AHT - Earnings call transcript Q3 2019 | Ashford Hospitality Trust, Inc.

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Operator

Greetings and welcome to the Ashford Hospitality Trust Third Quarter 2019 Results Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions].

As a reminder, this conference is being recorded.

to host pleasure Jennings. my now introduce Jordan your It's Please go ahead.

Jordan Jennings

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

call Officer. Douglas Kessler, a today of well the The Officer; results, Chief that President Jeremy and the be media. financial the Financial Internet afternoon yesterday has press the over this basis notice on Chief been as listen-only Eubanks, Officer; will conference accessibility Welter, the covered by and Executive distributed On Deric Chief call a of Operating as were in release

based pursuant Federal Securities that Harbor unknown At statements materially subject risks, call which in the and upon to this to anticipated. provision from cause assumptions, and of forward-looking results assumptions or Such are to conference and forward-looking being differ are the numerous let time, uncertainties actual information remind Safe those made you are statements certain this Regulation. or me could contain known

in of are the is in company's are revise or fully not made call to this discussed the statements and the The and factors These Securities conference filings with included of as publicly update only the Exchange Commission. call more date the forward-looking obligated company them.

tables may the of In www.ahtreit.com. XX, X-K addition, accompanying October certain which filed website are accessed schedules, also provided which non-GAAP reconciliations the the terms be through call in earnings XXXX with measures, this on on used and or at in have financial SEC company's release and company's are Form been

third with release results the provided unless in stated, third release. other this the reconciliations Each quarter reported provided listener those information of to XXXX is the in all XXXX. quarter in with compare all of the otherwise call Also, earnings discussed encouraged together review

the now Douglas call Kessler. over go ahead, will sir. to turn I Please

Douglas Kessler

of to value an overview and will management I'll XXXX review Jeremy followed begin results, our capital made, strategy activity, our disciplined by operational initiatives. results, brief transactions, by we've morning the giving that, update. pursue provide a welcome call. added to and financial asset After our our progress will Deric third and aggressive Good markets quarter on executing

third from portfolio assets distinct very with quality believe across our benefited to quarter some Our of provides that respect performance high diverse U.S. geographic consisting geographically operating the profile well-positioned performance. this We advantages

Our comparable actual hotels X.X%. while all all RevPAR RevPAR hotels the for quarter for increased X.X%, increased for

revenues. increased all highlighting X.X% total growing Comparable for hotels, ancillary RevPAR focus our on

quarter under the renovation hotels comparable X.X%. RevPAR not For third increased for

AFFO from and our $XXX.X reported recent we per the $X.XX outperformance realizing share Additionally, of adjusted our the currently believe is operating is which benefits evidenced by spending, of million. in our CapEx EBITDAre results. portfolio We

spending long-term going stated more our will with levels. CapEx anticipate earlier consistent we this our historical we As forward, year, be

Our and fluid while market focuses at best how the being efforts. opportunities, approach on financial time our strategic to capitalize in on same lodging

without currently increasing to the attractive not our portfolio accretively we can add our features return unless to example, our do we despite program, funding For plan transact enhanced of leverage.

prepared believe price. stock given returns, strongly we the new for to investment While improves the capital deals current before projected our ERP patient more we're accessing ERP be

evaluate RevPAR, the impact asset disciplined et as EBITDA, When such is consideration of recycling strategy. take CapEx, Additionally, component capital cetera. our into factors important we we many on sales, leverage,

as hotel a CapEx buyer’s XX, Plaza we XX-month XX.X income net San room of inclusive The during million. multiple EBITDA the Antonio sold operating June cap Towards rate represented $XX X.X% Marriott Texas XXXX. the San Antonio, estimated XXX sales of quarter, of trailing a third this on the end, price in and times for

costs, were proximity After $X this from transaction proceeds net the the sale and million. loan payoff

XX EBITDA Savannah, of Georgia, a of million. XXX June represented The estimated as in months of sales the in cap CapEx XX, room XX.X rate times Dells, hotel multiple Savannah price for Garden Inn X.X% Hilton the room and We sales buyer’s income, of on Wisconsin $XX.X the completed the also XXXX. inclusive combined trailing XXX Downtown Wisconsin, and net a operating Courtyard

Proceeds of intrinsic from used our spite RevPAR the these our that probably pay were when were believe We sold multiples is down debt. than sales strongly assets having market Note hotels. is compared where value these to valued significantly overall of higher of a in sales higher greater than this each to indicative of metrics. EBITDA portfolio current portfolio

Jeremy detail. Regarding asset provide some will highlights, in cover more management, I'll

create total strategies beneficial in condo Petersburg engage sale appraised the acre price Net St. a payment to will Hilton of X.XX Bayfront in to for over of million This $XX.X developer $X the paid time. value. a This to to down. consideration month the be that pay believe resulted million from adjacent value. parking tranche proceeds exceeded we debt first continue long-term a We of we announced lot

