Ashford Hospitality Trust 8K Announces Ashford Prime Metrics | AHT 31 Jul 13

Exhibit 99.1


		NEWS RELEASE


Contact:	David Kimichik	Deric Eubanks	Elise Chittick	Scott Eckstein
	Chief Financial Officer	SVP – Finance	Investor Relations	Financial Relations Board
	(972) 490-9600	(972) 490-9600	(972) 778-9487	(212) 827-3766

ASHFORD TRUST REPORTS

2nd QUARTER RESULTS

ANNOUNCES ASHFORD PRIME METRICS

Adjusted EBITDA increased 11% for the Quarter

RevPAR Growth of 7.9% for the Ashford Prime Portfolio

Hotel EBITDA Flow-Through of 54% for All Hotels

DALLAS, July 31, 2013 — Ashford Hospitality Trust, Inc. (NYSE: AHT) (“the Company” or “Ashford Trust”) today reported the following results and performance measures for the second quarter ended June 30, 2013. The performance measurements for Occupancy, Average Daily Rate (ADR), Revenue Per Available Room (RevPAR), and Hotel Operating Profit (or Hotel EBITDA) are proforma. Unless otherwise stated, all reported results compare the second quarter ended June 30, 2013, with the second quarter ended June 30, 2012 (see discussion below). The reconciliation of non-GAAP financial measures is included in the financial tables accompanying this press release.

FINANCIAL AND OPERATING HIGHLIGHTS

•

Board of Directors reiterates quarterly dividend policy of $0.12 per share post spin-off of Ashford Prime

•

RevPAR increased 4.5% for all hotels in the Highland Hospitality portfolio, driven by a 4.7% increase in ADR

•

RevPAR increased 4.1% for all Legacy hotels, including the eight Ashford Prime hotels, driven by a 3.8% increase in ADR and a 24 basis point increase in occupancy

•

RevPAR for all hotels, including Ashford Prime and the Highland Hospitality portfolio, increased 4.2% during the quarter

•

Adjusted EBITDA increased $10.4 million or 11% during the second quarter

•

Hotel EBITDA flow-through was 54% for all hotels, including the Highland Hospitality portfolio

•

Hotel operating profit for all hotels, including the Highland Hospitality portfolio, increased by $6.0 million, or 5.3%

•

Net loss attributable to common shareholders was $1.4 million, or $0.02 per diluted share, compared with net loss attributable to common shareholders of $13.3 million, or $0.20 per diluted share, in the prior-year quarter

•

Adjusted funds from operations (AFFO) was $0.55 per diluted share for the quarter as compared with $0.52 from the prior-year quarter; the prior year quarter included $8.0 million of income from derivatives

•

AFFO per share of $0.55 for the quarter is a record quarter for the Company when excluding income from derivatives in prior years

•

During the quarter, the Company completed its follow-on public offering of 11,000,000 shares of common stock at a price of $12.00 per share; subsequent to the end of the quarter, the underwriters exercised in part their option to purchase 1,250,782 shares of common stock at a gross price of $12.00 per share

•

At the end of the second quarter 2013, Ashford had cash, cash equivalents, and net marketable securities of $273 million

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AHT Reports Second quarter Results

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July 31, 2013

CAPITAL EXPENDITURES

•

Capex invested in the quarter for the Legacy portfolio was $24.8 million

•

Ashford’s pro rata share of capex invested in the quarter for the Highland Hospitality portfolio was $11.4 million

•

Capex invested in the quarter for the Ashford Prime portfolio was $8.5 million

ASHFORD PRIME FINANCIAL AND OPERATING HIGHLIGHTS

•

During the quarter, Ashford’s Board of Directors approved a plan to spin-off an 80% ownership interest in an eight-hotel portfolio to holders of Ashford Trust common stock in the form of a taxable special distribution expected to be comprised of common stock in Ashford Hospitality Prime, Inc. (“Ashford Prime”)

•

RevPAR increased 7.9% to $164.35 for all hotels in the Ashford Prime portfolio on a 5.4% increase in ADR and a 198 basis point increase in occupancy

•

Hotel EBITDA Flow-Through for all Ashford Prime hotels was 70%

•

Hotel operating profit margin increased 193 basis points for all Ashford Prime hotels

•

Ashford Prime will have an initial cash balance of at least $140.0 million upon spin-off

•

Ashford Prime is expected to have an initial annual dividend policy of a minimum of $0.04 per Ashford Trust share equivalent

•

No debt maturities until 2017; all debt is non-recourse

•

Anticipate acquisition of the Pier House Resort & Spa during the fourth quarter of 2013

The Company announced on June 17, 2013, that its Board of Directors approved a plan to spin-off an 80% ownership interest in an 8-hotel portfolio, totaling 3,146 rooms (2,912 owned rooms), to holders of Ashford Trust common stock in the form of a taxable special distribution. The distribution is expected to be comprised of common stock in Ashford Hospitality Prime, Inc. (“Ashford Prime”), a newly formed company to which Ashford Trust plans to transfer the portfolio interests. This distribution will be made on a pro rata basis to holders of Ashford Trust common stock as of the distribution record date. The distribution is expected to take place toward the end of the third quarter. Ashford Prime is expected to qualify as a real estate investment trust (“REIT”) for federal income tax purposes, and intends to file an application to list its shares of common stock on the New York Stock Exchange, under the symbol “AHP.” More information can be found in the information statement for Ashford Hospitality Prime that has been filed with the SEC.

For the eight-hotel portfolio that will comprise Ashford Prime, hotel operating profit (Hotel EBITDA) increased 11.7% to $24.0 million. For all eight Ashford Prime hotels that will be initially included in continuing operations, Hotel EBITDA Margin increased 193 basis points to 37.8%. RevPAR growth for the Pier House Resort & Spa was 2.7% for the quarter with Hotel EBITDA margin up 502 basis points. Hotel EBITDA increased 17.6% for the Pier House Resort & Spa during the quarter.

CAPITAL STRUCTURE

At June 30, 2013, Ashford had total assets of $3.6 billion in continuing operations, and $4.5 billion overall including the Highland Hospitality portfolio which is not consolidated. As of June 30, 2013, the Company had $2.4 billion of mortgage debt in continuing operations and $3.2 billion overall including the Highland Hospitality portfolio. Ashford’s total combined debt had a blended average interest rate of 5.3%, with a weighted average debt maturity of 3.4 years.

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AHT Reports Second quarter Results

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July 31, 2013

On April 10, 2013, Ashford announced that, along with its joint venture partner, it had entered into a series of agreements with the City of Nashville and Davidson County relating to the 673-room Renaissance Nashville Hotel. The hotel is part of Ashford’s Highland Hospitality portfolio of which Ashford has a 71.74% ownership interest. The Agreements include converting the joint venture’s leasehold interest in the hotel, which was set to expire in 2087, to fee simple ownership, extending the current lease term of some adjacent facilities to 2112, and entering into a new, 30-year lease for 80,000 square feet of meeting space and pre-function space located at the existing Nashville Convention Center, which is adjacent to the hotel, all at no cost to the joint venture. By entering into the lease for the additional meeting space, the hotel will now be able to offer over 110,000 square feet of self-contained meeting and pre-function space to accommodate larger groups.

On May 14, 2013, the Company announced it had completed the acquisition of the 142-room Pier House Resort and Spa in Key West, FL for total consideration of $90.0 million in cash ($634,000 per key). The purchase price represents a trailing 12-month cap rate of 6.2% on net operating income and an EBITDA multiple of 14.3x. In 2012, the hotel achieved RevPAR of $275, with occupancy of 83% and an Average Daily Rate of $333.

Ashford closed its follow-on public offering of 12,250,782 shares of common stock at a gross price of $12.00 per share. Ashford intends to use the net proceeds of the offering to effect the planned spin-off of Ashford Prime. If the spin-off is not effected, Ashford intends to use the net proceeds of the offering for other general corporate purposes, including, without limitation, financing future hotel-related investments, capital expenditures, working capital and repayment of debt or other obligations.

“We are excited about the planned spin-off of Ashford Prime and believe this transaction will help unlock the relative imbedded value in this portfolio of high RevPAR hotels located predominantly in domestic and international gateway markets. Further, since the cash from our recently completed follow-on offering will be contributed to Ashford Prime, it has put us much closer to our target net debt plus preferred equity to EBITDA ratio of 5.0x or less for this platform than we were prior to the offering. For example, if an annual base management fee of $5.0 million is used as an estimate, and if incremental annual G&A costs are $4.0 million, the trailing 12-month net debt plus preferred equity to EBITDA ratio as of the end of the second quarter for the Ashford Prime portfolio was around 6.5x,” commented Monty J. Bennett, Ashford’s Chairman and Chief Executive Officer. “We are very optimistic regarding Ashford Prime’s prospects given its high-quality portfolio, well-defined investment strategy, low leverage capital structure, and our management team’s proven track record of delivering asset growth and superior shareholder returns. Ultimately, we believe this spin-off will offer us an exceptional high-growth platform with enhanced access to the capital markets and will serve the best interests of our shareholders as both Ashford Prime and Ashford Trust continue to capitalize on the attractive lodging industry fundamentals we expect to persist for the next several years.”

PORTFOLIO REVPAR

As of June 30, 2013, the Company’s Legacy portfolio consisted of direct hotel investments with 95 properties classified in continuing operations. During the second quarter of 2013, 88 of the hotels included in continuing operations were not under renovation. The Company believes reporting its operating metrics for continuing operations on a proforma total basis (all 95 hotels) and proforma not under renovation basis (88 hotels) is a measure that reflects a meaningful and focused comparison of the operating results in its direct hotel portfolio. Details of each category are provided in the tables attached to this release.

