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Press Release

Ashford Trust Reports Fourth Quarter And Year End 2014 Results

11.3% RevPAR Increase for All Hotels for the Fourth Quarter

Hotel EBITDA Margin Increase of 194 basis points for All Hotels

Completes Spin-Off of Ashford Inc.

Announces Formation of Ashford Hospitality Select

Company Release - 2/26/2015 4:05 PM ET

DALLAS, Feb. 26, 2015 /PRNewswire/ -- Ashford Hospitality Trust, Inc. (NYSE: AHT) ("the Company" or "Ashford Trust") today reported financial results and performance measures for the fourth quarter ended December 31, 2014.  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 fourth quarter ended December 31, 2014, with the fourth quarter ended December 31, 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

  • During the quarter, the Company completed the spin-off of Ashford Inc., which started trading under the ticker symbol "AINC" on November 13, 2014, on the NYSE MKT Exchange
  • RevPAR for all Ashford Trust hotels increased 11.3% during the quarter
  • RevPAR for all Ashford Trust hotels not under renovation increased 12.6% during the quarter
  • Hotel EBITDA increased 17.6% for all Ashford Trust hotels
  • Hotel EBITDA Margin increased 194 basis points for all Ashford Trust hotels
  • Hotel EBITDA flow-through was 49% for all Ashford Trust hotels
  • Net loss attributable to common stockholders for the Company was $22.4 million, or $0.25 per diluted share, compared with net loss attributable to common stockholders of $25.9 million, or $0.32 per diluted share, in the prior-year quarter
  • Adjusted funds from operations (AFFO) for the Company was $0.17 per diluted share for the quarter as compared with $0.14 from the prior-year quarter
    • The prior year results include the operations of the Ashford Prime Portfolio prior to its spin-off from Ashford Trust completed on November 19, 2013
  • On December 19, 2014, the Company announced a definitive agreement in which Ashford Trust will acquire the remaining 28.26% ownership interest of the Highland Hospitality Portfolio from its joint venture partner, Prudential Real Estate Investors
  • Subsequent to the quarter end, on January 5, 2015 the Company announced it had refinanced two mortgage loans with an outstanding balance of approximately $354 million with new loans totaling $478 million resulting in over $100 million of excess proceeds after closing costs and reserves
  • On January 29, 2014, the Company announced a plan to form Ashford Hospitality Select ("Ashford Select"), dedicated to investing primarily in premium-branded select-service hotels, including extended stay hotels in the U.S.
  • On January 30, 2015 the Company priced a follow-on public offering of 9,500,000 shares of common stock at $10.65 per share.  The underwriter subsequently exercised its option in part and purchased an additional 1,029,450 shares from the Company.  In total, the Company issued 10,529,450 shares of common stock at $10.65 per share for net proceeds of $111.1 million.
  • On February 9, 2015, the Company closed on the acquisition of the 168-room Lakeway Resort & Spa in Austin, TX for a total consideration of $33.5 million ($199,000 per key) 
  • On February 25, 2015, Ashford Trust closed on the acquisition of the 232-room Marriott Memphis East hotel for total consideration of $43.5 million in cash ($187,500 per key)

CAPITAL EXPENDITURES

  • Capex invested in the quarter for the Ashford Trust Portfolio was $28.6 million, bringing the full-year total to $120.1 million

CAPITAL STRUCTURE

At December 31, 2014, the Company had total assets of $2.8 billion in continuing operations, and $3.6 billion overall including the Highland Hospitality Portfolio which is not consolidated.  As of December 31, 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 November 12, 2014, the Company completed the sale of the 86-room Homewood Suites Mobile for total consideration of $7.4 million ($86,000 per key).  The sale, including anticipated capital expenditures, represented a trailing 12-month cap rate of 7.4% on net operating income and a trailing 11.8x EBITDA multiple.

On December 19, 2014, the Company announced the acquisition of the remaining 28.26% ownership interest of the Highland Hospitality Portfolio from its joint venture partner.  The 28-hotel Highland Hospitality Portfolio includes 19 full-service hotels and 9 select-service hotels with a concentration in major brands such as Hilton, Marriott, Hyatt and Starwood.  The total transaction value is valued at $1.735 billion ($215,000 per key) and the purchase price represents a forward 12-month cap rate of 7.5% on net operating income and an 11.6x forward EBITDA multiple.  The closing of the acquisition is contingent on a refinancing of the portfolio, and it's expected to close sometime during the first quarter of 2015.

On January 5, 2015, the Company announced it had successfully refinanced two mortgage loans with an existing outstanding balance of approximately $354 million.  The two previous mortgage loans that were refinanced include: a $211 million Goldman Sachs Floater loan with a final maturity date in November 2017; and a $143 million Merrill Lynch 1 loan with a final maturity date in July 2015.  The new loans total $478 million and resulted in excess net proceeds of over $100 million after closing costs and reserves.

On January 30, 2015, the Company announced it had priced a follow-on public offering of 9,500,000 shares of common stock at $10.65 per share.  Settlement of the offering occurred on February 4, 2015, generating total net proceeds of $100.2 million.  The underwriter subsequently exercised its option in part and purchased an additional 1,029,450 shares from the Company.  In total, the Company issued 10,529,450 shares of common stock at $10.65 per share for net proceeds of $111.1 million.

On February 9, 2015, the Company announced it had closed on the acquisition of the 168-room Lakeway Resort & Spa for a total consideration of $33.5 million ($199,000 per key).  Located in the thriving Austin, TX market, the hotel features approximately 24,000 square feet of meeting space.  Upon closing, the property will be managed by Remington Lodging.  The purchase price of $33.5 million represents a forward 12-month cap rate of 8.7% on net operating income, which equates to an estimated 9.5x forward EBITDA multiple. 

On February 25, 2015, the Company closed on the acquisition of the 232-room Marriott Memphis East hotel for total consideration of $43.5 million in cash ($187,500 per key).  Located in the heart of East Memphis just minutes away from nearby attractions such as Elvis' Graceland, Beale Street and Historic Downtown Memphis, the hotel has 6 meeting rooms with approximately 8,960 square feet of meeting space. Upon closing, the property will be managed by Remington Lodging.  The purchase price of $43.5 million represents a forward 12-month cap rate of 8.6% on net operating income and an estimated 10.3x forward EBITDA multiple. 