Key theme Key We should property entry is With West will product. the $X.X by million rate anticipate we project incremental should XX% Town Key create us its desirable attractive franchise high is prime market. with hotel which this into with style the we property the finished, West, our in the of location and a niche includes in La upscale Old will International $XX.X of Concha RevPAR guests. believe barrier a improvement for covered hotel property to with Marriott convert very When landmark internal the commensurate to Plaza The our Crowne upgraded parking in a a West elevate yield upbranding high distinctive million agreement into to a new hotel Autograph October, of Also approximately the conversion return. for upper agreement a that provide unlevered and July an XXXX. plan, entered Autograph Collection

improvement management and Concha our believe Alexandria, Remington La a also Pete there's this announced embedded Hilton not the portfolio. and Old Hilton hotel managed are new We that unlocking plan. hotels Hilton we go Hilton St. We how examples franchised of valuation for being agreement for whereby Lodging. value conversion the excellent property being trigger premium the did transitioned room in recently to Town Alexandria about XXX franchise a from managed by

our believe of appropriate to returns. we balance amount Turning equity of benefits property an enhance non-recourse financing in sheet, to level the

of to a targeted time. over of that gross to range returning range have net XX% assets we debt We and XX% to anticipate

balances. In proceeds make recent fact, outstanding you to we to of most reduce can were are working given our see that progress loan sales that applied

recent loans Our flows, and mainly we movements. rate to a provides benefit hedge which cash believe rate, us to natural floating are interest from our positions

XX LIBOR would result is reduction was approximately capital in this At interest basis point the $XX LIBOR currently year beginning Every upon of it of based in annual X.XX% current million structure. our and X.XX%. savings

believe we an maturity all addition, laddered In attractive well activity, refinancing of with schedule. have we our

that We financial a market also note flexibility. capitalize equity requisite maintain opportunities times, We balance our a capitalization well and investment on excess seek economic can cash cash high attractive arise. as as equivalents to of uncertain to provide hedge funds for XX% cash between balance and this as XX% during they

upscale capital, been value reasonable of predominantly our a close. approximately consider share, the you current of when of million, price recently As getting which our Apparently, net hotels. third this XXX% This XXXX, value represents net significant on that yesterday's equity to the public equating quarter to assets, working as share credit portfolio in of levels loan have working capital of of not which top these a XXX $X.XX at really refinanced have per we $XXX many high much upper market. are is totaled remarkable of quality

investor what outreach help To an a value address to we well We intrinsic with efforts. held recently continue gap, Day intended New Investor active see we our in as be York.

our not webcast. and watch go us, join were encourage to you you able the to If I website to

strategy of investment into to year Ashford look Trust. and meet you on events. and expand our to XXXX, to during investors of remainder with the the communicate road, the and the attractiveness of For speaking many We will upcoming with get in forward out to we efforts our

managing competitive In should have outperformance, advantages and operating balance to long-term make solid that investment. attractive to sheet. that extremely committed opportunistic We lead performance, generating Trust summary, transactions, completing we an remain core multiple Ashford we believe proactively and our

balance but as have given on select hotels well. our full-service own For example, portfolio service also that investment we upscale hotels, upper focuses predominantly our in we

diligent existing assets. our our to initiatives, ways exploring management create in respect With remain to we in increase asset value profitability more and

given are affiliate guest providers improve Our high companies expertise that maximize Adding satisfaction. believe of our execution financial over we have the competitive quality cycles. we seek list that assets our our to markets multiple service value capital the and advantages is proven to of

insider total XX% us to owners to tremendous approximately encourages shareholders, with we which long-term alignment have believe like and returns. shareholder act think our maximize we With ownership,

confident remain we that we positioned ahead, well are outperform. to Looking

review to Deric to over financial call the third turn performance. now will I our quarter

Deric Eubanks

Douglas. Thanks

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

reported share over prior diluted For of X.X% AFFO EBITDAre XX. which the year per increase we $X the $XXX.X for a quarter. totaled million the represents quarter, quarter, Adjusted

mortgage we of blended average billion with $X.X of At of loans the end rate third the X.X%. a quarter, interest had

were and weighted attractive maturity fully Also, we We years assuming believe rate. extended. several loans rate mentioned, a X fixed on maturity as focus laddered we a loans we X% benefits. all well schedule, Douglas as have has it Our floating believe floating of XX% average financing rate with are

corporate non-recourse are no loans Our and we have debt.

you maturities, extension cap default. see release not have earnings except extension we extend no have maturities that in we in purchase an exercised. interest final why we upcoming loan In shows to order our That's assuming most When that loans be terms test options schedule our debt are the debt those and include zero options, that another in which maturities in XXXX. all remaining of rate in extensions have table of

that us out spike almost of in caps any will I to our point against place interest on all rates. debt protect also have rate sort we in of

