AHT - Earnings call transcript Q3 2017 | Ashford Hospitality Trust, Inc.

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Operator

Good day, everyone. And welcome to the Ashford Hospitality Trust Third Quarter 2017 Conference Call. Today’s conference is being recorded. At this time, I would like to turn the conference over to Joe Calabrese with Financial Relations Board. Please go ahead.

Joe Calabrese

Ann. Thanks, everyone. day, Good today’s Trust to of for you to to for XXXX the Ashford update developments. recent Hospitality the on conference welcome review call results and And third quarter

conference Eubanks, basis Douglas call the and Officer; accessibility and of Vice of provisions today the Welter, the be factors Asset results, These this the forward-looking results known Chief cause Harbor Safe to Private XXXX. Litigation On or could them. as made are only Kessler, Exchange company Management. obligated materially notice in Officer; Financial of call The will Act Chief assumptions, update listen-only President Executive Executive the on are President a anticipated. to Jeremy are more call unknown and from fully Deric in discussed pursuant this date as statements risk this uncertainties Reform of afternoon this a Such release conference the remind Internet contain call revise yesterday over upon information statements the to assumptions At distributed been or company’s filings actual differ has The media. of to of you subject and forward-looking not by call and forward-looking time, Commission. press or covered the numerous the and which this Securities risks, statements of included the were made that those and as me conference are in is Securities based with publicly that being financial certain let well in

also company’s X-K XXXX SEC unless been to release. accessed provided www.ahtreit.com. to provided with review which otherwise schedules, non-GAAP in XXXX. through reconciliations company’s over information earnings the used are of Each at sir. release call filed Douglas call accompanying other quarter reported tables turn have listener may compare now of ahead, in or the financial results the be on XXXX reconciliations will Please encouraged items on earnings go certain Kessler. in terms and discussed -- stated, third are addition, this and X, all third the Form Also release this together In provided website with November quarter with in the which measures, is call I the all those the in to

Douglas Kessler

you Good results. us And morning. Ashford Trust thank for Hospitality discuss joining to

renovation comparable RevPAR quarter third for for flat, hotels growth was RevPAR Our under while all was growth all hotels comparable X.X%. not

Additionally, of of adjusted per we million. share and $X.XX EBITDA $XXX AFFO reported

This track by after during storms. We peer alignment of which insider significantly also by compared the markets our Trust Ashford We over that average. is given return have while investment management I value We long managers the space passed. hotel among achieved accretive high assets, XX% looking capital the maximize opportunities approximately are total has team proud and supplies resilience and existing years the value had to for shareholder very XXX% and IPO, Welter XXX% the since that believe in led ownership, that not impacted our after of is from respond for maintaining and exceptionally discipline. very times as perseverance is outperformance of our our since hurricanes. our return hotel efforts our Key REIT the created these extremely for team Jeremy X a monitored am of have our and is close. the the benefited to by peers highest shareholders yesterday’s of level to recent closely IPO various fortunate record and in ways has storms storms worked our on that the their to portfolio and our property management shareholder and we place quickly asset teams creating

focused remains our create strategy value. to in shareholder effort Our

believe We will capital, cash cash to upper of net and debt-to-gross service of to XX% equivalents flexibility. upscale as well providing XX% hedge and maintain full arise. as times, in balance a excess recycle market XX%, cash own this to to opportunities equity uncertain opportunistically on economic continue target We for provides our they assets a balance predominantly dry capitalization capitalize investment financial hotels, as powder between XX% attractive

of by quarter to and the completed significantly additional costs. that value reducing subsequent several capital we our During end created the the transactions market financing quarter

proceeds annually preferred equity, of in the preferred that payments. higher First, we us retire approximately and will dividend stock issued preferred $XXX,XXX to raise from a new priced class use which other save

