AHT - Earnings call transcript Q4 2019 | Ashford Hospitality Trust, Inc.

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Operator

Greetings, and welcome to the Ashford Hospitality Trust, Inc. Fourth Quarter 2019 Results Conference call. [Operator Instructions].

It is now my pleasure to introduce your host, Jordan Jennings with Ashford Hospitality Trust. Thank you, Ms. begin. may you Jenny,

Jordan Jennings

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

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

made At let and to harbor company's Exchange provisions These to unknown the results time, differ materially or statements uncertainties statements call from the cause Commission. fully federal are in which assumptions, that certain of more contain forward-looking actual Such securities and being anticipated. known assumptions Securities are subject based this information and could pursuant remind with this are forward-looking conference the me safe in upon discussed regulations. to or those you numerous are risks, filings factors and the

call, statements not revise the call as conference These date in company obligated them. the are made of only included forward-looking to this publicly or this and is of update

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

Douglas Kessler

our After welcome of to results, initiatives. several and our operational our our will of financial update. Deric value-added XXXX an and review by highlights will morning, Jeremy followed giving Good brief that, I'll by call. fourth overview results, a quarter provide begin

geographically Our fourth from believe U.S. quarter distinct We to across percentage consisting by high some provides having respect large performance managed hotels the benefited quality, portfolio our well-positioned advantages of diverse our with performance. that EBITDA Remington operating of the

all X.X%. while hotels all quarter focus comparable RevPAR highlighting ancillary hotels X.X%, growing our for increased all for Our the actual for increased hotels, for on RevPAR increased RevPAR Comparable revenues. total X.X%

of We AFFO growth results Additionally, we RevPAR $X.XX, over these EBITDAre the increasing and of prior adjusted accomplished an XX% and per industry quarter, $XX.X share of million. cost tepid despite operating reported increase pressure.

However, satisfied, we take are we to continue and steps operationally. far to from outperform

returns. approach. Turning our to focus accretive investment how to deliver best on We

Our cost to matters us. of capital

many into through important another current et ERP prepared before we recycling deals, capital asset are is sales evaluate take REVPAR, we the implications component enhanced return as sheet. balance will for despite our When prudent our while more program, We currently accessing investment strongly such plan transact hotel, CapEx, our be consideration can attractive capital stock While price. available funding we increased to for selling number patient a our strategy. accretively, add sale, believe hotels ERP enhancing see of Disciplined remain features EBITDA, portfolio of not factors, for we unless returns, to improves for we that yet our new to cetera. leverage, do example, the given our we we of an projected

million. Suites SpringHill Towards sold for $XX.X we quarter, Jacksonville, Jacksonville, the this XXX-room the during Florida end, in

purposes. as of of CapEx approximately net inclusive proceeds XX.Xx from trailing XX, and operating the sale $XX.X of EBITDA million price income and was believe XX-month we corporate in sold metrics. general This X.X% assets net our for resembled compared multiple the used remaining The sale will unencumbered than estimated of value to a October the hotels sales of greater multiples indicative be currently but hotel current on represented market $X.X EBITDA cap completed As of XXXX, million rate is a of XXXX. buyer's hotel trade. we in higher our transactions RevPAR We lower similar we whereby intrinsic a portfolio, at when where strongly this

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

to will continue value. strategies believe engage that we long-term create We in

a quarter, tranche we Petersburg exceeded to the developer the $XX.X of over Bayfront During to be appraised time. adjacent consideration price repayment. total lot proceeds condo payment resulted X.XX announced a St. to of parking the This first for loan acre Net million of $X paid from sale million the value. Hilton in

the into parking entered Autograph Collection plan, which we new agreement incremental, distinctive our La Also, Marriott $XX.X style guests. $X.X Plaza upgraded hotel unlevered West conversion Autograph the will that Key with convert the approximately improvement for million Crowne the an XX% of in finished, to by product. a commensurate and internal rate The luxury return. July is upscale will yield of should XXXX. We with a for create When hotel includes provide a upper our to property we Concha property million franchise project believe October, is anticipate agreement a

