Earnings call transcript Q4 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings and welcome to the Ashford Hospitality Trust Fourth Quarter 2022 Results Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host Jordan Jennings, Investor Relations. Jordan. you, Thank

begin. You may

Jordan Jennings

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

be call and and Officer; Chief Hays, the Management. Executive Nixon, Vice Deric On Head Rob Chief of Officer; Asset Eubanks, President will today Financial Chris Executive President and

statements assumptions Safe are the Internet are certain listen-only were that you contain time, accessibility information The made call being yesterday of this Harbor of or provisions remind this basis upon and forward-looking well over and on call regulations. in of to let conference as the a pursuant the based securities results in the federal a distributed this afternoon press as conference At notice release. me

Such subject forward-looking Exchange company's to These or in fully uncertainties, unknown actual and Commission. materially discussed which assumptions, factors from known numerous results Securities could and those with anticipated. the cause more differ statements risks, to are filings are the

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

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

release. XXXX in year quarter compare otherwise all fourth full listener XXst, year fourth ended the in all ended provided and full information earnings the unless in encouraged December and December XXXX. release stated, those the with review discussed other the this quarter XXst, reconciliations results Each together with provided reported call is to Also,

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

Rob Hays

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

RevPAR improvement and strength today The for XXXX. call themes XXXX fourth main through the our quarter continued in we ongoing the of first quarter saw versus are; first, expect

cash which net position approximately ended approximately to We strong. diluted $XX with capital, of working $XXX per and continue to liquidity equates million the our Second, be quarter share.

closing and With both are at our share. we yesterday's believe per of to value price a share capital trading working stock net $X.XX, we net discount asset our meaningful per

have needed Additionally, capital extent strategic we is the a undrawn the the to to via hiccup if there access in economy, our flexibility financing.

offering is last our that The non-traded of call the preferred commenced we equity theme for main have our security.

will time, us offering this to cost of believe our we Importantly, capital provide subject portfolio grow accretively over conditions. allow market an future attractive to and

significant values. We trading asset discounts are to a material believe advantage, lodging particularly this is at access competitive that currently fact REITs growth the net their to given capital

To down needed. preference be with the use preferred to capital future we use pay to the are may extent our some would that successful non-traded capital growth, of also debt raise, for we though as our capital

agreements representing build product representatives this to have X,XXX this continue syndicate signed dealer We currently the selling and for product. XX

process the are very gross of and capital in early million have proceeds. raising We $X approximately we still issued to-date,

get momentum fund-raising XXXX. we this expect as further into accelerate We to

increased performing the for RevPAR quarter in hotels. turn the The continues signs all decrease operating equates X% the quarter. approximately Let result RevPAR me at for performance to now show in fourth XXXX, which several to years. fourth of XX% hotels quarter our of the prior strength. is to to lodging portfolio This best industry the to quarter XXXX our versus year of approximately compared compared a

operating XXXX paydowns with any property for extension is for level performance main debt. our of tests our to associated potential One maximizing priorities our minimize

the these loan secured about in the and will by Atlanta, of on progress the more of great extension Le modification made the hotel, modification the Pavillon already Indigo We've secured JPMorgan front Deric and Hotel and detail. the loan talk loan. recent by refinancing the eight-hotel this extension our of with Chase

for be loan situations capital a lenders may the value assets remaining those for allocate While underlying maximize well-prepared we to upcoming to may exceed we shareholders. extensions of we that with current tests, the our balances hotels. value arise, focus feel situations there have back market or If the where additional give

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

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

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

several We identified conditions have bring market assets for may market that warrant. to sale if we

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

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

Street have year. have over the led Wall over industry investor XXX numerous Conferences attended last to which meetings We and

to events. with during We you conferences up have and those coming forward many we this year several speaking look of

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

joint sales. ventures, have track when of it We a asset property success record to comes and acquisitions,

to We plans expect part be moving forward. will of our continue they

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

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

Deric Eubanks

Rob. Thanks

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

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

per for we $X.XX year, a we compared in to the reported share year $X.XX in diluted compared share AFFO $X.XX, to of per AFFO of full For share the reported loss share a per year. prior the of diluted $X.XX loss diluted quarter, of per diluted the prior quarter, and

