AHT - Earnings call transcript Q1 2018 | Ashford Hospitality Trust, Inc.

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Operator

Please standby. Good day, and welcome to Ashford Hospitality Trust First Quarter 2018 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

you welcome Ashford conference first Hospitality XXXX to and the to quarter everyone, and for developments. results Trust update day, to call today's review of Good recent on for the

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

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

Douglas Kessler

for and quarter Good you results. discuss thank Ashford morning, Trust's us joining first Hospitality to

Our X.X%, X.X%. provide RevPAR on contributed under will decreased more not hotels comparable RevPAR our than for comparable our while hotels to all increased Jeremy renovations for normal information renovation wider RevPAR results. this gap for all which our

share For per of reported $X.XX, million were EBITDAre the the of adjusted quarter reported quarter. we additionally for $XX.X AFFO

generated track team EBITDA maximize XX EBITDA For and we record of long hotel value. increased hotel approximately hotels diligently has margins a seeking of not management This points. under XX% shareholder to renovation, flow-through basis long-term

investors. average, XX%, our alignment exceptionally incentivizes us Our for approximately a the times with high highest to ownership achieving financial possible insider the X returns our peer shareholders establishes is in of and which excel strong

shareholder Our strategy remains to effort focused enhance on value. our

to continue acquire X will upper generally own average. of We upscale hotels less than predominately times full-service and RevPAR at a national

in chasing not are We highest trade-offs purposefully hotels because and see RevPAR yield. we RevPAR the

underwritten of in We we will on new expected as remain growth deals our balance cost capital. returns, disciplined

but marketplace to selling enhance the is economic an is the start very portfolio hotels the to and active of pipeline to year Switching seeking not the believe remains a we in from are competitive. in value, dispositions, strategy stemmed objective. simply stated We deals the environment achieve

are sales As calibrated. asset financially our result, a

pay sold month XXXX, we the end the trailing the approximately Allen an we approximate During CapEx cap $XX.X trailing by based Since cap to cap upon X.X% for capital account an with an an of hotels the an rate for all-in of cap approximate equating month X.X% SpringHill taking into million. and the of Suites rate of in the portfolio. full million quality in projected quarter sold Glen quarter, be sales $XXX XX believe $XXX XX the to resulted hotels X.X% RevPAR estimated have expenditures. million, lower buyer's sales we we've buyer. also million, debt The Through service estimated down rate which equating Subsequent the to a overall projected month RevPAR of XX to the $X.X invested average $XX we of service Centreville after SpringHill Suites select improved these X.X% of sold and some resulted trailing of rate. mostly

XX% we up our appropriate amount and in for target since leverage to our believe XX this down cycles. benefits net to returns. nonrecourse balance As We've of because the generally of debt years debt of gross sheet, near an run enhance consistently IPO equity we assets XX% through to ago

loans been have new active approximately $X.X in of start since billion totaling XXXX. refinancing We our the debt existing

in arise. we powder our in on to we in investor communicate how investors capital, team our and flexibility. example providing totaled intend At significant you savings of capitalization approximately transactions speaking during of $X.XX drive management many for activity yet get We this value on events. our on XX% XXXX, financial remain share. our million the platform. seek quarter cash hedge of These this the We as refinancings more provides what looks believe refinancing have Deric to cash into and more between and of to to working XX% excess to net market loans, of we the per continue $XXX end equity significant end, a times the this they capitalize billion subsequent of well economic another the to and out paid to will every look balance first we detail Ashford equating XXXX, for quarter efforts in upcoming XXXX. to forward these with are uncertain opportunities in the attractiveness road cash but equivalents and balance value. on attractive compared in as completed on maintain in focused go for During to continue dry approximately a to later, quarter $X.X shareholder to with to we amounting outreach Also, would will strategy prior transactions two enhance with as resulted as to Trust platform opportunity our investment investment they

