Earnings call transcript Q2 2023

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Operator

Greetings, and welcome to the Ashford Hospitality Trust Second Quarter 2023 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.

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

ma'am. begin, may You

Jordan Jennings

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

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

listen-only this The over results a notice as were call yesterday the basis as a distributed of accessibility Internet conference press on of release. well afternoon in

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

do at buy our forward-looking of The the not call registration this included them. revise found and is only call during of update any call Statements company publicly obligated constitute statement offered be or solicitation this an by to not offer to and www.sec.gov. the of made of statements means made to as which securities. offer be an are sell or this only Securities will in prospectus, date can conference

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

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

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

Rob Hays

morning. our Welcome Good to call.

comments, an Chris on introductory update will second our and provide will my Deric quarter review then operational results portfolio. financial After our

are: themes for strong very in we our are main The second call RevPAR today with quarter. first, we the pleased the achieved growth

nicely. Our up portfolio to continues ramp

clearly a broadly benefit diversified quality are We sources. group leisure, across and seeing of is that portfolio corporate, high the balanced demand

We million cash liquidity We net working be position capital. for Second, our upcoming tests. the extension of to our feel strong. approximately ended with continue well-positioned $XXX and quarter

In addition, we have have to our strategic financing. access capital, to undrawn via needed, -- we an if

raising up the Third, from non-traded nicely first preferred increased over for our the quarter. and XXX% is capital ramping

We our continue of about capital for this to platform. source excited be

themes. our these the led quarter. prior details was year additional prior X.X% some all increased quarter. the occupancy, quarter which in the second hotels portfolio three year by on increased This growth over in for Now X.X% for RevPAR compared to RevPAR

in quarter. X.X% rates, the over growth increased strong prior saw year also We average which

of our majority us opportunities. are or to growth use flexibility is optimize structure our their step full cash This to company In debt vast respective down hotels capital our traps. performance, in allows addition important invest our it out hotel solid for our as now to cash the of pay an

management of ahead, quality well-positioned. high brands geographically with is we our Looking consisting companies and assets believe best-in-class diverse portfolio

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

those loan decision made and on F B, to pools required progress significant our A, pay on not loan meet the strategic downs extensions keys to During including our made quarter, in a extension and we which reflected options order the comprehensive and explored these tests. economic assessed and capital the assets, sales. by debt extensions, multiple that company, for This prudent management yield was refinancing, process a asset decision make

financing loan not to to added Importantly, cash improve pools and us flexibility our proactively the our of we regarding improves choosing our these sheet by provides by corporate and extend pools, materially with those balance it flows. lowering recent leverage amendment will three future

of $XXX more not and Further, XX%. the the the extend, than we debt pools did will of debt approximately associated combination lower pay the that million downs or ultimate the with our removal by

been over and capital of this a have sustainable goals deleveraging towards structure. is long-term more significant committed We time, company creating our to a the step

important Additionally, Orlando opportunities remains marketed in for a to and assets. million that and sell We $XX for are other non-core being certain pursue our we sold strategy of small four asset nearly component an currently recycling capital have continue assets to sale. recently

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

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

conditions. our non-traded time not offering, capital and cost will over advantage, fact to about believe provide attractive access excited offering this be REITs lodging are allow that an capital, of but this grow only given a growth currently trading to continue particularly asset portfolio our preferred values. also market to us We accretively to is to net material the subject We future their at capital believe significant discounts competitive

to corporate capital also to the some would may we -- future debt use as down growth, uses may be to this preference needed. or Our pay capital of use though other

syndicate and representing continue dealer security. the XX to have selling over agreements selling currently signed a build reps X,XXX We

early $X.X July the process, raising proceeds, We capital are still we've million in issued $XX.X very to-date, alone. including approximately gross in million of

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

Wall year later this you have We those forward numerous during events. with Street speaking year. have to many already industry and upcoming intended several conferences We and this look conferences of

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

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

substantial we've of stock the with second sheet our are of cash in preferred excited ended and quarter we amount us. the opportunities offering, non-traded of balance We the front about launch the seen in our

performance. call Deric Now review over I'll to turn our quarter second the financial to