RevPAR hotel town Key property's landmark in market. barrier the the prime high West, in this location its With this entry, up attractive, very branding performance should elevate old to high

valuation plan. excellent Hilton that being how not in Alexandria, are unlocking and in it Old Pete be franchise La value Concha being our the Alexandria managed portfolio. go improvement also we about announced hotel of noted Hilton a should and Hilton this did from we franchised agreement Hilton-managed for result a Remington, for During St. examples property we by there premium change embedded believe the is transition whereby to Town, the XXX-room new hotels, a quarter,

performance. asset been We we've value. our better to see, it with management can comes productive ways create to seeking no efforts you operating to leave unturned when stone drive extremely As

income, several details underway, have cost rebranding our involving Jeremy ancillary room additions. initiatives also provide and on value-enhancing We efforts more later. will controls,

balance As for the enhance level financing of returns. an amount property we believe nonrecourse to sheet, appropriate equity in benefits of our

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

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

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

every LIBOR LIBOR would in currently in point current XXXX, curve X.XX% annual With reduction structure. a approximately XX and at basis based attractive LIBOR more million savings of result our $XX capital upon forward in interest

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

to for seek equity a financial our flexibility. cash market of also We and high cash maintain XX% capitalization balance and equivalents XX% between

in excess that well currently to note that well during investment this provide are capitalize economic can requisite We on times of as and attractive funds as cash balance hedge the opportunities. target, uncertain a

of high-quality, remarkable current equating upper predominantly As working of share, capital capital, when net a valuable the represents working yesterday's top close. we is that fourth upscale really have portfolio approximately of hotels. million, quarter This XXX% of of significant which a XXXX, price this you consider to as on share our our of totaled XXX per $X.XX net $XXX

see to we active we an help address outreach our efforts. gap, with be as investor what intrinsic continue To value

During held and York Investor a Day the investor and in conferences quarter, several well-attended numerous also we meetings. New had attended

Ashford with get meet on to investors, many you XXXX, we strategy efforts the We Trust. our to road our of to attractiveness investment to events. forward During in remain speaking out during expanding and upcoming look the committed an to communicate with of

new Investor and The is We provide meant to website our recently high-quality investors. new also easy-to-find and our feature with updated website portfolio for resources Section. improved a

useful You be research find website and www.ahtreit.com, can to visit our we it hope you tool. at a

focused we coronavirus. Thus that the Lastly, approximate an many are calculate to far, we $XXX,XXX investors impact date. understand on

this the operating on a travel If expect change, greater would and However, not is number contained, we virus patterns impact is performance. our increasing.

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

investment on have predominantly own With increase upscale balance diligent to our respect upper our management we profitability hotels, remain full-service in to as we given in For also portfolio, but example, asset is more we and value that assets. in focus existing our initiatives, select well. our service ways create exploring hotels

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

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

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

Deric Eubanks

Douglas. Thanks,

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

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

reported For diluted share of prior AFFO which XX% a the represents increase the per quarter, we quarter. year $X.XX, over

$X.XX. reported we full of diluted AFFO For of share year the per XXXX,

of totaled the we loans, interest $XX.X of the year At full quarter, had million of quarter, the billion EBITDAre $XXX for $X.X the X.X%. with average EBITDAre was Adjusted fourth the for million. rate adjusted end while mortgage blended

We rate. it on were Our rate focus believe we several financing fixed XX% floating floating has and X% as benefits. loans rate

extended. we attractive As are assuming schedule, fully of weighted maturity X.X with all a Douglas a well-laddered, believe have years, mentioned, maturity also we loans average

That's maturities, the are cap, in to loans interest our extensions shows exercised. you another tests all have most earnings in extension loan Our purchased no no good include assuming except we standing. that extend, When and release, we which an loans. see our and our loans of rate have being in order schedule are nonrecourse, have tables we extension those corporate that why options, that options