•

Proforma RevPAR increased 4.1% to $112.48 for all hotels in the Legacy portfolio on a 3.8% increase in ADR and a 24 basis point increase in occupancy

•

Proforma RevPAR increased 3.8% to $112.64 for hotels not under renovation in the Legacy portfolio on a 3.7% increase in ADR and a 8 basis point increase in occupancy

•

Proforma RevPAR increased 4.5% to $116.89 for all hotels in the Highland Hospitality portfolio on a 4.7% increase in ADR and a 18 basis point decrease in occupancy

•

Proforma RevPAR increased 6.0% to $111.46 for hotels not under renovation in the Highland Hospitality portfolio on a 5.3% increase in ADR and a 47 basis point increase in occupancy

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AHT Reports Second quarter Results

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July 31, 2013

HOTEL EBITDA MARGINS AND QUARTERLY SEASONALITY TRENDS

During the quarter, Hotel operating profit (Hotel EBITDA) for all Legacy hotels increased 5.9% to $91.5 million. For the 88 hotels that were not under renovation, Hotel EBITDA increased 5.6% to $84.6 million. Hotel EBITDA Margin (expressed as a percentage of Total Hotel Revenue) increased 76 basis points to 35.6% for the 88 Legacy hotels not under renovation. For all 95 Legacy hotels included in continuing operations, Hotel EBITDA Margin increased 82 basis points to 35.2%. The Legacy hotels had significant insurance and property tax savings in the prior year quarter. Excluding these increases, margin improvement would have been 162 basis points.

For the Company’s 71.74% share of all hotels in the Highland Hospitality portfolio, Hotel operating profit (Hotel EBITDA) increased 3.4% to $28.3 million. For the 23 hotels in the Highland Hospitality portfolio that were not under renovation, Hotel EBITDA increased 4.8% to $21.8 million. Hotel EBITDA margin (expressed as a percentage of Total Hotel Revenue) increased 25 basis points to 31.9% for the 23 Highland Hospitality hotels not under renovation. For all 28 Highland Hospitality hotels included in continuing operations, Hotel EBITDA margin increased 12 basis points to 33.4%. The Highland Portfolio had significant insurance and property tax savings in the prior year quarter. Excluding these increases, margin improvement would have been 101 basis points.

Ashford 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 Legacy portfolio as well as its pro-rata share of the Highland Hospitality portfolio as of the end of the current period. As Ashford’s portfolio mix changes from time to time so will the seasonality for Proforma Hotel EBITDA and Proforma Hotel EBITDA margin. The details of the quarterly calculations for the previous four quarters for the current portfolio of 94 Legacy hotels included in continuing operations, the eight-hotel Ashford Prime portfolio, and Ashford’s pro-rata share of the Highland Hospitality portfolio are provided in the table attached to this release.

In addition, in 2013, Marriott Hotels and Resorts converted to a monthly reporting calendar as opposed to its traditional thirteen-period reporting calendar. Historically, Ashford has recorded four of its Marriott-managed hotels’ accounting periods in the fourth quarter and three in each of the other quarters during the year. Presently, Marriott manages 38 hotels for Ashford making it one of the Company’s largest property managers. Accordingly, this year Ashford has converted its 2012 numbers on a proforma basis to calendar months, consistent with the new Marriott monthly reporting calendar, to provide necessary consistency in period-to-period comparisons.

ASSET MANAGEMENT

As part of Ashford’s ongoing asset management initiatives, during the second quarter the Company converted eight hotels from brand management to franchises. These include the SpringHill Suites Richmond; Residence Inn Phoenix Airport; Residence Inn Newark, CA; Courtyard Oakland Airport, Courtyard by Marriott Newark, CA; Marriott Suites Market Center Dallas; Courtyard Palm Desert and Residence Inn Palm Desert. In addition, subsequent to the end of the quarter, the Company entered into an agreement to convert the Beverly Hills Crowne Plaza Hotel to the Marriott brand after the expiration of the existing license agreement in March of 2015.

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AHT Reports Second quarter Results

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July 31, 2013

Mr. Bennett commented, “Our asset management team is constantly exploring ways to maximize the value of our assets and generate enhanced revenues and additional cost savings. We expect these newly franchised hotels and repositioning of our Beverly Hills asset will produce long-term value creation through higher revenue and EBITDA growth.”

COMMON STOCK DIVIDEND

On June 14, 2013, Ashford 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 second quarter ending June 30, 2013, payable on July 15, 2013, to shareholders of record as of June 28, 2013.

INVESTOR CONFERENCE CALL AND SIMULCAST

Ashford Hospitality Trust, Inc. will conduct a conference call on Thursday, August 1, 2013, at 11:00 a.m. ET. The number to call for this interactive teleconference is (480) 629-9866. A replay of the conference call will be available through Thursday August 8, 2013, by dialing (303) 590-3030 and entering the confirmation number, 4628631.

The Company will also provide an online simulcast and rebroadcast of its second quarter 2013 earnings release conference call. The live broadcast of Ashford Hospitality Trust’s quarterly conference call will be available online at the Company’s web site, www.ahtreit.com on Thursday August 1, 2013, 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.

Ashford Hospitality Prime will be a conservatively capitalized real estate investment trust (REIT) focused on investing in high RevPAR full-service and urban select-service hotels located predominantly in domestic and international gateway markets.

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

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AHT Reports Second quarter Results

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July 31, 2013

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’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 the condition to the completion of the spin-off . These and other risk factors are more fully discussed in Ashford’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.

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ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except share amounts)


	June 30,			December 31,
	2013			2012
	(Unaudited)
ASSETS
Cash and cash equivalents	$	250,464		$	185,935
Marketable securities		24,521			23,620

Total cash, cash equivalents and marketable securities		274,985			209,555
Investment in hotel properties, net		2,938,552			2,872,304
Restricted cash		77,954			84,786
Accounts receivable, net of allowance of $364 and $265, respectively		37,540			35,116
Inventories		2,296			2,111
Notes receivable, net of allowance of $8,138 and $8,333, respectively		11,404			11,331
Investment in unconsolidated joint ventures		154,173			158,694
Deferred costs, net		14,186			17,194
Prepaid expenses		15,277			10,145
Derivative assets, net		26			6,391
Other assets		5,565			4,594
Intangible asset, net		2,676			2,721
Due from affiliates		2,369			1,168
Due from third-party hotel managers		55,155			48,619

Total assets	$	3,592,158		$	3,464,729

LIABILITIES AND EQUITY
Liabilities:
Indebtedness	$	2,381,932		$	2,339,410
Accounts payable and accrued expenses		96,898			84,293
Dividends payable		20,585			18,258
Unfavorable management contract liabilities		8,847			11,165
Due to related party, net		782			3,725
Due to third-party hotel managers		2,038			1,410
Liabilities associated with marketable securities and other		1,666			1,641
Other liabilities		6,083			6,348

Total liabilities		2,518,831			2,466,250

Redeemable noncontrolling interests in operating partnership		182,289			151,179
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 June 30, 2013 and December 31, 2012		17			17
Series D Cumulative Preferred Stock, 9,468,706 shares issued and outstanding at June 30, 2013 and December 31, 2012		95			95
Series E Cumulative Preferred Stock, 4,630,000 shares issued and outstanding at June 30, 2013 and December 31, 2012		46			46
Common stock, $0.01 par value, 200,000,000 shares authorized, 124,896,765 shares issued, 79,316,147 and 68,150,617 shares outstanding, respectively		1,249			1,249
Additional paid-in capital		1,866,293			1,766,168
Accumulated other comprehensive loss		(263	)		(282	)
Accumulated deficit		(835,308	)		(770,467	)
Treasury stock, at cost (45,580,618 shares and 56,746,148 shares, respectively)		(142,245	)		(164,884	)

Total shareholders’ equity of the Company		889,884			831,942
Noncontrolling interests in consolidated entities		1,154			15,358

Total equity		891,038			847,300

Total liabilities and equity	$	3,592,158		$	3,464,729

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ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2013			2012			2013			2012
	(Unaudited)						(Unaudited)
REVENUE
Rooms	$	205,740		$	189,829		$	389,209		$	359,288
Food and beverage		43,234			41,943			82,884			81,650
Other		9,429			8,929			18,145			16,743

Total hotel revenue		258,403			240,701			490,238			457,681
Other		136			77			243			152

Total Revenue		258,539			240,778			490,481			457,833

EXPENSES
Hotel operating expenses
Rooms		45,075			41,802			87,231			80,402
Food and beverage		27,616			26,950			54,791			53,951
Other expenses		73,356			71,171			141,648			136,265
Management fees		10,686			9,892			20,579			18,881

Total hotel operating expenses		156,733			149,815			304,249			289,499
Property taxes, insurance, and other		11,663			10,138			23,911			21,850
Depreciation and amortization		32,842			33,477			65,322			67,133
Impairment charges		(99	)		(95	)		(195	)		(187	)
Transaction acquisition costs		1,170			—			1,170			—
Corporate, general, and administrative:
Stock/unit-based compensation		4,550			4,223			12,893			9,369
Other general and administrative		10,149			7,707			16,322			12,807

Total Operating Expenses		217,008			205,265			423,672			400,471

OPERATING INCOME		41,531			35,513			66,809			57,362
Equity in earnings (loss) of unconsolidated joint ventures		2,367			23			(4,521	)		(10,281	)
Interest income		13			22			49			54
Other income		310			6,703			6,132			14,317
Interest expense		(34,174	)		(34,833	)		(67,622	)		(68,514	)
Amortization of loan costs		(1,852	)		(1,451	)		(3,784	)		(2,646	)
Write-off of deferred loan costs and exit fees		—			—			(1,971	)		—
Unrealized gain (loss) on marketable securities		(919	)		1,628			1,782			3,413
Unrealized gain (loss) on derivatives		789			(7,458	)		(6,360	)		(17,399	)

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		8,065			147			(9,486	)		(23,694	)
Income tax expense		(465	)		(1,366	)		(1,069	)		(2,245	)

INCOME (LOSS) FROM CONTINUING OPERATIONS		7,600			(1,219	)		(10,555	)		(25,939	)
Loss from discontinued operations		—			(4,721	)		—			(4,554	)

