Earnings call transcript Q3 2022

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Operator

Greetings, and welcome to the Ashford Hospitality Trust Third Quarter 2022 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.

I would now like to turn the call over to Jordan Jennings, Director of Investor Relations. you. Thank

begin. may You

Jordan Jennings

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

a Chief conference On the call President basis Chris yesterday Deric notice will listen-only as be and and the call Head Chief Officer; of Executive Management. of Executive The press well Internet President Financial results the Rob Eubanks, Nixon, were Officer; in Hays, afternoon today on release. and this Vice of accessibility over Asset as distributed a

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

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

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

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

to over call the sir. go turn ahead, Hays. Rob now will Please I

Rob Hays

portfolio. will provide comments, third Good operational update call. results, my review our will Chris welcome on an Deric morning, to our and introductory After financial our and quarter

highlight for to of and main accomplishments themes like I'd the call. some our recent our

XXXX ongoing First, continued RevPAR we strength through saw improvement versus fourth the the third and expect quarter in quarter.

RevPAR excited versus Additionally, the September's XXXX in first that recovery. positive we're we've was performance thus had month far the

Second, cash believe our which to asset quarter be per at to we $XXX diluted approximately trading million net the working approximately with per We discount and net our strong. ended our working of net are position of equates share. closing price yesterday's both to share share. continue we $X.XX, liquidity per capital, and a meaningful $XX stock value capital With

offering equity now our and are of preferred we have security. effective non-traded the commenced Third,

will Importantly, subject of our to future significant advantage, asset over this we provide attractive grow time, capital, net us to values. and trading believe lodging fact given the are REITs this particularly offering is that We believe material portfolio currently access cost competitive to conditions. an their growth at capital market to accretively a attractive allow discounts

To with non-traded the raise. extent, capital we successful our preferred are

believe but the Our raised year, of preference for fundraising of currently fourth to that we future be little XXXX. We accelerate back use get anticipate very may as the quarter that of capital be this half growth. into in would to capital this

had best month to quarter performing I'm this we've versus of third that the best pleased third during in RevPAR Let result The clearly RevPAR quarter was versus along XXXX note with hotels. decrease equates increased our XX% is operating XXXX. versus recovering last recovery the me to X% the XXXX. industry quarter all with performance year. third X.X% turn the the of approximately to now versus lodging for RevPAR a the strength. approximately hotels of for with the of month September up portfolio This

management companies US segments. leisure, Looking believe business, XXXX, our strong consisting high-quality brands to diverse group on across geographically well-positioned of assets we into and is portfolio and XXXX and capitalize seeing the ahead to demand with remainder the of we're best-in-class

affiliated really our Remington many optimize with industry operations us consistently to an We that revenues relationship believe to years. our costs sets aggressively property outperform has us also enabling manage the and manager been standpoint from apart. able for Remington

capital component our to opportunities recycling strategy continue assets. sell pursue and Additionally, we remains some important an to noncore certain of

XX-month During the $XX and of cash due cap the $XX.X future rate and a Michigan XXXX X.X% estimated Ann quarter, cap for is equating of Arbor was which X.X%. we to sold in in million in the Sheraton $X.X million an million trailing rate

we sale several We have bring identified another market asset for assets to warrant. sale that may have and conditions additional if in currently market for the market

We will sales expect down paying towards any net these go proceeds debt. from

to to have to effort get to investors Trust. what in strategy we and is a investment Ashford continue an communicate Turning Investor front opportunity attractive of Relations, our believe outreach at robust explain we

Wall industry have investor conferences We over in Street which meetings have attended numerous led year-to-date. to XXX

remainder and look and the Lodging including of of Bank's We many REITworld those Conference during to coming with conferences the in events. and Gaming have year Deutsche speaking several you more we forward up

plan Hospitality and for includes opportunities we to to grow liquidity continuing balance have This and grow to maximize the across Trust. assets, invest our looking and improving the the sheet operating portfolio. right over move optimizing of value the plan in forward We performance company, place believe time, at the Ashford

ventures success they plans our of comes property when forward. moving asset and to a part we continue to record will joint of acquisitions track and have sales be We expect it

we about a our third quarter launch front offering the in on of with And with amount We the of ended the opportunities us. are preferred cash sheet. our non-traded see balance substantial of we excited

financial the quarter to Deric to third over to I'll now turn performance. our review call like