Deric Eubanks

Rob. Thanks,

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

of per the we For AFFO $X.XX. reported share diluted quarter,

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

second of billion of a money with the average of end we account quarter, rate caps. blended X.X%, the into $X.X had interest the At taking in loans rate interest

and of SOFR of our interest rate interest levels are the debt and current caps, fixed of the the rate in our now corresponding XX% is now caps Considering almost all LIBOR money. as effectively

the loan During BAML our quarter, extended pool we XXXX. April until Highland

by As part of this extension, loan we $XX paid existing million. down balance the

debt Hilton two which maturity quarter, XXXX. our de Fe, XXX-room date in XXX-room Alexandria, in for in XXXX. a the La These loans the New date had XXXX the refinanced during Mexico, loans Santa Posada mortgage final November a maturities and in Also, we final had our Virginia, Alexandria, only final were June which maturity

year non-recourse conditions. interest-only for satisfaction subject interest The of two million plus three-year extension provides loan to SOFR options rate totaled a and certain $XX.X new and a loan is has of X%. initial The the one floating term with

and loan KEYS a our secured secured five extended end, million Also, with by KEYS million. Pool we extended a approximately C Subsequent a during secured our with pay quarter million. $XX with loans we $XX five approximately the to pay $XX loans pay Pool quarter, our E D by of of Pool hotels by down approximately five KEYS down hotels of hotels down

hotels. total to F As KEYS are A, required not we pay XX extend downs Rob make which to discussed, also secured loans, by and elected Pool B, the our in

pools The to at approximately not forecasted in XXXX. of reach top-line non-extended these properties levels the headwinds also markets pay but the in or saved a not $XXX have XXXX extend million expenditures loan not approximately until extending and and $XXX markets these recoveries, $XX post-pandemic to required required that capital pay XXXX. the downs, number these we Many needed hotels million. pre-pandemic their through only significant experienced KEYS By of these loans million are pools, downs throughout totaled are

Further, EBITDA, hotels RevPAR our approximately hotel the RevPAR our increase will and XX% lower approximately X% hotels of generated non-extended portfolio. KEYS only portfolio removing these from by the

down Stanley to With XX we us, initial loan with be pool no extension is next has pool hotels, that the Morgan extended November, loan and behind secured by our be an loan should pay in currently significant maturity KEYS XXXX believe required. test our able until which extensions

cash million restricted to with $XXX We held lender and is cash restricted and The that of million. held majority of hotel end This also of related quarter cash by and of vast cash cash accounts reserve costs. million our due $XXX held managers, which equivalents and property $XX.X comprised ended lenders. $XX manager trap hotel of represents At the quarter, also one operating managers. is to the million primarily by had of third-party from in cash available we fund the

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

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

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

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

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

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

are extensions pace liquidity made the that our we our preferred is non-traded of progress Our position raising. loan we've the on capital solid and with and pleased

for portfolio balance asset to a perspective, focus spreads to capital hotel financing. sales we rates, capital preferred non-traded potential and structure on and our raising performing financing, our challenging sheet continues base through credit is the and While be it both market continue our down will with stock, in a well. paying corporate increase debt From

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

Chris Nixon

Thank you, Deric.

portfolio asset our a RevPAR our Despite over talented operating the able we performance growth managers of in year X% were chain our for upper averages comparable approximately to hotel national to managers testament that the is relentlessly increased RevPAR also our and upscale upscale team prior maximize work pressures, hotel hotels. to generate EBITDA. cost comparable the of scales. X% significant with favorably quarter, for approximately to quarter. the This growth This compared the For both

saw The portfolio in a records set the second quarter. number of

seeing set total among different and In revenue. hotel markets, our and second are suburban, quarter These hotel records ranging Jersey, we airport resort, remain locations. time that encouraged across of the spread of the York, portion which Washington, from our to breaking a year-over-year We during performances urban EBITDA comparable classes, was record hotels Atlanta. by Alaska urban, all various fact, the markets, in were success D.C., in recovery Florida New continuing XX% large comparable from quarter second included and New

they for the have EBITDA these We concentration increase quarter assets year the by a in hotel prior markets collectively quarter. large of over comparable and XX%

four records of these during fact, all-time quarter. the second markets performance in hotels EBITDA our In hotel set

increased year We on and airlines. the capitalize prior hotels positioned collectively quarter, our the over airport by In the seen comparable demand of hotel the properties growth second and achieved XX% accelerating trends in our airport to portfolio quarter. EBITDA airlift

customers both City hotel demand number earmarked for by airline available Reagan parking its International Airport the capitalized rooms guests on increased Our for increase other and parking located rates revamping Courtyard airport distressed and and passengers. the of by offerings utilizing Crystal

Our with stays associated respective capture major leveraged to training their Airport a airlines two with Orlando Embassy Suites long-term partnership programs.

was we what rates additional provide to able those As further exceeded contracted, needs premium to inventory were revenue. at training drive

high advantage key optimize for team. works differentiator to at periods. team our and revenue during is granular dedicated demand Another competitive This level optimization us performance

year hotels for second the quarter, room urban prior XX% of is during than improve realized XX% suburban peak the we number profit XX% occupancy opportunity nights portfolio particularly to XX% increased we're higher did the with the and where prior nights our the peak year encouraging second quarter as respectively. the rate. and During present These to quarter, nights drive with more This us able room in the or over margins quarter.