the XX approximately this we in to they investments. example and Hilton how our completed million. rate regards Boston when we With and we to Deric despite go of underwrite interest and significantly annual on with we’ve redemption raise refinancing, of for management in were but our another total detail and later, this lower earlier looks $XX.X team relatively opportunity platform. to quiet, in hotel combined ongoing new Bay more On in transactions $XX.X every result Back value year preferred we yet drive million these should hotel our savings both the investment completed so into interest the principal efforts to of of these refinancings activity refinancings Second expect total doing annual been are will to a and realize savings approximately payments of portfolio. previous hotel the able

on price. to balance should expected We continue our share are capital. growth in is and Therefore underwritten we as discipline returns, cost to expect achieving focused accretive us our that you selective being growth of

transactions sheet. performance, we maximizing be on high-quality a on opportunistic proactively managing Looking as our generating our operating focus we to and continuing ahead committed solid balance are we to and for value shareholders, have portfolio well-diversified

out increase you update we like a renovation. in as hotels would Finally, under I Trust, model on will a fourth the have quarter significant Ashford in to that point

portfolio first renovation, see the of during the consistent year. which renovation under the we we to our this hotels As two will increase the business with quarter in pretty this fourth financial can of review quarters we lot call is earnings turn during is third our slower XX now In on to hotels. the XX release, to disruption work what quarter over schedule third you A doing as quarter strive our our will by from increase driven Deric have minimize in to renovations of I performance. the the periods. the had our seasonality by

Deric Eubanks

Thanks, Douglas.

common For diluted the XXXX, to per third we net attributable $X.XX quarter of or a $XX.X reported of share. loss stockholders

quarter $X.XX. we EBITDA the share diluted reported for $XXX million per Adjusted For totaled the quarter. AFFO of

totaled when to comparing hurricane. and added prior it we AFFO For our million. to third of quarter, purposes important adjusted the respectively, EBITDA remember and associated $XX.X Those included and uninsured $X.X in year EBITDA hotels is the hotel Also, that with results expenses associated calculating EBITDA that back million periods, costs have this year-to-date million quarter of with adjusted the we sold. our year prior $X.X

which property at the EBITDA was interest adjusted At $X.X fourth Ashford blended we approximately the last end $X.X quarter the market of quarter, schedule. Our equity we working with a had the our all hotels EBITDA of debt million. debt of XX% of in of rate, year, billion we a of rate debt we investment of all assets nonrecourse hotel caps average have with well-laddered of total and million fixed value of our rate our level XX% Including interest Inc., mortgage X.X%, included sold. have of in with have is floating and the quarter $XXX ended that rate debt had net $X.X associated we place, maturity capital billion,

$X.XX I share. important to per balance think it’s to our equates out networking this approximately capital point on sheet currently

of XXXX, As our portfolio September net with consisted of XX,XXX XXX rooms. XX, hotels

Our of XX.X million of share million shares OP stock units. and diluted fully common currently which million is count XXX.X stands comprised shares at XX.X outstanding,

in common approximately With units, We convertible a XX.X current Directors REIT have less result a this $X.XX conversion $X.XX of one-for-one, units of being of of hotel a OP an regards XXXX but dividend Based dividend, quarter of on the the highest annualized than million on shares yield Board basis. the declared are these stock XX.X third dividend factor yesterday to million share space. per X.X% price, as one the stock. represents cash into or

a dividend Our on review Board basis. policy our will continue to quarter-to-quarter

front Stock of accrue at will markets of Series our public an X.X% Cumulative of underwritten X,XXX,XXX of liquidation Preferred offering during share. rate $XX.XX at we quarter $XX preference Preferred per annum capital per Stock the the the On completed a share. H shares the X.X% on Dividends on per

overallotment the of Additionally, an redemption D of we September, our X.XX% the and all Series the of additional Stock. X,XXX,XXX Stock Cumulative Stock end Preferred X.XX% we our Series of shares shares shares the outstanding A and the D Series to quarter, Subsequent Cumulative Preferred of in Preferred with our issued redeemed XXX,XXX of completed proceeds.