NET INCOME (LOSS)		7,600			(5,940	)		(10,555	)		(30,493	)
(Income) loss from consolidated entities attributable to noncontrolling interests		8			(54	)		715			224
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership		(502	)		1,180			2,260			4,238

NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY		7,106			(4,814	)		(7,580	)		(26,031	)
Preferred dividends		(8,491	)		(8,490	)		(16,981	)		(16,822	)

NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS	$	(1,385	)	$	(13,304	)	$	(24,561	)	$	(42,853	)

INCOME (LOSS) PER SHARE – BASIC AND DILUTED
Basic:
Loss from continuing operations attributable to common shareholders	$	(0.02	)	$	(0.14	)	$	(0.36	)	$	(0.58	)
Loss from discontinued operations attributable to common shareholders		—			(0.06	)		—		$	(0.06	)

Net loss attributable to common shareholders	$	(0.02	)	$	(0.20	)	$	(0.36	)	$	(0.64	)

Weighted average common shares outstanding – basic		68,489			67,639			68,088			67,396

Diluted:
Loss from continuing operations attributable to common shareholders	$	(0.02	)	$	(0.14	)	$	(0.36	)	$	(0.58	)
Loss from discontinued operations attributable to common shareholders		—		$	(0.06	)		—		$	(0.06	)

Net loss attributable to common shareholders	$	(0.02	)	$	(0.20	)	$	(0.36	)	$	(0.64	)

Weighted average common shares outstanding – diluted		68,489			67,639			68,088			67,396

Dividends declared per common share:	$	0.12		$	0.11		$	0.44		$	0.40

Amounts attributable to common shareholders:
Income (loss) from continuing operations	$	7,106		$	(678	)	$	(7,580	)	$	(22,043	)
Loss from discontinued operations		—			(4,136	)		—			(3,988	)
Preferred dividends		(8,491	)		(8,490	)		(16,981	)		(16,822	)

Net loss attributable to common shareholders	$	(1,385	)	$	(13,304	)	$	(24,561	)	$	(42,853	)

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ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) TO EBITDA

(in thousands)

(Unaudited)


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2013			2012			2013			2012
Net income (loss)	$	7,600		$	(5,940	)	$	(10,555	)	$	(30,493	)
(Income) loss from consolidated entities attributable to noncontrolling interests		8			(54	)		715			224
Net income (loss) attributable to redeemable noncontrolling interests in operating partnership		(502	)		1,180			2,260			4,238

Net income (loss) attributable to the Company		7,106			(4,814	)		(7,580	)		(26,031	)
Interest income		(13	)		(22	)		(49	)		(54	)
Interest expense and amortization of loan costs		35,529			36,239			70,501			71,090
Depreciation and amortization		32,005			33,434			63,665			67,017
Impairment charges		(99	)		4,025			(195	)		3,933
Income tax expense		465			1,366			1,069			2,245
Net income (loss) attributable to redeemable noncontrolling interests in operating partnership		502			(1,180	)		(2,260	)		(4,238	)
Equity in (earnings) loss of unconsolidated joint ventures		(2,367	)		(23	)		4,521			10,281
Company’s portion of EBITDA of unconsolidated joint ventures		26,747			25,116			44,136			39,680

EBITDA		99,875			94,141			173,808			163,923
Amortization of unfavorable management contract liabilities		(586	)		(565	)		(1,197	)		(1,129	)
Gain on sale/disposition of properties		—			—			—			—
Write-off of loan costs and exit fees		—			—			1,971			—
Other income (1)		(310	)		(6,703	)		(6,132	)		(14,317	)
Transaction acquisition and management conversion costs		1,300			—			1,300			—
Transaction costs related to proposed spin-off		3,856			—			3,856			—
Legal costs related to litigation settlements (2)		—			1,467			—			1,707
Unrealized (gain) loss on marketable securities		919			(1,628	)		(1,782	)		(3,413	)
Unrealized (gain) loss on derivatives		(789	)		7,458			6,360			17,399
Equity-based compensation		4,550			4,223			12,893			9,369
Company’s portion of adjustments to EBITDA of unconsolidated joint ventures		3			49			22			144

Adjusted EBITDA	$	108,818		$	98,442		$	191,099		$	173,683

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

(2)	Legal costs associated with litigation settlements are excluded from Adjusted EBITDA.

RECONCILIATION OF NET INCOME (LOSS) TO FUNDS FROM OPERATIONS (“FFO”)

(in thousands, except per share amounts)

(Unaudited)


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2013			2012			2013			2012
Net income (loss)	$	7,600		$	(5,940	)	$	(10,555	)	$	(30,493	)
(Income) loss from consolidated entities attributable to noncontrolling interests		8			(54	)		715			224
Net income (loss) attributable to redeemable noncontrolling interests in operating partnership		(502	)		1,180			2,260			4,238
Preferred dividends		(8,491	)		(8,490	)		(16,981	)		(16,822	)

Net loss attributable to common shareholders		(1,385	)		(13,304	)		(24,561	)		(42,853	)
Depreciation and amortization on real estate		31,900			33,374			63,462			66,892
Impairment charges		(99	)		4,025			(195	)		3,933
Net income (loss) attributable to redeemable noncontrolling interests in operating partnership		502			(1,180	)		(2,260	)		(4,238	)
Equity in (earnings) loss of unconsolidated joint ventures		(2,367	)		(23	)		4,521			10,281
Company’s portion of FFO of unconsolidated joint ventures		14,617			12,955			20,253			15,410

FFO available to common shareholders		43,168			35,847			61,220			49,425
Write-off of loan costs and exit fees		—			—			1,971			—
Other income (1)		(310	)		1,303			83			1,681
Legal costs related to litigation settlements (2)		—			1,467			—			1,707
Transaction acquisition and management conversion costs		1,300			—			1,300			—
Transaction costs related to proposed spin-off		3,856			—			3,856			—
Unrealized (gain) loss on marketable securities		919			(1,628	)		(1,782	)		(3,413	)
Unrealized (gain) loss on derivatives		(789	)		7,458			6,360			17,399
Equity-based compensation adjustment related to modified employment terms		—			(511	)		4,678			480
Company’s portion of adjustments to FFO of unconsolidated joint ventures		3			49			22			144

Adjusted FFO available to common shareholders	$	48,147		$	43,985		$	77,708		$	67,423

Adjusted FFO per diluted share available to common shareholders	$	0.55		$	0.52		$	0.90		$	0.80

Weighted average diluted shares		87,488			85,317			86,644			84,791

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

(2)	Legal costs associated with litigation settlements are excluded from Adjusted FFO

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ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

LEGACY PORTFOLIO ONLY

SUMMARY OF INDEBTEDNESS OF CONTINUING OPERATIONS

JUNE 30, 2013

(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
BoA MIP–5 hotels	March 2014	LIBOR + 4.50%	$	—		$	170,682	⁽¹⁾	$	170,682		$	18,402		10.8	%
JPM Floater–9 hotels	May 2014	LIBOR + 6.50%		—			135,000	⁽²⁾		135,000			17,262		12.8	%
GEMSA Manchester–1 hotel	May 2014	8.32%		5,198			—			5,198			579		11.1	%
Senior credit facility–Various	September 2014	LIBOR + 2.75% to 3.5%		—			—			—			N/A		N/A
Goldman Sachs–5 hotels	November 2014	Greater of 6.40% or LIBOR + 6.15%		—			211,000	⁽³⁾		211,000			23,751		11.3	%
UBS 1–8 hotels	December 2014	5.75%		103,523			—			103,523			11,910		11.5	%
Merrill 1–10 hotels	July 2015	5.22%		151,044			—			151,044			21,515		14.2	%
UBS 2–8 hotels	December 2015	5.70%		95,910			—			95,910			11,244		11.7	%
Merrill 2–5 hotels	February 2016	5.53%		109,154			—			109,154			17,217		15.8	%
Merrill 3–5 hotels	February 2016	5.53%		90,522			—			90,522			15,635		17.3	%
Merrill 7–5 hotels	February 2016	5.53%		78,412			—			78,412			13,154		16.8	%
Wachovia Philly CY–1 hotel	April 2017	5.91%		34,523			—			34,523			10,259		29.7	%
Wachovia 3–2 hotels	April 2017	5.95%		126,519			—			126,519			16,508		13.0	%
Wachovia 7–3 hotels	April 2017	5.95%		257,455			—			257,455			25,223		9.8	%
Wachovia 1–5 hotels	April 2017	5.95%		114,039			—			114,039			12,264		10.8	%
Wachovia 5–5 hotels	April 2017	5.95%		102,503			—			102,503			10,503		10.2	%
Wachovia 6–5 hotels	April 2017	5.95%		155,970			—			155,970			16,769		10.8	%
Wachovia 2–7 hotels	April 2017	5.95%		124,758			—			124,758			12,732		10.2	%
Aareal–2 hotels	February 2018	LIBOR + 3.50%		—			199,275			199,275			24,579		12.3	%
TIF Philly CY–1 hotel	June 2018	12.85%		8,098			—			8,098			N/A		N/A
GACC Gateway–1 hotel	November 2020	6.26%		101,916			—			101,916			15,674		15.4	%
Zion Jacksonville RI–1 hotel	April 2034	Greater of 6% or Prime + 1%		—			6,431			6,431			1,253		19.5	%
Unencumbered hotels				—			—			—			7,514		N/A

Total			$	1,659,544		$	722,388		$	2,381,932		$	303,947		12.8	%

Percentage				69.7	%		30.3	%		100.0	%

Weighted average interest rate				5.85	%		5.30	%		5.68	%

Weighted average interest rate with the effect of interest rate swaps				5.47	%⁽⁴⁾		5.30	%⁽⁴⁾		5.42	%

All indebtedness is non-recourse with the exception of the senior credit facility.

⁽¹⁾	This mortgage loan has a one-year extension option beginning March 2014, subject to satisfaction of certain conditions.

