in earnings (loss) of unconsolidated entities

2,831


(10,105)


6,794


(14,626)


Interest income

27


12


45


61


Other income

2,564


314


5,841


6,446


Interest expense

(27,469)


(34,679)


(80,348)


(102,300)


Amortization of loan costs

(1,980)


(1,946)


(5,548)


(5,731)


Write-off of loan costs and exit fees

(8,319)


-


(10,353)


(1,971)


Unrealized gain (loss) on marketable securities

(2,875)


257


(3,818)


2,039


Unrealized loss on derivatives

(70)


(817)


(680)


(7,177)












LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

(15,912)


(18,783)


(24,520)


(28,269)


Income tax expense

(292)


(619)


(820)


(1,688)












LOSS FROM CONTINUING OPERATIONS

(16,204)


(19,402)


(25,340)


(29,957)


Gain on sale of hotel property, net of tax

-


-


3,491


-












NET LOSS

(16,204)


(19,402)


(21,849)


(29,957)

Loss from consolidated entities attributable to noncontrolling interests

124


175


146


890

Net loss attributable to redeemable noncontrolling interests in operating partnership

2,585


2,892


4,234


5,152












NET LOSS ATTRIBUTABLE TO THE COMPANY

(13,495)


(16,335)


(17,469)


(23,915)

Preferred dividends

(8,490)


(8,490)


(25,471)


(25,471)












NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS

$ (21,985)


$ (24,825)


$ (42,940)


$ (49,386)












LOSS PER SHARE – BASIC AND DILUTED









Basic:










Net loss attributable to common shareholders

$     (0.24)


$     (0.31)


$     (0.50)


$     (0.69)














Weighted average common shares outstanding – basic

90,322


79,898


86,961


72,068













Diluted:










Net loss attributable to common shareholders

$     (0.24)


$     (0.31)


$     (0.50)


$     (0.69)














Weighted average common shares outstanding – diluted

90,322


79,898


86,961


72,068













Dividends declared per common share:

$       0.12


$       0.12


$       0.36


$       0.36












Amounts attributable to common shareholders:









Net loss attributable to the Company

$ (13,495)


$ (16,335)


$ (17,469)


$ (23,915)


Preferred dividends

(8,490)


(8,490)


(25,471)


(25,471)














Net loss attributable to common shareholders

$ (21,985)


$ (24,825)


$ (42,940)


$ (49,386)

 

 

 ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES 

 RECONCILIATION OF NET LOSS TO EBITDA 

 (in thousands) 

 (unaudited) 





 Three Months Ended 


 Nine Months Ended 




 September 30, 


 September 30, 




2014


2013


2014


2013











 Net loss 

$      (16,204)


$    (19,402)


$    (21,849)


$    (29,957)

 Loss from consolidated entities attributable to noncontrolling interests

124


175


146


890

 Net loss attributable to redeemable noncontrolling interests in operating partnership

2,585


2,892


4,234


5,152

 Net loss attributable to the Company 

(13,495)


(16,335)


(17,469)


(23,915)












 Interest income 

(27)


(12)


(45)


(60)


 Interest expense and amortization of loan costs 

29,419


36,120


85,800


106,621


 Depreciation and amortization  

28,380


31,952


81,144


95,618


 Income tax expense 

292


619


832


1,688


 Net loss attributable to redeemable noncontrolling interests in operating partnership 

(2,585)


(2,892)


(4,234)


(5,152)


 Equity in (earnings) loss of unconsolidated entities 

(2,831)


10,105


(6,794)


14,626


 Company's portion of EBITDA of unconsolidated entities (Ashford Prime OP) 

3,524


-


9,148


-


 Company's portion of EBITDA of unconsolidated entities (Highland) 

24,240


19,262


73,642


63,398











 EBITDA 

66,917


78,819


222,024


252,824












 Amortization of unfavorable management contract liabilities 

(493)


(533)


(1,481)


(1,730)


 Impairment charges 

(105)


(101)


(310)


(296)


 Gain on sale of hotel property 

-


-


(3,503)


-


 Write-off of loan costs and exit fees 

8,319


-


10,353


1,971


 Other income (1) 

(2,564)


(314)


(5,841)


(6,446)


 Transaction, acquisition and management conversion costs 

533


326


616


1,626


 Transaction costs related to spin-offs 

1,370


2,587


2,557


6,442


 Software implementation costs 

20


-


275


-


 Legal judgment 

683


-


11,483


-


 Unrealized (gain) loss on marketable securities 

2,875


(257)


3,818


(2,039)


 Unrealized loss on derivatives 

70


817


680


7,177


 Compensation adjustment related to modified employment terms 

-


-


2,997


-


 Non-cash stock/unit-based compensation

4,734


4,156


14,727


17,049


 Company's portion of adjustments to EBITDA of unconsolidated entities (Ashford Prime OP) 

64


-


554


-


 Company's portion of adjustments to EBITDA of unconsolidated entities (Highland) 

-


2


(513)


24











 Adjusted EBITDA 

$        82,423


$      85,502


$    258,436


$    276,602











(1)

Other income, primarily consisting of income from interest rate derivatives and net realized gain/loss on marketable securities in both periods, is excluded from Adjusted EBITDA.  






