the to quarter, of loans. we the two subsequently mortgage Additionally, refinanced end

Boston savings outstanding mortgage provides result to interest new The loan totaling floating a Bay million secured balance approximately the loan $XX in + existing principal five-year annual first $XX interest-only was Hilton totaled term. The Hotel. and expected $X.X a nonrecourse interest approximately Back has loan This rate is of X%. for million. million of and the refinancing is The LIBOR and an and payment with by

like be will approximately refinancings, mortgage interest and accessing and one-year XXXX. conditions. over new subject activities capital. release of markets of is rate initial debt Jeremy our is these to February our assets. secured discuss savings and flexible to with loan XX five our and interest-only, million. I with LIBOR expense refinancing our certain has quarter. to we outstanding turn next to the loan million currently The expected the is for debt floating of by two-year markets interest cost to of The was in a totaled liquidity maturity both financial a in of existing options, This would for asset The attractive debt concludes management continue + second million are very annual $XXX X% totaling in potential hard improve satisfaction an $X.X provisions to contains a the provides the $XXX for This lower After hotels. now nonrecourse term sale and review of The optimistic balance capital and loan extension result our to

Jeremy Welter

in Thank renovation Those hotels you, our third quarter. during Deric. the by X.X% not under comparable group portfolio RevPAR

X.X%. those with the X outperformed this had points. negative under RevPAR and Hashanah renovation quarter, has compared XXX XXXX chain following upscale Year-to-date Tuesday Our a the Kippur October been impact with and upper in Monday comparable by the the September in Rosh nationally with for on Holidays in compared not of shifting growth XXXX comparable XXXX. RevPAR hotels XXXX July basis Yom

July decrease Specifically, we of had X. in a for travel corporate the negotiated significant week

RevPAR for We unprecedented growth. are on index pace

with four mark Our of do years renovations, and would a pace so our ago portfolio, relative some to Ashford’s focused achievements its conversions, benefited the portfolio management overall consecutive impressive portfolio four team. separate team years Ashford in our this of revenue capabilities acquisitions certainly on in asset Despite the asset management has personnel last These affect created years. achieved we strategies. from three grown July each success what and Over optimization on is RPI to dedicated September XXXX, storms. those hurricanes of emphatically and the diversified year, The again has revenue underscore competitors in in areas has is which industry-leading remarkable. impact

basis in margin Orlando seven by and realized driven as the our points, surpassed This EBITDA prior submarket in in to the Irma. believe by hotel XX.X% XXX,XXX differentiator through risk that renovation third and to the year-to-date strong is of increased growth Embassy to a EBITDA when X,XXX Orlando growth an hurricane RevPAR Airport South flow performance We comes the group XX%, These increased Hotel it displacement, as a year respectively. and Ashford peers XX third by Central Orlando We RevPAR hotels South Specifically, hotels quarter, X,XXX own provide during basis results topline XX.X%. increase or asset in Texas. team management of market XX.X% industry. Suites well points management quarter and XX%. true both Florida

to compromised for making very a and after competitor after recent must hurricanes a in our those the civic not the open of during effecting such or of citizens, amount significant place duty preparations refuge view remained open necessary hotels remain and responders. We the all Texas our well of that During as as first as who as area be all ensuring hotels our before close it either safety while Florida, will affected as remain storms.

has all benefited we tracking landfall storms and risk recovery proactive the like able This we approach efforts. are taking of and one The during of management accelerating Following highlighted quarters to losses work emphatically disasters by remaining experienced. hotel aggressive team approach a during cautious the all prior are and mitigate well. to natural to just performance open risk, as our expertise

During is advertising a newly outdoor the bring in realized hotel which annually. this X.X% with value-add third to in an $XXX,XXX has the or Atlanta, quarter, expected we of at agreement signed opportunity. Year-to-date, total growth signed revenue Ritz-Carlton, about agreement representing revenue $XXX,XXX