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

⁽³⁾	This mortgage loan has three one-year extension options beginning November 2014, subject to satisfaction of certain conditions.

⁽⁴⁾	These rates are calculated assuming the LIBOR rate stays at the June 30, 2013 level and with the effect of our interest rate derivatives.

HIGHLAND HOSPITALITY PORTFOLIO

(PIM HIGHLAND HOLDING LLC)

SUMMARY OF INDEBTEDNESS

ASHFORD’S PRO RATA 71.74% SHARE

JUNE 30, 2013

(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 2014	LIBOR + 3.00%	$	—		$	380,222	⁽¹⁾	$	380,222		$	65,847		17.3	%
Mezz 1–28 hotels	March 2014	Greater of 7.00% or LIBOR + 6.00%		—			93,666	⁽¹⁾		93,666			87,959		14.0	%
Mezz 2–28 hotels	March 2014	Greater of 8.00% or LIBOR + 7.00%		—			89,167	⁽¹⁾		89,167			87,959		12.3	%
Mezz 3–28 hotels	March 2014	Greater of 10.50% or LIBOR + 9.50%		—			76,429	⁽¹⁾		76,429			87,959		11.1	%
Mezz 4–28 hotels	March 2014	LIBOR + 2.00%					13,218	⁽¹⁾		13,218			87,959		10.9	%
Morgan Stanley Boston Back Bay–1 hotel	January 2018	4.38%		73,400			—			73,400			9,258		12.6	%
Morgan Stanley Princeton/Nashville–2 hotels	January 2018	4.44%		80,247			—			80,247			12,854		16.0	%

Total (Ashford’s 71.74% share only)			$	153,647		$	652,702		$	806,349		$	87,959		10.9	%

Percentage				19.1	%		80.9	%		100.0	%

Weighted average interest rate				4.41	%		5.23	%		5.08	%

Total Ashford plus Ashford’s 71.74% share of PIM Highland Holding LLC			$	1,813,191		$	1,375,090		$	3,188,281		$	391,906		12.3	%

Percentage				56.9	%		43.1	%		100.0	%

Weighted average interest rate with the effect of interest rate swaps				5.38	%		5.27	%		5.33	%

⁽¹⁾	Each of these loans has two one-year extension options beginning March 2014.

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THE ASHFORD HOSPITALITY PRIME HOTELS

SUMMARY OF INDEBTEDNESS OF CONTINUING OPERATIONS

JUNE 30, 2013

(dollars in thousands)

(Unaudited)

(Included in Ashford Hospitality Trust, Inc. and Subsidiaries)


Indebtedness	Maturity	Interest Rate	Fixed-Rate Debt			Floating-Rate Debt			Total Debt			Proforma TTM Hotel EBITDA		Proforma TTM EBITDA Debt Yield
Wachovia Philly CY–1 hotel	April 2017	5.91%	$	34,523		$	—		$	34,523			10,259		29.7	%
Wachovia 3–2 hotels	April 2017	5.95%		126,519			—			126,519			16,508		13.0	%
Wachovia 7–3 hotels	April 2017	5.95%		257,455			—			257,455			25,223		9.8	%
Aareal–2 hotels	February 2018	LIBOR + 3.50%		—			199,275			199,275			24,579		12.3	%
TIF Philly CY–1 hotel	June 2018	12.85%		8,098			—			8,098					N/A

Total			$	426,595		$	199,275		$	625,870		$	76,569		12.2	%

Percentage				68.2	%		31.8	%		100.0	%

Weighted average interest rate				6.08	%		3.69	%		5.32	%

All indebtedness is non-recourse.

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ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

LEGACY PORTFOLIO ONLY

INDEBTEDNESS BY MATURITY ASSUMING EXTENSION OPTIONS ARE EXERCISED

JUNE 30, 2013

(in thousands)

(Unaudited)


	2013		2014		2015		2016		2017		Thereafter		Total
GEMSA Manchester–1 hotel	$	—	$	5,004	$	—	$	—	$	—	$	—	$	5,004
Senior credit facility–Various		—		—		—		—		—		—		—
UBS 1–8 hotels		—		100,119		—		—		—		—		100,119
BoA MIP–5 hotels		—		—		170,682		—		—		—		170,682
Merrill 1–10 hotels		—		—		142,922		—		—		—		142,922
UBS 2–8 hotels		—		—		90,680		—		—		—		90,680
Merrill 2–5 hotels		—		—		—		101,740		—		—		101,740
Merrill 3–5 hotels		—		—		—		84,374		—		—		84,374
Merrill 7–5 hotels		—		—		—		73,086		—		—		73,086
JPM Floater–9 hotels		—		—		—		—		135,000		—		135,000
Wachovia Philly CY–1 hotel		—		—		—		—		32,532		—		32,532
Wachovia 3–2 hotels		—		—		—		—		119,245		—		119,245
Wachovia 7–3 hotels		—		—		—		—		242,201		—		242,201
Wachovia 1–5 hotels		—		—		—		—		107,351		—		107,351
Wachovia 5–5 hotels		—		—		—		—		96,491		—		96,491
Wachovia 6–5 hotels		—		—		—		—		146,823		—		146,823
Wachovia 2–7 hotels		—		—		—		—		117,441		—		117,441
Goldman Sachs–5 hotels		—		—		—		—		211,000		—		211,000
Aareal–2 hotels		—		—		—		—		—		186,259		186,259
TIF Philly CY–1 hotel		—		—		—		—		—		8,098		8,098
GACC Gateway–1 hotel		—		—		—		—		—		89,886		89,886
Zion Jacksonville RI–1 hotel		—		—		—		—		—		—		—

Principal due in future periods	$	—	$	105,123	$	404,284	$	259,200	$	1,208,084	$	284,243	$	2,260,934
Scheduled amortization payments remaining		18,791		30,731		29,361		19,617		18,327		4,171		120,998

Total indebtedness of continuing operations	$	18,791	$	135,854	$	433,645	$	278,817	$	1,226,411	$	288,414	$	2,381,932

NOTE: These maturities assume no event of default would occur.

HIGHLAND HOSPITALITY PORTFOLIO

(PIM HIGHLAND HOLDING LLC)

INDEBTEDNESS BY MATURITY

ASSUMING EXTENSION OPTIONS ARE EXERCISED

ASHFORD’S PRO RATA 71.74% SHARE

JUNE 30, 2013

(in thousands)

(Unaudited)


	2013		2014		2015		2016		2017		Thereafter		Total
Wells Senior–25 hotels	$	—	$	—	$	—	$	380,222	$	—	$	—	$	380,222
Mezz 1–28 hotels		—		—		—		93,665		—		—		93,665
Mezz 2–28 hotels		—		—		—		89,167		—		—		89,167
Mezz 3–28 hotels		—		—		—		76,429		—		—		76,429
Mezz 4–28 hotels		—		—		—		13,218		—		—		13,218
Morgan Stanley Boston Back Bay–1 hotel		—		—		—		—		—		67,358		67,358
Morgan Stanley Princeton/Nashville–2 hotels		—		—		—		—		—		73,703		73,703

Principal due in future periods	$	—	$	—	$	—	$	652,701	$	—	$	141,060	$	793,762
Scheduled amortization payments remaining		1,296		2,639		2,758		2,882		3,012		—		12,588

Total indebtedness of continuing operations (Ashford’s 71.74% share only)	$	1,296	$	2,639	$	2,758	$	655,583	$	3,012	$	141,060	$	806,349

Total indebtedness of continuing operations plus Ashford’s 71.74% share of PIM Highland Holding LLC	$	20,087	$	138,493	$	436,403	$	934,400	$	1,229,423	$	429,474	$	3,188,281

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THE ASHFORD HOSPITALITY PRIME HOTELS

INDEBTEDNESS BY MATURITY ASSUMING EXTENSION OPTIONS ARE EXERCISED

JUNE 30, 2013

(in thousands)

(Unaudited)

(Included in Ashford Hospitality Trust, Inc. and Subsidiaries)


	2013		2014		2015		2016		2017		Thereafter		Total
Wachovia Philly CY–1 hotel	$	—	$	—	$	—	$	—	$	32,532	$	—	$	32,532
Wachovia 3–2 hotels		—		—		—		—		119,245		—		119,245
Wachovia 7–3 hotels		—		—		—		—		242,201		—		242,201
Aareal–2 hotels		—		—		—		—		—		186,259		186,259
TIF Philly CY–1 hotel		—		—		—		—		—		8,098		8,098

Principal due in future periods	$	—	$	—	$	—	$	—	$	393,978	$	194,357	$	588,335
Scheduled amortization payments remaining		4,871		8,403		8,917		9,464		5,350		530		37,535

Total indebtedness of continuing operations	$	4,871	$	8,403	$	8,917	$	9,464	$	399,328	$	194,887	$	625,870

NOTE: These maturities assume no event of default would occur.

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ASHFORD HOSPITALITY TRUST, INC.

KEY PERFORMANCE INDICATORS—PRO FORMA

LEGACY PORTFOLIO ONLY

(dollars in thousands)

(Unaudited)


	Three Months Ended June 30,									Six Months Ended June 30,
	2013			2012			% Variance			2013			2012			% Variance
ALL HOTELS INCLUDED IN CONTINUING OPERATIONS:
Room revenues (in thousands)	$	206,569		$	198,394			4.12	%	$	393,513		$	379,066			3.81	%
RevPAR	$	112.48		$	108.02			4.13	%	$	106.90		$	102.93			3.86	%
Occupancy		78.68	%		78.44	%		0.24	%		75.09	%		74.94	%		0.15	%
ADR	$	142.96		$	137.71			3.81	%	$	142.36		$	137.36			3.64	%

NOTES:

(1)	The above pro forma table assumes the 95 hotel properties owned and included in continuing operations at June 30, 2013 were owned as of the beginning of the period presented.