is Finally, this leading to talk than already been as industry, long I are different RevPAR which patiently while doing. Conversely, more focus strategic growth with should acquisitions, simultaneously see what I than perhaps REIT and cost shareholder less being recovery. cycle cycle events also culling why growing exogenous There's we to We're hotels course for of particularly less that accretive contraction. RevPAR dialog for change returns. rather will pressures of affect be it's more When often Each low economic like performance. indicators ahead looking fact maximizing reacceleration, ending, disciplined I our performance. the the lodging and a look in other a there're on

to position. We fresh their are investing competitive aggressive with in campaigns improve REIT our hotels

incremental management on all and to improvement asset focused initiative opportunities is Our deliver and revenue revenue in cost-saving margins. operating

given review turn opportunities believe enhance value. over Trust ahead. on Deric our financial and impact of is to I call first spread will there more this Our the will are also extension the are Ashford all future, quarter performance. the have maturity the refinancing facets to reduction. and cylinders really I to efforts now today team in hitting across substantial I feel management multiple

Deric Eubanks

Thanks, Douglas.

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

adjusted $X.XX, share EBITDA quarter, defined with prior per million first EBITDAre million real Previously, adjustment Adjusted EBITDAre is for with the we've the by $X.XX calculated for for NAREIT we year as For with rata $XXX adjusted in the adjusted Beginning share we EBITDA the EBITDAre. the estate for for started the -- AFFO as quarter quarter, of totaled million exception a adjusted diluted Adjusted manner quarter. partners compared $XXX EBITDAre a with quarter. prior reported pro our of non-controlling and reported EBITDA. year $XX.X compared for results reporting or similar of EBITDA. the

the we business Plaza on approximately Crowne income During due interruptions to to million our West booked Irma. $X.X Hurricane Key proceeds quarter, in related

working maturity loans. nonrecourse laddered working level net price. we current well income per billion. to the this for we additional Given West do at schedule. caps end is of XX% at had of rate ended currently Net business are the expect total on sheet the $X.X investment At we equity property. Including virtually have of rate first in in quarter Key capital recovery of not any business to place quarter, receive approximately $X.XX with equates Interest interruption assets we the rate value our floating had our million. was our all a rate of the property debt and share of of At average our our to Ashford of approximately rate, share balance We floating a our capital debt X.X%. XX% billion with interest fixed and $X.X of quarter mortgage the blended X% approximately or the end market $XXX debt of all Inc.

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

Our OP the Board yield million basis. The adoption future quarter of in regards yesterday's Directors $X.XX or highest stock Board basis. dividend a comprised share first diluted units. currently quarter-to-quarter declare will Board dividend dividends policy With continue on stands one per shares of hotel and a amount The $X.XX XX.X dividends which Based or XX.X policy XXX.X price thereof. to on an which Directors of a this its the REIT dividend review share count is fully is of shares outstanding, on annualized common commit million space. of at XXXX not stock X.X% represents to the dividend the the of the of million declared to does cash

attractive our April interest has and $XXX we balance very with options one-year prior $XX is existing and next After maturity forward XXXX. our during financing in these XX Pool the Subsequent loan significant approximately of The initial The loan $XXX X.XX%. refinancing markets $XXX XXXX. floating refinanced the to conditions. cost by refinancings LIBOR LIBOR extension the approximately savings of was The a outstanding savings as in be an refinanced This refinancings, five to result totaling in our or a front, outstanding quarter, On interest into annual interest subject compared and subject the was totals payment of date hard terms. approximately significant maturity XXXX, plus totals term of loans interest loan for expected hotels. to million by is the with capital satisfaction million. end, capital. loan going compared mortgage loan approximately capital and interest-only prior satisfaction continue is is one-year debt liquidity, quarter that the is existing million the X.X%. refinanced to result has certain -- loan The totaling annual $X.X of be mortgage opportunistic with for in to of loan a two-year and to to previous February final improve to new in rate continue options, Highland This lower secured maturities million initial million of a eight to to plus The markets to terms. of is provides $XXX the loan two-year our expected hotels rate with an five secured conditions. loan our balance The interest-only with our and the a extension floating debt markets of new extend certain debt term goal accessing portion we million debt to provides a mortgage as

our benefited have XX months. portion have floating a when past XX we to from existing the a the see, over can rate loans time of at debt our refinance substantial significantly to quarter. the now capital we flexibility We spreads over loan enhancing compressed current you of our on efficiently concludes management I our to it discuss and Jeremy would believe asset This for to conditions. activities the financial shareholder by turn are market review capitalizing to value like As