LIBOR down curve LIBOR which coming Additionally, the our costs shows forward lower interest the further. even would XXXX, current of potentially remainder through

capital, of working the with including we Looking $XXX million. we our equity million at net working of net with the and Inc. value investment ended equivalents market cash our $XXX and capital in cash the third cash and quarter ended quarter Ashford

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

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

of dividend quarter cash of Directors on on X.X% $X.XX yield. regard With an basis. $X.XX dividends, per the or dividend this to annualized represents third price, yesterday's share stock a declared a XXXX Based Board

XXXX. the price The XX% we stock reflected based X, approximately XXX,XXX per total a resulting on shares Under purchased in Ashford stock stock common $XX.X entered proceeds of on agreement Ashford common Inc. with Inc. the company. million its the $XX approximately a of Ashford purchase closing purchase of for to share, October, In Inc. into premium agreement of price October

plan shares a expected announced XXXX. to Trust common completed to stock rata distribution and pro on shareholders on distribute also XXX,XXX to the Ashford We a pro be record shareholders unitholders. of X, November October of as remaining The XX, basis is Inc. Ashford XXXX, of common to rata

it our asset This discuss concludes like now to management our quarter. activities financial I to to over review. would the Jeremy turn for

Jeremy Welter

Comparable the X.X%. X This growth during Thank portfolio for upper third RevPAR of the United relative you, total class and point percentage RevPAR portfolio for gain under the respectively. those nationally grown States grew hotels represents has Comparable X.X%. comparable to for a and the point X.X% grew our entire XXXX. percentage RevPAR not a Deric. upscale X.X gain quarter Year-to-date renovation

grown decreasing essentially has X.X%, the million. During year-to-date $X.X hotel hotel quarter, flat, EBITDA third was EBITDA

want you that combination advisor the place our the with with I were acquisitions, our funds Ashford of Return performance in which have Enhanced to acquired recent Program from of we in most Funding some Inc. update on

June RevPAR to Maryland, was forecasting The represents growth hotel, market. relative management third October which in Old right, Remington acquired August management Washington Alexandria citywide during is July compression. hotel from the RevPAR D.C. property of acquired First either franchise. the the it Remington over and we on or X% an the Hilton increase X.X convert is The potential. exercised to had actualizing, percentage RevPAR going we the benefited the and than Town, Hilton growth XXXX. of budgeting forward from the When increased we right untapped Comparable quarter. hotel took points for We Xst. this Lodging Hilton-managed indicating higher a to Virginia

lobby the that revenue the a quarter grab-and-go first In we of new provide begin will market and addition, should additional XXXX completed of be in December, during will upside. total build-out

La was which Tribute we a acquisition Posada is next in XXXX. Our Santa in Fe, Marriott’s acquired that ERFP portfolio de October hotel

relative represents rate third RevPAR growth and to and X.X growth point the quarter, the X.X% During comparable X.X%, the Mexico X.X driven percentage RevPAR grew hotel’s by New growth market, and occupancy growth. This X.X% respectively. North competitors

comparable percentage benchmarks, the of RevPAR XX.X%. and grown XX.X date, same has X.X growth this Versus increases to represents Year points.

see the significant to continue growth reservation transient following booking We Marriott merger. in

redemptions $XX,XXX Bonvoy additional provided month. an In per addition, Marriott have of revenue

During we the third flow-through increase to in hotel able also of realize strong XX.X%, with a were revenue Year-to-date, saw XX.X%, we growth, EBITDA, has XX%. only quarter, $XXX,XXX. hotel not EBITDA EBITDA hotel or $XXX,XXX, or grown but

the Times year. RevPAR in represents has growth Comparable increases New Square and Midtown XX.X% acquisition the story York XX.X%, of XX.X quarter grew XX.X%. XX.X market and relative grown of X.X% Year-to-date, City of Embassy submarket, points rate growth. to York been by the has percentage success This Suites this the Manhattan ERFP percentage RevPAR Another RevPAR growth respectively. South occupancy comparable points New January during third driven and the

has cover XX.X%. team to focused has XXXX. $X.X on in the million, Hotel We Year-to-date, optimization build nights. since EBITDA longer driving property’s order on continue stays plan opening the shoulder success in experienced or to revenue grown to Our

Following of the I performance benefit, where the call in especially are to cycle. attention how as current our of favorable our and this the given portfolio recent see a want we diversity to we acquisitions,

growth quarter, wide markets RevPAR United for was RevPAR decreased the the third X.X%. markets up the for industry top XX During States all X.X%. in other

continue from XX of the expect our to benefit those especially of RevPAR hotels the our to outside portfolio, We from markets. top diversity

product end, luxury determining Douglas highest the Concha only Marriott’s that and upscale leverage is the earlier, by of by our expenditures XXXX corridors, and update million world. Approximately branded bathrooms, use. and always Plan. exterior, to of La diversity presents as will looking guestrooms, limited availability assets, are capitalize hotel Marriott value West space be lobby, West but of full-service announced to Marriott’s the Improvement diverse important, lounge, supply opportunity The our To distribution Key unique we incremental restaurant, hotels capital us Key will their highlighted a to Plaza in portfolio under Property of needed be in guest July capability. that Old our Town pool, portfolio best heart to of recently Collection, our meeting Crowne Not the $X.X with the XXX converting Autograph this around constrained on upper approximately the we upbrand strong