PORTFOLIO REVPAR

As of December 31, 2014, the Ashford Trust Portfolio consisted of direct hotel investments with 115 properties classified in continuing operations.  During the fourth quarter of 2014, 103 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 115 hotels) and pro forma not under renovation basis (103 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 11.3% to $97.61 for all hotels in the Ashford Trust Portfolio on a 6.5% increase in ADR and a 4.5% increase in occupancy
  • Pro forma RevPAR increased 12.6% to $97.95 for hotels not under renovation in the Ashford Trust Portfolio on a 6.5% increase in ADR and a 5.7% 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 115 Ashford Trust hotels are provided in the table attached to this release.

ASHFORD, INC. SPIN-OFF

On November 12, 2014, the Company completed the previously announced spin-off of Ashford Inc. (NYSE MKT: AINC) ("Ashford Inc.").  Starting November 13, 2014, Ashford Inc. began trading on the NYSE MKT under the ticker symbol "AINC." Following the spin-off, Ashford Inc. is now an independent publicly traded asset management company focused on managing real estate, hospitality, and securities platforms both domestically and internationally.  Ashford Inc. currently advises Ashford Trust and Ashford Hospitality Prime, Inc. (NYSE: AHP) ("Ashford Prime"). 

Ashford Trust completed the spin-off by distributing a pro-rata taxable dividend of Ashford Inc. common stock to Ashford Trust common stockholders of record as of the close of business of the NYSE on November 11, 2014 (the "Record Date").  The distribution was based on a distribution ratio of one share of Ashford Inc. common stock for every 87 shares of Ashford Trust common stock held by such stockholder on the Record Date.  An information statement concerning the details regarding the distribution of Ashford Inc. common stock and its business following the spin-off was mailed to Ashford Trust stockholders on the distribution date. 

COMMON STOCK DIVIDEND

On December 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 fourth quarter ending December 31, 2014, payable on January 15, 2015, to shareholders of record as of December 31, 2014.

The Board also approved the Company's dividend policy for 2015.  The Company expects to pay a quarterly cash dividend of $0.12 per share for 2015, or $0.48 per share on an annualized basis.  The Board will continue to review its dividend policy on a quarter-to-quarter basis.  The adoption of a dividend policy does not commit the Board of Directors to declare future dividends or the amount thereof.

"During the fourth quarter we continued to display superior RevPAR and EBITDA growth, driven largely by the initiatives we began to implement in 2013 to improve RevPAR performance.  These initiatives began to show results during the third and fourth quarters and we expect to see further improvement over time," commented Monty J. Bennett, Ashford Trust's Chairman and Chief Executive Officer.  "In 2015, we continue to pursue attractive investment opportunities as well as alternative ways to invest in accretive growth.  Our recent formation of Ashford Select is one of these avenues as we look to benefit from attractive dynamics of the select service space.  Additionally, improving economic trends continue to drive growth in the lodging sector which is benefitting our overall portfolio.  We also plan to take advantage of the favorable capital markets conditions to proactively address our debt maturities and generate excess cash to strengthen our balance sheet and shore up liquidity for attractive asset acquisition opportunities.  Going forward, you can expect us to keep pursuing these strategies with the goal of balancing risk mitigation while seeking to generate attractive returns for our shareholders." 

INVESTOR CONFERENCE CALL AND SIMULCAST

Ashford Hospitality Trust, Inc. will conduct a conference call on Friday, February 27, 2015, at 11:00 a.m. ET.  The number to call for this interactive teleconference is (785) 830-7991.  A replay of the conference call will be available through Friday, March 6, 2015, by dialing (719) 457-0820 and entering the confirmation number, 6219218.

The Company will also provide an online simulcast and rebroadcast of its fourth 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, February 27, 2015, 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 launch of Ashford Select.  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)







December 31,


December 31,






2014


2013






 (unaudited) 

ASSETS





Cash and cash equivalents

$                   215,063


$                   128,780


Marketable securities

63,217


29,601



Total cash, cash equivalents and marketable securities

278,280


158,381


Investments in hotel properties, net

2,128,611


2,164,389


Restricted cash

85,830


61,498


Accounts receivable, net of allowance of $241 and $242, respectively

22,399


21,791


Inventories

2,104


1,946


Notes receivable, net of allowance of $7,522 and $7,937, respectively

3,553


3,384


Investment in Highland Hospitality

144,784


139,302


Investment in Ashford Prime

54,907


56,243


Investment in Ashford Inc.

7,099


-


Deferred costs, net

12,588


10,155


Prepaid expenses

7,017


7,519


Derivative assets

182


19


Other assets

17,116


4,303


Due from Ashford Prime, net

896


13,042


Due from affiliates

3,473


1,302


Due from third-party hotel managers

12,241


33,728











Total assets

$                2,781,080


$                2,677,002









LIABILITIES AND EQUITY




Liabilities:





Indebtedness

$                1,954,103


$                1,818,929


Capital leases payable

-


28


Accounts payable and accrued expenses

71,118


70,683


Dividends payable

21,889


20,735


Unfavorable management contract liabilities

5,330


7,306


Due to Ashford Inc., net

8,202


-


Due to related party, net

1,867


270


Due to third-party hotel managers

1,640


958


Liabilities associated with marketable securities and other

6,201


3,764


Other liabilities

1,233


1,286











Total liabilities

2,071,583


1,923,959









Redeemable noncontrolling interests in operating partnership

177,064


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








December 31, 2014 and December 31, 2013, respectively

17


17




Series D Cumulative Preferred Stock, 9,468,706 shares issued and outstanding at








December 31, 2014 and December 31, 2013, respectively

95


95




Series E Cumulative Preferred Stock, 4,630,000 shares issued and outstanding at








December 31, 2014 and December 31, 2013, respectively

46


46



Common stock, $0.01 par value, 200,000,000 shares authorized, 124,896,765 shares







issued, 89,439,624 and 80,565,563 shares outstanding at December 31, 2014 and 2013, respectively 