Jeremy Welter

you, Deric. Thank

gap RevPAR not with a portfolio shifting quarter, comparable during Easter X.X% was with RevPAR point grew under X.X% XXth had renovation this RevPAR Xst compared much flat comparable RevPAR negative Our hotels than under the XXXX. basis normally not April to the quarter. impact by Holidays hotels larger renovation basically with represents declining quarter, and April XXXX portfolio's during for experience. we those The our overall a in renovation between impact in XXX the

points with median eight points. basis impact XX XXX of Over basis basis impact the from has previous quarters points this a XXX ranged to

XX% XXXX increase quarter with five more than renovations, was the XXXX. impacted a rooms [X,XXX] first by representing hotels renovation The of quarter or more heavily under first

more further and QX, renovation to Going QX, comparing more shows period. XXXX XX% rooms back XXXX during XXXX the hotels four under and

renovation under are we projecting of fewer quarter, of per XXX rooms five XXXX, out of service. X% balance an of the for average or with However, hotels average an fewer

XX.X%, did increase the EBITDA increased margins redeploying This and resulted Marriott quarter have This grew DFW management Remington increase and hotel quarter's implemented. RevPAR to Airport, hotel One was assets program but performing flow driven nights XXX,XXX and RevPAR managed. sales growth. as by converted increase both by we from XX.X% growth additional that Marriott strategically of in add upscale was attributed the this by in revenue Remington and the hiring the the contract managed X.X%, which recruiting, to we as team respectively. recently Much We're to to in XXX% and property processes revenue XXX XX.X% or increasing able robust Irving occupancy. of during room share top North upper the Not also this hotel area airline only market by shoulder occupancy EBITDA. through the growth points relative night XXX be resulting well can a Dallas submarket to basis

did In scores at driver XXXX addition expect in Visual improvement Remington Minneapolis works when managed Hilton AV The XX%, playing driver quarter XX% that property's J&S of the our the run result strong RevPAR Sheraton host this led of primary XX.X%, four XX.X%. results of Meridien, and Minneapolis property. the of revenues points. by during XX% increasing relative this during and XX% the the four showcase event XXXX the was million and fact by top Minneapolis of or that Minneapolis continued as increased hotel for portfolio of management manager property see through the XX% are Hilton the Meridien include the portfolio at this completely only the improvements up two growth with satisfaction February line hotels, with seamlessly Le The drive margins. hotels, EBITDA first hotel other [Limington] Hilton's in and the the were Remington to Minneapolis, class successfully Audio and quarter Le in performance these a Minneapolis and growing Not The XXXX. XX% growth to XX%, our bringing a These W, EBITDA Hilton, due the we top-performing Ashford's Bowl. at by main The $X quarter XXX XX%, to of best of basis by Meridien, property management to Minneapolis the first quarter. as was and but all over hotel was outstanding W in along team. RevPAR Super takes grew we competitors results few Sheraton Le brand outpaced total increase spite respectively of A flow both acquisitions in West. renovation with first by asset assets to

comprised primarily Indigo, to guestrooms so of will which we portfolio the XXX million spending our Gables, continue maintain In quarter Hyatt $XX we at competitiveness, invest Research million Anchorage, we recently and XXXX We million Park. the be first Ritz-Carlton, Atlanta, Hotel year Springs, capital renovations During in will and the Palm XXX Renaissance during Sheraton approximately at Coral expenditures Westin completed Triangle the to Atlanta. in Princeton, and guestrooms CapEx. to in estimate Marriott renovations the spent Regency

restaurant the Nashville. renovations Renaissance addition complete guestrooms repositioning a In we comprehensive and lobby at the to will

the complete is with return lobby. Renaissance new ballroom phase in back redevelopment the together and investing center Nashville stunning the We're Additionally conference portfolio. hotel first continually our grand junior ballroom of to with to

remarks and concludes the well-positioned are open markets. our This compete in we'll for call effectively We our to now prepared Q&A.