ALL HOTELS NOT UNDER RENOVATION INCLUDED IN CONTINUING OPERATIONS:
Room revenues (in thousands)	$	191,095		$	184,111		3.79	%	$	363,956		$	351,079		3.67	%
RevPAR	$	112.64		$	108.52		3.80	%	$	107.01		$	103.20		3.69	%
Occupancy		78.98	%		78.90	%	0.08	%		75.43	%		75.29	%	0.14	%
ADR	$	142.61		$	137.55		3.68	%	$	141.86		$	137.07		3.49	%

NOTES:

(1)	The above pro forma table assumes the 88 hotel properties owned and included in continuing operations at June 30, 2013, but not under renovation for three and six months ended June 30, 2013 were owned as of the beginning of the periods presented.

(2)	Excluded Hotels Under Renovation:

Hilton Sante Fe, Hilton La Jolla Torrey Pines, Hampton Inn Buford, Hampton Inn Terre Haute

Marriott Dallas Plano Legacy, Embassy Suites Walnut Creek, Residence Inn Palm Desert

(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 proforma table assumes the Marriott-managed properties were reported on calendar quarters for all periods presented.

HIGHLAND HOSPITALITY PORTFOLIO

(PIM HIGHLAND HOLDING LLC)

KEY PERFORMANCE INDICATORS—PRO FORMA

(dollars in thousands)

(Unaudited)

THE FOLLOWING TABLE PRESENTS THE PRO FORMA PERFORMANCE OF THE HIGHLAND HOSPITALITY PORTFOLIO (PIM HIGHLAND HOLDING LLC) AS IF THESE HOTELS WERE OWNED AS OF THE BEGINNING OF THE FIRST COMPARATIVE REPORTING PERIOD.


	Three Months Ended June 30,									Six Months Ended June 30,
	2013			2012			%Variance			2013			2012			%Variance
71.74% PRO-RATA SHARE OF ALL HOTELS INCLUDED IN CONTINUING OPERATIONS:
Room revenues (in thousands)	$	61,681		$	59,045			4.46	%	$	113,441		$	107,397			5.63	%
RevPAR	$	116.89		$	111.89			4.47	%	$	107.67		$	101.63			5.94	%
Occupancy		76.39	%		76.57	%		-0.18	%		72.95	%		72.48	%		0.47	%
ADR	$	153.02		$	146.13			4.71	%	$	147.59		$	140.22			5.26	%

NOTE:

The above pro forma table assumes the 28 hotel properties owned and included in continuing operations at June 30, 2013 were owned as of the beginning of the periods presented.


71.74% PRO-RATA SHARE OF ALL HOTELS NOT UNDER RENOVATION INCLUDED IN CONTINUING OPERATIONS:
Room revenues (in thousands)	$	48,652		$	45,903		5.99	%	$	92,229		$	86,250		6.93	%
RevPAR	$	111.46		$	105.16		5.99	%	$	105.82		$	98.67		7.25	%
Occupancy		75.69	%		75.22	%	0.47	%		72.84	%		71.85	%	0.99	%
ADR	$	147.27		$	139.82		5.33	%	$	145.27		$	137.34		5.77	%

NOTES:

(1)	The above pro forma table assumes the 23 hotel properties owned and included in continuing operations at June 30, 2013 but not under renovation for the three and six months ended June 30, 2013, were owned as of the beginning of the periods presented.

(2)	Excluded Hotels Under Renovation:

Courtyard Boston Downtown, Hyatt Regency Wind Watch, Hilton Garden Inn Virginia Beach, Hilton Garden Inn BWI, Hilton Boston Back Bay

(3)

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ASHFORD HOSPITALITY TRUST, INC.

KEY PERFORMANCE INDICATORS—PRO FORMA

PRIME PORTFOLIO ONLY

(dollars in thousands)

(Unaudited)

EIGHT HOTELS INCLUDED IN ASHFORD HOSPITALITY PRIME OPERATIONS (currently included in Legacy Portfolio):


	Three Months Ended June 30,									Six Months Ended June 30,
	2013			2012			%Variance			2013			2012			%Variance
ALL HOTELS INCLUDED IN CONTINUING OPERATIONS:
Room revenues (in thousands)	$	47,050		$	43,608			7.89	%	$	85,668		$	80,096			6.96	%
RevPAR	$	164.35		$	152.32			7.90	%	$	148.72		$	139.35			6.72	%
Occupancy		83.39	%		81.41	%		1.98	%		78.36	%		77.19	%		1.17	%
ADR	$	197.09		$	187.09			5.35	%	$	189.79		$	180.52			5.14	%

NOTES:

(1)	The above pro forma table assumes the eight hotel properties included in the Prime portfolio at June 30, 2013 were owned as of the beginning of the period presented.

(2)	Prime portfolio includes: Capital Hilton Washington DC, Hilton La Jolla Torrey Pines, Courtyard Philadelphia Downtown, Marriott Dallas Plano Legacy, Courtyard San Francisco Downtown, Courtyard Seattle Downtown Lake Union, Marriott Seattle Waterfront, Renaissance Tampa International Plaza

(3)

-MORE-

ASHFORD HOSPITALITY TRUST, INC.

PRO FORMA HOTEL OPERATING PROFIT MARGIN

(Unaudited)

THE FOLLOWING PRO FORMA HOTEL OPERATING PROFIT MARGIN PRESENTS THE 95 HOTELS

INCLUDED IN THE COMPANY’S CONTINUING OPERATIONS, THE EIGHT HOTELS INCLUDED IN

ASHFORD HOSPITALITY PRIME, AND THE 28 HOTELS INCLUDED IN HIGHLAND HOSPITALITY

PORTFOLIO (PIM HIGHLAND HOLDING LLC) AS IF THESE HOTELS WERE OWNED AS OF THE

FIRST COMPARATIVE REPORTING PERIOD.


	95 Legacy Properties			8 Prime Properties ⁽¹⁾			PIM Highland Holding LLC 28 Properties
HOTEL OPERATING PROFIT (HOTEL EBITDA) MARGIN:
1st Quarter 2013		35.23	%		37.81	%		33.36	%
1st Quarter 2012		34.41	%		35.88	%		33.24	%

Variance		0.82	%		1.93	%		0.12	%

HOTEL OPERATING PROFIT (HOTEL EBITDA) MARGIN VARIANCE BREAKDOWN:
Rooms		-0.07	%		-0.13	%		0.28	%
Food & Beverage and Other Departmental		0.60	%		0.98	%		0.51	%
Administrative & General		0.09	%		0.21	%		0.19	%
Sales & Marketing		0.23	%		0.29	%		-0.12	%
Hospitality		-0.06	%		0.00	%		-0.02	%
Repair & Maintenance		0.08	%		0.30	%		0.08	%
Energy		0.20	%		0.34	%		0.35	%
Franchise Fee		-0.13	%		0.00	%		-0.09	%
Management Fee		-0.02	%		-0.07	%		0.01	%
Incentive Management Fee		0.20	%		-0.24	%		0.20	%
Insurance		-0.25	%		0.04	%		-0.91	%
Property Taxes		-0.05	%		0.16	%		-0.46	%
Other Taxes		-0.02	%		-0.03	%		0.00	%
Leases/Other		0.02	%		0.08	%		0.08	%

Total		0.82	%		1.93	%		0.12	%

NOTE:

(1)	The eight Prime properties are also included in the Legacy portfolio.

-MORE-

Selected Pro Forma Financial and Operating Information by Property

(in thousands, except operating information)

The following tables present selected financial and operating information by property for the eight properties included in Ashford Hospitality Prime, Inc.


	Three Months Ended June 30, 2013									Six Months Ended June 30, 2013									TTM
	2013			2012			% Variance			2013			2012			% Variance			June 30, 2013
CAPITAL HILTON WASHINGTON DC
Selected Financial Information:
Room Revenue	$	11,041		$	10,660			3.57	%	$	19,868		$	18,618			6.71	%	$	36,310
Total Revenue	$	15,346		$	14,526			5.65	%	$	27,945		$	26,063			7.22	%	$	51,044
EBITDA	$	6,079		$	5,684			6.95	%	$	9,789		$	8,756			11.80	%	$	16,318
EBITDA Margin		39.61	%		39.13	%		1.23	%		35.03	%		33.60	%		4.27	%		31.97	%
Selected Operating Information:
RevPAR	$	223.03		$	215.34			3.57	%	$	201.78		$	188.04			7.31	%	$	182.86
Occupancy		93.25	%		91.03	%		2.44	%		84.92	%		82.28	%		3.21	%		83.62	%
ADR	$	239.17		$	236.57			1.10	%	$	237.60		$	228.54			3.97	%	$	218.69
LA JOLLA HILTON TORREY PINES
Selected Financial Information:
Room Revenue	$	4,462		$	4,612			-3.25	%	$	8,529		$	9,038			-5.63	%	$	17,689
Total Revenue	$	7,747		$	8,099			-4.35	%	$	14,763		$	15,749			-6.26	%	$	29,948
EBITDA	$	2,145		$	2,350			-8.72	%	$	3,862		$	4,499			-14.16	%	$	8,262
EBITDA Margin		27.69	%		29.02	%		-4.58	%		26.16	%		28.57	%		-8.43	%		27.59	%
Selected Operating Information:
RevPAR	$	124.45		$	128.63			-3.25	%	$	119.60		$	126.04			-5.11	%	$	123.00
Occupancy		75.38	%		79.43	%		-5.11	%		70.52	%		76.65	%		-7.99	%		72.79	%
ADR	$	165.10		$	161.93			1.96	%	$	169.59		$	164.44			3.13	%	$	168.97
PHILADELPHIA COURTYARD DOWNTOWN
Selected Financial Information:
Room Revenue	$	7,311		$	6,844			6.82	%	$	12,351		$	11,832			4.39	%	$	23,279
Total Revenue	$	8,778		$	8,139			7.85	%	$	14,806		$	14,203			4.25	%	$	28,078
EBITDA	$	3,735		$	3,282			13.80	%	$	5,667		$	5,213			8.71	%	$	10,259
EBITDA Margin		42.55	%		40.32	%		5.52	%		38.28	%		36.70	%		4.28	%		36.54	%
Selected Operating Information:
RevPAR	$	161.33		$	151.02			6.83	%	$	134.78		$	129.83			3.81	%	$	128.07
Occupancy		87.66	%		85.44	%		2.60	%		79.39	%		79.81	%		-0.52	%		77.69	%
ADR	$	184.03		$	176.74			4.13	%	$	169.77		$	162.68			4.36	%	$	164.85
PLANO MARRIOTT LEGACY TOWN CENTER
Selected Financial Information:
Room Revenue	$	4,505		$	3,926			14.75	%	$	8,939		$	7,936			12.64	%	$	16,872
Total Revenue	$	6,840		$	6,369			7.40	%	$	13,994		$	12,939			8.15	%	$	26,385
EBITDA	$	2,375		$	2,129			11.55	%	$	4,856		$	4,329			12.17	%	$	8,918
EBITDA Margin		34.72	%		33.43	%		3.87	%		34.70	%		33.46	%		3.72	%		33.80	%
Selected Operating Information:
RevPAR	$	122.54		$	106.78			14.76	%	$	120.25		$	107.35			12.02	%	$	114.42
Occupancy		71.73	%		64.76	%		10.75	%		70.41	%		66.31	%		6.19	%		68.44	%
ADR	$	170.85		$	164.87			3.63	%	$	170.79		$	161.90			5.49	%	$	167.17
SAN FRANCISCO COURTYARD DOWNTOWN
Selected Financial Information:
Room Revenue	$	7,805		$	6,536			19.42	%	$	14,202		$	12,399			14.54	%	$	27,847
Total Revenue	$	8,863		$	7,571			17.07	%	$	16,384		$	14,505			12.95	%	$	32,112
EBITDA	$	3,510		$	2,481			41.48	%	$	5,789		$	4,563			26.87	%	$	11,361
EBITDA Margin		39.60	%		32.77	%		20.85	%		35.33	%		31.46	%		12.32	%		35.38	%
Selected Operating Information:
RevPAR	$	211.77		$	177.35			19.41	%	$	190.59		$	167.30			13.92	%	$	188.38
Occupancy		93.49	%		87.15	%		7.28	%		88.79	%		84.05	%		5.64	%		87.75	%
ADR	$	226.51		$	203.50			11.31	%	$	214.66		$	199.05			7.84	%	$	214.68