1,249


1,249



Additional paid-in capital

1,706,274


1,652,743



Accumulated other comprehensive loss

-


(197)



Accumulated deficit

(1,050,323)


(896,110)



Treasury stock, at cost, 35,457,141 shares and 44,331,202 shares, respectively

(125,725)


(140,054)




Total stockholders' equity of the Company

531,633


617,789


Noncontrolling interests in consolidated entities

800


1,048











Total equity

532,433


618,837












Total liabilities and equity

$                2,781,080


$                2,677,002

















 

ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES





CONSOLIDATED STATEMENTS OF OPERATIONS





(in thousands, except per share amounts)














 Three Months Ended 


 Year Ended 





 December 31, 


 December 31, 





2014


2013


2014


2013





 (unaudited) 


 (unaudited) 

REVENUE









Rooms

$    150,898


$    162,393


$    640,325


$    746,576


Food and beverage

30,180


36,274


112,701


153,602


Other

6,904


9,297


26,958


37,776














Total hotel revenue

187,982


207,964


779,984


937,954


Advisory services revenue

1,458


1,047


10,724


1,047


Other

928


134


4,141


526














Total revenue

190,368


209,145


794,849


939,527












EXPENSES









Hotel operating expenses










Rooms

35,599


38,549


143,751


170,393



Food and beverage

20,323


23,885


77,653


104,536



Other expenses

59,816


65,662


254,495


280,801



Management fees 

7,507


8,439


31,125


38,792















Total hotel operating expenses

123,245


136,535


507,024


594,522













Property taxes, insurance and other

9,541


10,659


38,499


46,945


Depreciation and amortization

29,631


29,815


110,653


127,684


Impairment charges

(105)


(100)


(415)


(396)


Gain on insurance settlements

(5)


(270)


(5)


(270)


Transaction costs

9


28


625


1,324


Advisory service fee:










Base advisory fee

3,999


-


3,999


-



Advisory service fee - other services

534


-


534


-













Corporate, general and administrative:










Non-cash stock/unit-based compensation

2,191


8,490


19,155


25,539



Other general and administrative

7,762


1,651


38,088


27,282















Total operating expenses

176,802


186,808


718,157


822,630












OPERATING INCOME

13,566


22,337


76,692


116,897













Equity in earnings (loss) of unconsolidated entities

(4,299)


(8,778)


2,495


(23,404)


Interest income

17


10


62


71


Other income (loss)

732


(796)


6,573


5,650


Interest expense

(27,250)


(31,269)


(107,300)


(133,192)


Amortization of loan costs

(1,689)


(2,017)


(7,202)


(7,673)


Write-off of loan costs and exit fees

-


(127)


(10,353)


(2,098)


Unrealized gain (loss) on marketable securities

3,486


3,076


(332)


5,115


Unrealized loss on derivatives

(420)


(1,138)


(1,100)


(8,315)












LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

(15,857)


(18,702)


(40,465)


(46,949)


Income tax (expense) benefit

(446)


177


(1,266)


(1,511)












LOSS FROM CONTINUING OPERATIONS

(16,303)


(18,525)


(41,731)


(48,460)


Income (loss) from discontinued operations

(55)


(76)


33


(98)


Gain on sale of hotel properties, net of tax

-


-


3,491


-












NET LOSS

(16,358)


(18,601)


(38,207)


(48,558)

(Income) loss from consolidated entities attributable to noncontrolling interests

260


(1,798)


406


(908)

Net loss attributable to redeemable noncontrolling interests in operating partnership

2,166


3,031


6,400


8,183












NET LOSS ATTRIBUTABLE TO THE COMPANY

(13,932)


(17,368)


(31,401)


(41,283)

Preferred dividends

(8,491)


(8,491)


(33,962)


(33,962)












NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS

$    (22,423)


$    (25,859)


$    (65,363)


$    (75,245)












INCOME (LOSS) PER SHARE – BASIC AND DILUTED









Basic:










Loss from continuing operations attributable to common stockholders

$        (0.25)


$        (0.32)


$        (0.75)


$        (1.00)



Income (loss) from discontinued operations attributable to common stockholders

-


-


-


-














Net loss attributable to common stockholders

$        (0.25)


$        (0.32)


$        (0.75)


$        (1.00)














Weighted average common shares outstanding – basic

89,589


81,383


87,622


75,155













Diluted:










Loss from continuing operations attributable to common stockholders

$        (0.25)


$        (0.32)


$        (0.75)


$        (1.00)



Income (loss) from discontinued operations attributable to common stockholders

-


-


-


-














Net loss attributable to common stockholders

$        (0.25)


$        (0.32)


$        (0.75)


$        (1.00)














Weighted average common shares outstanding – diluted

89,589


81,383


87,622


75,155













Dividends declared per common share:

$          0.12


$          0.12


$          0.48


$          0.48












Amounts attributable to common stockholders:









Net loss attributable to the Company

$    (13,884)


$    (17,302)


$    (31,430)


$    (41,197)


Income (loss) from discontinued operations, net of tax

(48)


(66)


29


(86)


Preferred dividends

(8,491)


(8,491)


(33,962)


(33,962)














Net loss attributable to common stockholders

$    (22,423)


$    (25,859)


$    (65,363)


$    (75,245)












 

 ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES 

 RECONCILIATION OF NET LOSS TO EBITDA AND ADJUSTED EBITDA 

 (in thousands) 

 (unaudited) 





 Three Months Ended 


 Year Ended 




 December 31, 


 December 31, 




2014


2013


2014


2013











 Net loss 


$      (16,358)


$    (18,601)


$    (38,207)


$    (48,558)

(Income) loss from consolidated entities attributable to noncontrolling interests

260


(1,798)


406


(908)

 Net loss attributable to redeemable noncontrolling interests in operating partnership

2,166


3,031


6,400


8,183

 Net loss attributable to the Company 

(13,932)


(17,368)


(31,401)


(41,283)












 Interest income 

(18)


(10)


(63)


(70)


 Interest expense and amortization of loan costs 

28,908


33,161


114,709


139,782


 Depreciation and amortization  

29,626


29,424


110,770


125,041


 Income tax expense (benefit) 

446


(177)


1,278


1,511


 Net loss attributable to redeemable noncontrolling interests in operating partnership 

(2,166)


(3,031)


(6,400)


(8,183)


 Equity in (earnings) loss of unconsolidated entities 

4,299


8,778


(2,495)


23,404


 Company's portion of EBITDA of Ashford Inc. 