Operator

And from Instructions] first Bellisario Baird. [Operator go you. Thank we'll Michael

Michael Bellisario

projected the being us closer help the can sense how your capital compared you're makes to to buyer, sounds this it in maybe today that existing you invested, acquisition then like currently? why to portfolio back and prepared you getting remarks, go about comments a on you're to want seeing $X with stock understand your from Just being what at returns think

Douglas Kessler

in not the be which is asset. seller. that's to an the always consistent asset XXXX the to direction the of balance want a back do buy potential And and We've is growth been we industry of come very been we That of headed I having for weigh us hotels. being and that theme any stock acquired a Mike. Thanks price, looking been acquirer something the yield can the and disciplined since hotels for that a we've second, net the

was I of are into looked fundamentals think and a now at and what accelerating more of economy the where where in this going different net the phase, terms XXXX. versus XXXX industry into sale itself we looked headed headed XXXX

of the were nonresidential look influencing influenced the if macro at heavily The view amount that grow where is of by you I standards their obviously of budgeting may of headed, consumer industry some and like the investment. which X.X%, the our factors, XX% fixed direction indicate things lodging that budget. think with seen we've confidence in recent surveyed rate, much unemployment of as as travel even growth surveys the for

evaluate indicators think us underwriting as let's late have hotels forecast that mentioned might say deal RevPAR the we when remarks we're early The looking and prepared those is pipeline different looking I any I very are reasonable XXXX. slightly to XXXX used thin. into So for still at in or today,

in very and And at it's a be we're what so competitive have we still to looking environment. selective

hopefully have than nothing That's and what our platform. been comments that in past. investment always So, today opportunities will been the grow and it's find to really strategy part we been we continue is look to the different accretive

Jeremy Welter

we prepared rate. if the add cap RevPAR $XX portfolio one would Doug's comment that at you that X.X in I sold listened to remarks,

terms RevPAR higher assets at. So lower recycling what and assets our some we we're doing is of from looking to in diversify we're what of RevPAR we're capital

similar cap and able trade at potentially sell to low cap at upon go up So rate from RevPAR. been maybe yield perspective, we

Michael Bellisario

look topic York for you see interesting markets, the there need what you do take maybe closer to a or does when expand as Maybe City look? New change you at become for

Douglas Kessler

never interesting, hotel it have a York we owned City. find I in New

York where certain cetera. we most New have New Although the delivery, Princeton, our markets on Jersey, outskirts that in Jersey of City markets as we EBITDA show New et of one is like

low. in we buy So that absorb and ways going very for New from always the supply. the being to growth there a at that shareholders. York. change to New economic we to obviously our market offer high that's headlines a predominately you generally supplying for that all maintain very York cautious dividend The looking through find be We've been like on are to there yields We the

And in so get generally, change as chase paying what yield minds markets unattractive and don't higher been remarks, has RevPAR typically my to asset said prepared also our don't we those -- and I excuse asset. in a me in you're buying an yield that historically you're RevPAR we

our Now if of been upside generally and you're But tremendous equation. been buying that in York New a amount certainly we've buyer that into in -- we asset buyer factors not an aggressive haven't City. see a

Michael Bellisario

talk then early too is the yet your does on it RevPAR not mean tell? still it that or mentioned to reacceleration, And seeing you're in just markets you

Jeremy Welter

a in we the We going forward, I seeing little you which the in to in think pick really first tell. have looks it's quarter, of that saw near a we I at term. transient still see little QX, We're strong little in early a when early that it's certainly bit up to but business that think I QX, mean XXXX. tell, didn't look strong,

think there's reacceleration in I we the that some comments a standpoint. looked some like continues trend industry, optimism, referred from do that if So the that of