Adjusted growth over year reflected million, $XXX.X million, over prior rate rate of EBITDAre the quarter. which $XX.X was full year. for prior reflected a growth EBITDAre a XX% the the quarter year the of XXX% was Adjusted for which

interest loans of At effectively of current debt account with of as LIBOR our $X.X we are caps, of XXX% the in-the-money levels billion rate blended interest fixed Considering the corresponding interest end is SOFR rate caps and X.X%, a taking the in-the-money. of of quarter, and interest average now rate caps. fourth had all into rate the now our

with with dates dates of These XXXX. of of extension. the caps the caps initial purchase several have these the and include the will interest of in during expire have to many at to typically loans Most simultaneously additional these underlying time maturity that are we structured loans XXXX caps options requirement extension maturity expire rate loans as the

to costs the In If forward these anticipation of purchased future extensions, caps as need should defray caps the of hedge remain these help rates caps pre-purchased last year, purchases. a of purchase. new any these we value elevated, rate starting interest we against interest

an only with amount provides loan certain of Pavillon during of loan X.XX%. January for new, refinanced XXX-room Louisiana, The previous totals quarter, same and markets options, term Hotel which conditions. loan New has The had plus test the we $XX.X the and two-year capital a non-recourse as XXXX. Orleans, extension by to interest the is the front, extension in mortgage million, successfully a loan, subject initial On in floating one-year Le three rate loan a interest secured the satisfaction SOFR the

Hotel by Atlanta had loan in December Additionally, an Atlanta, the Georgia test during XXXX. XXX-room the modified extended Indigo the quarter, we extension and in mortgage secured which

interest of As part we SOFR plus the rate to extension, of loan paydown a was X.XX%. from X.XX% small plus made LIBOR the changed this and

Additionally, subsequent of $XXX JPMorgan eight-hotel to loan. successfully and the the our Chase quarter, million extended modified we end

the giving a more X.XX% the us and million debt of yield extension. for As significantly principal we extension flexibility $XX extension, this made from paydown X.XX%, part to test reduced next XXXX

have maturities with a only We million approximately final $XX XXXX. of loans with combined two balance in

working these with are lenders on We refinancings. currently

are we required to paydowns this our improvement and And loans continued hotel tests. year. significant balance potential with We those believe have tests we operations, are that loan to any extension additional meet well-prepared in cash subject meet to

trap Our corporate-related purposes. non-recourse down means hotels currently property-level which cash all our we that to last cash utilize XX% hotel loans are the and property-level of are traps, to company for unable are A from quarter. XX% cash currently is in

after corporate of been end. cash approximately the during KEYS Importantly, loans $X trapped respective D came Pool and of their Gateway out Portfolio had the that released cash traps was to and quarter, million Marriott quarter

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

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

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

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

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

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

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

Rob offering for non-traded have the commenced we preferred stock. our mentioned that

offering made building progress Ashford selling the have with of this that's broker-dealers. the platform product We syndicate been been are the Securities' and pleased through in

agreements product XX are have reps that dealer We this to representing selling X,XXX clients. currently their currently signed

through capital forward We is for corporate us to purposes, that paydowns, capital other expect we progress. acquisitions, reporting our XXXX. back on this be to attractive the as raise we up This progress debt or for ramp used look and can of momentum

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

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

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

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

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

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

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

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

Chris Nixon

you, year out a am team management quarter Thank of Deric. work and to I results drive close our performance the that during operating hotels. fourth the our proud asset accomplished remarkable at for

by Comparable prior our portfolio RevPAR in the increased year XX% to quarter for quarter. fourth compared the

For the quarter, the of to XXXX. relative portfolio our fourth RevPAR recovered its XX% quarter of