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

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

at working and the ended Looking net with cash equivalents, and net fourth $XXX capital we quarter cash capital, of and cash $XXX of million million. working our

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

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

to stock, based XX% approximately common purchase on The purchased XXX,XXX million stock Inc. of Inc. resulting October shares of price proceeds premium dividend price $X.XX the its in the approximately Ashford of a total of the With X, annualized into company. the common $XX.X an on reflected Under a XXXX. per share Ashford agreement, agreement $X.XX fourth dividends, or we entered October, In XXXX on a basis. declared with regard quarter purchase to Inc. Directors Board Ashford cash of stock of

On and stock basis XXXX, distributed XXX,XXX November common of remaining we Inc. unitholders. Ashford shares to pro Ashford the rata X, a shareholders common on Trust

loan of the satisfaction X periods. The initial The company payments floating XXX-room $XX.X During existing plus has with million LIBOR interest-only X-year amended its options, million, the is and nonrecourse interest Indigo X-year X.X%, XXXX. extension outstanding Atlanta the amended extended amortization totaled an the the to with in hotel which date final X% of loan for loan had term the Atlanta, certain in initial and extension mortgage $XX term, annual conditions. and May for of Georgia, a balance rate quarter, a maturity during a subject

mortgage loan has date end, and interest which $XX for June X.X% maturity existing of rate final interest approximately with the X.XX%. totals of to Pavillon a quarter The had of for to X LIBOR balance a provides extension the floating New of an loan rate loan XXX-room nonrecourse Orleans, in a XXXX. new certain options in X-year its Louisiana, The LIBOR floating company subject Le the outstanding term satisfaction initial million, refinanced million conditions. plus a Hotel plus and $XX.X Subsequent X-year

like payments our plus interest The This management for loan over discuss review, LIBOR quarterly X.X%. now and is turn with in loan floating rate for quarter. would financial provides asset fifth years, a Jeremy to X our I concludes interest-only to the The to first $XXX,XXX the the it of for amortization year. activities

Jeremy Welter

chain for Thank a gain our This to for percentage respectively. you, United under and portfolio the RevPAR renovation X.X grew the upscale and hotels relative X.X%. fourth the percentage those Comparable Deric. total represents not Comparable a X.X% States grew nationally, growth during X.X point -- quarter RevPAR point gain United XXXX. upper of scale

the year full entire For for RevPAR XXXX, portfolio X.X%. grew comparable

During the fourth hotel X.X%. quarter, comparable decreased EBITDA

XXXX shift Northern XXXX, and the impacted to the of issues from primarily For performance comparable $X.X full hotel year the Jewish PG&E holiday grew EBITDA October million. during September impacting power California assets our quarter. XXXX

update acquisitions, most of funds with I performance were our the the with recent funding from our in some return want combination program which enhanced acquired adviser, Inc. of to you Ashford on

competitors. Square of Embassy to I acquisition X.X% cost-conscious an XXXX. of the for at shifting that of segment, increase and relative during XX%. York, Suites customer at New XX% more is consortia represents quarter see points the but in fourth sales RevPAR First quarter X.X this the A hotel, can the from -- the mix healthier the the Manhattan January in Comparable grew Time occupancy hotel's for finish quarter. away growing the which corporate bar, percentage

in the Midtown percentage York XX.X increases For market full representing year New change points above the points upscale hotels XX.X%, RevPAR of XX grew submarket, the XXXX, South relative comparable and respectively. and to percentage in

a hotel build implemented to enhancement $X.X We or plan market hotel's experienced success of outperform the continue on competitors. number revenue growth to opening million and successfully in properties early Remington, led manager, property EBITDA which of the since the to to XXXX initiatives, XX.X%. Our and