The to value is demand upgraded St. XX-story potential creatively a XXX to maximizing we building which developer value where the our appraised parking will own end evident Hilton spaces. adjacent we to adjacent where at Bayfront, the who the be in covered will way result above the an are a along with condominium and of able generator assets parking parking garage. sell property Another we Petersburg will at were be lot

lodging. that a prevents use a future hotel We restriction competitive temporary as also or negotiated

increases growth Petersburg the respectively. X.X XX.X%, of we Petersburg, bright. RevPAR The Comparable during or $XXX,XXX. to the Bayfront, While has grew submarket, discussing grown that, Hilton comparable not Hotel are Year FL St. market remiss relative I represents $XXX,XXX. this EBITDA of be has the X.X RevPAR XX.X%, would grew EBITDA and third and to to quarter, mention hotel the future XX.X%, market date, St. grown Petersburg, percentage and FL The and points RevPAR and hotel look Tampa/St.

following order to to and to taking steps value, will control for a ways continuously addition we number not asset be is The I illustrative, highlight in looking other list our income. In drive to focus but are ancillary meant exhaustive. on of maximize costs

to which summer. to banquet we hotel’s many price prices over increases at opportunities First, properties led our restaurant us our analyzed roll in our find have the competitors of out and

leisure to on spending increase to various visibility focused We programs advertising digital group segments. the directing and to are and also e-commerce

the increase are leads. example, diligently we segment, group to working group For in exposure to

are to methods hours. of terms efficient And utilizing payroll wall-mounted work of cost In we lastly, performing levels. soap reduce duties to in management, at have are the and to costs waste, environmental independent expenses we save complete programs introduce hotels. dispensers dives the and we ensure reduce more added To deep to bathrooms at at operational our continue proper our shampoo properties guest

to above of increased efforts, Given excluding are year-to-date, rooms we has comparable $X.X the or hotel total all X.X% million. revenue, proud say revenue,

will This deployed In we in million competitiveness. during of to is $XXX in years. portfolio significantly averages continue more in to maintain expenditures to spending XXXX, total, During the our estimate approximately we with percentage industry in amounts have $XXX million to capital a we estimate recent invest year. revenues compared higher line as the

Marriott hotels. DFW Suites guestroom We renovations at Regency service Gables, select Embassy Crystal have Coral five City, and Airport, completed Hyatt

included We Marriott to at Gateway, end, Princeton. at redevelopment to phases renovations opportunities within accretive opportunities We first of including Crystal which the identify the our and build-out Furthermore, Westin Regency the To Gables. at event second have the of complete, Hyatt lobby key space. also the City have Suites create throughout DFW, the continuously identified add that we additional Nashville and are Marriott completed portfolio, and keys Crystal value one and portfolio. Renaissance Coral meeting keys two Embassy

I XX%. want throughout and of increases RevPAR Despite upscale X.X%. Nashville. major to the or RevPAR to and has elaborate $X.X relative of CBD renovation competitors Renaissance XXXX, being points X comparable more represents grown the EBITDA hotels EBITDA submarket. under most percentage XX.X%, above has million, Hotel X.X hotel Incredibly, in on with Nashville, chain flow-through growth this hotel’s of the grown and

share substantial Premier is Let their improvement to has major being renovation. despite contributed incredible minimize program, significantly hotel to to Premier a even during this Using impact the project. market which designed guests, me Management to has ongoing highlight this opportunity Project gaining the further our affiliate take job done renovation significant under stealth the

is periods also work time these were is XX% group QX pace their of substantially for group both nearly pace our XX%. Catering this they up as recognized by they and recently XXXX helped up the created. design Not incredible Marriott and during renovation, through space pace but renovation, Premier bottom well. only the has up Following line is for

Premier’s want over audiovisual took the has room night increased hotel, note to over audiovisual XX%. group In per impact JSAV I addition property, to at also on since that positive the services revenue

prepared concludes Q&A. the will remarks and open we for now our That call

Operator

you. Thank

session. We will be question-and-answer we instructions]. [Operator now conducting

today is Capital first Markets. from Janney from question Tyler Our Batory coming

is line Your live. now

Tyler Batory

in with came environment demand obviously So about holiday First question little probably we it the a the your quarter your additionally, budgets? versus some might in there and data as hurricane give how the on months? bit Jeremy. tough think Can shifts, trends but don't then talk given I some data? be where all, for you are lodging but cycle quarter? the couple general and of I your And been more out [SDR] the guidance, in the outpaced that the just past the of just at understand results that's curious change you view

Jeremy Welter

Sure.