Our team the positioned and to on our has effectively recovery. assets market's strategically capitalize enhanced

to assets. in encouraged are urban we be We by acceleration our continue the seeing

fourth XXXX quarter, exceeded their urban assets the of During our XX% RevPAR.

of comparison, of assets urban during XX% quarter exceeded the XXXX XXXX. first For RevPAR levels only our

our with quarter The urban the above improvement hotels in urban December of hotels seeing achieve through a our RevPAR XX% XXXX. continued

opportunities Our maximize laser been team value. additional on to identifying focused has

departmental department XXXX. Our occupied a pantries, corner room relative per basis services, and increased XXXX. in revenues Within fourth our on increasedXX% room which to spa revenue, quarter urban includes per occupied other hotels, valet, XX% to other the more,

propel this success in-room was such we comparable and XXXX example XX% levels. quarter as services The above at Atlanta, to other parking, W revenues fourth An of utilized spa, where demonstrated entertainment

exceeded from continue During the acceleration this XXXX we the fourth same to our X%, revenue to segment. quarter, room time group by and portfolio see in relative period

revenue exceeded in booked XX%. the XXXX quarter fourth the comparable quarter for Group by

group with fourth signs, the quarters. encouraging bookings quarter during shows the previous three momentum forward group long-term Our exceeding

best was terms in fact, of the month group. December forward In of bookings XXXX for

Our volume also every quarter has improved this relative lead year to XXXX.

heading into the momentum excited volume group are mean this about for our what favorable will and portfolio. XXXX We

quarter high record The set all-time our in RevPAR comment Lastly, comparable had like fourth hotel hotels and records on portfolio to within records XX set the performances would XX portfolio. fourth in quarter hotels all-time I EBITDA.

hotels XX hotel by exceeded previous comparable their Collectively, these EBITDA XX%. record-breaking records

this We leisure-dominated are beyond markets starting urban to see into expand the large areas.

exceed historical Vegas, Las we Denver, the New and Baltimore, Philadelphia, addition in markets. had in various highs During Atlanta, fourth leisure Washington quarter, assets York D.C., to

have renovating expenditures, capital to has a on XXXX. and accelerate. advantage calls XXXX in We continues repositioning capital commitment million currently Moving as previous to and resulted approach competitive now in hotels. strategic anticipate we expenditures a proactive $XXX That million in $XXX and $XXX approximately in our we've demand spending to taken how and in noted between million spent

We recently Newark Hyatt Lake Inn guestroom space Fairfax completed Inn well as as City, at Marriott and Valley Silicon the the public the Residence renovations Residence at as the and at Salt a renovation space Gables. Fremont, Courtyard Merrifield, the well the meeting Regency Coral as

outpacing XXXX on like has portfolio reiterate our industry this their improvement, and the many recovery of to already we whole. how year shown moving Q&A, our are would to about quarter I performance. Before with Each hotels as of encouraged the

exceeded which achieved the EBITDA our an first hotel over increase their the hotels comparable is the quarter, During XX% XX% XXXX, quarter. fourth for of during

our our industry various the process, budgeting about capitalize to portfolio's partners optimistic with we meeting revitalization. on position throughout are After the

our remarks. concludes This prepared

now the up will We call open Q&A. for

Operator

you. Thank

We a will now be session. question-and-answer Instructions] [Operator conducting

Our Tyler with Oppenheimer. from with your first question. is Please Batory proceed question

Tyler Batory

about a There's earnings been of so this cost season structure. morning. discussion margins, lot your Thank Good you. far

compared kind in is we think as and pretty sustainable So, do What mean but costs, question of know XXXX XXXX topic. certainly a of you up calm on year? year, QX, you versus that's incremental put next seeing general wages, you I performance on margin XXXX, of that earlier just kind are favorable the the in I look with QX terms