Michael Bellisario

function activity year? of your that mentioned early XQ renovation you the a done your partly then And how you've is and assets XQ, in

Jeremy Welter

It's was some ahead strong. for of far for fairly there but that. be at is acceleration commissions you tell look pace our to because the really pace, were and the try pace those outlook know is XXXX to commissions, to some group of the of -- when could you in strong. hard And the it group bookings some get XXXX that Probably cut then group in group so

Operator

And we'll UBS. Farley from now to Robin go

Unidentified Analyst

of I bit go QX, through this RevPAR but thanks, for weaker saw might Hi, holiday group renovations you three could in bigger about and pickup what for what slight It had doing year a perhaps What's pace drove did what anticipated in slightly think takes it seems for group and months puts transient, like been shift? impact [indiscernible]. you do understand some had this a on RevPAR? ago? XXXX impacted you is of actually than by I of mentioned versus

Jeremy Welter

renovations tried on, we So, QX ballroom doing it a And on ballroom, a where have way we we catering we we revenues The have we to had lot for talk we a got high when and unique much in the displacement. we of didn't have us minimize really well, can going we too our about were very just particularly our do does renovated, volume and but renovate of a renovations, overcome to a that lot ancillary because and that. renovations, the displacement to how minimize and as didn't everything approach abnormally Nashville impacted revenue. banking junior hotels of

happened QX growth. in we're we that's we decent because some RevPAR renovation, So at had look what's and in not that

question, balance [to you is and for when to weekend right balance then more of mid specifically as year retail of flat is able more group negative of year and discounting particular the group going the going onto slightly transient rates. looks balance which to look Going until are was high with your up. then And the year for get growth challenges strong, deal as shoulder then fairly do] holding at earlier digits We're I business mentioned in we our now. single retail we to part segments, for for the specifically and it's pace the XXXX of the the

Douglas Kessler

a to mind our in at less perhaps our perhaps some relative you XX%. keep peers just portfolio that about comments, Just component look if is adding of to Jeremy's of group

Unidentified Analyst

said you. from three ago? flat about -- decelerate that, thank very to what helpful one that you did decelerate that's slightly saw or to slightly months did Right guess you they I just up negative, follow

Jeremy Welter

bit it types of headwinds much. Suite little think the Gateway. at Crystal looking and We be is have we we're it you're had of I of year we again Nashville going side to group -- for have, space space with we changed we our don't the have mean at renovations renovating some a needed this on when No have, too mean just

of a demand. for So has renovation that and on little Generally does been bit successful with some segment. still disproportionate there impact of some factoring certainly transient is group, that particular headwinds that so we a

we'll how the So balance for it out see plays of the year.

Douglas Kessler

And I think on lot was noise had responses just quarter, this and it in you slightly. it your a up down this did transient there was is RevPAR in about that look to to up X.X% been follow when how of we and group quarter question, compare

to transient leisure business feel weekend comment some So there's in and we going like forward, growth softness. Jeremy's

and Bowl, [final Looking Atlanta, like bullish big particularly have more Minneapolis, some we events when cetera. with XXXX beyond the where the though group are four] on you into Super we prospects et XXXX hotels at markets look

So hopefully that's helpful color.

Operator

D.A Lykins James we will to And go now from Davidson.

James Lykins

think all, wonder peak about you to beginning may or you if you out of First there? there if overheat? markets a bit what that you're supply think are out there in any When little might seeing that talk

Douglas Kessler

still it's And X% supply think ahead X% we're I the standpoint range. sub of to taking supplying demand yet in a still a be sort that. perspective, macro From of seeing continues or

it loans. see. think harder new we calendar, to capital And I continued into it construction XXXX that feedback that that's for find peaks supply, what lenders whether at is you it's are the at Obviously deceleration look ahead appears we there also early is from favorably that construction so everyone's and and in waiting the when that hearing and to harder look

conjunction And of cost natural some cost the the helping labor in of as labor with material which some still elevated of well materials. that's as as for increases so as disasters, raw [bills] both the construction matters pressures overlap as because raw costs some increases, impact in of obviously well inflation well

are impact, Specifically, as we also also too. markets but We're certain to we demand balance where some Jeremy seeing of can color need to incremental supply that. our seeing growth give