Okay, both helped grew the RevPAR terms so government government for for were the our believe demand quarter of QX. strongly. under And healthy or actually and growth. in And the in X% D.C. over in quarter, perform year-over-year we group group X% fact, pretty just hotels

at us can quarter. in market, outperformer You an look for as out stood D.C. the

the under down analyzing quarter. our And transient our growth segment think slightly, slightly. you But and to exposure was for out, growth cycle. help that X%. the is us just was going D.C. in for was X% tougher up when also negotiated our overall We times then leisure quarter up was Transient

turning or direct of OTA -- which you weeks positioning -- us. tracking but And obviously We've growth TravelClick so guidance last, the at the XXXX, we question elements is time our I'm there a good the the brand com optimistic that it. don't when year-over-year, corners future all the give is obviously then it lot group thing we've different you The dot part kind data seen industry. for to your to going quarters in look about, outperform. probably there's for a for to the latter were continue we be channels, down to then booking is pretty across and channels entire channels when and experienced and occupancy, of the XX been some maybe out markets, that uptick of look at in six top an first And

some of bookings potential our our to So that we portfolio, too most given that wouldn't bookings in weeks most into and rates. much. are healthy four I negotiated for industry do the out, increases But read of three see

right total estimate as rates. land perspective, process I to that all we're terms up the would rooms then already you stand year-over-year in and booked, now our revenue, XX% that where for books group of somewhere negotiated X% compare -- to right from X%, if We're that's our have going in we between year. XX% like as stand now increase pace group of right XXXX corporate we now group X% special in that's on and we And next

Douglas Kessler

Douglas. it's Tyler, Hey

how Let a we’re look cracks, like looking negative me expanding some view about so feels just national numbers, about some the in had about we're for while and and some information portfolio XX obviously that think I economic RevPAR averages, when talk the recession. markets just and and talk economy if comment our it also the fissures they a and of of you people of at you them lot broader of look at to compares I trends, planning But into reported maybe think there's on top XX certainly for the downside. monitoring that quarter. whatnot. to slight want third think maybe there's And upside you And of both because there Obviously, the recession. softness the a are a in

also have well for XX outside We top have the XX. RevPAR. XX. which as But EBITDA, of exposure, as market both XX% our us, of non-top had our And of top only is eight negative markets we top XX

the movement see every in lodging we've think positive top as up our through rates think the and before impacts with balance the hoping movement for that interest portfolio, also that been I in how I numbers. I the that but the movement prepared seeing we points us and so And and to on helps continued that and to remarks in us think demand recent of recycles helps staying economy we to catalysts the along various preparing of our commented of down negative data or are the and

we're that a across mind the many on in think spent assets I fact platform, the all the we recent taking levels years. So, lot of having steps our right the in also

And greater so I think we a of to as we're that. continue grab and well market share positioned result

Tyler Batory

And of you that with cash just a up. than paying Obviously, capacity, a follow sense when debt? Any financial balance do flexibility more sheet. to have the would here, on you repurchases of lot what start updated thoughts could make share down on some

Douglas Kessler

So impact And taking good also to seek a I obviously history. at we we're float. buybacks, at a about what transactions on of could our looking with but to you balance we’ve that track back if view lot opportunities. really also of our got look to do our also think our exercising our a decreasing trying think stock, what opportunity in position, record We're when have leverage, and a in buy the cash the are on that available market cash,

the respect share something that. to on just -- we'll the buybacks price. for buybacks actually of But and And will options improving time that's specifically performance lower hopeful share continue are some and our so our assets, though our progress few share leverage improved and strategy radar selling be results with we're see that clearly to quarters working in to us our it's in at operational right how

Operator

you. Thank

Michael from from Robert is coming next Baird. Bellisario Our question W.

Your line live. is now

Michael Bellisario

a directionally quick next year thoughts I comment on you thinking know high on your this give about and versus maybe but how you're spend you CapEx, can year? plans initial XXXX level maybe made CapEx just us

Douglas Kessler

a positioned past averages. XX% bit to the on well revenues, years of the XX% we So we that tailwinds of our kind our above been of think numbers, few demonstrated has in again industry and over competitive this expect as of set. I spending their sort the to our proving up the in that's from impact which I hotels CapEx been think quite well we've refresh relative properties And quarter. as We've see to

to work couple of results asset. on and that exciting are stated going market we're our commensurate that We've approximate lower, which that say remarks, we've West clearly as we we general of we be XXXX. upcoming the to in as to La XXX-ish that improving said we we're Autograph going in with more spent going for hotels. We're our that XXXX, million of less delivering achieve working in to tell. a in we're property be able prepared but the this an on in year, a other $XXX but Collection, improving And early opportunities spending announced be than that done to what point. be And Concha benefit completed range excited the to they're numbers, For XXXX. CapEx big about little to better think the we Key been slightly additional XXXX in bit it's our that currently But spend would range perhaps really and asset relative generally to out a I what showing such on is the conversion its share and RevPAR to just and

that our like CapEx to needle think can expenditures. opportunities really with we the respect So move