Deric Eubanks

Yes, thanks question. the for

So, to increases inflationary Hourly pressures market similar it to cost seeing challenges The feeling. are are utilities. are the still others increases. we're be. in wages is that labor what increase. not quite experiencing improving to We're we continuing driving while There's need where

we recovery. portfolio And a encouraged when runway the quite we're look it about still seeing of bit sequential strong its ADR terms this is think gains each we're of and it in gains. gains thing ahead that, quarter revenue and I at improvement has most of and occupancy

look I continue we along to to growth of XXXX. expect higher as our real growth for when RevPAR at over had XXXX. performance margin and so, real than think EBITDA bps further realize we the was in And we some relative QX margin QX, margin that XXX recovery we and And ADR get

with control can great zero a The And and our kind our biggest models. thing our of is done to hotels staffing we staffing base revamp models. that really we've job partnering

we're at From throughout back standpoint, year. include that labor a labor does XX% right now, labor And to that we're about of we'll transition pre-COVID staffing contract in-house levels. optimistic some this

through is And standpoint, seeing get savings from to associated is single-digit as that. we still. saw We're with a signs expect the high kind QX. increases We mid in But there be cool we're of should some to seeing and increase wage that cooling so continue to we year. that

Chris Nixon

flows asset target that kind talked our and and XX% across flows historically EBITDA about our EBITDA And other management say, try managers point property team typically with. of always Tyler, one we we work is data I'd speaking, to

quarter, fourth I given I over flows were around that the they're which thought, the XX% XX%, is just EBITDA -- facing. pretty For result our strong XX%, -- a think headwinds

we'll so, I probably consistent that XX% And higher see. now. keep achieve we right we're is tough range, is it but there that's definitely continue what to or think try out to going can going in to with more It

Tyler Batory

conversations environment you high-level terms your I'm kind Okay, broadly, -- on the you're test great. of too? about perhaps year, extension interested And of say how any about then thoughts refinancing you anything can having? in this the feeling those are early

Chris Nixon

ones absolutely. significant We've really got left this Yes, year. two

and in which is Pools, June. in April that KEYS our portfolio Highland our are have We

both been so, discussions groups. having And we've with those

we're good like KEYS on feel shape have we particularly still work And that in Pools. we some the do, to

it's it's different because more Just players people, each tranches. complicated, bigger, it's tranche. in There's different little got most

progress. a it's But situation. So, we of more about little making good feel a do complicated

they the will loans, both quarter. on side of back for the Fortunately, those first be of

first of these TTM obviously as lap XXXX weak of tests the we'll quarter are most So, extension tests.

helpful up first of potential those is sizing So, tests. year rid paydowns very any getting last very, in quarter the on

And fairly paydowns I that as are we see our saw the we're a I think of it's improve, than beginning -- the likely on small, what kind now just one. Pool probably numbers to Highland bit we discussions gets hopefully X-Pool. JPMorgan the less little with think -- The servicers continue substantial the more and complicated KEYS still with substantive

Deric Eubanks

is And Deric. Tyler, this

to the to need debt this maturities we it be don't time refinancing lot in the to be market, of final so of get much difficult terms market have don't continues year, hotel a Thankfully, financing. financing. a In seeking we

financing place spread pretty is attractive in that have from the we perspective. And a

we'd long these to in have we keep as extension as we like So, the place exercising that by options. can debt

the progress attractive through with year some down start interest debt and be visibility we where to see what a get is gets on as the it come little going Hopefully, market do to Fed can financing. the more to spreads bit rates, we'll to

we've And and will the have because outer to we want lot to that maturities in a of address those. got we get years in obviously, of front

And that. we access as to can be debt push we out attractive maturities, as so doing will capital soon

Tyler Batory

Okay, you. That’s all from great. Thank me.

Operator

Thank you.