Jeremy Welter

markets as in and at look over growth. [tracks] X.X% well our XX about in when all supply our the our portfolio So we absorbed stand where we've last in months, we and of

been storm. kind so And that we've to of weather able

the look So bit that we to X%, when closer picked a slowing. recently. we to that is has come do little new you our expect supply growth at so going it And up forward, markets down think

still question still was specifically RevPAR. uniquely Nashville. where absorb been supply has the we're with resilient incredibly with with had and We doing supply, seeing what about is most we're supply growth. tremendous the with our we're that be Your markets, other redevelopment, positioned the asset space, to what very grow hotels. Nashville next of to think to that doing mean It's amount the able right

forward for convention You strong fairly and then going that within Nashville. know you know calendar market, hotel our that at the actual robust market, and when you still look

X% and where a too a another the some clearly be kind then is positioned Dallas, had having are should do that uniquely is years. they're we some at a about. have able I unique that market that. to I into it our necessarily quite concerned we outlook, supply. look have But of the then over from has and project we market over Washington and next that an under exposure is amount that again then few coming amount aspects I bit market absorb supply don't be is am the few think tremendous of years of D.C. there. And demand one a Austin has not market are when last generators tremendous that's hotels And you and So And think Dallas market to

lot market. of we I a and pretty So in outlook had think in D.C. favorable is that exposure

James Lykins

And any mentioned that? pressures cost growing more the Douglas you can in remarks color also you your provide on for prepared industry,

Douglas Kessler

But premiums. morning to some labor elevating that few and there'll everyone's natural aware across And and think competitive that's happened very this and given recent announced expenses get that years were market those think experiencing just we expect is I events be X.X% cost that I U.S. ago. labor that unemployment overall with that, industry also able every that everyone downward quotes the tight years the obviously years relative recently the they it's being anticipated that increases. think press of a probably insurance elevation of to after where I

are pressures areas continuation margins. will more obviously of real In certain some obvious So assessments. the of a couple estate that aggressive on those be there's tax the

beyond don't want beyond think three. more any Jeremy you know to I that those add I color

Jeremy Welter

West is seeing to we've been deal It's few increases over last just Coast. being to most we've all sure in have much and those New more most continue any that wage In of with bargaining -- Jersey, that's proactive and specifically Northeast to minimum years York, make the we the the that of had at it, down up where some corrective competitive in issues more been of Coast we the don't some like deal wage, West and New hotels. driven, with aggressive mainly terms

am spite we we sure the as we to at One there's -- to as I integration for is markets. contingency to all a Marriott pressers. and those very margins Starwood and we've helping place in timely a our in at revenues grow grew are perspective, actually those a the there that to that's are we're finally us provide look that area to hotels by by if fairly because roll and the of other benefits make slowly. points, that grow of we're think So of sorry X.X% margin on that little X XXXX, are and -- these able renovation we little of bit bit that wage proactive been in well that and alleviate the quarter we're basis by under of a plans look way from those just you competitive getting EBITDA coming why wage of we headwind hotels able you first some pressures some is is very merger continue the RevPAR out to are is that. continue I through But help of have But think from in lot in better certain a perspective and I some

Operator

question a B. take Bryan will FBR. from [Operator from Maher Riley Instructions] We

Bryan Maher

in are become back just really that of of ongoing the trading? buying I Kind LaSalle. the not you your what's mean, is where couple think potentially acquisition years? with dry, circling be for in relative What to watching do like or to cash Pebblebrook it this your secondarily, that, anything, with of and And your going going you paint see -- stock guys hoard relative that's changing on next unique has exception then is to environment. view not to and something you how do about the

Douglas Kessler

related to new Bryan? more of Is your availability deals, the question first

Bryan Maher

there some out? I mean, assets is or panning about secondary couple type opportunities not guys think Are upscale product. Is priced ago, you of a you, from quarters in I tertiary those away full be of to something seeing that talked there upper markets, service, being and done?