Deric Eubanks

Rob. Thanks

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

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

third EBITDAre quarter, X.X%. of over blended loans the reflected interest of we growth a the the of which prior a of average the $X.X million $XX.X for At quarter. billion had was rate Adjusted end rate year quarter, with XX%

loans were XX% approximately fixed rate X% and floating rate. Our

We utilized is rate as a believe flows. floating of cash it debt hedge our better we operating

the on floating increases. loans our rate significant company have caps rate debt. protect to rate However, we caps floating interest of interest all those rate utilize on We currently do place in against

Taking current caps the corresponding XX% interest of is level and now LIBOR effectively into of our rate account the and is approximately XX% approximately fixed floating. effectively debt

caps expire we goes the with the as money. If LIBOR, in simultaneously X.X% in will loans fixed at which of These initial and be these interest is be the caps would currently effectively the loans majority underlying are our maturity dates debt of of several to X% would vast above structured with expire rate all our typically caps dates maturity XXXX. XXXX as have of during all

requirement to additional Most extension forward of We extension interest starting that include options loans these recently caps. these rate caps interest of purchase purchased options. the rate in have anticipation

only debt for balances with and the of loans in have two final maturities approximately no remainder of $XX million year the have We with final maturities XXXX.

company's meet the tests. will significant are of our those believe to subject with cash required we loan meet we loans And tests. extension well paydowns to balance be any to Some potential prepared

purposes. currently A for hotels currently are means non-recourse loans we unable hotel are trap cash and Our XX% corporate-related cash are to of our traps. property-level utilize that in all cash

the cash in balance coverage the had various the cash cash be million and freely reflected end As corporate. of quarter, is will traps, the approximately we third At or on debt utilize recover at able $XX.X which in yield properties our we meet that restricted these thresholds, sheet. to

of vast cash reserve ended majority lender and $XXX.X accounts. and million cash quarter restricted with We of million. the cash is cash equivalents that manager-held The comprised of $XXX.X of restricted and

quarter, the fund held one hotel available in primarily property also operating of end we third-party hotel our which is managers, $XX.X million managers. costs. by to due from the At represents had This also cash of

working We approximately net the $XXX million. also capital ended quarter with of

million working XX% share. I As out closing of it's approximate yesterday an This Rob $XX which equates discount net of that price amount share. per our net per to this to our compares working important to $X.XX, to mentioned, approximately capital point stock from is capital think, $XXX also

hotels. Our and capital of net reflects over our net above the value working value

current price believe does reflect high-quality As value that our of intrinsic we such not our stock hotel portfolio. the

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

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

third quarter million X.X average approximately weighted fully shares we with included completed common count share per In AFFO diluted exit our the calculate fee share XXXX. in the used strategic associated financing to January the on

our yesterday's is closing approximately million. Assuming market price, stock $XXX equity cap

our dividends anticipate paying not common we dividend preferred quarterly, While are time. some do currently for reinstating we a

and progress have months, our to Over we that numerous are improve position taken the made. financial we strengthen and our past liquidity, with the pleased steps we've several

solid. is balance cash Our

believe We and We our in industry. have we security well-positioned the improving the preferred the benefit is seeing offering effective. an from to maturity trends non-traded company schedule are lodging is attractive

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

Chris Nixon

Thank you, Deric.

proud are of has Comparable the quarter, third third for RevPAR our XXXX. management XX% results our drive during to done increased work relative asset portfolio quarter. the We same the team that during in the operating to time by period

XXXX, its For to have our the exceeded that the since recovered being RevPAR the XX% the comparable relative with of pandemic portfolio month XXXX. comparable first third quarter, we September

and moments would a recovery Our great on I industry. asset done a job broader spend trends seeing has highlighting management portfolio. successes our we of across are few capitalizing the the some the team of to like

segment. During the and from the to this period of quarter, third revenue group see in relative room our same to we continue XX% time recovered our XXXX, acceleration portfolio

pacing exceeded For room our the the comparison, third revenue relative for we XXXX XX%. by comparable at booked to entered group XX% the Throughout quarter definite room revenue approximately with quarter XXXX. group quarter,

during with exceeding momentum quarter volume two group quarters. Our the lead encouraging long-term shows generated group third the previous signs,

and of year September best the in August fact, were terms months lead this In generation.