	Three Months Ended June 30, 2013									Six Months Ended June 30, 2013									TTM
	2013			2012			% Variance			2013			2012			% Variance			June 30, 2013
SEATTLE COURTYARD DOWNTOWN
Selected Financial Information:
Room Revenue	$	2,937		$	2,561			14.68	%	$	4,829		$	4,208			14.76	%	$	10,360
Total Revenue	$	3,405		$	2,999			13.54	%	$	5,688		$	4,995			13.87	%	$	12,115
EBITDA	$	1,673		$	1,473			13.58	%	$	2,472		$	2,184			13.19	%	$	5,147
EBITDA Margin		49.13	%		49.12	%		0.04	%		43.46	%		43.72	%		-0.60	%		42.48	%
Selected Operating Information:
RevPAR	$	129.09		$	112.58			14.67	%	$	104.97		$	91.98			14.12	%	$	113.53
Occupancy		78.32	%		76.13	%		2.88	%		71.89	%		66.02	%		8.89	%		74.97	%
ADR	$	164.83		$	147.88			11.46	%	$	146.02		$	139.32			4.81	%	$	151.43
SEATTLE MARRIOTT WATERFRONT
Selected Financial Information:
Room Revenue	$	5,898		$	5,241			12.54	%	$	9,834		$	8,976			9.56	%	$	21,141
Total Revenue	$	7,720		$	7,262			6.31	%	$	13,355		$	12,410			7.61	%	$	28,140
EBITDA	$	3,310		$	2,866			15.49	%	$	4,955		$	4,326			14.54	%	$	11,150
EBITDA Margin		42.88	%		39.47	%		8.64	%		37.10	%		34.86	%		6.44	%		39.62	%
Selected Operating Information:
RevPAR	$	181.04		$	160.88			12.53	%	$	149.30		$	137.00			8.98	%	$	161.79
Occupancy		82.37	%		81.68	%		0.85	%		76.04	%		75.40	%		0.85	%		78.01	%
ADR	$	219.78		$	196.96			11.59	%	$	196.34		$	181.70			8.06	%	$	207.41
TAMPA RENAISSANCE
Selected Financial Information:
Room Revenue	$	3,091		$	3,228			-4.24	%	$	7,116		$	7,089			0.38	%	$	12,887
Total Revenue	$	4,642		$	4,809			-3.47	%	$	10,493		$	10,610			-1.10	%	$	19,318
EBITDA	$	1,123		$	1,180			-4.83	%	$	3,109		$	3,099			0.32	%	$	5,154
EBITDA Margin		24.19	%		24.54	%		-1.41	%		29.63	%		29.21	%		1.44	%		26.68	%
Selected Operating Information:
RevPAR	$	115.94		$	121.07			-4.24	%	$	131.99		$	132.21			-0.17	%	$	120.50
Occupancy		76.26	%		78.61	%		-2.99	%		79.89	%		81.36	%		-1.81	%		77.22	%
ADR	$	152.04		$	154.02			-1.29	%	$	165.23		$	162.51			1.67	%	$	156.05
PRIME PROPERTIES TOTAL (8)
Selected Financial Information:
Room Revenue	$	47,050		$	43,608			7.89	%	$	85,668		$	80,096			6.96	%	$	166,383
Total Revenue	$	63,341		$	59,775			5.97	%	$	117,427		$	111,475			5.34	%	$	227,141
EBITDA	$	23,952		$	21,446			11.69	%	$	40,500		$	36,969			9.55	%	$	76,570
EBITDA Margin		37.81	%		35.88	%		5.40	%		34.49	%		33.16	%		4.00	%		33.71	%
Selected Operating Information:
RevPAR	$	164.35		$	152.32			7.90	%	$	148.72		$	139.35			6.72	%	$	144.90
Occupancy		83.39	%		81.41	%		2.42	%		78.36	%		77.19	%		1.51	%		77.99	%
ADR	$	197.09		$	187.09			5.34	%	$	189.79		$	180.52			5.13	%	$	185.80

ASHFORD HOSPITALITY TRUST, INC.

PRO FORMA HOTEL OPERATING PROFIT

LEGACY PORTFOLIO ONLY

(dollars in thousands)

(Unaudited)

ALL HOTELS INCLUDED IN CONTINUING OPERATIONS:


	Three Months Ended									Six Months Ended
	June 30,									June 30,
	2013			2012			% Variance			2013			2012			% Variance
REVENUE
Rooms	$	206,569		$	198,394			4.1	%	$	393,513		$	379,066			3.8	%
Food and beverage		43,664			43,462			0.5	%		84,146			85,319			-1.4	%
Other		9,375			9,217			1.7	%		18,184			17,412			4.4	%

Total hotel revenue		259,608			251,073			3.4	%		495,843			481,797			2.9	%

EXPENSES
Rooms		44,934			43,471			3.4	%		87,199			84,054			3.7	%
Food and beverage		27,949			28,214			-0.9	%		55,786			56,777			-1.7	%
Other direct		4,990			4,922			1.4	%		9,767			9,830			-0.6	%
Indirect		65,240			64,241			1.6	%		128,634			126,889			1.4	%
Management fees, includes base and incentive fees		13,240			13,384			-1.1	%		23,739			23,319			1.8	%

Total hotel operating expenses		156,353			154,232			1.4	%		305,125			300,869			1.4	%
Property taxes, insurance, and other		11,794			10,443			12.9	%		24,111			22,455			7.4	%

HOTEL OPERATING PROFIT (Hotel EBITDA)		91,461			86,398			5.9	%		166,607			158,473			5.1	%
Hotel EBITDA Margin		35.23	%		34.41	%		0.82	%		33.60	%		32.89	%		0.71	%
Minority interest in earnings of consolidated joint ventures		2,131			2,069			3.0	%		3,525			3,409			3.4	%

HOTEL OPERATING PROFIT (Hotel EBITDA), excluding minority interest in joint ventures	$	89,330		$	84,329			5.9	%	$	163,082		$	155,064			5.2	%

NOTES:

(1)	The above pro forma table assumes the 95 hotel properties owned and included in continuing operations at June 30, 2013 were owned as of the beginning of the period presented.

(2)

ALL HOTELS NOT UNDER RENOVATION INCLUDED IN CONTINUING OPERATIONS:


	Three Months Ended									Six Months Ended
	June 30,									June 30,
	2013			2012			% Variance			2013			2012			% Variance
REVENUE
Rooms	$	191,095		$	184,111			3.8	%	$	363,956		$	351,079			3.7	%
Food and beverage		38,261			37,724			1.4	%		73,035			73,609			-0.8	%
Other		8,133			8,012			1.5	%		15,792			15,027			5.1	%

Total hotel revenue		237,489			229,847			3.3	%		452,783			439,715			3.0	%

EXPENSES
Rooms		41,778			40,399			3.4	%		80,934			77,973			3.8	%
Food and beverage		24,760			25,013			-1.0	%		49,264			50,219			-1.9	%
Other direct		4,471			4,401			1.6	%		8,729			8,754			-0.3	%
Indirect		59,026			58,183			1.4	%		116,625			114,932			1.5	%
Management fees, includes base and incentive fees		12,192			12,419			-1.8	%		21,659			21,473			0.9	%

Total hotel operating expenses		142,227			140,415			1.3	%		277,211			273,351			1.4	%
Property taxes, insurance, and other		10,659			9,291			14.7	%		21,794			20,146			8.2	%

HOTEL OPERATING PROFIT (Hotel EBITDA)		84,603			80,141			5.6	%		153,778			146,218			5.2	%
Hotel EBITDA Margin		35.62	%		34.87	%		0.76	%		33.96	%		33.25	%		0.71	%
Minority interest in earnings of consolidated joint ventures		1,595			1,482			7.6	%		2,559			2,284			12.0	%

HOTEL OPERATING PROFIT (Hotel EBITDA), excluding minority interest in joint ventures	$	83,008		$	78,659			5.5	%	$	151,219		$	143,934			5.1	%

NOTES:

(1)	The above pro forma table assumes the 88 hotel properties owned and included in continuing operations at June 30, 2013 but not under renovation for three and six months ended June 30, 2013 were owned as of the beginning of the periods presented.