During parking quarter our revenue which also parking annual we third increase we current estimate will the renegotiated by $XX,XXX. agreement

and at position quarter. to converted month, upside. meeting space franchise XX, the even throughout Finally, Irving, begin renovation comprehensive renovation forward. with to next meaningful management of DFW significant from rooms will property success The conversion in The underway Marriott management our brand the ballroom Remington property most going May on a Airport for third and further provides Texas of going

scale the was the by dedicated with preferred points to Center Marriott sell, at competitors. demolition renovations. the business through growth renovation contract been has driven and saw and the share hotel to DFW ballroom achieved basis in with EBITDA by business quarter able This By RevPAR occupancy replace X.X% Nashville submarket points XX%. despite was manager, room ongoing sales XXX redevelopment renovation the Convention than the nights and was commenced gain travel full basis first able growth, nights. RevPAR coming Despite the its Nashville Renaissance the due Airport corporate a during growth The quarter Renaissance meeting growth and significant increase need in the meeting X.X% its transient property management, space RevPAR flow growth outpaced and in on the to ongoing Remington During more space XXX third having to limited June. Nashville adjoining market of and X.X%, to still room

of hotel or strong growth flow XXX% achieved XXX% EBITDA X.X%. hotel of -- through XXX,XXX EBITDA we Additionally, and

rated strong during while During strategies business on increase less controlling renovation quarter focused remaining reducing to the driven the short-term third This XX%. labor occupancy no possible. is high by shifting performance proactively was us and expenses transient wherever

XXXX, million which of of Springs year, Renaissance million and expenditures spending primarily will Atlanta. Back the investment remainder Bay, we total, portfolio to to maintain Marriott the Crystal in approximately in to estimate comprised Hilton will room In guest During capital Boston Ritz-Carlton Palm $XXX continue in during competitiveness. we renovations our at $XXX Gateway, be

at and lobby Savannah. we expenditures to to our Regency opportunities comprehensive In value We rooms continuously will capital the improvements. questions. will call a to guest addition concludes renovation throughout create prepared identify complete portfolio and repositioning prudent now turn remarks This restaurant the we Hyatt your through and operational our

Operator

Thank with [Operator from our first Robin question take will Instructions] UBS. We Farley you.

Arpine Kocharian

a have quantify actually I at outside with up is could XX% from of was dealing hurricanes. you without those Robin. the Then for for here the RevPAR what follow-up? if This markets could the look Houston have that Hi. portfolio, And -- you perhaps Arpine XX%, aftermath been those up your growth

Douglas Kessler

question. theoretical difficult a that’s think, I

asking the would the market. what hurricane you’re had RevPAR in been the have through Houston So not come

I soft the just been think, that’s the hurricane a look trend obviously, what question, the weakness market, new you’d to Houston in, at the supply to quarters. simply if continued coming have prior in industry. in had given oil generally the think, was I the somewhat

some markets third done until would for that do those following that And decided but in fill on off the hit, performance. some to there. you with there had typical to been their have impact the displaced you and stabilize and I hinted things and sort on lose have that unfortunately, hold you to to difficult as at to of remaining have growth And quarter direction prior benefit are is -- it time is the they very market operating the least the that’s hotel business I fairly potential There other what RevPAR travel hurricane But positive a a responders residents be offset hotels than some for obviously, it respect such quarter at from damage that you because hurricane. would comment us so, rooms. has see

Arpine Kocharian

for margin quarter year know flattest flat. maybe don’t growth margins how would next you guide you you. But, your you margins saw to Okay. flat for the Thank into flat growth with And remind need much of theoretically, RevPAR. I would RevPAR, for what you could then, next RevPAR type need keep us we RevPAR to be year?

Douglas Kessler

I think type that we will of provide that guidance.

Arpine Kocharian

Okay. Thanks.

Douglas Kessler

Thank you.