(3,016)


-


(3,016)


-


 Company's portion of EBITDA of Ashford Prime 

2,494


(2,577)


11,643


(2,577)


 Company's portion of EBITDA of Highland JV 

21,803


17,625


95,444


76,901











 EBITDA 


68,444


65,825


290,469


314,526












 Amortization of unfavorable management contract liabilities 

(494)


(515)


(1,975)


(2,245)


 Impairment charges 

(105)


(100)


(415)


(396)


 Gain on sale of hotel property 

-


-


(3,503)


-


 Non-cash gain on insurance settlements  

(5)


(270)


(5)


(270)


 Write-off of loan costs and exit fees 

-


127


10,353


2,098


 Other income (1) 

(732)


796


(6,573)


(5,650)


 Transaction, acquisition and management conversion costs 

9


31


625


1,657


 Transaction costs related to spin-offs 

1,674


(4,894)


4,231


1,548


 Software implementation costs 

45


-


320


-


 Legal judgment 

424


-


11,907


-


 Unrealized (gain) loss on marketable securities 

(3,486)


(3,076)


332


(5,115)


 Unrealized loss on derivatives 

420


1,138


1,100


8,315


 Modification of rent terms 

-


539


-


539


 Compensation adjustment related to modified employment terms 

-


-


2,997


-


 Non-cash stock/unit-based compensation

2,191


8,490


16,918


25,539


 Company's portion of adjustments to EBITDA of Ashford Inc. 

3,427


-


3,427


-


 Company's portion of adjustments to EBITDA of Ashford Prime 

80


2,781


634


2,781


 Company's portion of adjustments to EBITDA of Highland JV 

(156)


296


(669)


4,442











 Adjusted EBITDA 

$        71,736


$      71,168


$    330,173


$    347,769











(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") AND ADJUSTED FFO 

 (in thousands, except per share amounts) 

 (unaudited) 














 Three Months Ended 


 Year Ended 




 December 31, 


 December 31, 




2014


2013


2014


2013











 Net loss 


$      (16,358)


$    (18,601)


$    (38,207)


$    (48,558)

 (Income) loss from consolidated entities attributable to noncontrolling interests 

260


(1,798)


406


(908)

  Net loss attributable to redeemable noncontrolling interests in operating partnership 

2,166


3,031


6,400


8,183

  Preferred dividends 

(8,491)


(8,491)


(33,962)


(33,962)











 Net loss attributable to common stockholders 

(22,423)


(25,859)


(65,363)


(75,245)












 Depreciation and amortization on real estate 

29,579


29,308


110,465


124,611


 Gain on sale of hotel property 

-


-


(3,503)


-


 Net loss attributable to redeemable noncontrolling interests in operating partnership 

(2,166)


(3,031)


(6,400)


(8,183)


 Equity in (earnings) loss of unconsolidated entities 

4,299


8,778


(2,495)


23,404


 Company's portion of FFO of Ashford Inc. 

(3,252)


-


(3,252)


-


 Company's portion of FFO of Ashford Prime 

1,033


(3,339)


5,897


(3,339)


 Company's portion of FFO of Highland JV 

10,310


7,031


49,748


34,275











 FFO available to common stockholders 

17,380


12,888


85,097


95,523












 Write-off of loan costs and exit fees 

-


127


10,353


2,098


 Impairment charges 

(105)


(100)


(415)


(396)


 Non-cash gain on insurance settlements  

(5)


(270)


(5)


(270)


 Other income (1) 

(732)


796


(6,573)


565


 Legal judgment 

424


-


11,907


-


 Transaction, acquisition and management conversion costs 

9


31


625


1,657


 Transaction costs related to spin-offs 

1,674


(4,894)


4,231


1,548


 Unrealized (gain) loss on marketable securities 

(3,486)


(3,076)


332


(5,115)


 Unrealized loss on derivatives 

420


1,138


1,100


8,315


 Software implementation costs 

45


-


320


-


 Modification of rent terms 

-


539


-


539


 Compensation adjustment related modified employment terms 

-


-


2,997


-


 Equity-based compensation adjustment related to modified employment terms 

-


-


-


4,678


 Equity-based compensation adjustment related to spin-off deferred compensation 

-


4,313


-


4,313


 Company's portion of adjustments to FFO of Ashford Inc. 

2,558


-


2,558


-


 Company's portion of adjustments to FFO of Ashford Prime 

4


2,716


398


2,716


 Company's portion of adjustments to FFO of Highland JV 

(156)


-


(669)


24











 Adjusted FFO available to common stockholders 

$        18,030


$      14,208


$    112,256


$    116,195











 Adjusted FFO per diluted share available to common stockholders 

$            0.17


$          0.14


$          1.05


$          1.24











 Weighted average diluted shares 

108,562


100,497


107,243


93,982











(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

DECEMBER 31, 2014

(dollars in thousands)

(unaudited)
















Indebtedness


Maturity


Interest Rate


 Fixed-Rate

Debt 


Floating-Rate

Debt 


 Total

Debt 


Proforma

TTM Hotel 

EBITDA 


 Proforma

TTM EBITDA

 Debt Yield 
















 Wells Senior - 25 hotels 


March 2015


LIBOR + 3.00%


$                 -


$           380,222

(1)

$                380,222


$               75,598


19.9%

 Mezz 1 - 28 hotels 


March 2015


Greater of 7.00% or LIBOR + 6.00%


-


93,091

(1)

93,091


101,677


16.3%

 Mezz 2 - 28 hotels 


March 2015


Greater of 8.00% or LIBOR + 7.00%


-


88,621

(1)