XXXX of larger seeing some even districts. exceeding levels lead of volume are business in central instances We group our

within also seeing continued are portfolio. growth ADR our We

by portfolio. Our urban comparable and encouraged X% third by ADR respectively. our year of our this throughout resurgence exceeds continued remain XXXX We XX% XXXX assets the and quarter

assets identifying ADR team has challenging through to premiums and drive and alterations done asset inventory third pricing job new audits. aggressively markets our in with a quarter, physical or opportunities the urban The managers During of X% to compared inventory grew the each by room management digital great outsized property XXXX. demand in

recent the highlight handled management storms to well asset in want I addition, team In Southeast. the our how

hotels to Our commitment during accommodation a natural refuge disasters groups. locals these open to disaster and relief our keep provided to

same Florida third third the quarter, our XXXX. the hotels eight of increased our outperformed Despite by XX%, compared total assets to EBITDA quarter During hotel revenue relative to period in XX XXXX. the impact, hurricane

substantial third I'd performance records broken we also quarter. quickly number the of property a that highlight to had like during

assets of these third comparable RevPAR their broke one-third RevPAR our XX%. over exceeded previous quarter Collectively, hotels fact XXXX In by records.

in noted proactive prior hotels. renovating how calls We've expenditures. our previous Moving we capital pandemic on in to to the were

XXXX, still guest our the spending during is spend million CapEx in run Valley. the we but $XXX rate was will years as historical Marriott and in at million approximately We deploying to $XX quarter space be room strategically million For Lake Inn capital well CapEx. as and completed the Residence currently renovation CapEx approximately Silicon XXXX. public third our Salt renovations than at $XXX Inn higher Residence Newark previous Fairfax anticipate two for recently below expenditures well City Merrifield, Courtyard Fremont,

We Regency Coral at meeting Hyatt are the also renovating the currently space Gables.

currently spend million million. we As XXXX, $XXX and expecting ahead to are between look total CapEx $XXX we

and the on like recovery Q&A, I about industry are to as the how to a encouraged portfolio would moving Before of whole. our reiterate we

already this their performance. year shown quarter our hotels with outpacing improvement, Each many of XXXX has

the quarter hotel During XXXX of a XX% year, their of hotels exceeded comparable this EBITDA. first our

EBITDA. XX% And were our the quarter, hotels our have second XXXX third their of now of hotels hotel exceeding hotel their EBITDA. the exceeded quarter, During for XXXX XX% comparable

this a also improvement industry data, including an number which throughput signs are of quarter has broader year. recovery, There TSA shown the of every

the portfolio's portfolio we the continued industry believe recovery. travel and on that to momentum, is trajectory our industry's positioned capitalize well With

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

Operator

Thank you.

question. Please Oppenheimer. session. question-and-answer first from Our We questions with now a your [Operator of come line Tyler Batory be the proceed conducting with will Instructions]

Tyler Batory

Good questions. Thanks for morning. taking my

inflation now? labor seeing besides are potentially you you areas on Are First versus And Where costs? me, other and cost are higher any from margin now pressure What one does right of pre-COVID? out, margin hiring FTEs labor? costs. labor the situation on calling worth like on for that any look

Chris Nixon

is, that. this take I'll Chris. Yes,

wages So, are continue great challenge. we We're increase. definitely been labor I seeing It's seeing question. still mean, pressures. a to

up are over wages think XXXX. since XX%, I

down. showing In Those trends does are quits are terms of days signs to hire, that being We're able recent The seeing quit, challenge. remain and of within encouragement. it quick staff being employees the are XX some a hired. of that

the to more utilized away to contract needs, the we've we where, needed have in labor gotten than turn point but based demand where had labor we past. haven't on We heavily have

of seeing low productivity though of across a the things so, we forward efficiencies And through COVID. lot is the found one we're actually we we're that by that, double-digit portfolio. encouraged our improvements in And pulled

other XX% as are costs. of are over pressures, We're utility Some increase. the a up. costs supplies factoring Inflationary also costs that margins, issues of you are that cost the XXXX. mentioned seeing seeing POR basis, we're into up about broad the And on utility

are And into playing the of those some margin. issues so major

I encouraged mean QX. are the is by one thing we

significantly Our of over EBITDA improved margin quarter third XXXX.

expect to of efficiencies. lot continued And And move forward through improvement. we the forward margin we as so we recovery, see again, those pulled a

count and the Right to staffing third through quarter pre-COVID portfolio. levels. of of levels, You pre-COVID between asked FTE XX% we're kind across XX% now, the about