Operator

next We to will go Deutsche with Woronka Bank. Chris

Chris Woronka

Good guys. Hey. morning,

Douglas Kessler

Chris. Good morning,

Chris Woronka

the kind expect system guys Ritz, I your location to would to of accrue up the stay but some the that that downtown want I maybe is within morning. know in Good possible? to is on bucket happen, of Atlanta, to you Ritz Marriott, ask going you go right that once to one benefit out

Douglas Kessler

Yes. as the Downtown of We removal hotel respect benefit our believe least to to that branded system Ritz-Carlton. at is with a Ritz the the from and

that property addition, a product that for complete. and to renovation In rooms once we -- a that is driver us property rooms be will going significant downtown our is going significant that through believe through renovation is

really are the us. that of and we the in Ritz the net think to So of obviously renovation completion looking for work is bucket a removal positive we forward

Chris Woronka

do the the accelerator tell, to of -- management kind kind of then, And kind Great. been road? guys you of and one can, where anything with anything it recent the you pretty down see franchises on in have pace by it years few is Okay. in there of contracts one is but more that -- is converting coming changes branch to active horizon or hard you is it’s of case,

Douglas Kessler

You’re right.

completed. we’re brand from that managed now I renovation of been recent that the of along to Marriott doing was Remington example our have with pleased successful most that, think which and property managed DFW very with our we conversion is the

imagine or type it brand examples portfolio, fewer or matured and do have We with has you it provides independent so opportunities can Our of us and ideas. some gives chances as activity. that hotels

some We hotels both Hilton we are highly one that of fronts. largest their both aligned obviously are with on also have accounts and Marriott, and

opportunity create opportunity stop at for and sometimes the on conversion. we negotiations forward, that for for horse event so there matters, is never going but value-add opportunity Few as our does with that an are asked type that between of to the when such we it shareholders. in and them And for least think asking a other far us possibly we trade

Chris Woronka

And in is there of about ‘XX the of your there at kind be quarter, any just we general renovations or the comments is a less understood higher to for relative to going renovation activities fourth just Great. level whether -- as look ‘XX? sense more

Douglas Kessler

and our going We the going plans finalizing through that’s and are capital go through still to Board.

we to guidance any capital don’t I prepared five So, from just think, XXXX are yet. front the for

Chris Woronka

Thanks Okay. Fair enough. guys.

Douglas Kessler

Thank you.

Operator

go Maher to next will with B. We Bryan FBR. Riley

Bryan Maher

morning, guys. Good

Douglas Kessler

Good morning.

Bryan Maher

in Can or on to of it deeper assets, market you the slight there is a is wide you drill too it just else is seeing something what as going bit service little bid spread the you’re relates kind on? for your ask

Douglas Kessler

close door that make didn’t the to doesn’t seem that that We ideas, had didn’t of to we portfolio, in had that we in much back more simple, time been -- looking either or nature seem Day strategic valuation alternative sense. something October pretty that It’s for variety No. upon at just commented time, Investor to strategic options execution that select during the at based the we our is Bryan. at just mean of cancel have our overall a

It’s the accretive of could We But shareholders. what assets we continue at that that one is for. we balances execution How to monetize way to do do not a the just in think perform to is redeploy those also capital. we look sell how ideas we assets. the

how at look debt we Three metrics. capital look assets that for. have pools Two, to the we prices the redeploy a that to these sell opportunities. So we variety into have of One, do that look we the investment accretive have have at could assets in. we to are at consider to we

of upscale point, Trust asked are latter we very on clear today view And the for depth time many they’re prices on because market transaction, touch strategy the reasonably by hotels, current we of when of are and predominantly what healthy being refinance for markets. is the to at that a a the sellers full-service today. a this me focus the with is aspirational so for reason They their still at think fundamentals look look of know that is property some today their do very but they Let attractive fundamental. upper a why I the we what the which seeing can debt terms doing alternatively lot sellers at in

great refinancing to comfortable X% from everyone they So the asset. and last two GDP goes still continued will of that. have the quarters cycle and here, the price otherwise can trade trying which cycle, are get They writing determine growth they I where think, shown

on when are us we to the transactions our that we yields looking for deploying capital, has seen So capital. some recent that in redeploying of terms have been uninspiring

don’t And that, cap result that of gap to bid not but a ask, have a cap really bid ask a we because of make we between want rates, so much -- we trading make buying sure selling as trades. doing comment select as if as the sure We too occurs. rates out we that to a remain and are in our is open shareholders something want on we result until performance to typically expected accretive trading share at terms such those trading price something service time that of of and our that for activities don’t to