Woronka proceed next Please with question. with Deutsche question from is your Our Bank. Chris

Chris Woronka

guys. morning good Hey,

is current but of can of, NAV? or a more not know option. is What that, think XXXX of to Just always kind -- maturities just guess, you're Or EBITDA, assessment handing is I revisit strategic generate of you always about there KEYS I terms what value in you about. financial when your back market it hotel the talking a mentioned Rob, decision purely decision? an in

Rob Hays

are you're things you're else. there's, something maybe into the can the to I it's down I mean, trying where that financial decisions. end to quantitative something to a down pockets decision. of But at become aspect mean distill I come figure still subjective value out Well, going day, of those guess, as to trying a

through -- COVID, with our we been in the to solutions lenders, we in it's financial we've alive situations come crisis try work with and assets through stages mean to up I where of past, going. or the whether early try keep to order

those giving can't And end are and back financial you decisions. Sometimes assets. just just up come you to those agreements

sit economic I those assets of we I we and XX one we think as early today. standpoint gave we pandemic stages back any from And during don't think -- regret the of here

I get of the we'll at. see We valuation we to national some big think or market typically BOVs look the what get from where So, -- that's firms brokers is.

We any plan term kind longer the some in of this only program because and keeping have that to just doesn't maybe CapEx think an sense right, have make or do others it, some of willing look where strategic see required we numbers And upside CapEx something. coming in we is, you have right? effective through terms a up what's Because you're you after the you assets big the that asset keep asset. of they're CapEx it

all kind of through that. of wade you So,

to do and is analysis, I what we we what asset just were see we would going that pretend down to where think underwrite do that putting try it today And cost we it. we given would rebuy we're is we like how a take and what this do to the -- in capital

the with the with So, we out and you all keep here think and are. fairly going it is. where then situation we is good know straightforward do lenders value we can faith And is to where lay

working that the to because and they it is back. have you sometimes good in the is ideas makes hope you and for some give have that is, math it is, And everybody. what and to situation on ideas what do we but sense you're do ways work those faith, And it have

it's hopeful But to -- that we're possible. So, have doesn't we happen. that, definitely

try just can make we shareholders. best to we for decisions So, our the

Chris Woronka

possibility the the of are is Okay, on same, those thought on that's composition essentially pools, the at helpful. all? pools Thanks Rob. KEYS or different the that to And restructuring the there dates then any portfolio any given all

Rob Hays

is. always mean, guess the I with I with loan. there mean and be we'll that servicers I talking

together effectively the one so it older way is is of the of holder are securitized, each. the senior was kind the controlling that pieces all Given of securitized controlling

still So, bit it's structure, a a own even separate each treated little is pool. complicated in as its of a more right though pool

change is there's breaking So, where possible is dates technically in probably an guess, around just date I that I likely outcome. maturity find but like that, think, something less up some, would I as complexity maturity and

look next look I the more is where we'll think pools, years. where CapEx to it's value, each at -- of what of six see those we few the see over

We these the order the ability pay the in in extension to tests. loans obviously documents have hit down to

we everybody. we'll we've talk think we'll views we that -- about see what to to and So, a lenders are of situation those different and if those got variations works around given the come forecasts for can't

Chris Woronka

Rob. Thanks Okay.

looks Deric, quick income for Is that Deric. net EBITDA the determining highest, mentioned EBITDA? trap was over yield that probably a Pool on And on income is e-pools. Just follow-up the the the the is net the released D. yield the think cash like I the but actually factor I you higher in it -- yield

Deric Eubanks

Correct.

trap, the we EBITDA an NOI, an earnings which that in the cash it's is before our show reserve. -- FF&E release For deducting typically

NOI determinative the debt an traps. yield and the reserve, that's so, what's cash when calculated after FF&E calculating is deducting And

Chris Woronka

Thanks great. guys. Okay,

Operator

[Operator Instructions]

with B. with question. Maher your Bryan proceed from is question Riley Please Securities. next Our

Bryan Maher

morning. A Good couple of questions.

could give you only thoughts respect repay Deric, -- currently recap repaying were to Financing? you available maybe, what's that? the update you you the or to recap an us First, Oaktree that if The on now? or there, cap with And can could that's outstanding

Deric Eubanks

Yes.