Another Posada we that portfolio de acquired Fe, XXXX. in ERP success Marriott's is La been a in acquisition hotel which tribute Santa has October story

respectively. crews, hotel's retail percentage fourth comparable order fourth Mexico RevPAR contributions quarter point in drive represents the XX%. strong grew property film this growth which New XX.X%. and discounts growth rate, occupancy the RevPAR market We seeing grew The at to XX.X also XX.X drove to limiting During relative and North competitors, from quarter, while

and XX.X% points to percentage compared growth For mentioned. XX.X%. benchmarks full This of RevPAR increased increases the same XX year previously represents XXXX, comparable

strong the realizing During XX% growth, or we X.X%. revenue addition EBITDA, a $XXX,XXX in hotel in fourth also hotel with to quarter, margin saw increase EBITDA increasing

grew EBITDA margin $XXX,XXX with hotel XXXX, XX%. hotel by EBITDA XX.X%, year full or For growing

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

for X.X%, growth the RevPAR industry-wide in quarter, the top other grew for fourth XX X.X%. up markets markets was States the During all while RevPAR United

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

and now are revenue I to drive of a in ancillary steps implement number order taking saving will specific we cost highlight initiatives.

spending pricing, roll our of to last meant on leisure programs increase at to e-commerce portfolio our we led which opportunities various be revenue and we for advertising our price are visibility leads; not us directing but increases analyzed to Following the additional example, exhaustive: increase we for list second, reviewing is diligently group working to illustrated exposure in are digital opportunities. focused in segment, find competitors advertising hotel's to first, to and have summer; out the our and and group during outdoor antenna to to we restaurant many are segments, banquet third, group properties

have Lastly, tool. hotel historic and pricing we've added some proprietary at fees properties developed retail a

hours. to bathrooms management, hotels. dispensers cost methodologies of reduce terms are duties waste, the efficient shampoo In of payroll and work reduced soaps environmental performing in we've to wall-mounted programs independent save we and To guest our added introduce of utilizing more cost

pools continue Additionally, ensure deep airport complete outsourced we at expenses levels. the have where shut our appropriate transportation. properties to we proper down to operational And dives at and lastly, are

Given XXXX. the million efforts proud above, comparable rooms during revenue, full to all total X.X% hotel the are $XX.X revenue, or mentioned increased year excluding say we

opportunistically $XXX In maintain significantly our The previous during million in and what invested competitiveness. also During year. down we expenditures we XXXX spend we the spent total, is in approximately XXXX, spent portfolio capital years. from to in

capital expenditures anticipate we capital XXXX, the expenditures million approximately $XXX proceeds. to exclusive with to funded million $XXX ahead insurance of spending during Looking year, in

portfolio, value keys through X to Hilton our consumption. the are Marriott Additionally, the adding well including keys Bay, X opportunities identifying continuously keys Back Boston at and Renaissance Nashville, to Fremont on X projects capitalizing Bridgewater as the Marriott X reduce at as keys the create at we at energy

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

Operator

Instructions]. [Operator

with Markets. the from comes question Batory first of Janney Our Tyler line Capital

Tyler Batory

to sure little I'm negative that are bit Jeremy, talk about First quarter, budget? quarter? in calling specific fourth the positive there your one how then if surprised me, versus can you trends worth either results you, the any just a out And or for came more in

Jeremy Welter

with -- don't and as month as up RevPAR just then our picked what November, started much budget, I'd at weaker Relative look so little term. say first stronger December. the Sure. in I closely at to is you we look really that month for the we that And quarter, near forecast off a if each in the bit

that we observed. a So was trend that

Tyler Batory

just I give right. early, terms the And closed All still you broader your just across those travel with mean, international your ex the it's today appreciate your ago? you portfolio? to current versus on I of on step color on take view headlines? but And back, impact. know months then the information in to of going maybe what's that exposure some virus change Any to a I maybe fundamentals three any can

Douglas Kessler

mostly is international limited. very of peers. to group of exposure relative our percentage portfolio business and transient, our in a we little our our portfolio as We're some So very have business