Tyler Batory

you trap. of with on hotels was quarter-over-quarter. cash Great. And in then in fundamentals. question to improvements It the percentage follow-up flat seem traps The that. Thank a for line Okay. up doesn't the really cash

So traps calculated? the cash help those year? are of in could that really percentage what your the of of, by end us be expectation for hotels a you about can think still traps how cash is function just And

Deric Eubanks

that. Yes, take this Deric. is I'll

XX-month loan XX-month And depends looking the they're a loan a a you trailing each NOI the percent that basis the backwards over So and underlying tests are as and debt loan. take existing yield it assets on by performance mostly the varies of of on balance. in basis trailing

right. You're

happen out anticipate to but tests, that that probably come year, will prior of will So this extension significant very few came come a do their the a at traps will We XXXX. hotels of few quarter. anticipate out more amount which out the not in end

the extension tests. any any trap thing to in available that's that's cash is The good is paydown sitting there potential fund for those needed

so. that those a that's we be next of or continue to the positive. anticipate hotels So over traps But majority the will months vast in XX

Rob Hays

the quarter Omicron with I obviously, soft Yes, this variant. mean, first Tyler, reality I think year the that is was, of the

is a bit get tests those TTM on comparison. And little on of -- there's so as we've until seen kind headwinds most past of are basis, that those of year-over-year we since test a that

Tyler Batory

you. makes all for sense. That's It me. Okay, great. Thank

Operator

you. Thank

Bank. your question Deutsche from Chris the line next of Our coming with is with Woronka Please question. proceed

Chris Woronka

there's margins I morning. kind on guys, as the to wanted more a the it full select just seeing serve difficult of is be flexible any given given little I you're difference Hey, also bit whether optimize to on that ways -- good select full find meaningful ask you're serve? tilting of to in to to more know with? serve. But push ability kind to serve less towards some versus of

Chris Nixon

with. is to There less flexible be

wearing our select great at think multiple are I hats employees at hotels they're service and cross trained. our

through. we're are that pull And able so some to there efficiencies

standpoint hotels to wages our wage bit little question, than higher select-serve grew a hotels. QX at from that your in I our a think full-service we're seeing

We saw service X% across full and of was X% X% select increase across service. or an that about

challenges speaks in. hotels And depending of hourly of some so they might I they're in it that that select we're experiencing and market in service think point to kind have hiring the on a starting lower the

off. level that The to is starting are we positive wages we're thing though believe seeing

what what line in about a they're so kind basis. portfolio were we our prior broadly those X% across QX you partners And at in I talking two we saw for expecting to with on brand around year of with X%. when And go-forward growth management and our companies our somewhere that's the mean average is

Chris Woronka

are run they a maybe they rate? a on I purely have economic valuation helpful. follow-up. then XXXX are you the road. -- and number rate, metrics And the know much one year? XXXX how underwriting Very they hotel. underwriting? next the the or the trailing Are Ann that's kind of Okay. the saying cap of mentioned you sale you rate cap at Rob buyers than and the lower looking I Thanks, the down for kind another guess Arbor softness is Chris. and mentioned more Are sale of just

Rob Hays

can market so in varies we and why by other mean, market that you than did, I that had property The bullish previous and someone and for transaction a very sense. Yes. that imagine, market this buyer of assets made as which has the market more is one it is that really probably owns we story. to that know Chris, well that view

you're looking southern So are mean markets. I that think leisure-heavy varies. people it I at think I warmer really seeing

either of a recoveries some are growing more I are people bit pulling markets in little not as I parts are as other think little them least and aggressively. back starting think underwrite urban country. it or at that aggressively more markets bit of a more at do potentially as you're those assets rate or do I looking to RevPAR the northern, think

by So I varies really story. it think

somewhat where I But are and different smaller they in slowing are you asset can in are do the movement We bring bringing It's going But think in think the -- operation as they the something overall, sideways. even smaller debt have ones things markets things has market. owner by a you down. assets operators some and asset. impacted the in can that been you strategies. maybe imagine an

too trajectory quite it's the the of until So, see transaction markets some to which least recovery, yet. aggressive debt they hard at to aren't market just it's getting show hard

Chris Woronka

for one Fair Thanks, Rob. guess And final Okay. enough. one I Deric.

how mean curve with much down or XX% the being you or fixed that forward? much move more through guess -- to the swaps? that can effectively I debt mentioned, can that you want should of swaps. I do -- fixed think Is going I change you

Deric Eubanks

Yes.