January this currently got to proceeds now prior a of penalty prepayment on for There paid so that, it asset an been was from pre-payable -- sale. it down year. prepayment. became it's really of It from asset freely that we've So, an outstanding portion some million -- in about open that's $XXX

draw have it's do we that down, obviously to were it, ultimately we that's it's the available, need that rather pay not $XXX to additional million don't we need If there if access but still would it. expensive capital, if we we'd and

progresses. in think sitting that plans the terms wanting capital we'll in how paying We're lot this debt. XXXX of anticipation of look, of cash. we And for reasons why in to have I a just the one pay year to off It's on down, see raised of

But of there would the will then that be some tests extension be and meet and facing uncertainty we there is terms to needed those cash was tests. still knew also, these some we in extension uncertainty

So, once get have past I extension we'll think tests, probably more some we of round clarity. this

this We also our on. see days ramps how would very non-traded we're like raise from which still to preferred, capital early up

And so, I don't know if Rob wants to add anything to that.

Rob Hays

I dependent would have recession mind, that's really happens just always just And different of my debt of the of the we're now, bit of risk. trajectory things. Do a say, then in trajectory recovery? it's the markets. a a way? recovery just on that in seeing What upon not the a that, us three but little this significant we Right hits

out To then refinance another the maybe markets we've or to spread had them materially also potentially up lower heal around can structure the extent a some that have debt ability the it's that's a at either little alternatives bit, -- cheaper.

And three, to give us of able the to deploy as some hopeful it to to, be continues of If some pacing preferred. be could be non-traded capital to also accelerate proceeds we're this cushion off. then just able as mentioned it there Deric might this pay that cash kind

lot paid but more that We'd off. pieces a next moving to. think that that got kind few have like a how just pull cash cash of just to these quickly items. of of these it months come will see right over we to the it's I determine there's we'll think, prudent to we've the some And until on do clarity now, we So,

Bryan Maher

might assets wouldn't you back a that curious regard? in up sale back why with that Why the you in now achieve kind your can market you for think the and in to assets handing be wouldn't right be fence, just marketplace And assets as above with value? I'm Okay. the you see about we more price then lenders. now hand of and you assets positioning that assets might potentially and with loan to if end just as the on you're

Deric Eubanks

Bryan. are, We

of internally got got there's assets the a potential identified assets sale and as handful significant for variety working the for what's that a You're a out or core exactly are figure long-term the we've maybe right. We've word. I of we've strong are -- too timing. mean -- brokers that maybe significant sale best with not a to assets --

are those now. of right market in the Some

And it's to achieve size scale where at and maybe some an maybe sales some we were think effective hard price.

on some it's whether we or value think yes, But right market of then these where not, now. out the it's in they're questionable

a So, the irons with got fire in that. lot of we've different

our is think aligned I you. thinking So, with

Bryan Maher

just you quantify me did then thinking we it Is to it $XXX last cost there And year. quantify Can $XX hedges what over year or know that million? Is what you should be kind for Okay. of spills that this for I might guys benefit last maybe you million? about and this Deric. But Is is some any there? $XX it stuff for million? caps way as year?

Deric Eubanks

the A, and Yes, price cap to it's factors go the of in then expectation it's there's or needs that of for that forward it's of pricing. market's a cap going the lot whatever the are place because rates really be, difficult to quantify cap what's into it's to needs strike a that the -- for. be duration strike how where long

I we a those of get year. it So, you. very said, last And pre-purchasing chunk of ahead is for difficult try to good ballpark it like by of to

new would real so then hope would pre-purchased expire any is and divide. my cap we didn't hope those down, caps worthless, those them have the -- help that of is that that offset rates guess the stay we I value need look, but well, high, come the that And we if rates

really much. So, be to having of come from wouldn't out our perspective, we pocket

in costs that's of those any really all terms sort guidance will I what can in So, be terms giving forward. of going say of

Bryan Maher

you. Yes, thank

Operator

are further no There like I'd time. comments. any to for questions you. back turn at floor Thank this the to closing management over

Rob Hays

us to our look we you you to for on call speaking and for the next fourth Thank forward quarter joining call.

Operator

today's conference. concludes This

at time. lines your your Thank disconnect You this you may participation. for

Ashford Hospitality Trust (AHT) 22 Feb 232022 Q4 Earnings call transcript