Our market locations are diverse.

given we bit the within don't heavy so of a in more And destinations that insulated. some we the concentrations little U.S., are have international

Now relatively I the think of that, the throughout number something U.S., highlighted of it but calculated we're far, when in a that's the specifically front, all minuscule why on we've so if to that positioned which is different that becomes well which can I spread reasonably the think, with terms change amount. -- international respect we

mentioned those know cancellations what that mention cancellations didn't occurred the other be were we coronavirus, may there that but that. is specifically Now admittedly, specifically don't that

our very -- can structure. the And fact highlighted managing do some point and costs, in the things Jeremy forward consistent been aggressive going that and margins. view the view that think a our see, we that that the things I RevPAR have improve forecast anything is cost things are of industry of guest-facing we trying few terms with increased in really to So to more that

I bit aggressive case want We distributions in attention light think, little booking to a that? you little a in bit possibly more increase. add of to to anything and also on the more to -- cancellations Jeremy, backfill the giving coronavirus, being booking

Jeremy Welter

think or our have I less is us that's coronavirus for impact it's Yes. And travel. you and exposure broader got way to it, does look it's to Tyler, that about overall more the where travel is. international foreign economy, at a inbound -- And the

Douglas Kessler

a one spreads, and GDP mind, in that keep the I'd thing growth lodging impact But that in structure capital lot to demand. standpoint. obviously, is spillover favorable bottom an is curve industry a to there very is floating know X though, of think rate say, which impact $XX the that, chains have approximately see be rates the we benefit a reduction in to the the rate virus of cuts a forthcoming every supply the of XX% line of interest expense an that what we forward and anticipate effect XX in I from the million rate has our would is reduction given point experts the increased. basis has expectation for of where savings we growth, debt, economy, And

our fixed positioned versus with component respect So again, better of that peers. rate floating to than

Operator

from the with comes question next Chris Deutsche of Bank. line Our Woronka

Chris Woronka

you there to a anything have is think asset in converting brand helpful you -- to quarter, or still terms radar hotels. brand? of talked Notice initiatives on about Is the of each us. I over still independent soft have You which lot management a those maybe X a the

is hotels to. benefits performing what and The We evaluate distribution cost it well. the down are comes really the

We capabilities. have brands RevPAR the would justify we the we believe power their brand and to market, it. With in distribution obviously why the in of index a

of So our that's decision part process.

to the What's capital the return on brand asset. the expended

I a [ph] think clearly Pav to taken step respect with Le we've our property.

said So our we as West rebranding asset And the Autograph that Key looked to regarding in property decided an La we which, conversion remarks at then an have have prepared property brand Concha that's Collection. opportunities, in still to our we to that. also

the evaluate relative the market that options. we've So think evaluate, landscape. can and announced that competition best what is decision to we But also it's that we how we to come a currently changes date into our what

Jeremy Welter

And independents. think, lot flexibility an give a some of And Melrose significant pretty and to we like us, a ones look does hotels, our D.C., within a Churchill. at being ways, the the in already we brand And particularly independent we competitive There's of in advantage. have some presence.

Chris Woronka

concern obviously I done that's helpful. hesitation sales, of sales, give dividend. just like adjusted given to something kind appears which be you what any anything do accretively. or too shrinking asset stop it prohibiting larger EBITDA a amount solid larger And sellers? sales? of have Okay, And you've environment is or on asset then there you mean, other much for still to the you pricing would the Is that guys