88,621


101,677


14.3%

 Mezz 3 - 28 hotels 


March 2015


Greater of 10.50% or LIBOR + 9.50%


-


75,961

(1)

75,961


101,677


12.9%

 Mezz 4 - 28 hotels 


March 2015


LIBOR + 2.00%


-


13,218

(1)

13,218


101,677


12.7%

 Merrill 1 - 10 hotels 


July 2015


5.22%


145,278

(6)

-


145,278


23,331


16.1%

 Goldman Sachs - 5 hotels 


November 2015


Greater of 6.40% or LIBOR + 6.15%


-


211,000

(2) (6)

211,000


28,236


13.4%

 UBS 2 - 8 hotels 


December 2015


5.70%


92,772


-


92,772


13,162


14.2%

 Merrill 2 - 5 hotels 


February 2016


5.53%


105,164


-


105,164


18,809


17.9%

 Merrill 7 - 5 hotels 


February 2016


5.53%


75,546


-


75,546


13,241


17.5%

 Morgan Stanley MIP - 5 hotels 


February 2016


LIBOR + 4.75%


-


200,000

(3)

200,000


20,925


10.5%

 Morgan Stanley Pool A - 7 hotels 


August 2016


LIBOR + 4.35%


-


301,000

(4)

301,000


30,759


10.2%

 Morgan Stanley Pool B - 5 hotels 


August 2016


LIBOR + 4.38%


-


62,900

(4)

62,900


6,823


10.8%

 JPM Chase - 1 hotel 


August 2016


LIBOR + 4.20%


-


37,500

(4)

37,500


4,869


13.0%

 Wachovia 1 - 5 hotels 


April 2017


5.95%


111,869


-


111,869


14,876


13.3%

 Wachovia 2 - 7 hotels 


April 2017


5.95%


122,384


-


122,384


14,656


12.0%

 Wachovia 5 - 5 hotels 


April 2017


5.95%


100,552


-


100,552


12,665


12.6%

 Wachovia 6 - 5 hotels 


April 2017


5.95%


153,002


-


153,002


17,187


11.2%

 Morgan Stanley Boston Back Bay - 1 hotel 


January 2018


4.38%


71,593


-


71,593


10,296


14.4%

 Morgan Stanley Princeton/Nashville - 2 hotels 


January 2018


4.44%


78,187


-


78,187


15,782


20.2%

 Omni American Bank - 1 hotel 


July 2019


LIBOR + 3.75% (5)


-


5,525


5,525


772


14.0%

 GACC Gateway - 1 hotel 


November 2020


6.26%


99,780


-


99,780


15,287


15.3%

 GACC Jacksonville RI - 1 hotel 


January 2024


5.49%


10,673


-


10,673


1,468


13.8%

 GACC Manchester RI - 1 hotel 


January 2024


5.49%


7,313


-


7,313


1,090


14.9%

 Key Bank Manchester CY - 1 hotel 


May 2024


4.99%


6,845


-


6,845


912


13.3%

 Morgan Stanley Pool C1 - 3 hotels 


August 2024


5.20%


67,520


-


67,520


8,138


12.1%

 Morgan Stanley Pool C2 - 2 hotels 


August 2024


4.85%


12,500


-


12,500


1,829


14.6%

 Morgan Stanley Pool C3 - 3 hotels 


August 2024


4.90%


24,980


-


24,980


3,072


12.3%

 Unencumbered hotels 






-


-


-


729


N/A
















 Total 






$    1,285,958


$        1,469,038


$             2,754,996


$             354,513


12.9%
















 Percentage 






46.7%


53.3%


100.0%




















 Weighted average interest rate 






5.55%


5.15%


5.34%



































All indebtedness is non-recourse.












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








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

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





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





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






(6) The Merrill 1 and Goldman Sachs loans were refinanced in January 2015 with a $376.8 million mortgage loan due January 2017 with a rate of LIBOR + 4.95% and a $100.6 million mortgage loan due February 2025 with a fixed rate of 4.45%.  The new loans provide for three one-year extension options subject to the satisfaction of certain conditions.

 

 

 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 

 DECEMBER 31, 2014 

 (in thousands) 

 (unaudited) 







































2015


2016


2017


2018


2019


 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 


-


93,091


-


-


-


-


93,091

 Mezz 2 - 28 hotels 


-


88,621


-


-


-


-


88,621

 Mezz 3 - 28 hotels 


-


75,961


-


-


-


-


75,961

 Mezz 4 - 28 hotels 


-


13,218


-


-


-


-


13,218

 Wachovia 1 - 5 hotels 


-


-


107,351


-


-


-


107,351

 Wachovia 2 - 7 hotels 


-


-


117,441


-


-


-


117,441

 Wachovia 5 - 5 hotels 


-


-


96,491


-


-


-


96,491

 Wachovia 6 - 5 hotels 


-


-


146,823


-


-


-


146,823

 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

 Omni American Bank - 1 hotel 


-


-


-


-


5,168


-


5,168

 Morgan Stanley MIP - 5 hotels 

-


-


-


-


200,000


-


200,000

 Morgan Stanley Pool A - 7 hotels 

-


-


-


-


301,000


-


301,000

 Morgan Stanley Pool B - 5 hotels 

-


-


-


-


62,900


-


62,900

 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

 Key Bank Manchester CY - 1 hotel 

-


-


-


-


-


5,671


5,671

 Morgan Stanley Pool C - 8 hotels 

-


-


-


-


-


90,889


90,889

 JPM Chase - 1 hotel 


-


-


-


-


-


37,500


37,500


















 Principal due in future periods 


$   233,602


$   825,940


$   679,106


$   141,061


$      569,068


$      239,173


$     2,687,950


















 Scheduled amortization payments remaining 

19,834


13,985


12,752


3,854


4,041


12,580


67,046


















 Total indebtedness 


$   253,436


$   839,925


$   691,858


$   144,915


$      573,109


$      251,753


$     2,754,996



































 

ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES (INCLUDING 71.74% PRO RATA SHARE OF HIGHLAND HOSPITALITY PORTFOLIO)