(2)	Excluded Hotels Under Renovation:

Hilton Sante Fe, Hilton La Jolla Torrey Pines, Hampton Inn Buford, Hampton Inn Terre Haute

Marriott Dallas Plano Legacy, Embassy Suites Walnut Creek, Residence Inn Palm Desert

(3)

-MORE-

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 CONTINUING OPERATIONS:


	Three Months Ended									Six Months Ended
	June 30,									June 30,
	2013			2012			% Variance			2013			2012			% Variance
REVENUE
Rooms	$	61,681		$	59,045			4.5	%	$	113,441		$	107,397			5.6	%
Food and beverage		20,475			20,417			0.3	%		39,455			38,080			3.6	%
Other		2,607			2,812			-7.3	%		5,187			5,423			-4.4	%

Total hotel revenue		84,763			82,274			3.0	%		158,083			150,900			4.8	%

EXPENSES
Rooms		12,514			12,363			1.2	%		24,821			23,888			3.9	%
Food and beverage		12,929			12,893			0.3	%		25,513			24,989			2.1	%
Other direct		1,287			1,324			-2.8	%		2,488			2,627			-5.3	%
Indirect		22,133			21,914			1.0	%		43,870			43,374			1.1	%
Management fees, includes base and incentive fees		3,297			3,366			-2.0	%		5,873			5,581			5.2	%

Total hotel operating expenses		52,160			51,860			0.6	%		102,565			100,459			2.1	%
Property taxes, insurance, and other		4,326			3,067			41.0	%		8,325			6,661			25.0	%

HOTEL OPERATING PROFIT (Hotel EBITDA)	$	28,277		$	27,347			3.4	%	$	47,193		$	43,780			7.8	%

Hotel EBITDA Margin		33.36	%		33.24	%		0.12	%		29.85	%		29.01	%		0.84	%

NOTES:

(1)	The above pro forma table assumes the 28 hotel properties owned and included in continuing operations at June 30, 2013 were owned as of the beginning of the periods presented.

(2)

71.74% PRO-RATA SHARE OF ALL HOTELS INCLUDED IN PIM HIGHLAND PORTFOLIO CONTINUING OPERATIONS NOT UNDER RENOVATION:


	Three Months Ended									Six Months Ended
	June 30,									June 30,
	2013			2012			% Variance			2013			2012			% Variance
REVENUE
Rooms	$	48,652		$	45,903			6.0	%	$	92,229		$	86,250			6.9	%
Food and beverage		17,783			17,760			0.1	%		34,968			33,442			4.6	%
Other		2,065			2,194			-5.9	%		4,046			4,137			-2.2	%

Total hotel revenue		68,500			65,857			4.0	%		131,243			123,829			6.0	%

EXPENSES
Rooms		10,123			9,785			3.5	%		20,257			19,175			5.6	%
Food and beverage		11,285			11,171			1.0	%		22,475			21,753			3.3	%
Other direct		1,164			1,214			-4.1	%		2,253			2,385			-5.5	%
Indirect		18,115			17,949			0.9	%		36,208			35,762			1.2	%
Management fees, includes base and incentive fees		2,624			2,649			-0.9	%		4,830			4,483			7.7	%

Total hotel operating expenses		43,311			42,768			1.3	%		86,023			83,558			3.0	%
Property taxes, insurance, and other		3,346			2,253			48.5	%		6,374			5,242			21.6	%

HOTEL OPERATING PROFIT (Hotel EBITDA)	$	21,843		$	20,836			4.8	%	$	38,846		$	35,029			10.9	%

Hotel EBITDA Margin		31.89	%		31.64	%		0.25	%		29.60	%		28.29	%		1.31	%

NOTES:

(1)	The above pro forma table assumes the 23 hotel properties owned and included in continuing operations at June 30, 2013 but not under renovation for the three and six months ended June 30, 2013 were owned as of the beginning of the periods presented.

(2)	Excluded Hotels Under Renovation:

Courtyard Boston Downtown, Hyatt Regency Wind Watch, Hilton Garden Inn Virginia Beach, Hilton Garden Inn BWI,

Hilton Boston Back Bay

(3)

-MORE-

ASHFORD HOSPITALITY TRUST, INC.

PRO FORMA HOTEL OPERATING PROFIT

PRIME PORTFOLIO ONLY

(dollars in thousands)

(Unaudited)

EIGHT HOTELS INCLUDED IN ASHFORD HOSPITALITY PRIME OPERATIONS (currently included in Legacy Portfolio):


	Three Months Ended									Six Months Ended
	June 30,									June 30,
	2013			2012			% Variance			2013			2012			% Variance
REVENUE
Rooms	$	47,050		$	43,608			7.9	%	$	85,668		$	80,096			7.0	%
Food and beverage		13,691			13,737			-0.3	%		26,785			26,762			0.1	%
Other		2,602			2,430			7.1	%		4,975			4,617			7.8	%

Total hotel revenue		63,343			59,775			6.0	%		117,428			111,475			5.3	%

EXPENSES
Rooms		10,347			9,684			6.8	%		19,853			18,518			7.2	%
Food and beverage		8,541			8,587			-0.5	%		17,278			17,083			1.1	%
Other direct		1,021			1,022			-0.1	%		2,026			2,057			-1.5	%
Indirect		13,544			13,519			0.2	%		26,447			26,491			-0.2	%
Management fees, includes base and incentive fees		3,346			2,977			12.4	%		5,866			5,250			11.7	%

Total hotel operating expenses		36,799			35,789			2.8	%		71,470			69,399			3.0	%
Property taxes, insurance, and other		2,592			2,540			2.0	%		5,458			5,107			6.9	%

HOTEL OPERATING PROFIT (Hotel EBITDA)		23,952			21,446			11.7	%		40,500			36,969			9.6	%
Hotel EBITDA Margin		37.81	%		35.88	%		1.93	%		34.49	%		33.16	%		1.33	%
Minority interest in earnings of consolidated joint ventures		2,056			2,009			2.3	%		3,413			3,314			3.0	%

HOTEL OPERATING PROFIT (Hotel EBITDA), excluding minority interest in joint ventures	$	21,896		$	19,437			12.7	%	$	37,087		$	33,655			10.2	%

NOTES:

(1)	The above pro forma table assumes the eight hotel properties owned and included in continuing operations at June 30, 2013 were owned as of the beginning of the period presented.

(2)	Prime portfolio includes: Capital Hilton Washington DC, Hilton La Jolla Torrey Pines, Courtyard Philadelphia Downtown, Marriott Dallas Plano Legacy, Courtyard San Francisco Downtown, Courtyard Seattle Downtown Lake Union, Marriott Seattle Waterfront, Renaissance Tampa International Plaza

(3)

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ASHFORD HOSPITALITY TRUST, INC.

PRO FORMA HOTEL REVENUE & EBITDA FOR TRAILING TWELVE MONTHS

(dollars in thousands)

(Unaudited)

THE FOLLOWING PRO FORMA SEASONALITY TABLES REFLECT: (I) ALL 95 HOTELS INCLUDED IN THE COMPANY’S CONTINUING OPERATIONS, (II) THE COMPANY’S 71.74% SHARE OF THE 28 HOTELS INCLUDED IN HIGHLAND HOSPITALITY PORTFOLIO (PIM HIGHLAND HOLDING LLC), AND (III) THE COMBINED PORTFOLIO, AS IF THESE HOTELS WERE OWNED AT THE BEGINNING OF THE FIRST COMPARATIVE REPORTING PERIOD.


	2013			2013			2012			2012
	2nd Quarter			1st Quarter			4th Quarter			3rd Quarter			TTM
Legacy Portfolio
Total Hotel Revenue	$	259,608		$	236,238		$	215,790		$	237,819		$	949,455
Hotel EBITDA	$	91,461		$	75,145		$	61,218		$	76,123		$	303,947
Hotel EBITDA Margin		35.2	%		31.8	%		28.4	%		32.0	%		32.0	%
EBITDA % of Total TTM		30.1	%		24.7	%		20.1	%		25.0	%		100.0	%
JV Interests in EBITDA	$	2,131		$	1,394		$	1,272		$	1,575		$	6,372
PIM Highland Holding LLC Portfolio
Total Hotel Revenue	$	84,763		$	73,321		$	73,767		$	74,232		$	306,084
Hotel EBITDA	$	28,277		$	18,916		$	20,087		$	20,679		$	87,959
Hotel EBITDA Margin		33.4	%		25.8	%		27.2	%		27.9	%		28.7	%
EBITDA % of Total TTM		32.1	%		21.5	%		22.8	%		23.5	%		100.0	%
Legacy and PIM Highland Holding LLC Combined
Total Hotel Revenue	$	344,371		$	309,559		$	289,557		$	312,051		$	1,255,539
Hotel EBITDA	$	119,738		$	94,061		$	81,305		$	96,802		$	391,906
Hotel EBITDA Margin		34.8	%		30.4	%		28.1	%		31.0	%		31.2	%
EBITDA % of Total TTM		30.6	%		24.0	%		20.7	%		24.7	%		100.0	%
JV Interests in EBITDA	$	2,131		$	1,394		$	1,272		$	1,575		$	6,372

NOTE:

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ASHFORD HOSPITALITY TRUST, INC.