 RECONCILIATION OF NET LOSS TO FUNDS FROM OPERATIONS ("FFO") 

 (in thousands, except per share amounts) 

 (unaudited) 














 Three Months Ended 


 Nine Months Ended 




 September 30, 


 September 30, 




2014


2013


2014


2013











 Net loss 


$      (16,204)


$    (19,402)


$    (21,849)


$    (29,957)

  Loss from consolidated entities attributable to noncontrolling interests 

124


175


146


890

  Net loss attributable to redeemable noncontrolling interests in operating partnership 

2,585


2,892


4,234


5,152

  Preferred dividends 

(8,490)


(8,490)


(25,471)


(25,471)











 Net loss attributable to common shareholders 

(21,985)


(24,825)


(42,940)


(49,386)












 Depreciation and amortization on real estate 

28,295


31,842


80,882


95,304


 Gain on sale of hotel property 

-


-


(3,503)


-


 Net loss attributable to redeemable noncontrolling interests in operating partnership 

(2,585)


(2,892)


(4,234)


(5,152)


 Equity in (earnings) loss of unconsolidated entities 

(2,831)


10,105


(6,794)


14,626


 Company's portion of FFO of unconsolidated entities (Ashford Prime OP) 

2,093


-


4,864


-


 Company's portion of FFO of unconsolidated entities (Highland) 

12,966


6,991


39,438


27,245











 FFO available to common shareholders 

15,953


21,221


67,713


82,637












 Write-off of loan costs and exit fees 

8,319


-


10,353


1,971


 Impairment charges 

(105)


(101)


(310)


(296)


 Other income (1) 

(2,564)


(314)


(5,841)


(231)


 Legal judgment 

683


-


11,483


-


 Transaction, acquisition and management conversion costs 

533


326


616


1,626


 Transaction costs related to spin-offs 

1,370


2,587


2,557


6,442


 Unrealized (gain) loss on marketable securities 

2,875


(257)


3,818


(2,039)


 Unrealized loss on derivatives 

70


817


680


7,177


 Software implementation costs 

20


-


275


-


 Compensation adjustment related to modified employment terms 

-


-


2,997


-


 Equity-based compensation adjustment related to modified employment terms 

-


-


-


4,678


 Company's portion of adjustments to FFO of unconsolidated entities (Ashford Prime OP) 

6


-


394


-


 Company's portion of adjustments to FFO of unconsolidated entities (Highland) 

-


2


(513)


24











 Adjusted FFO available to common shareholders 

$        27,160


$      24,281


$      94,222


$    101,989











 Adjusted FFO per diluted share available to common shareholders 

$            0.25


$          0.25


$          0.88


$          1.12











 Weighted average diluted shares 

110,396


98,982


106,797


90,800











(1)

Other income, primarily consisting of net realized gain/loss on marketable securities in both periods, is excluded from Adjusted FFO.  

 

 

ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

ASHFORD TRUST (INCLUDING 71.74% PRO RATA SHARE OF HIGHLAND HOSPITALITY PORTFOLIO)

SUMMARY OF INDEBTEDNESS

SEPTEMBER 30, 2014

(dollars in thousands)

(unaudited)




























 Proforma 


 Proforma 







 Fixed-Rate 


 Floating-Rate 


 Total 


 TTM Hotel 


 TTM EBITDA 

Indebtedness


Maturity


Interest Rate


 Debt 


 Debt 


 Debt 


 EBITDA 


 Debt Yield 
















 Goldman Sachs - 5 hotels 


November 2014


Greater of 6.40% or LIBOR + 6.15%


$                -


$        211,000

(2)

$         211,000


$          26,587


12.6%

 Wells Senior - 25 hotels 


March 2015


LIBOR + 3.00%


-


380,222

(3)

380,222


73,009


19.2%

 Mezz 1 - 28 hotels 


March 2015


Greater of 7.00% or LIBOR + 6.00%


-


93,206

(3)

93,206


97,858


15.7%

 Mezz 2 - 28 hotels 


March 2015


Greater of 8.00% or LIBOR + 7.00%


-


88,730

(3)

88,730


97,858


13.7%

 Mezz 3 - 28 hotels 


March 2015


Greater of 10.50% or LIBOR + 9.50%


-


76,055

(3)

76,055


97,858


12.4%

 Mezz 4 - 28 hotels 


March 2015


LIBOR + 2.00%


-


13,218

(3)

13,218


97,858


12.2%

 Merrill 1 - 10 hotels 


July 2015


5.22%


146,530


-


146,530


22,686


15.5%

 UBS 2 - 8 hotels 


December 2015


5.70%


93,320


-


93,320


12,826


13.7%

 Merrill 2 - 5 hotels 


February 2016


5.53%


106,032


-


106,032


18,290


17.2%

 Merrill 7 - 5 hotels 


February 2016


5.53%


76,170


-


76,170


12,883


16.9%

 Morgan Stanley MIP - 5 hotels 


February 2016


LIBOR + 4.75%


-


200,000

(1)