Douglas Kessler

we've I that been think highlights we than of our and we contain These higher in extremely multiples, where RevPAR it portfolio trades, that we about going our which think selling million also that our I than what much the sold assets multiples portfolio. in sold We've at were were still sold portfolio. skilled value lower materially of overall we're that much our priced we've it. done way at assets. sold We've the over assets $XXX better assets intrinsic collectively

that our get more perceived some assets on. that remaining benefits prices of indicate we didn't should our that we we that perhaps, RevPAR better but of the elevating some assets remaining of us really with might the So sold a are, And trading the REVPAR. these required assets we portfolio, strategic, also have shows more value higher by that CapEx located, that think also return lower-quality

for spend into additional the would reduction related we or downs also And to is taking improve redeployment. There what on capital specific are account things. what a use why to EBITDA? that debt sales. balance evaluate we in a We we sell future to Obviously, our market CapEx evaluate assets. ability do considerations the impact then the the lot those of those through reasons on of lot pay decision, making asset decided sheet of and But The assets.

challenging acquisition capital us and the share improve it's price, current absent price trading at. now pretty help finding is our accretively to external given Given the that the in right sheet, balance forecast grow to market third-party we're our

as in remarks, prepared anything so at acquisitions. inclined, said be looking And I the we're than prudent other not very to with

market high-quality think is that today. We comment for the we've for a assets demand we got we've assets. We to actually there Chris, So typically, the portfolio. think we on in assets sales have point until the that sales don't our And demonstrated they occur.

So point, I if have you nothing a general but on sales, until think, announce have this asset specific our at something we future. perspective we the view of anything in

Operator

FBR. Our question with B. Boone the next line of comes from Matt Riley

Matthew Boone

dispositions. say Just fair marketing to same a the opportunistic that for sale? kind it provide can't detail be too an I that of now, assets you're in thing? Or but of you get will much that the vein more bit currently is additional of little

Douglas Kessler

on asset sales. of generally the opportunistic been strategy We've

don't comment been we've sometimes efforts. there with inquiries, until again, it's a that can as such typically unsolicited we marketing directed announce transaction. we But to responded on out something we Sometimes time

Operator

[Operator Instructions].

of next with Robin comes from the UBS. Our question Farley line

Arpine Kocharyan

far Arpine smaller talked have about The here and so in have seen tougher and then I into portfolio each some What of of And is group and start those year. is buckets? transient of Robin. better better for This a you leisure trends have percentage overall, quick group follow-up. a business your

Jeremy Welter

smaller peers. a portfolio of is than maybe of much group our is This Jerry. percentage some Sure. our Yes,

last our ahead in most quarter, fourth for But of and business. that it up, the flat, actually, X%. in third year, quarter, our our of to looking essentially mix. of and then of XX% had do then quarter, from is group room rate For fourth this group a up demand we And was moving pace terms revenues, pace the in fourth, what our quarter. in we in the first is a And period and on see decline transient occupancy to group for increased was and actually transient was our up, fourth XXXX, the group decline a time as a percentage portfolio and comparable we year, is the second, saw

Arpine Kocharyan

sort then, of causes EBITDA strong a at That's everything bit versus we about But that? quarter. of the expecting, and flow talk I sort given for could look that And you're inflation helpful. and quarter revenue very the in in was drivers then everything we was and through. pretty were you RevPAR cost softer you when knew what increase seeing flow-through else what about guess,

Jeremy Welter

Yes, I'll in. then so a year, the little comment up bit But in and ended jump Douglas, increase we rates. for X.X% will about wage yes,

we offset look when bit But of across increased headwinds some unfortunately, a rates. that is actually, some productivity, by quite Now the to there able productivity the were of portfolio. you in increased per at hours occupied room definitely

come down actually that little starting in what of month. to in downward that this a it's for first happen Now seeing time, and seeing going trend from bit forward. the It's we're decelerate is that we're time X.X% quite a some and level, January seeing we're

certainly later In in of start come until taxes. that's terms don't What and down property property you the for been of is lot that other taxes cycle. has us to been headwinds, something very insurance a challenging see times

taxes, is. of we so excess increase see revenue some growth in property start our to still in And what

and wins higher that that big the is a of it the X.X%. we see did One perspective, was growth non-rooms look if for our actual level year, from revenue you at maybe

for focus occupancy grow us quarter, a environment, only you has ancillary see for as of portfolio. by not revenue, or when you that and in to our to able huge our in to in grow a ways see much we're certainly which team course it, we've numbers. the continue other see year, us team huge given the been that the that's we'd or some is the for rate good tougher tailwinds not to and like but find drive pickup to occupancy so see, RevPAR made -- And the And not the to able to push fourth