Bryan Maher

of the of purchase on more taking are of amount helpful. the in or outright be level, that upscale too are want not, that But out seeing full-service market seller? -- on in do I’m hand decent the next the That’s the Thanks. and out irrespective price those you cash you whether sell anything there also part you’re I sure it just have select or kind to you you segment to appetizing service mean, of exploring aspirational

Douglas Kessler

are was was year, of look bit XXXX been XXXX so we and we somewhat at we be at you opportunities, terms some seeing buying a quite for. that looking When yields the that has aspirational when the transaction pretty just to for request we back we investment look obviously, valuations comment, the are slightly amount. down not yields volume, same the those XXXX much in view a Pretty are still and the strong unattractive. assets of Obviously,

at of internal metrics to our rates Day metrics the with on terms outlined share respect in in we that underwritten return, the of looking focus that key the impact price, on. our Investor everything are We all we

I current in we us the have of think to is we a $X.XX we that, moment also working where is. the it. capital get for to have that for capital, we issue are deploy at look And $X.XX to trading at stronger of [ph] currency look and cost (XX:XX) value what at like we our of you net when feel today order our need

Now the change capital, forward. the going absent absent absent our the metrics underwritten rates, cost change the in in of cap in performance change

did shareholders as refinancing accomplished some we true that through around $XX.X of activities create an savings to but and the such a value is the credit get been other prices We we being we of of which disciplined. many see I million. sometimes during are the should we’ve our where and there Meanwhile, think activity -- see quarter, lot function and the doing where edges, market. them, been for really think and It’s of we will to our we currency today been disciplined I be for capital it’s the continue in example, of deploy value-add a

value types events, look rotation are a which not the good believe the as into what will current in shareholders. at Meanwhile, of to market. So seeing transaction that we we we are with add satisfied we

of into up I types I I conversations we hopeful not going think, are alternative will thing will out same that are of transaction for out I’ve am pick we It is that refinancing increase. their to losing in and assets bidder the very that saying. assets. are that variety confirm pace we the think, hotel some losing of the necessarily XXXX, that brokerage Now the is firms to had opportunities that with competitive leading are sellers And of they chasing, we the the

Bryan Maher

Yeah. That’s all Thanks, helpful. really Douglas.

Douglas Kessler

bet. You

Operator

We with will Bellisario Michael go to Baird. next

Michael Bellisario

Good everyone.

Douglas Kessler

Good morning.

Deric Eubanks

Good morning.

Michael Bellisario

you improvement to the just mean, or want how and maybe Thinking your select successful just -- XX comments debt can asset if for changes in Deric’s you you strong make I I Day? refinancing us are markets last month marry seeing? Doug, of on told And about then that maybe the differently days XX recently. that options service in days a because debt ago any at versus what your market the Investor also the

Douglas Kessler

It’s looking more couple over been the proactively, refinancing have market expense, interest capitalizing reduce ahead is of Obviously, would refinanced I No. say, hopefully debt on approach very we pool on assets. we successful service that current thinking just are and But select and the our to which of had today any our we loan differently. the debt doing less the mixing past matching of pools. years.

in refinancings, of to adequate buckets have those pools we to loan with us allow type to within pool. tried free loan any within the assets also conjunction those So up sell

that XX pack portfolio even the we So within just refinanced.