Michael Bellisario

just thinking level it once any And about new the Ashford does And potential renovations way property the the then underwrite fully about thinking is change or Remington transaction, you complete? be guys lift operational we should combine transaction Inc. at investments. either the

Douglas Kessler

we've would I been as no business real conducting the business. view general think change. It’s be

project respect Inc. the and operations services in services company management. real the of is hotel ancillary these platform unique various very hotel hotel all and to of consolidation benefit hotel that think the with financing I a Ashford with really and create

opportunities, of the enhance companies growth that respect will revenues And to so that's the that I they company. think, coming the companies acquire, platforms well potentially new to as potentially that as that a entity own, with very into they growth has numerous special

service the Ashford that potential on Ashford a With the continue impact bit within securities cost assets that would we management benefit in respect was exceptional Trust, that recently effective, announced a great as that other will operation. and more capital expect of we combination, no get, grow to that excited than we're to we to over we've about source of under out what little delivery maybe slightly fluid. real change But experiencing relationship. been years that, from

Michael Bellisario

lastly item, of for just that tranche housekeeping then the next And proceeds? timing Hilton what's Pete the St. a

Douglas Kessler

still to certificate to construction that some for work order the is obtaining needs in the hit of and financing certain whether subject developer That then occupancy. or to construction it's getting thresholds the commencing take

point, And time So it's multiple kind payment. limits hereof still the that funds, this actual say kicking at on when tranches receipt that. of respect off with I'd it's just we of to of receipt those have

to going it's over So time. be

Michael Bellisario

it’s sounds correct? out years few It like a is that then,

Douglas Kessler

that say Sorry, again.

Michael Bellisario

sounds like a if two then, now? years out or from quarters few not it's three It

Douglas Kessler

that start certain a us additional payments possible getting we achieved. It's payment really it's thresholds as but near-term, are I in think the could staged to

Operator

today next Our question Maher coming Riley. Bryan from B. is from

is live. line now Your

Bryan Maher

goes staying minute. guest to currently Is that parking what St. guests on construction? hotel happens So Pete when for for under and a that hotel used the lot

Douglas Kessler

of the lots for valet that complete, have either clearly to when evaluated parking, for is standpoint. It’s And that is the lot the used to payments surface from surface beautiful able a parking. owned a through will clearly level protect studied, to hotel we on for made parking the the do garage just XXX of parking the the arrangements currently parking from pay of access that. developer And efficiency day end being instead by nearby spaces. surface benefit with So coming and parking, valet with development guests we of then we covered cost something at the have

Jeremy Welter

transaction. of Yes, this heavily part and negotiated a Bryan, overall this evaluated is

would property. I that anything an so to might we actually -- there's bottom-line, going to little the in if we because of a of operational your going assume bit impact subsidies positive And terms don't be see is just of net but impact, for purposes this really negotiated. some wouldn't I a the be of There

Bryan Maher

you're calls if maybe transactions? dribbled shifting those are expect are few Should out past or or then And quarter? per have of marketed hotels sales just receiving gears you continue quarter. we the kind to And those a one two inbound so, asset guys over

Douglas Kessler

anyone been sold The transactions think have we assets marketed and that I today recently

is also high that's product that we and of has today on because market just the a evaluate the calls. of quality getting inbound inbound calls, portfolio lack

future about to levels. We We about potential through that might we're at we’ve leverage also look We assets thoughtful and is CapEx we decision the an the return And pools We our asset. look be how portfolio on its the asset look into to in the what account CapEx. at past, think sell very as the our relative what is, talked the at base. are take RevPAR in. debt the the what

in are what do And do were than weaker you've us than sold. sold out portfolio which that executed sold those CapEx assets We we we though will really value seen has of. even portfolio so markets think assets, that a many think our of where today, higher I materially get well. either those so far at lower higher at RevPAR we been quite than And RevPAR higher a or trades assets overall that multiples has our

that's we So not going we've economic the to we're don't for execution. of until sake our said comment on occur. and but I actually sell to approach going that And a about sales think we're future sales very they just always strategy, be great

at will now. we just So for leave it that

Bryan Maher

And just for that on stay one second.

more, or hotel be buyers specific just or that there? you're are receiving to want need buyers calls of inbound kind that market and opportunistic to a the in your happens be On