200,000


20,505


10.3%

 Morgan Stanley Pool A - 7 hotels 


August 2016


LIBOR + 4.35%


-


301,000

(5)

301,000


29,669


9.9%

 Morgan Stanley Pool B - 5 hotels 


August 2016


LIBOR + 4.35%


-


62,900

(5)

62,900


6,543


10.4%

 JPM Chase - 1 hotel 


August 2016


LIBOR + 4.20%


-


37,500

(5)

37,500


4,481


11.9%

 Wachovia 1 - 5 hotels 


April 2017


5.95%


112,250


-


112,250


14,043


12.5%

 Wachovia 2 - 7 hotels 


April 2017


5.95%


122,801


-


122,801


14,303


11.6%

 Wachovia 5 - 5 hotels 


April 2017


5.95%


100,895


-


100,895


11,973


11.9%

 Wachovia 6 - 5 hotels 


April 2017


5.95%


153,524


-


153,524


16,966


11.1%

 Morgan Stanley Boston Back Bay - 1 hotel 


January 2018


4.38%


71,906


-


71,906


10,141


14.1%

 Morgan Stanley Princeton/Nashville - 2 hotels 


January 2018


4.44%


78,632


-


78,632


14,708


18.7%

 Omni American Bank - 1 hotel 


July 2019


LIBOR + 3.75% (6)


-


5,525


5,525


697


12.6%

 GACC Gateway - 1 hotel 


November 2020


6.26%


100,246


-


100,246


15,449


15.4%

 GACC Jacksonville RI - 1 hotel 


January 2024


5.49%


10,709


-


10,709


1,362


12.7%

 GACC Manchester RI - 1 hotel 


January 2024


5.49%


7,337


-


7,337


1,059


14.4%

 Key Bank Manchester CY - 1 hotel 


May 2024


4.99%


6,869

(4)

-


6,869


941


13.7%

 Morgan Stanley Pool C1 - 3 hotels 


August 2024


5.20%


67,520


-


67,520


7,949


11.8%

 Morgan Stanley Pool C2 - 2 hotels 


August 2024


4.85%


12,500


-


12,500


1,726


13.8%

 Morgan Stanley Pool C3 - 3 hotels 


August 2024


4.90%


24,980


-


24,980


3,091


12.4%

 Unencumbered hotels 






-


-


-


1,509


N/A
















 Total 






$   1,292,221


$     1,469,356


$      2,761,577


$        343,396


12.4%
















 Percentage 






46.8%


53.2%


100.0%




















 Weighted average interest rate 






5.55%


5.14%


5.33%



































All indebtedness is non-recourse.















(1) This mortgage loan has three one-year extension options beginning February 2016, subject to satisfaction of certain conditions.



(2) This mortgage loan has three one-year extension options beginning November 2014, subject to satisfaction of certain conditions.





(3) Each of these loans has a one-year extension option beginning March 2015.

(4) On May 1, 2014, we refinanced our $5.1 million loan due May 2014 with a $6.9 million loan due May 2024 with no extension options.  The new loan provides for a fixed interest rate of 4.99%.





(5) This mortgage loan has three one-year extension options beginning August 2016, subject to satisfaction of certain conditions.

(6) The interest rate on this mortgage loan which closed in July 2014 changes to a 4% fixed rate after 18 months.

 

 

 ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES 


ASHFORD TRUST (INCLUDING 71.74% PRO RATA SHARE OF HIGHLAND HOSPITALITY PORTFOLIO)

 INDEBTEDNESS BY MATURITY ASSUMING EXTENSION OPTIONS ARE EXERCISED 


 SEPTEMBER 30, 2014 


 (in thousands) 


 (unaudited) 

