KEY PERFORMANCE INDICATORS - PRO FORMA

(unaudited)
































Three Months Ended


Year Ended




December 31,


December 31,




2014


2013


% Variance


2014


2013


% Variance















ALL HOTELS INCLUDED IN ASHFORD TRUST PORTFOLIO:




























Rooms revenue (in thousands)

$       206,585


$       185,594


11.31%


$      884,922


$      807,970


9.52%



RevPAR

$           97.61


$           87.70


11.30%


$        105.39


$          95.94


9.85%



Occupancy

71.25%


68.16%


4.53%


75.71%


72.49%


4.44%



ADR

$        137.00


$        128.67


6.47%


$       139.20


$       132.35


5.18%















NOTES:













(1)

The above pro forma table assumes the 87 hotel properties included in the Company's operations and the 28 hotel properties included in the 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:














Rooms revenue (in thousands)

$       181,232


$       160,983


12.58%


$      771,021


$      701,800


9.86%



RevPAR

$           97.95


$           87.01


12.57%


$        105.03


$          95.32


10.19%



Occupancy

71.99%


68.12%


5.68%


75.99%


72.46%


4.87%



ADR

$        136.06


$        127.72


6.53%


$       138.23


$       131.55


5.08%















NOTES:













(1)

The above pro forma table assumes the 79 hotel properties included in the Company's operations and the 24 hotel properties included in the Highland Hospitality Portfolio (PIM Highland Holding LLC) at December 31, 2014, but not under renovation for the three months ended December 31, 2014, were owned as of the beginning of each of the periods presented.

















(2)

Excluded Hotels Under Renovation:









Courtyard Boston Downtown, Crowne Plaza Beverly Hills, Residence Inn Phoenix Airport, SpringHill Suites Orlando LBV, Hilton Tampa, Courtyard Newark/Silicon Valley, Embassy Suites Flagstaff, Hilton Minneapolis, Hilton Parsippany, Hyatt Regency Savannah, Marriott Bridgewater, Sheraton Bucks County

















(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 year ended December 31, 2013. 

















 

ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

PRO FORMA HOTEL OPERATING PROFIT MARGIN

(unaudited)



THE FOLLOWING PRO FORMA EBITDA MARGIN TABLE REFLECTS THE 87 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.



















115 Trust





Properties


HOTEL OPERATING PROFIT (HOTEL EBITDA) MARGIN:









4th Quarter 2014

29.86%



4th Quarter 2013

27.92%




Variance

1.94%







HOTEL OPERATING PROFIT (HOTEL EBITDA) MARGIN VARIANCE BREAKDOWN:








Rooms 

0.18%



Food & Beverage and Other Departmental

0.89%



Administrative & General 

-0.17%



Sales & Marketing

0.28%



Hospitality

0.00%



Repair & Maintenance 

0.39%



Energy 

0.20%



Franchise Fee 

-0.03%



Management Fee 

0.00%



Incentive Management Fee 

-0.11%



Insurance 

-0.12%



Property Taxes

0.06%



Other Taxes

0.21%



Leases/Other

0.16%




Total

1.94%







 

 

ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES (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 


 Year Ended 




 December 31, 


 December 31, 




2014


2013


 % Variance 


2014


2013


 % Variance 

 REVENUE 













 Rooms 

$       206,585


$                  185,594


11.3%


$     884,922


$           807,970


9.5%


 Food and beverage 

51,481


48,254


6.7%


194,920


186,503


4.5%


 Other 

9,549


9,630


-0.8%


37,897


37,367


1.4%



 Total hotel revenue 

267,615


243,478


9.9%


1,117,739


1,031,840


8.3%















 EXPENSES 













 Rooms 

48,247


44,347


8.8%


197,257


184,466


6.9%


 Food and beverage 

33,584


32,158


4.4%


131,568


127,264


3.4%


 Other direct 

4,704


4,837


-2.7%


19,685


19,889


-1.0%


 Indirect  

75,691


70,870


6.8%


308,120


290,692


6.0%


 Management fees, includes base and incentive fees 

11,744


10,433


12.6%


51,217


43,982


16.4%



 Total hotel operating expenses 

173,970


162,645


7.0%


707,847


666,293


6.2%


 Property taxes, insurance and other 

13,729


12,863


6.7%


55,379


52,781


4.9%

HOTEL OPERATING PROFIT (Hotel EBITDA) 

79,916


67,970


17.6%


354,513


312,766


13.3%



 Hotel EBITDA Margin 

29.86%


27.92%


1.94%


31.72%


30.31%


1.41%
















 Minority interest in earnings of consolidated joint ventures 

74


73


1.4%


300


265


13.2%

HOTEL OPERATING PROFIT (Hotel EBITDA), 













 excluding minority interest in joint ventures 

$       79,842


$                  67,897


17.6%


$   354,213


$        312,501


13.3%















 NOTES: 














(1)

The above pro forma table assumes the 87 hotel properties included in the Company's operations and the 28 hotel properties included in the 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 year ended December 31, 2013. 















 ALL HOTELS INCLUDED IN ASHFORD TRUST PORTFOLIO NOT UNDER RENOVATION: 
























 Three Months Ended 


 Year Ended 




 December 31, 


 December 31, 




2014


2013


 % Variance 


2014


2013


 % Variance 

 REVENUE 













 Rooms 

$       181,232


$                  160,983


12.6%


$     771,021


$           701,800


9.9%


 Food and beverage 

44,135


41,170


7.2%


165,319


157,881


4.7%


 Other 

8,267


8,326


-0.7%


32,869


32,741


0.4%



 Total hotel revenue 

233,634


210,479


11.0%


969,209


892,422


8.6%















 EXPENSES 













 Rooms 

42,202


38,655


9.2%


171,840


160,633


7.0%


 Food and beverage 

28,764


27,411


4.9%


111,998


108,322


3.4%


 Other direct 

4,292


4,428


-3.1%


17,965


18,280


-1.7%


 Indirect  

66,092


61,511


7.4%


268,050


252,691


6.1%


 Management fees, includes base and incentive fees 

10,603


9,098


16.5%


44,808


38,143


17.5%



 Total hotel operating expenses 

151,953


141,103


7.7%


614,661


578,069


6.3%


 Property taxes, insurance and other 

11,840


11,007


7.6%


48,058


45,949


4.6%

 HOTEL OPERATING PROFIT (Hotel EBITDA) 