Deric Eubanks

we time Remington. line on I you for our XX% we on indicative And conditions managed think, feel portfolio. the quarter just one line more more And pressure the the And out Remington, we our distinct very that. high team, with engages, conditions controls. our of again to that This numbers by more clearly, some Ashford bottom market the to would to how given Remington, it portfolio, performance asset in of within fourth and bottom And management proves advantages bottom both and line within a changes cycles, top line the through with today market coordination I are percentage top it's figure to line more to cost comes is that opportunistic EBITDA are of the when with group's Trust have effort this drive when nimble, of About responsive capability, particularly time add the to that be is cost and and proactive both in the situation. on shared tepid results.

advantage for real a So us.

Operator

comes Baird. question next Robert with Bellisario W. line Our from the Michael of

Michael Bellisario

Just one me. on one quick

Going That's back $XXX,XXX release that the to just referenced you top correct room line from virus. the impact revenues? revenues, of

Deric Eubanks

occurs thing upon canceled with could prepared on that respect we But estimate didn't one be some in depending when the there So basically that's on cancellation remarks the is still that room a to cancellation comment fees. revenue. those an the to that offset

the industry the applying cancellation that applicable, is understanding when is Our fees. still,

but that So headline there increasing, number. kind be number Mike. could of be some to also that's again, That could a offsets number,

Jeremy Welter

aggressive kind And the we've on done One focus. point in that of areas of to our more of that is is been real we've overselling one of that that's the combat quick one that things hotels.

efficiency. we've RevPAR road and And have track sell is over accountable had at held optimization you one properties always gains in team, out the for our some X we last the index X, of things our If years. looked great

the expectations highest of hotels. We selling have of some our

one going but and it actually the on risk because continue we so lot we're because of bit a a that the cancellations little bit do virus aggressive because around. And more more to we that's that's probably thing push, more taking a little -- just of expect

Michael Bellisario

impact trying $XXX,XXX but helpful. typical using guys can that that's the cancellation kind that more guys you you experience? Yes, later, a collect I impact revenue the Just then you know cancellations, broadly, hotel with EBITDA gave. And what's would through of ballpark to of flow fees

Douglas Kessler

necessarily But I good Mike. think is new It's that with that, we backfill then a don't a it's it because doesn't that question. reservation. difficult a mean cancel question,

we'll really to actually not but more some give calibrate sure it thought. I'm that, how So

Jeremy Welter

good contract. and pretty Yes, the a this would business. most be have there say group are But rebookings cases, in do XX%, I We the XX%. probably potential are in that can aggressively do occur, -- that attrition attrition piece that's fees and enforce loss, would in cancellation revenue certainly metric we

Michael Bellisario

it's days XX days Yes, out that's certainly helpful, different if out. versus X

Jeremy Welter

that understand. variables right. just So correct. can you many so Yes, that's And there's

Douglas Kessler

that numbers been the gave time spectrum. we could have any So within you

answer is that that's providing on challenging why So accurate more question.

Jeremy Welter

Yes. that average And properties keep in mind, three the our window for weeks. is about booking

Operator

the I'd the closing to in There further hand questions are remarks. to like queue. no call for management back

Douglas Kessler

we joining forward call, for quarter. you look you with and today's to Thank speaking again next

Operator

Ladies and participation. today's teleconference. you gentlemen, does this your conclude Thank for

lines time, wonderful You have at day. and your may a disconnect this

Ashford Hospitality Trust (AHT) 26 Feb 202019 Q4 Earnings call transcript