2014


2015


2016


2017


2018


 Thereafter 


 Total 

















 Merrill 1 - 10 hotels 

$             -


$   142,922


$             -


$             -


$             -


$             -


$        142,922


 UBS 2 - 8 hotels 

-


90,680


-


-


-


-


90,680


 Merrill 2 - 5 hotels 

-


-


101,741


-


-


-


101,741


 Merrill 7 - 5 hotels 

-


-


73,086


-


-


-


73,086


 Wells Senior - 25 hotels 

-


-


380,222


-


-


-


380,222


 Mezz 1 - 28 hotels 

-


-


93,206


-


-


-


93,206


 Mezz 2 - 28 hotels 

-


-


88,730


-


-


-


88,730


 Mezz 3 - 28 hotels 

-


-


76,055


-


-


-


76,055


 Mezz 4 - 28 hotels 

-


-


13,218


-


-


-


13,218


 Wachovia 1 - 5 hotels 

-


-


-


107,351


-


-


107,351


 Wachovia 5 - 5 hotels 

-


-


-


96,492


-


-


96,492


 Wachovia 6 - 5 hotels 

-


-


-


146,823


-


-


146,823


 Wachovia 2 - 7 hotels 

-


-


-


117,441


-


-


117,441


 Goldman Sachs - 5 hotels 

-


-


-


211,000


-


-


211,000


 Morgan Stanley Boston Back Bay - 1 hotel 

-


-


-


-


67,358


-


67,358


 Morgan Stanley Princeton/Nashville - 2 hotels 

-


-


-


-


73,703


-


73,703


 GACC Gateway - 1 hotel 

-


-


-


-


-


89,886


89,886


 GACC Jacksonville RI - 1 hotel 

-


-


-


-


-


9,036


9,036


 GACC Manchester RI - 1 hotel 

-


-


-


-


-


6,191


6,191


 Morgan Stanley MIP - 5 hotels 

-


-


-


-


-


200,000


200,000


 Key Bank Manchester CY - 1 hotel 

-


-


-


-


-


5,671


5,671


 Morgan Stanley Pool A - 7 hotels 

-


-


-


-


-


301,000


301,000


 Morgan Stanley Pool B - 5 hotels 

-


-


-


-


-


62,900


62,900


 Morgan Stanley Pool C - 8 hotels 

-


-


-


-


-


90,889


90,889


 Omni American Bank - 1 hotel 

-


-


-


-


-


5,168


5,168


 JPM Chase - 1 hotel 

-


-


-


-


-


37,500


37,500

















 Principal due in future periods 

$             -


$   233,602


$   826,258


$   679,107


$   141,061


$   808,241


$     2,688,269

















 Scheduled amortization payments remaining 

5,378


20,706


13,995


12,753


3,854


16,622


73,308

















 Total indebtedness of continuing operations 

$       5,378


$   254,308


$   840,253


$   691,860


$   144,915


$   824,863


$     2,761,577


 

 

ASHFORD TRUST (INCLUDING 71.74% PRO RATA SHARE OF HIGHLAND HOSPITALITY PORTFOLIO)

KEY PERFORMANCE INDICATORS - PRO FORMA

(dollars in thousands)

(unaudited)
































Three Months Ended


Nine Months Ended




September 30,


September 30,




2014


2013


% Variance


2014


2013


% Variance















ALL HOTELS INCLUDED IN ASHFORD TRUST PORTFOLIO:


























Room revenues (in thousands)

$ 230,328


$ 204,987


12.36%


$ 680,453


$ 624,468


8.97%



RevPAR

$  108.42


$    96.50


12.35%


$  107.95


$    98.67


9.41%



Occupancy

78.19%


74.04%


5.61%


77.24%


73.95%


4.45%



ADR

$  138.66


$  130.33


6.39%


$  139.76


$  133.42


4.75%















NOTES:













(1)

The above pro forma table assumes the 88 hotel properties included in the Company's operations and the 28 hotel properties included in Highland



Hospitality Portfolio (PIM Highland Holding LLC) were owned as of the beginning of each of the periods presented.



























ALL HOTELS NOT UNDER RENOVATION INCLUDED












IN ASHFORD TRUST PORTFOLIO:














Room revenues (in thousands)

$ 217,487


$ 192,586


12.93%


$ 638,920


$ 585,598


9.11%



RevPAR

$  109.71


$    97.15


12.93%


$  108.61


$    99.15


9.54%



Occupancy

78.70%


74.21%


6.05%


77.36%


73.98%


4.57%



ADR

$  139.40


$  130.91


6.49%


$  140.40


$  134.01


4.77%















NOTES:













(1)

The above pro forma table assumes the 83 hotel properties included in the Company's operations and the 27 hotel properties included in Highland  Hospitality Portfolio (PIM Highland Holding LLC) at September 30, 2014,  but not under renovation for the three months ended September 30, 2014, were owned as of the beginning of each of the periods presented.




















(2)

Excluded Hotels Under Renovation:



Hilton Fort Worth, Sheraton Minnetonka, Crowne Plaza Beverly Hills, 






Residence Inn Phoenix Airport, Springhill Suites Orlando LBV, Hilton Tampa

















(3)

On January 1, 2013, Marriott converted from a fiscal year with 12 weeks of operations in each of the first three quarters of the year and 16 weeks in the fourth quarter of the year, to calendar quarters.   The above pro forma tables reflect an extra 3 days in Marriott-managed properties for the nine months ended September 30, 2013. 





 

 

ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES


PRO FORMA HOTEL OPERATING PROFIT MARGIN


(unaudited)














THE FOLLOWING PRO FORMA EBITDA MARGIN TABLE REFLECTS THE 88 HOTELS INCLUDED IN THE COMPANY'S OPERATIONS AND THE COMPANY'S 71.74% SHARE OF THE 28 HOTELS INCLUDED IN THE HIGHLAND HOSPITALITY PORTFOLIO (PIM HIGHLAND HOLDING LLC), AS IF THESE HOTELS WERE OWNED AT THE BEGINNING OF THE FIRST COMPARATIVE REPORTING PERIOD.
