69,841


58,369


19.7%


306,490


268,404


14.2%



 Hotel EBITDA Margin 

29.89%


27.73%


2.17%


31.62%


30.08%


1.55%
















 Minority interest in earnings of consolidated joint ventures 

74


73


1.4%


300


265


13.2%

 HOTEL OPERATING PROFIT (Hotel EBITDA), 













 excluding minority interest in joint ventures 

$       69,767


$                  58,296


19.7%


$   306,190


$        268,139


14.2%















 NOTES: 














(1)

The above pro forma table assumes the 79 hotel properties included in the Company's operations and the 24 hotel properties included in the Highland  Hospitality Portfolio (PIM Highland Holding LLC) at December 31, 2014,  but not under renovation for the three months ended December 31, 2014, were owned as of the beginning of each of the periods presented.


















(2)

Excluded Hotels Under Renovation:









Courtyard Boston Downtown, Crowne Plaza Beverly Hills, Residence Inn Phoenix Airport, SpringHill Suites Orlando LBV, Hilton Tampa, Courtyard Newark/Silicon Valley, Embassy Suites Flagstaff, Hilton Minneapolis, Hilton Parsippany, Hyatt Regency Savannah, Marriott Bridgewater, Sheraton Bucks County

















(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 year ended December 31, 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 


 Year Ended 




 December 31, 


 December 31, 




2014


2013


 % Variance 


2014


2013


 % Variance 

 REVENUE 













 Rooms 

$         56,986


$       50,626


12.6%


$     243,585


$    219,457


11.0%


 Food and beverage 

21,325


19,551


9.1%


79,490


75,536


5.2%


 Other 

2,772


2,918


-5.0%


11,425


10,895


4.9%



 Total hotel revenue 

81,083


73,095


10.9%


334,500


305,888


9.4%















 EXPENSES 













 Rooms 

13,088


11,507


13.7%


52,962


48,730


8.7%


 Food and beverage 

13,277


12,562


5.7%


51,379


49,859


3.0%


 Other direct 

986


1,183


-16.7%


4,508


4,937


-8.7%


 Indirect  

22,859


21,451


6.6%


92,925


86,920


6.9%


 Management fees, includes base and incentive fees 

3,299


2,792


18.2%


14,020


11,326


23.8%



 Total hotel operating expenses 

53,509


49,495


8.1%


215,794


201,772


6.9%


 Property taxes, insurance and other 

4,184


4,029


3.8%


17,029


16,399


3.8%

 HOTEL OPERATING PROFIT (Hotel EBITDA) 

$       23,390


$     19,571


19.5%


$   101,677


$    87,717


15.9%



 Hotel EBITDA Margin 

28.85%


26.77%


2.07%


30.40%


28.68%


1.72%















 NOTES: 














(1)

The above pro forma table assumes the 28 hotel properties included in the Highland Hospitality Portfolio (PIM Highland Holding LLC) at December 31, 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 pro forma tables reflects an extra 3 days in Marriott-managed properties for the year ended December 31, 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 87 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.






















2014

2014

2014

2014






4th Quarter

3rd Quarter

2nd Quarter

1st Quarter


TTM










Ashford Trust Portfolio







Total Hotel Revenue

$                   267,615

$                   283,086

$                   297,878

$              269,160


$   1,117,739

Hotel EBITDA

$                     79,916

$                     88,838

$                   102,139

$                83,620


$      354,513

Hotel EBITDA Margin

29.9%

31.38%

34.29%

31.07%


31.72%










EBITDA % of Total TTM

22.5%

25.1%

28.8%

23.6%


100.0%










JV Interests in EBITDA

$                            74

$                          105

$                            83

$                       38


$             300



















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




Total Hotel Revenue

$                     81,083

$                     85,058

$                     90,417

$                77,942


$      334,500

Hotel EBITDA

$                     23,390

$                     26,217

$                     30,539

$                21,531


$      101,677

Hotel EBITDA Margin

28.85%

30.82%

33.78%

27.62%


30.40%










EBITDA % of Total TTM

23.0%

25.8%

30.0%

21.2%


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


Year Ended









Number of


Number of


December 31,


December 31,





Region


Hotels


Rooms


2014

2013

% Change


2014


2013

 % Change 























Atlanta, GA Area


9


1,428


$       89.97

$       78.76

14.2%


$         95.77


$             85.62

11.8%




Boston, MA Area


2


506


$     178.94

$     155.25

15.3%


$       181.37


$           161.39

12.4%




Dallas / Ft. Worth Area


7


1,379


$       95.22

$       91.26

4.3%


$         99.82


$             91.42

9.2%




Houston, TX Area


3


607


$     109.58

$     101.59

7.9%


$       112.03


$           107.29

4.4%




Los Angeles, CA Metro Area


8


1,783


$       90.02

$       82.72

8.8%


$       103.40


$             92.71

11.5%




Miami, FL Metro Area


3


584


$     117.79

$     105.47

11.7%


$       120.26


$           108.93

10.4%




Minneapolis - St. Paul, MN-WI Area


2


520


$       82.59

$       85.26

-3.1%


$         95.07


$             91.04

4.4%




New York / New Jersey Metro Area


7


1,559


$     101.55

$       94.91

7.0%


$       108.44


$           101.87

6.4%




Orlando, FL Area


6


1,834


$       82.00

$       73.50

11.6%


$         83.38


$             78.12

6.7%




Philadelphia, PA Area


3


648


$       77.98

$       78.04

-0.1%


$         90.02


$             86.00

4.7%




San Diego, CA Area


2


410


$       87.74

$       78.70

11.5%


$       101.60


$             91.56

11.0%




San Francisco - Oakland, CA Metro Area


6


1,368


$     120.46

$     103.22

16.7%


$       124.02


$           107.88

15.0%




Tampa, FL Area


3


582


$       83.95

$       73.72

13.9%


$         94.76


$             85.66

10.6%




Washington DC - MD - VA Area


10


2,290


$     106.77

$       93.29

14.4%


$       119.07


$           110.03

8.2%




Other Areas


44


7,506


$       93.66

$       82.87

13.0%


$       102.15


$             92.23

10.8%























Total Portfolio


115


23,004


$      97.61

$     87.70

11.3%


$     105.39


$           95.94

9.9%























NOTES:



















(1)

The above pro forma table presents the 87 hotel properties included in the Company's operations and the 28 hotel properties included in the Highland Hospitality Portfolio (PIM Highland Holding LLC) as if these hotels 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 year ended December 31, 2013. 





