extract assets that to out have a effective. cost We is think we and way capacity in

all the if markets, debt pool-oriented looking as more think Its is the strategy strategy we favorable I think, I opposed our been alternative less but lowering loan more programmatic to alternatively of and first our strategies Obviously, to XXXX only have we is not until maturities there removed strategy-oriented. quarter isn’t early, of of our refinancing maturities and XXXX. is of refinancing I suggested and selling, refinance all a select instead focus on why select asking and the of expense standpoint. from of because one of you’re are or the our the refinancing refinancing XXXX proactively all which successfully of So interest general next selling our

options strategy. We to will all select continue with respect look to our at service

Michael Bellisario

appetite same to their valuation in it. for of appealing sell perspective, from from that Understood. more to that’s debt, are And change with making kind question the going transact, I side, is any ability guess, seeing I side, then, priced perspective buyers assets? improve you maybe a it a those you was just Got way to my your in from question attractively the get the other

Douglas Kessler

I -- mean, so, at. alternative think, you think, to great I that’s a look I

that think I you’re right.

I good cap traded asset. it example. recent -- reported think, asset with are right of We think, quarters’ debt our Plaza we mean, that markets the Crowne had I Ravinia in I some that rate, believe earnings. I is we the believe It at is trailing that X.X%, our most traded a a sale what $XX a RevPAR now. do fact asset. our And I attractive the to still last is

the having active is be buyers in the market capitalized And selling on so today. attractive to opportunity leverage there and

that So something total at sell price look share shareholders -- obviously transaction a the to we are capital and timing positive sitting is that is of that of right are structure our appropriately, into amount cash price, so at buy that in shareholder positive need is we the currently a balance make most our terms how and we of in and return. the assets that on as the sided fair on sell the is transaction for We sure can we to that activity. for accretive activities taking both redeploy a consideration the ways

Michael Bellisario

differently ground, a XX,XXX Understood. bit you switching on industry differently are you and And from the changes your recently. gears than has that performance diversified what the doing the what trend attract then, of XX,XXX, causing that Are anything historically -- geographically anything assets your the kind that seeing is portfolio, your a kind closer or you harder portfolio little diverged of are causing may recently? the bit and seeing broader industry for just you maybe you divergence lot it be a seeing are

Douglas Kessler

you markets. portfolio is as XX good have assets -- diversified, question. while got our clearly on a top the We know, we That’s

XX We And have the XX top generally markets. lagged portfolio the of whereas rest of diversified are the has more top RevPAR economy accelerated. broader the across growth, the markets terms in

markets, that into slightly, minimize as becoming CapEx experience more have to be have while that try going CapEx we result that little impact we just have while bit outperformance, as think may it could performance be we we market disruption, lagged and a try where behind projects spend, And impacting of it. secondary only performance, be to the not a I are from so that we that is case it we the some beginning to some of to supply also now disruptive our more coming had specific. now under those of the but comes when do not of our the

So I really those things. would attribute two to it

that cycle the of where about part at peak supply. are it’s probably We

some the that I that be XXXX think of indicators seen new we suggest industry. for maybe supply the would crest have could

this outperformed lag as group industry from But better. most the while So the REITs whole. a as up still, held slightly have have in industry growth we the not this think, was the RevPAR of and a standpoint, result broader lag broader a that have peer think, obviously, quarter as we case. We’ve cycle I that whole I necessarily a

Jeremy Welter

are more It positioned. the I of lot that is is chain experiencing as are some growth we -- it scale chain only than thing a lot scales well, lower would add

fourth this I As the going in that gained we share. share, mentioned, so market have have to we row the be gain year market

Michael Bellisario

requirements, looking or down do $XXX $XXX a Got CapEx, you but think the number, the step the $XXX kind to versus a to CapEx for more being will are just it. this on for that of not that you do $XXX? you a see of bit taking level And then, XXXX year

Deric Eubanks

that going are prepared finalizing the and just budgeting But Directors. we had through that question process queue, in get the our Board earlier same we capital it. might not until We our guidance missed approval you to through of are and we are share have Yeah. still we

Michael Bellisario

enough. Fair guys. Thanks Okay.