116 Trust






Properties



HOTEL OPERATING PROFIT (HOTEL EBITDA) MARGIN:











3rd Quarter 2014

31.38%




3rd Quarter 2013

29.51%





Variance

1.87%









HOTEL OPERATING PROFIT (HOTEL EBITDA) MARGIN VARIANCE BREAKDOWN:










Rooms 

0.37%




Food & Beverage and Other Departmental

0.96%




Administrative & General 

0.45%




Sales & Marketing

0.40%




Hospitality

0.03%




Repair & Maintenance 

0.25%




Energy 

0.14%




Franchise Fee 

-0.14%




Management Fee 

0.01%




Incentive Management Fee 

-0.75%




Insurance 

0.16%




Property Taxes

-0.14%




Other Taxes

0.02%




Leases/Other

0.11%





Total

1.87%



 

 

ASHFORD TRUST (INCLUDING 71.74% PRO RATA SHARE OF HIGHLAND HOSPITALITY PORTFOLIO)

 PRO FORMA HOTEL OPERATING PROFIT 

 (dollars in thousands) 

 (unaudited) 























 ALL HOTELS INCLUDED IN ASHFORD TRUST PORTFOLIO: 





























 Three Months Ended 


 Nine Months Ended 




 September 30, 


 September 30, 




2014


2013


 % Variance 


2014


2013


 % Variance 

 REVENUE 













 Rooms 

$       230,328


$                  204,987


12.4%


$     680,453


$           624,468


9.0%


 Food and beverage 

43,347


40,595


6.8%


143,439


138,249


3.8%


 Other 

10,099


9,920


1.8%


28,382


27,767


2.2%



 Total hotel revenue 

283,774


255,502


11.1%


852,274


790,484


7.8%















 EXPENSES 













 Rooms 

51,475


47,363


8.7%


149,498


140,586


6.3%


 Food and beverage 

31,406


30,203


4.0%


97,985


95,106


3.0%


 Other direct 

5,211


5,207


0.1%


15,027


15,097


-0.5%


 Indirect  

78,841


74,039


6.5%


233,155


220,558


5.7%


 Management fees, includes base and incentive fees 

13,135


9,936


32.2%


39,589


33,664


17.6%



 Total hotel operating expenses 

180,068


166,748


8.0%


535,254


505,011


6.0%


 Property taxes, insurance, and other 

14,669


13,350


9.9%


41,744


40,017


4.3%

 HOTEL OPERATING PROFIT (Hotel EBITDA) 

89,037


75,404


18.1%


275,276


245,456


12.1%



 Hotel EBITDA Margin 

31.38%


29.51%


1.87%


32.30%


31.05%


1.25%
















 Minority interest in earnings of consolidated joint ventures 

105


80


31.3%


227


192


18.2%

 HOTEL OPERATING PROFIT (Hotel EBITDA), 













 excluding minority interest in joint ventures 

$       88,932


$                  75,324


18.1%


$   275,049


$        245,264


12.1%















 NOTES: 














(1)

The above pro forma table assumes the 88 hotel properties included in the Company's operations and the 28 hotel properties included in Highland Hospitality Portfolio (PIM Highland Holding LLC) were owned as of the beginning of each of the periods presented.


















(2)

On January 1, 2013, Marriott converted from a fiscal year with 12 weeks of operations in each of the first three quarters of the year and 16 weeks in the fourth quarter of the year, to calendar quarters.   The above pro forma tables reflects an extra 3 days in Marriott-managed properties for the nine months ended September 30, 2013. 










 ALL HOTELS INCLUDED IN ASHFORD TRUST PORTFOLIO NOT UNDER RENOVATION: 






















 Three Months Ended 


 Nine Months Ended 




 September 30, 


 September 30, 




2014


2013


 % Variance 


2014


2013


 % Variance 

 REVENUE 













 Rooms 

$       217,487


$            192,586


12.9%


$     638,920


$           585,598


9.1%


 Food and beverage 

41,066


38,440


6.8%


135,908


130,791


3.9%


 Other 

9,278


9,171


1.2%


25,945


25,668


1.1%



 Total hotel revenue 

267,831


240,197


11.5%


800,773


742,057


7.9%















 EXPENSES 













 Rooms 

48,585


44,596


8.9%


140,620


132,243


6.3%


 Food and beverage 

29,930


28,804


3.9%


93,286


90,587


3.0%


 Other direct 

4,880


4,899


-0.4%


13,993


14,185


-1.4%


 Indirect  

73,936


69,200


6.8%


218,099


206,021


5.9%


 Management fees, includes base and incentive fees 

12,422


9,379


32.4%


37,316


31,801


17.3%



 Total hotel operating expenses 

169,753


156,878


8.2%


503,314


474,837


6.0%


 Property taxes, insurance, and other 

13,788


12,507


10.2%


39,552


37,888


4.4%

 HOTEL OPERATING PROFIT (Hotel EBITDA) 

84,290


70,812


19.0%


257,907


229,332


12.5%



 Hotel EBITDA Margin 

31.47%


29.48%


2.00%


32.21%


30.90%


1.30%
















 Minority interest in earnings of consolidated joint ventures 

105


80


31.3%


227


192


18.2%

 HOTEL OPERATING PROFIT (Hotel EBITDA), 













 excluding minority interest in joint ventures 

$       84,185


$            70,732


19.0%


$   257,680


$        229,140


12.5%















 NOTES: 














(1)

The above pro forma table assumes the 83 hotel properties included in the Company's operations and the 27 hotel properties inlcuded in Highland  Hospitality Portfolio (PIM Highland Holding LLC) at September 30, 2014,  but not under renovation for the three months ended September 30, 2014, were owned as of the beginning of each of the periods presented.
