 

 

ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

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


Year Ended









December 31,


December 31,

Region


Number of

Hotels


Number of

Rooms


2014

 % of

Total 

2013

 % of

Total 

% Change


2014

 % of

Total 

2013

 % of Total 

% Change




















Atlanta, GA Area


9


1,428


$        3,773

4.7%

$        3,496

5.1%

7.9%


$            18,059

5.1%

$           15,253

4.9%

18.4%

Boston, MA Area


2


506


3,770

4.7%

3,030

4.5%

24.4%


15,457

4.4%

13,461

4.3%

14.8%

Dallas / Ft. Worth Area


7


1,379


5,004

6.3%

4,388

6.5%

14.0%


20,438

5.8%

17,944

5.7%

13.9%

Houston, TX Area


3


607


3,393

4.2%

3,039

4.5%

11.6%


12,172

3.4%

11,346

3.6%

7.3%

Los Angeles, CA Metro Area


8


1,783


5,477

6.9%

5,011

7.4%

9.3%


27,754

7.8%

24,013

7.7%

15.6%

Miami, FL Metro Area


3


584


2,510

3.1%

2,395

3.5%

4.8%


10,411

2.9%

8,966

2.9%

16.1%

Minneapolis - St. Paul, MN-WI Area


2


520


1,913

2.4%

1,902

2.8%

0.6%


8,125

2.3%

7,870

2.5%

3.2%

New York / New Jersey Metro Area


7


1,559


6,219

7.8%

5,827

8.6%

6.7%


27,075

7.6%

25,505

8.2%

6.2%

Orlando, FL Area


6


1,834


4,516

5.7%

3,564

5.2%

26.7%


17,911

5.1%

16,321

5.2%

9.7%

Philadelphia, PA Area


3


648


1,382

1.7%

1,576

2.3%

-12.3%


7,051

2.0%

6,560

2.1%

7.5%

San Diego, CA Area


2


410


1,160

1.5%

998

1.5%

16.2%


5,634

1.6%

5,125

1.6%

9.9%

San Francisco - Oakland, CA Metro Area


6


1,368


6,230

7.8%

4,784

7.0%

30.2%


24,794

7.0%

19,887

6.4%

24.7%

Tampa, FL Area


3


582


1,636

2.0%

1,401

2.1%

16.8%


7,838

2.2%

7,064

2.3%

11.0%

Washington DC - MD - VA Area


10


2,290


8,472

10.6%

6,956

10.2%

21.8%


40,018

11.3%

36,005

11.5%

11.1%

Other Areas


44


7,506


24,461

30.6%

19,604

28.8%

24.8%


111,776

31.5%

97,446

31.2%

14.7%




















Total Portfolio


115


23,004


$    79,916

100.0%

$    67,970

100.0%

17.6%


$       354,513

100.0%

$       312,766

100.0%

13.3%







































NOTES:



















(1)

The above pro forma table presents the 87 hotel properties included in the Company's operations and the 28 hotel properties included in the 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 87 hotel properties included in the Company's continuing 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 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 year ended December 31, 2013.











 

 

 ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES 

 TOTAL ENTERPRISE VALUE 

DECEMBER 31, 2014

 (in thousands except share price) 

 (unaudited) 






 December 31, 


2014

End of quarter diluted common shares outstanding

89,440

Partnership units outstanding (common stock equivalents)***

18,646

Combined diluted stocks and partnership units outstanding

108,086

Common stock price at quarter end

$                        10.48

Market capitalization at quarter end

$                 1,132,737

Series A preferred stock

$                      41,430

Series D preferred stock

$                    236,718

Series E preferred stock

$                    115,750

Debt on balance sheet date*

$                 2,754,996

Joint venture partners' share of consolidated debt

$                      (2,124)

Net working capital (see below)

$                  (542,386)

Total enterprise value (TEV)*

$                 3,737,121



Ashford Prime Investment:


Partnership units owned at end of quarter

4,978

Common stock price at quarter end

$                       17.16

Market value of Ashford Prime investment

$                     85,420



Ashford Inc. Investment:


Common stock owned at end of quarter

598

Common stock price at quarter end

$                       94.00

Market value of Ashford Inc. investment

$                     56,227



Cash & cash equivalents*

$                   235,902

Marketable securities, net

57,016

Restricted cash*

167,184

Accounts receivable, net*

31,579

Prepaid expenses*

12,833

Due from affiliates, net*

(9,055)

Due from third-party hotel managers, net*

24,565

Market value of Ashford Prime investment

85,420

Market value of Ashford Inc. investment

56,227

Total current assets

$                   661,671



Accounts payable, net & accrued expenses*

$                     97,396

Dividends payable

21,889

Total current liabilities

$                   119,285



Net working capital**

$                   542,386



* Includes the Company's 71.74% interest in the Highland portfolio.


** Calculation only includes the Company's 85% interest in the Interstate joint venture.

*** Total units outstanding = 19.84 million, impacted by current conversion factor.

 

<

Ashford Hospitality Trust, Inc. and Subsidiaries and Highland Hospitality Portfolio (PIM Highland Holding LLC)

Anticipated Capital Expenditures Calendar (a)




































2014


Proposed 2015


Rooms

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter


1st Quarter

2nd Quarter

3rd Quarter

4th Quarter



Actual

Actual

Actual

Actual