Douglas Kessler

when about you a at at there. a in at you abundance asset this think side if the of in showed that a we’d how look to think a REIT market in I activity third And market private private single out year, of is in values asset there single capital I hotels. assets. the that a sales And versus decline just market, between the think market, and lodging transaction like lot number public versus looked public quarter it's that of disconnect one not just be there's you clearly sales. the is the survey valuing there when the fascinating there's was volume of XX% private variety. And data, that decline what's the realize value the yet this I product XX% Look you look dollar

at public operational have have companies hotel, owner look I portfolio an to people whose I see websites just being in I and and or say, So target can it's in people easy like this two accessible is that other market, the readily that in I'm the hotels in on vicinity, interest operator certain synergies an city. a

variety when unsolicited comes private a equity it operators appetite. funds, wide interest from of to owner coming as there's as both So regional well

Bryan Maher

the lot to with summer Douglas, And net with one-thirds side you it much two-thirds sell people think look, sub buying sure of lot data we don't guys course particularly investors. the if But guys we would that. of something end, redeploy, proceeds spoken and I that our speak been a thought the mean like lot buy and we talked though or And to stock, that think back you with a have continue know down to market this I you know, how cash you a that in might $X buybacks point, vantage of from we've share them I for have.

Douglas Kessler

And as all perspective seeking balance are longer-term cash on things sales the really others we're to execute So executed of relevant strategy, I that balance find between buyback that seen we're with I flow, respect items to us as on to we on comments the true. strategy earlier clearly and returns. benefit yes, that assets, increase my a think that it. the mentioned, mentioned And you've at I that across the trying total significant the that a in that share to trying time achieve holds had shareholder shareholders right well to to

Bryan Maher

it I that really would lot a split what you that the everybody it We of I people their community because with you think to something some just it heads but would to $X? I But heard plate? about. the leaves it? the thought play it suggest up is with understand below know, that is $X. the I and scratching I as step don't what proceeds, net Is level see $X, where was Is well to spoke investing think Tyler to we the just on spoke

put to wanted just that I have. there. that's But out all I So

Douglas Kessler

I appreciate that Bryan.

Operator

you. Thank

Robin question is UBS. from from coming Farley next today Our

Your now is live. line

Robin Farley

topic, on comments My appetite, I transactions question what of of if give sell the your want intrinsic are of was at did capital? related the for. talked idea a so you than sold. value greater know you much reasons then they're you comment type abundance assets. type could credit to about property just you us to some but things your And you won't the that not those were the levels? increases being you -- before on But of of last sense seeing the of repo, across said, the market your the maybe demand on share private is went Or portfolio? you And Thanks. that demand that there sort that announce seeing about, you specific whole you Are giving

Douglas Kessler

for to that assets the the execution. with very Well, market, we've out been taken we've pleased

we from. benefit assets. portfolio, comment to marketing to get haven't rest in won't -- been that is that wants one going it demand some it's it's their whether a our evaluate for would happy on the obviously widespread buyer pool value pricing we're something strategically for execute portfolio, deep we who of I can't the asset that what Otherwise if that So assets effort we because take that just really the feel buyer a we've or with. not and some those of

seeking the still private more comment one is bit which deploy are the which year. of buyer national compared some buyer terms we're of I there's make improvement cap though it interest, And last over urban even way other some assets, in deals. you the But the excuse to which and the of board, where public look bullishness the we cap think to some when of of think it's for about relative that would slight way comment flow rates flat new across experienced if I a even period markets market the some pool, to the that the depth The in would appear rates are cities, the the uptick look or been secondary from the third be the flat more we generally there's market that seeing current pool rates just because more in slight up cap you're have up a tier of our may cap market rates assets and I other still have for than rates very supply, been share some time at and whereas in relatively meaningful that little think multiple and at cap either but I lower cap -- contraction. the looking would this level depth of price, that stay kind averages is, of put I the and at has public reference at not because indicates interesting, prices rates not the me capital holding of of are I CBRE that a the actively

Jeremy Welter

the on lower focused been we've assets. quality And

much portfolio. I on look of the continue quality and at can portfolio, in quality higher overall to you so our assets we we average think bought, so And the our elevate

Robin Farley

leisure when am versus maybe you're that? question was the like leisure transient wondering what's quarters. that giving the insight -- transient And maybe business time this on It the you the few last Is any it’s down. first on I that's over if have you time like then first seems commentary been last just just transient. to commented driving

Jeremy Welter

a it that our corporate mix our business any see I leisure. was a that as nice don't a to more just point. at know was It and quarter. don't towards trend demand this in portfolio have corporate is is insight in we and for healthy the increase had weighted necessarily I that But it much

Operator

[Operator instructions]. Thank you.

from coming is today Bank. question next Our Woronka from Chris Deutsche

now live. is Your line

Chris Woronka

on guess maybe that hoping tell was I Jeremy. in X% the mentioned had of negotiated -- maybe I question to the to is question than for lower the maybe increase kind what X% then prepared due some for earlier you're corporate think got that 'XX? were some renovation that the activity? rates. Can 'XX, that a for to you had get you are comments I for Jeremy, And -- renovations, you if you’ve us of I of

Jeremy Welter

sure. Yes,

we were accounts rated actually getting rated grew higher So for than landed X% but we 'XX X% the lower some that's the that more that hopeful were of accounts. and actually to we where we’re were accounts

so mix And kind that of actualized.

year now trending between movements we're X% X% but stands as And end next think hard to this I right we X% for where of all being all there little are your in range to it's under year. for up. because in actually things we’re bit a it the terms predict of equal accounts,

impacted, your that question raise CapEx has is part how of second on correct? was The

Chris Woronka

that's Yes, right.