(2)

Excluded Hotels Under Renovation:









Hilton Fort Worth, Sheraton Minnetonka, Crowne Plaza Beverly Hills, 







Residence Inn Phoenix Airport, Springhill Suites Orlando LBV, Hilton Tampa


















(3)

On January 1, 2013, Marriott converted from a fiscal year with 12 weeks of operations in each of the first three quarters of the year and 16 weeks in the fourth quarter of the year, to calendar quarters.  The above pro forma tables reflect an extra 3 days in Marriott-managed properties for the nine months ended September 30, 2013. 






 

 

HIGHLAND HOSPITALITY PORTFOLIO

(PIM Highland Holding LLC)

 PRO FORMA HOTEL OPERATING PROFIT 

 (dollars in thousands) 

 (unaudited) 























71.74% PRO RATA SHARE OF ALL HOTELS INCLUDED IN HIGHLAND HOSPITALITY PORTFOLIO:




















 Three Months Ended 


 Nine Months Ended 




 September 30, 


 September 30, 




2014


2013


 % Variance 


2014


2013


 % Variance 

 REVENUE 













 Rooms 

$         64,380


$       55,389


16.2%


$     186,599


$    168,830


10.5%


 Food and beverage 

17,571


16,530


6.3%


58,165


55,984


3.9%


 Other 

3,107


2,790


11.4%


8,654


7,977


8.5%



 Total hotel revenue 

85,058


74,709


13.9%


253,418


232,791


8.9%















 EXPENSES 













 Rooms 

13,946


12,402


12.4%


39,874


37,223


7.1%


 Food and beverage 

12,311


11,784


4.5%


38,103


37,297


2.2%


 Other direct 

1,194


1,266


-5.7%


3,522


3,754


-6.2%


 Indirect  

23,483


21,598


8.7%


70,066


65,467


7.0%


 Management fees, includes base and incentive fees 

3,685


2,661


38.5%


10,721


8,534


25.6%



 Total hotel operating expenses 

54,619


49,711


9.9%


162,286


152,275


6.6%


 Property taxes, insurance, and other 

4,222


4,045


4.4%


12,845


12,370


3.8%

 HOTEL OPERATING PROFIT (Hotel EBITDA) 

$       26,217


$     20,953


25.1%


$     78,287


$    68,146


14.9%



 Hotel EBITDA Margin 

30.82%


28.05%


2.78%


30.89%


29.27%


1.62%















 NOTES: 














(1)

The above pro forma table assumes the 28 hotel properties inlcuded in Highland Hospitality Portfolio (PIM Highland Holding LLC) at September 30, 2014, were owned as of the beginning of each of the periods presented.


















(2)

On January 1, 2013, Marriott converted from a fiscal year with 12 weeks of operations in each of the first three quarters of the year and 16 weeks in the fourth quarter of the year, to calendar quarters.   The above proforma tables reflects an extra 3 days in Marriott-managed properties for the nine months ended September 30, 2013. 





 

 

ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES


PRO FORMA HOTEL REVENUE & EBITDA FOR TRAILING TWELVE MONTHS


(dollars in thousands)


(unaudited)




















THE FOLLOWING PRO FORMA SEASONALITY TABLE REFLECTS THE 88 HOTELS INCLUDED IN THE COMPANY'S  OPERATIONS AND THE COMPANY'S 71.74% SHARE OF THE 28 HOTELS INCLUDED IN HIGHLAND HOSPITALITY PORTFOLIO (PIM HIGHLAND HOLDING LLC) AS IF THESE HOTELS WERE OWNED AT THE BEGINNING OF THE FIRST COMPARATIVE REPORTING PERIOD.






















2014

2014

2014

2013






3rd Quarter

2nd Quarter

1st Quarter

4th Quarter


TTM










Ashford Trust Portfolio







Total Hotel Revenue

$                   283,774

$                   298,604

$              269,899

$            244,088


$   1,096,365

Hotel EBITDA

$                     89,037

$                   102,386

$                83,853

$              68,120


$      343,396

Hotel EBITDA Margin

31.38%

34.29%

31.07%

27.91%


31.32%










EBITDA % of Total TTM

25.9%

29.8%

24.4%

19.8%


100.0%










JV Interests in EBITDA

$                          105

$                            83

$                       39

$                     73


$             300



















71.74% of PIM Highland Holding LLC Portfolio (included in Ashford Trust above)



Total Hotel Revenue

$                     85,058

$                     90,417

$                77,946

$              73,095


$      326,516

Hotel EBITDA

$                     26,217

$                     30,539

$                21,531

$              19,571


$        97,858

Hotel EBITDA Margin

30.82%

33.78%

27.62%

26.77%


29.97%










EBITDA % of Total TTM

26.8%

31.2%

22.0%

20.0%


100.0%

 

 

ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

INCLUDING 71.74% PRO RATA SHARE OF HIGHLAND HOSPITALITY PORTFOLIO (PIM HIGHLAND HOLDING LLC)