Douglas Kessler

properties compression that the a we're factors appetite widest will profile, look expansionary there of conference think but secondary suburban thin. I footprint gives there of for the driving more continued the slow and Sellers no across NYU reasons. real two of we as economy, the the much what's because fit Again, to sale data same sell. country, hotels. looking are owner to and benefit having not us still a refinance is of the entire of can there's and get for along you current urban I and But spreads still why pipeline the be and a investment really looking pretty for great of I would some little which Moreover, to the ride out the are probably if markets, motivation and the continue locations. market the it's is bit Hopefully is buyers I if in available our NARIET, pull as still, primary highlighted returns. proceeds points said think is that think some sellers reacceleration a market. reacceleration of approaching and there's but got in Deric with to for They fact decent

of really can want to are fewer this, people why reasonable demand there the buy there by hotels. hotels buyers, think I is on you market. a tell I amount that's

there find think on looking buy lot just the sideline I a a can't but are folks of product. to

are positive at change hospitality more the situation is it to is for will because behind the least demand than have it worst forces this, and there what product negative. not So

in forecast, availability They things change a those in economic change clearly all think can now material shift I changing. this favorable. really debt a right would the the aren't and be are

question was? second I'm sorry Your

Bryan Maher

to cash. Referring

Douglas Kessler

you. got I Cash.

cash as to Our so well cash. a maintained extent change the and being of the being winds ours defensive level is have want as -- in commented we this a opportunities advantage we of to capitalize high excess the as measure there have historically to cash which that on on a competitive we

want our through we the strategy. of think you it get time been through again you can't time very has and this and down and up when cycles a and prudent Sometimes cash, history going

looking of constantly in assets, into been market. refreshing on at own the down of quality deploying the penetration the ways are balance further the that to effectively the assets, our of gaining capital a believer cash our assets those sheet. maximize recently bringing that value we've improving We've our of We them, age and strong average

that bought a not of don't We has a as think and as us. more strategic a to space I the or getting view consecutive bit, as call the it investment, a earnings return presume the do asking. buybacks view position. we've back their a money management as penetration lodging improving four the -- it of spending than buybacks. competitive the a of with signal suggesting there's which meaningfully. more good to that a if the what it stock maneuver, we're Board I maybe I would index, little on buy you're and assets, you get something, you we is a more think when REIT commented of last be in I think that of you're team Again equity that to you which RevPAR had percentage we're do flows we the fact years giving on do should lot a that has that we on capital

an think always the share consider. it, we not impact few last will that have has as to it impact. a that any and did announce So times real But obviously of a something it don't means the buybacks you in just and again do management really think It's we I do it we've had signaling, the I done Board recent quarter.

Jeremy Welter

go I -- also want Bryan to ahead. just

Bryan Maher

at off cash kind have million balanced been X, not of the period stock million of in going acquisition the nothing the February that pretty in price XX the of low when buying with When is in you several it that or really environment, range me. meaningful is on X.X, of in kind hundred this shares, market surprised which it million XX year would a

Douglas Kessler

upon Well don't, company times has they at times of information. and non-public a it's the to material their at based knowledge buy ability

obviously obviously so the phase and have to through point, your price. And timings to we stock the

so for even always an not wish those open we reasons it And were. at period, it's though times

Operator

does the or to the for that session closing conclude today. any additional And like turn management question-and-answer back over conference to remarks. I'd

Douglas Kessler

look Well call for many today's to and quarter next at joining with NAREIT. thank you seeing hopefully and you you forward again we speaking of

Operator

for presentation. your today's you participation. concludes Thank This

disconnect. now may You

Ashford Hospitality Trust (AHT) 4 May 182018 Q1 Earnings call transcript