And if We're prepared that sure, is not where LIBOR kick-in we heard they're be above -- LIBOR on effectively goes. goes swaps, not once LIBOR you X.X%. currently then caps at fixed. depending would I'm But remarks. they're So, currently XXX% the X%,

So headed we're we're there. almost there and like probably it looks

So, I here would that basically anticipate we'd pretty soon. XXX% fixed be

at have will loans to off their that and or as least trail maturity start -- those Now mature initial date.

those is them spreads are have anticipation we obviously compared attractive Our where extend to have that on loans The today. loans. spreads we would very that

why that. and replace about be which X%, caps think I the with so, rate we way mean interest need prepared we But, is several extension is forward-starting gone interest an rate I easy we've that if of above ahead to is, be And the fixed new caps for pretty less we'd interest period more those is to rate pre-purchased would floating. to caps think when than thinking exercise for those then kind that extended of LIBOR it if effectively it's And time. we're options,

Chris Woronka

Okay. Great. Thanks helpful. Very guys.

Operator

you. Thank

come of Michael next line Baird. Please your with from with questions. Our questions Bellisario the proceed

Michael Bellisario

Thanks. Good morning, everyone.

Rob Hays

Michael. morning, Good

Michael Bellisario

cost the Deric, caps interest cap one I nine that what just expensive than What's be X%, to in or same the might might costs either rate on higher with buying more presumably where associated think months? right? follow-up be be rate topic. or your today would six

Deric Eubanks

Yes.

on depends long for strike expectation the future goes is totally rate market's what it So out the the and term how it rates.

the just just and rate rate debt I'll cost on those $XX pretty you million. tell it of we our floating recently which bought $X.X depends. that notional a is significant billion, caps forward a amount So, bought, amount of we starting that

Michael Bellisario

the mortgage seeing helpful. update lines, price And along That's maybe same debt you're you us today? it. where can Got then just

Deric Eubanks

Yeah. not hotel the great loan. to at a a get market not moment. in we're any time for It's Thankfully refinancings

we've are seen better. Hotels because rates it's when is doing profitable seeing typically before, And better. they're always credit said and I've more compress. ironic short-term spreads the As up go you're getting

is So still a dislocated the the a from better call the little moment are typical getting loan. spreads LTV market and but just for relatively wide XX% credit a at credit perspective, is it

in the XXX basis probably to XXX spread You're point range.

we'll only maturities extension looking said, days. we the on $XX that ton have loans we have We've of near-term any that in problem It's of million really believe don't a maturities like two except all that thankfully XXXX I options see got refinancing. And final don't maturity have at. that with for you we're

in some a once be that short-term But a have I to is a of rates going the do terms little markets time may we're financing spot debt a until in will hotel difficult that fortunate thankfully that little suspect soften the attractive. So with we bit and there. clarity, there's on clarity be front. I more the it what think Fed

Michael Bellisario

on be the Got it. hotels? you. cost managed difference may back expenses. pressures to and in you Are between any you your brand managed same Chris And just topic on Remington slightly Thank follow-up then differently. asked one They seeing more

Chris Nixon

wouldn't that I any say we're differences. seeing

adjust if rollout and think nimble very they're able I anything, test They're typically quicker to quickly. to solutions very things. is and Remington creative

can broad terms That's we're or not it's meaningful driven they it's I initiatives and we're our managed benefit seeing or say between and hotels third-party quickly will out by so in wage And pivots. where But there's in a seeing of any increases, to really markets. differences how more nimbleness new brand productivity variances. Remington broad is roll just big the

Michael Bellisario

Okay. for front, capital me the the of your really preferred? start just the last does then on Maybe balance Thanks. of just one is depend make non-traded sense solely when or allocation. on cash some to Rob that acquisition putting pace work it for to And

Rob Hays

we with I of throughout we're – And that have the happened our as in obviously we aspect bit next those on some what's of order the extension need lenders sense year. make paydowns extensions, in a do given I'd understand that, loans some all – could that. to we that, begun of of to Well, being are receive and conversations part that tests, anticipate sure, the some year think we've debt of that kind now, of financing want little say on markets, as and cautious we with right some going

that's we the until, operations why to we are of is on zero what's from that see that, knowing that the or now we as holding it can standpoint. the loans. We if something? path – and be And don't forward exactly in And we're are we not know, we that an some agreements so those risk confident amount year feel going to what is said next kind have like the looks cash obviously of hand so happen

yes, that, of combination preferred And get. of the we non-traded pacing so the also how and can dictate the aggressive

that, see think ventures the bit us the more some until I acquisition you or it probably be smallish potentially, a that on do extent get something the partners side, with debt either piece will little some markets. where smaller of we joint to So acquisitions we're clarity on the

Michael Bellisario

Thank all for That's me. you.