PRO FORMA HOTEL REVPAR BY MARKET

(unaudited)




























Three Months Ended


Nine Months Ended









Number of


Number of


September 30,


September 30,





Region


Hotels


Rooms


2014

2013

% Change


2014


2013

 % Change 























Atlanta, GA Area


9


1,428


$     104.35

$       87.93

18.7%


$         97.72


$             87.93

11.1%




Boston, MA Area


2


506


$     223.90

$     185.30

20.8%


$       182.20


$           163.45

11.5%




Dallas / Ft. Worth Area


7


1,379


$       95.09

$       87.16

9.1%


$       101.37


$             91.72

10.5%




Houston, TX Area


3


607


$     107.09

$     105.50

1.5%


$       112.85


$           109.21

3.3%




Los Angeles, CA Metro Area


8


1,783


$       99.81

$       92.92

7.4%


$       107.91


$             96.06

12.3%




Miami, FL Metro Area


3


584


$       89.65

$       77.16

16.2%


$       121.09


$           110.09

10.0%




Minneapolis - St. Paul, MN-WI Area


2


520


$     108.84

$     101.52

7.2%


$         99.27


$             92.99

6.8%




New York / New Jersey Metro Area


7


1,559


$     116.23

$     107.52

8.1%


$       110.77


$           104.21

6.3%




Orlando, FL Area


6


1,834


$       70.07

$       67.08

4.5%


$         83.85


$             79.67

5.3%




Philadelphia, PA Area


3


648


$       99.47

$       89.92

10.6%


$         94.08


$             88.68

6.1%




San Diego, CA Area


2


410


$     118.82

$     107.44

10.6%


$       106.27


$             95.88

10.8%




San Francisco - Oakland, CA Metro Area


6


1,368


$     137.43

$     116.81

17.7%


$       125.22


$           108.82

15.1%




Tampa, FL Area


3


582


$       72.48

$       65.34

10.9%


$         98.40


$             89.68

9.7%




Washington DC - MD - VA Area


10


2,290


$     119.90

$     100.88

18.9%


$       123.22


$           115.63

6.6%




Other Areas


45


7,592


$     109.40

$       97.37

12.3%


$       104.85


$             95.31

10.0%























Total Portfolio


116


23,090


$   108.42

$     96.50

12.4%


$     107.95


$           98.67

9.4%
















































































NOTES:


















(1)

The above pro forma table presents the 88 hotel properties included in the Company's operations and the 28 hotel properties included in Highland Hospitality Portfolio (PIM Highland Holding LLC)  as if these hotels were owned as of the beginning of each of the periods presented.



























ASHFORD HOSPITALITY TRUST, INC.

INCLUDING 71.74% PRO RATA SHARE OF HIGHLAND HOSPITALITY PORTFOLIO (PIM HIGHLAND HOLDING LLC)

PRO FORMA HOTEL OPERATING PROFIT (HOTEL EBITDA) BY MARKET

(unaudited)




























Three Months Ended


Nine Months Ended





Number of


Number of


September 30,


September 30,

Region


Hotels


Rooms


2014

 % of

Total 

2013

 % of
Total 

% Change


2014

 % of Total 

2013

 % of
Total 

% Change




















Atlanta, GA Area


9


1,428


$        5,251

5.9%

$        3,963

5.3%

32.5%


$            14,286

5.2%

$           11,757

4.8%

21.5%

Boston, MA Area


2


506


5,276

5.9%

4,349

5.8%

21.3%


11,686

4.2%

10,431

4.2%

12.0%

Dallas / Ft. Worth Area


7


1,379


4,670

5.2%

3,456

4.6%

35.1%


15,434

5.6%

13,556

5.5%

13.9%

Houston, TX Area


3


607


2,545

2.9%

2,588

3.4%

-1.7%


8,779

3.2%

8,307

3.4%

5.7%

Los Angeles, CA Metro Area


8


1,783


5,733

6.4%

5,262

7.0%

9.0%


22,277

8.1%

19,002

7.7%

17.2%

Miami, FL Metro Area


3


584


1,042

1.2%

526

0.7%

98.1%


7,901

2.9%

6,571

2.7%

20.2%

Minneapolis - St. Paul, MN-WI Area


2


520


2,376

2.7%

2,345

3.1%

1.3%


6,212

2.3%

5,968

2.4%

4.1%

New York / New Jersey Metro Area


7


1,559


6,942

7.8%

6,293

8.3%

10.3%


20,856

7.6%

19,678

8.0%

6.0%

Orlando, FL Area


6


1,834


2,542

2.9%

2,434

3.2%

4.4%


13,396

4.9%

12,757

5.2%

5.0%

Philadelphia, PA Area


3


648


2,069

2.3%

1,726

2.3%

19.9%


5,669

2.1%

4,985

2.0%

13.7%

San Diego, CA Area


2


410


1,822

2.0%

1,673

2.2%

8.9%


4,474

1.6%

4,127

1.7%

8.4%

San Francisco - Oakland, CA Metro Area


6


1,368


6,880

7.7%

5,671

7.5%

21.3%


18,564

6.7%

15,103

6.2%

22.9%

Tampa, FL Area


3


582


802

0.9%

785

1.0%

2.2%


6,202

2.3%

5,663

2.3%

9.5%

Washington DC - MD - VA Area


10


2,290


9,766

11.0%

7,600

10.1%

28.5%


31,546

11.5%

29,049

11.8%

8.6%

Other Areas


45


7,592


31,321

35.2%

26,733

35.5%

17.2%


87,994

32.0%

78,503

32.0%

12.1%




















Total Portfolio


116


23,090


$    89,037

100.0%

$    75,404

100.0%

18.1%


$       275,276

100.0%

$       245,456

100.0%

12.1%







































NOTES:



