Douglas Kessler

you. Thank

Operator

go [Operator Tyler Markets. will next Capital Instructions] We Janney with Batory to

Tyler Batory

expectations for did ask through just versus little then, markets? in come Thanks. entire portfolio, that the all you are wages bit a to about And want the flow how I your the generally Good for on your what seeing morning. across quarter?

Jeremy Welter

flow is Okay. quarter. Yeah. by million $X.X target missed Jeremy. We this This our

and rest that the of have a that’s but different certainly in mix So I the is side, something bit very by cut operational that well, the metrics when terms we and is like in property business -- high-margin record from of and in of track little flow of wage the we should a are included of what naturally we And banquet dealing pressure million wage situations, caused environments one tax costs some related. big a this, $XXX,XXX with type no didn’t $X.X and them. a have. there underlying property our pressures we of have is softer A several there is RevPAR. miss. was of we theme Certainly our disappointed, a well creative that you portion disappointed. tax of to have as missed are business, because Internally drop we catering am had But identifying all these float of we A related. have about we ways we as big is

Tyler Batory

the service that then, you talk about Okay. And full-service the have. couple you the helpful. can and portfolio there much or would that RevPAR at you hotels those your your in XX you growth to look flex And compare select Is quarters? you difference properties? over in hotels potentially also difference at past RevPAR service have full-service That’s guys absolute

Douglas Kessler

market us our It’s prepared the growth. don’t of necessarily. if of at we have terms and terms are more difference in growth specific you not I year-over-year think in it’s similar look very the in to I But rollup in share know for RevPAR. And when they

Deric Eubanks

XX. That was

Douglas Kessler

Yeah.

be to get that will We later. able

Tyler Batory

the probably RevPAR only that I Okay. or some guys was assets, the entire portfolio RevPAR flex the I for question, I if would to mean, these up, you go that, presume able sell mean, the of are service correct? absolute

Deric Eubanks

correct. is That

Douglas Kessler

that in past some the for done the Investor have We of Days.

Tyler Batory

thinking maybe broadly these Okay. helpful? are what of cetera. lot But just understand a And question, updated pieces some, hurricanes, holiday shifts, view to you with moving industry et be there would just here guys then an last I is

Douglas Kessler

groups that’s continue view, economic for is constructive the the to we’ve hotel GDP we in first with gather will data level at side be anecdotally, the that basis from to are some the consumer believe confidence shrink in late. point the X% The area lag what high, supply of of that rationing we that a obviously, business, growth. strong. that continues of on a profits to fair pretty you we that good, recovery back-to-back if active that, north construction opportunity we broad a near-term. can is that industry are seen amount think, economic are strong financing, at on had in not And a of think And of there’s obviously, more corporate continued job of numbers, which this extremely to we time there tapering I as room but see interest discussions is We’ve demand. that Meanwhile, in points obviously in kind

XXXX. As sometime in I commented, we could felt that the crest be potential

together, we So stimulus. when are standpoint from an all top put some reform you on of tax least economic at seeing that possible

side love cost. insurance of whether of across we also increases this hurricanes and not which continue to are in technology, there we reduce U.S. buyers cost as some a increases, are Now But increases, cost the we flip can we serve are see to fortunately see seeing also result year’s improvements the we energy that seeing tax be continuing see is, increases, to property to

recovery their new that a future people experiencing there mode seeing. creep, cost growth So as with is some we short-term of allows to think impact we that whether love to own we to are in supply, or conclusions draw backdrop be

Tyler Batory

all Thank me. Great. you. Okay. for That’s

Operator

for or closing the to remarks. would call And the question-and-answer turn back over I additional concludes this like session. any to management

Douglas Kessler

with and joining quarter. we look on you for us again you call to Thank today’s next forward speaking

Operator

conclude call. This thank participation. does your for We you today’s

You may disconnect. now

Ashford Hospitality Trust (AHT) 3 Nov 172017 Q3 Earnings call transcript