Jeremy Welter

the and think I very, a mainly from we certainly renovation the a and portfolio we investment standpoint type of out being put Nashville and an our in it at this you business on incredible group that we've well has if of the very the our I and properties think teams that that do look direct but special done property is advertise coming both really leverage does and Yes, side, from example group group of and the market where teams certainly and part the with or negotiated quality rate have has the renovation with well. been business working outlook really to group as investments corporate the phenomenal business, we the our of the we result process on been a that market as

Chris Woronka

then Is about accounts that, discernible stronger third in commentary the guess of accounts any, or there corporate the industries or little going bit trend feel changed kind year? since a you to like bigger quarter. the or smaller in just I back earlier And being that anything among

Jeremy Welter

last comment the to think prepared this markets. I've that for seen very is bookings. seen well because commitments pretty if actually look, change across weeks look only we in initial just some and at always as the at year data outlook trends and board it first quite could looked time point half, our top we've the hotels, ago, six And And you I over really XX a not trend a healthy the I'm all we time, any forward-looking for as the good as in Now, probably quickly, know. you at on

go average could that's to that window forward basis, know actualize because, right we is a mentioned, it's really group difficult going if just see of Again, out, stand of to four booking on where continued related so lot three, actually weeks now. and kind is to trend be really, a just our hard that it's a

Chris Woronka

you Douglas, is And is internally then for which one is, or of some -- on maybe to do have I the rates. the come formulaic back view capital or way, economy guys deleverage kind of allocation expectations might a guess a terms different more slightly your repurchase where it you stock in or allocation capital it interest of based of gut or a feel on

Just trying how of at you get on a guys a to little a bit for internally? peel sense backing look it

Douglas Kessler

best that view at. immediate necessarily is capital making. to not I It's XXX think where economy the allocate industry into but a and at the of it's moment, all where well of others that the headed decision degree leads and or looking as the we're where's that perspective on also those Chris a place

a constantly on variables And So have the key have at because that the it's and a are you think purely impact base, perspective to do some on experience tough judgments, on of arrive our various levels, on the view platform, view our features lot view on to does it that decision. leverage on of liquidity, our a share components price, our a different some the metrics, have to obviously moving. I formulaic

decision things that may to just wait go. sometimes direction what And and see be

been we have cycles. so, experienced, numerous through we've And

keeping it for time for. may think purpose those that to utilize capital right used I in appropriate when all it whatever so comes decisions at be perspective the help will the us And arrive

Chris Woronka

just curious just other again, And to some kind you have guys I Douglas. take Have have to up you to that, of view a lot whether internally, market know quick view of internal guys can of do itself and drives these a you I'm -- that you I sense into some of then get allocation? follow maybe and of studied? analysis do helpful. again, you factor the the a decisions of market a the I'm be that like that And as trying a -- know

Douglas Kessler

both related, like And this as cycle. would economic is But think financial through information to as come provide we our broader definitely I feel comment prior hotel are than more data is at I we well think arrive analytical strategies. cycle just based general I different any and information, one that that I

We features it look certain different. to that have and feel

showing LIBOR direction recession sharing is component in home of financial is cycles. this that unique. with not rest weakness. than world is We're headed the example, somewhat but the the like situation also a greater bigger cycle of For I is feel a technically, prior the

measure with we're on more opposed the fed interest as so measure. for a rates And of here responding reactive preventative to lower a

standpoint but here So different that points that out of and and playing we they're how evaluate all reference terms direction this on oftentimes bit look going, prior are it's in us the from to in cycle are back help fluid. cycles little are a there that is things

so analysis And our doesn't analysis all you answers. doesn't stop, but sometimes give the

judgment in involved this there's So well. as

Operator

Thank to you. management back question-and-answer over our I’d reached floor turn for or further session. any end like to closing We’ve of the comments.

Douglas Kessler

to November. Thank Thank you in who all again you. May for seeing as may call of look you forward those well REIT in be mid speaking Angeles quarter today's joining attending with next Los and you

Operator

you. Thank does conclude today's That teleconference.

thank today. wonderful participation for disconnect may You this time you lines We your a at and day. your have

Ashford Hospitality Trust (AHT) 30 Oct 192019 Q3 Earnings call transcript