(1)

The above pro forma table presents the 88 hotel properties included in the Company's operations and the 28 hotel properties included in Highland Hospitality Portfolio (PIM Highland Holding LLC) as if these hotels were owned as of the beginning of each of the periods presented.























(2)

The above pro forma table includes hotel operating profit for 100% of the 88 hotel properties included in the Company's continuing operations and the Company's 71.74% share of the 28 hotels included in Highland Hospitality Portfolio (PIM Highland Holding LLC) as if these hotels were owned as of the beginning of each of the periods presented.























(3)

On January 1, 2013, Marriott converted from a fiscal year with 12 weeks of operations in each of the first three quarters of the year and 16 weeks in the fourth quarter of the year, to calendar quarters.   The above pro forma tables reflects an extra 3 days in Marriott-managed properties for the nine months ended September 30, 2013. 





 

 

 ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES 

 TOTAL ENTERPRISE VALUE 

SEPTEMBER 30, 2014

 (in thousands except share price) 

 (unaudited) 






 September 30, 


2014

 End of quarter diluted shares outstanding 

91,058

 Partnership units outstanding (common share equivalents) 

19,838

 Combined diluted shares and partnership units outstanding 

110,896

 Common stock price at quarter end 

$                      10.22

 Market capitalization at quarter end 

$               1,133,358

 Series A preferred stock 

$                    41,430

 Series D preferred stock 

$                  236,718

 Series E preferred stock 

$                  115,750

 Debt on balance sheet date* 

$               2,761,577

 Joint venture partners' share of consolidated debt 

$                    (2,131)

 Net working capital (see below) 

$                (546,810)

Total enterprise value (TEV)*

$               3,739,892



Ashford Prime Investment:


Partnership units owned at end of quarter

4,978

Common stock price at quarter end

$                      15.23

Market value of Ashford Prime investment

$                    75,815





Cash & cash equivalents*

$                  300,544

Marketable securities, net

39,870

Restricted cash*

182,686

Accounts receivable, net*

42,983

Prepaid expenses*

17,498

Due from affiliates, net*

3,733

Due from 3rd party hotel managers, net*

29,759

Market value of Ashford Prime investment

75,815

Total current assets

$                  692,888



Accounts payable, net & accrued expenses*

$                  124,187

Dividends payable

21,890

Total current liabilities

$                  146,077



Net working capital**

$                  546,810



* Includes the Company's 71.74% interest in Highland Hospitality

 **Calculation only includes our 85% portion of the Interstate joint venture. 

 

 

Ashford Hospitality Trust, Inc.

Anticipated Capital Expenditures Calendar (a)





















2014


Rooms

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter



Actual

Actual

Actual

Estimated 

Courtyard Boston Downtown

315

x

x


x

Courtyard Bloomington

117

x

x



Courtyard Overland Park

168

x

x



Crowne Plaza Ravinia

495

x

x



Embassy Suites Crystal City

267

x

x



Hampton Inn Terre Haute

112

x

x



Residence Inn Newark

168

x

x



Residence Inn Plano

126

x

x



Sheraton Indianapolis

378

x

x



Crowne Plaza Key West

160

x




Embassy Suites Portland Downtown 

276

x




Hilton Costa Mesa 

486

x




Hyatt Regency Wind Watch

358

x




Marriott Sugarland 

300

x




Renaissance Nashville

673

x




Residence Inn Evansville

78

x




Residence Inn Hartford

96

x




Residence Inn San Diego Sorrento Mesa

150

x




Silversmith

143

x




Hilton Fort Worth

294


x

x


Sheraton Minnetonka

220


x

x


Courtyard Tipton Lakes

90


x



Marriott Dallas Market Center

265


x



Marriott RTP

225


x



Crowne Plaza Beverly Hills

258



x

x

Residence Inn Phoenix Airport

200



x

x

Springhill Suites Orlando LBV

400



x

x

Hilton Tampa

238



x

x

Courtyard Newark/Silicon Valley

181




x

Embassy Suites Flagstaff

119




x

Hilton Minneapolis

300




x

Hilton Parsippany

354




x

Hyatt Regency Savannah

351




x

Marriott Bridgewater

347




x

Sheraton Bucks County

186




x

(a) Only hotels which have had or are expected to have significant capital expenditures that could result in displacement during 2014 are included in this table.

 

SOURCE Ashford Hospitality Trust, Inc.

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