LEGACY AND ASHFORD’S 71.74% SHARE OF HIGHLAND HOSPITALITY PORTFOLIO

(PIM HIGHLAND HOLDING LLC)

PRO FORMA HOTEL REVPAR BY MARKET

(Unaudited)


					Three Months Ended							Six Months Ended
	Number of		Number of		June 30,							June 30,
Region	Hotels		Rooms		2013		2012		% Change			2013		2012		% Change
Atlanta, GA Area		9		1,429	$	90.87	$	82.65		9.9	%	$	87.94	$	81.58		7.8	%
Boston, MA Area		2		506	$	196.29	$	196.80		-0.3	%	$	152.42	$	154.96		-1.6	%
Dallas / Ft. Worth Area		7		1,745	$	101.57	$	92.91		9.3	%	$	99.64	$	94.30		5.7	%
Houston, TX Area		3		608	$	117.17	$	108.71		7.8	%	$	111.10	$	105.26		5.6	%
Los Angeles, CA Metro Area		8		1,785	$	98.05	$	93.78		4.6	%	$	97.64	$	92.02		6.1	%
Miami, FL Metro Area		3		576	$	101.16	$	97.31		4.0	%	$	126.75	$	118.79		6.7	%
Minneapolis—St. Paul, MN-WI Area		2		522	$	96.27	$	92.61		3.9	%	$	88.66	$	85.88		3.2	%
New York / New Jersey Metro Area		7		1,560	$	109.22	$	105.16		3.9	%	$	102.54	$	95.62		7.2	%
Orlando, FL Area		6		1,834	$	78.46	$	80.34		-2.3	%	$	85.98	$	82.76		3.9	%
Philadelphia, PA Area		4		1,147	$	128.26	$	123.58		3.8	%	$	108.49	$	105.45		2.9	%
San Diego, CA Area		3		706	$	108.52	$	111.48		-2.7	%	$	104.48	$	109.35		-4.4	%
San Francisco—Oakland, CA Metro Area		6		1,416	$	141.34	$	122.98		14.9	%	$	130.93	$	117.13		11.8	%
Seattle, WA Area		2		608	$	159.68	$	141.02		13.2	%	$	131.07	$	118.49		10.6	%
Tampa, FL Area		4		875	$	96.46	$	100.53		-4.0	%	$	112.19	$	110.92		1.1	%
Washington DC—MD—VA Area		11		2,698	$	156.23	$	158.05		-1.1	%	$	138.01	$	137.39		0.4	%
Other Areas		46		7,700	$	105.23	$	99.95		5.3	%	$	98.64	$	94.57		4.3	%

Total Portfolio		123		25,715	$	113.46	$	108.89		4.2	%	$	107.07	$	102.64		4.3	%

NOTES:

(1)	The above pro forma table presents the 95 hotel properties included in Company’s continuing 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 the periods presented.

ASHFORD HOSPITALITY TRUST, INC.

LEGACY AND ASHFORD’S 71.74% SHARE OF PIM HIGHLAND HOLDING LLC

PRO FORMA HOTEL OPERATING PROFIT (HOTEL EBITDA) BY MARKET

(Unaudited)


					Three Months Ended													Six Months Ended
					June 30,													June 30,
Region	Number of Hotels		Number of Rooms		2013		% of Total			2012		% of Total			% Change			2013		% of Total			2012		% of Total			% Change
Atlanta, GA Area		9		1,429	$	4,124		3.4	%	$	3,382		3.0	%		21.9	%	$	7,794		3.6	%	$	6,712		3.3	%		16.1	%
Boston, MA Area		2		506		4,773		4.0	%		4,632		4.1	%		3.0	%		6,082		2.8	%		6,177		3.1	%		-1.5	%
Dallas / Ft. Worth Area		7		1,745		7,358		6.1	%		6,439		5.7	%		14.3	%		14,669		6.9	%		13,340		6.6	%		10.0	%
Houston, TX Area		3		608		3,119		2.6	%		3,052		2.7	%		2.2	%		5,719		2.7	%		5,844		2.9	%		-2.1	%
Los Angeles, CA Metro Area		8		1,785		7,151		6.0	%		6,949		6.1	%		2.9	%		13,740		6.4	%		12,837		6.3	%		7.0	%
Miami, FL Metro Area		3		576		1,872		1.6	%		1,784		1.6	%		4.9	%		6,045		2.8	%		5,315		2.6	%		13.7	%
Minneapolis—St. Paul, MN-WI Area		2		522		2,244		1.9	%		2,180		1.9	%		2.9	%		3,622		1.7	%		3,620		1.8	%		0.1	%
New York / New Jersey Metro Area		7		1,560		7,809		6.5	%		7,526		6.6	%		3.8	%		13,385		6.3	%		11,564		5.7	%		15.7	%
Orlando, FL Area		6		1,834		4,215		3.5	%		4,378		3.8	%		-3.7	%		10,323		4.8	%		9,270		4.6	%		11.4	%
Philadelphia, PA Area		4		1,147		5,978		5.0	%		5,734		5.0	%		4.3	%		8,925		4.2	%		8,524		4.2	%		4.7	%
San Diego, CA Area		3		706		3,487		2.9	%		3,853		3.4	%		-9.5	%		6,317		3.0	%		7,354		3.6	%		-14.1	%
San Francisco—Oakland, CA Metro Area		6		1,416		8,214		6.9	%		6,236		5.5	%		31.7	%		14,112		6.6	%		11,471		5.7	%		23.0	%
Seattle, WA Area		2		608		4,983		4.2	%		4,339		3.8	%		14.8	%		7,427		3.5	%		6,510		3.2	%		14.1	%
Tampa, FL Area		4		875		2,951		2.5	%		3,126		2.7	%		-5.6	%		7,987		3.7	%		7,801		3.9	%		2.4	%
Washington DC—MD—VA Area		11		2,698		19,248		16.1	%		20,024		17.6	%		-3.9	%		31,238		14.6	%		31,479		15.6	%		-0.8	%
Other Areas		46		7,700		32,213		26.9	%		30,112		26.5	%		7.0	%		56,414		26.4	%		54,436		26.9	%		3.6	%

Total Portfolio		123		25,715	$	119,739		100.0	%	$	113,746		100.0	%		5.3	%	$	213,800		100.0	%	$	202,253		100.0	%		5.7	%

NOTES:

(1)	The above pro forma table presents the 95 hotel properties included in Company’s continuing 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 the periods presented.

(2)

The above pro forma table includes hotel operating profit for 100% of the 95 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 the periods presented.

(3)

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ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

TOTAL ENTERPRISE VALUE

JUNE 30, 2013

(in thousands except share price)

(Unaudited)


	June 30,
	2013
End of quarter common shares outstanding		79,316
Partnership units outstanding (common share equivalents)		18,991
Combined common shares and partnership units outstanding		98,307
Common stock price at quarter end	$	11.45
Market capitalization at quarter end	$	1,125,615
Series A preferred stock	$	41,430
Series D preferred stock	$	236,718
Series E preferred stock	$	115,750
Consolidated debt on balance sheet date	$	2,381,932
Joint venture partners’ share of consolidated debt	$	(50,598	)
Ashford’s share of Highland portfolio debt	$	806,349
Cash, cash equivalents and marketable securities, net	$	(273,319	)

Total enterprise value (TEV) as of June 30, 2013	$	4,383,877

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Ashford Hospitality Trust, Inc.

Anticipated Capital Expenditures Calendar

Legacy Hotels (a)

2013

Rooms

1st
Quarter
Actual

2nd
Quarter
Actual

3rd
Quarter
Estimated

4th
Quarter
Estimated

Hilton LaJolla Torrey Pines^(b)

296

Hilton Santa Fe

157

Hilton Costa Mesa

486

Courtyard Dallas Plano in Legacy Park

153

Courtyard Hartford Manchester

Embassy Suites Dulles

150

Embassy Suites East Syracuse

215

Hampton Inn Lawrenceville

Residence Inn Lake Buena Vista

210

Sheraton San Diego Mission Valley

260

Hampton Inn Buford

Hampton Inn Terre Haute

112

Marriott Dallas Plano Legacy^(b)

404

Embassy Suites Walnut Creek

249

Residence Inn Palm Desert

130

Courtyard Marriott Village at LBV

312

Crowne Plaza Key West

160

Embassy Suites Palm Beach Garden

160

Hilton Garden Inn Jacksonville

119

Hilton St Petersburg

333

Residence Inn Atlanta Buckhead Lenox Park

150

Hyatt Coral Gables

242

Marriott Crystal Gateway

697

Courtyard Bloomington

117

Courtyard Philadelphia Downtown

498

Embassy Suites Dallas

150

Embassy Suites Orlando

174

Embassy Suites Portland Downtown

276

Marriott Seattle Waterfront

358

Residence Inn Hartford

Residence Inn Newark

168

Residence Inn Salt Lake City

144

Residence Inn San Diego Sorrento Mesa

150

(a)

Only hotels which have had or are expected to have significant capital expenditures that could result in displacement during 2013 are included in this table.

(b)

Part of Ashford Hospitality Prime.

PIM Highland Holding LLC

Anticipated Capital Expenditures Calendar

Highland Hotels (a)

2013

Rooms

1st
Quarter
Actual

2nd
Quarter
Actual

3rd
Quarter
Estimated

4th
Quarter
Estimated

Courtyard Boston Downtown

315

Hilton Boston Back Bay

390

Marriott Sugarland

300

Courtyard Savannah

156

Hyatt Regency Savannah

351

Marriott San Antonio Plaza

251

The Melrose

240

Hyatt Regency Wind Watch

358

Hilton Garden Inn Virginia Beach

176

Hilton Garden Inn BWI

158

Silversmith

143

Renaissance Nashville

673

Hilton Parsippany

354

Marriott DFW

491

Hilton Garden Inn Austin

254

Crowne Plaza Ravinia

495

(a)

Only hotels which have had or are expected to have significant capital expenditures that could result in displacement during 2013 are included in this table.

Ashford Hospitality Trust (AHT) 8-KAnnounces Ashford Prime Metrics