Rob Hays

Thanks, Michael.

Operator

Thank you. [Operator line Riley. come is your Bryan Maher proceed Instructions] from questions. the question with with B. Please Our next of

Bryan Maher

how Good morning. that notional you $X.X Staying putting expensed the the with the value of for million of on through P&L? the that being line discussed $XX caps, billion is

Deric Eubanks

That's capitalized.

not that It It's we it's capitalized. asset expensed an through gets So the purchased. P&L.

Rob Hays

what And you... have probably mark-to-market as sort or of

Deric Eubanks

it some value in The through out of or would gains just that the our unrealized up it would that fall on income, Yes. at ultimately would other burn through loss point if a pays derivatives. off show through And realized ultimately P&L.

Bryan Maher

And was value on that a et X%, did also X% that the with or you buy at cap cetera? the X%, was assuming higher that rate sticking notional

Deric Eubanks

Yeah.

So it's between X.X%. and blend X% a

shows, X.XX%. curve The short-term a of rates sort come strike average if year. rate weighted forward starting down a It's going now right basically keep protect to to up. April, way in May of of kind of us, So, next LIBOR just

have who strike. to protect not replace that, And going because to the we or are happens cap cases around ourselves most just we're knows. to a in that X% wanted Whether really

Bryan Maher

those And at a you the on those assets Okay. kind topic, when associated caps. see pieces with certain XXXX out extending you think lastly hotel of cost and to that maturing, rate new these buying you then, and refinancing look about that debt of or or are

on mean, influencing bit it consideration? found so, or but approaching you're that broadly taking some that that XXXX decision into certain those we there. hotels? success how of your are a Is potentially hotel having some not transacting, assets little selling still that here Is REITs definitely interesting I

Rob Hays

seven is we're got think, are I of mean, contemplated. we've them -- some looking we that assets call pools that I let's handful of crossed mean, to assets and have that other Yeah. at are contemplating. a issue are XX it it's, loans. The I we in other just

because are of the them. so some to way one the of crossed ability sell of that either our assets to loans these would And require extract

the that -- current extract kind and of it's more times. a given the debt difficult still recovery But in yield to assets little amidst bit other you're than typical

And so as we we sell to don't have of quite we flexibility some as off much assets. had, these wish

little as think those assets. So easier something improve a make debt be gets I those markets as extract And potentially and continue have operations well. the it to answer is, to it the hopefully, at it's I And think, aggressively. if easier transactions we'll bit improved looking as can more

So it's definitely on the table.

Bryan Maher

first would your on balance? capital working the some last loan sizable Okay. net And retire that thus impact outstanding degree plan for the the and me, Oaktree is quarter the to in it still balance to

Rob Hays

say ability it just gives do as the markets comfort re-financings moved several asset less I'd to, way months. little the have next given I like us hope. we happens Again, it's can think in to sales the imagine Bryan, the a like over debt dependent but would upon I and I what mean, some you

bit a markets. it waiting markets game get now be debt may here as recovery think little it's some more next to few If more, change weeks So happens. more until of going -- the think a little sit I the just the we be then happens But perhaps. extremely what go again have how likely and next things few there's and I debt trajectory just well we months to the in in we'll see on clarity on or

Bryan Maher

you. Okay. Thank

Rob Hays

bet. You

Operator

no comments. are I There back you. the Thank to time. turn would closing call over at to any for now management, further questions this like

Chris Nixon

next call. you Thank today's look attending quarter. everybody we with to you speaking for And forward

Operator

participation. does We This conclude you. appreciate Thank today's your teleconference.

disconnect your lines your time. rest day. of at You Enjoy the may this

Ashford Hospitality Trust (AHT) 2 Nov 222022 Q3 Earnings call transcript