room focused our in segment team follow club tools pricing build deep to our driving ensuring top-line Our pushing our optimized suite creating portfolio, types, of revenue group across base, premiums dive strong marketing optimization a conducts strategy monthly each and business, on and strategy. calls on properties

revenue marks XX% We over group are with the group by a remain group year-over-year profitable continued quarter. growth Xth and encouraged department. focus banquet most increased catering group the the the revenue. driving and streams food revenue often had seeing the we beverage segment. year on the strength consecutive positive in the these This revenue prior second room room In within are quarter, quarterly in as We've quarter heavy

quarter, bookings and occurred prior included second increased Marriott We year excited hotels, City XX% the our The and segment. from broadly many and group over remain the quarter. Crystal DFW. revenue revenues Gateway, the increase about In group catering in portfolio gains the in Nashville, Marriott the of including continuum momentum Renaissance across large

Moving on to capital expenditures.

renovating in calls have and taken We a to noted strategically have hotels. repositioning previous we our strategic and approach

space the the at and in at renovation of Beaufort, of XXXX, Ritz-Carlton Residence we've Nashville. far So Hampton rooms Phoenix. bar Suites concierge guest the relocation rooms the the the and Renaissance Inn The at and Atlanta, the SpringHill Evansville, completed Inn lounge public lobby guest and at

to space room Land, renovation and the Suites guest Later in guest year, renovation Sugar renovation Renaissance we this Embassy public center fitness plan the a at key and room Marriott a start Nashville. addition at at Dallas, a

spending For million XXXX, between million and in we capital $XXX expenditures. anticipate $XXX

initiatives and executing hotels, several key at new margin high our ROI including conversions accretive several projects. Looking are portfolio, across forward, we additions, considering brand

how like by would optimistic are I this emphasizing to portfolio. the about future of finish we

business earlier, to growth. group mentioned has As show continued

rebound to continued is seeing to diversified allowing the and many our assets more to continue continue records. hotel are The markets industry's geographically, EBITDA break of on We us capitalize recovery. portfolio well comparable

on scenes the about. further excited working to and ancillary we the to are We are have initiatives portfolio, value-add which value add behind we of number a

these initiatives will outperform. the portfolio that new we With underway, confident are continue to

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

Operator

conducting question-and-answer be Instructions]. now We'll [Operator a you. session. Thank

you. Thank

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

Chris Woronka

the us detail to off are give KEYS you of on Hey, on with, mechanics little bit maybe did I give extend. what loans start pool guys. good morning, -- can guess you the a how, that

would that something to payments date worry C, reached be Or a again the the What reevaluated what that think they're is you maybe -- after to that cause D, are and do a you at to make I those? the about you extension on think Es anymore? that's don't not level there? going later what possibilities have

Rob Hays

think of Hey of the we thought lot where or that In CapEx year these was, these on the that, markets, now a determining about capital. Chris, where pretty think pools process would went factor returns maybe this past big it's through we wouldn't we we we loan do terms future rigorous we CapEx, through in in obviously of was, a decisions get get kind Rob. do thought going is that where of where of all value equity

in are feel standpoint, even so typically market obviously In KEYS those refinancing where we a yields. terms on of the days side. refinancing a where or to value where from a pools, paid those extend, from were They we down and pretty debt around XX% these were did the standpoint good we about difficult pools pretty

all least have if portfolio, things I something significantly in but a continuing the feel where or and mean what right as could pretty had about across significant numbers now tests future. or any future them back right in extension numbers portfolios change unless in we pull have on the we're to or we recession to the So we we we seeing with approve, now issues good refinancings of their keep foresee chose don't at

Chris Woronka

seeing operational gradually. And just continuing labor us that you -- on labor still we're guys you're And on if availability of kind versus things on union helpful. an any -- theme on to could Thanks. see that. staffing and I and maybe contract where wages terms of Very the has guess give any Okay. of improve what markets you're the using non-union at could then you're in the update you like side, been or

Chris Nixon

the Thanks question, for Yes. Chris.

FDA at points. equivalent pretty phrased X flat last we has occupancy I which think our to remarkable percentage actually look to you we're last total seeing year, When improvements. steady We're increased slow the for it given portfolio, well. labor year is count and

sold that you to And rooms. number increased it's equate over just when of rooms, XX,XXX

been so year-over-year flat see labor. in on has been We've been to And which keep additional contract a pullback to rooms, laser-focused able we've managing servicing great. We're it with labor. starting

XX% the contract point, for the your year pullback. our rate quarter. To utilization last that's decreased to kind of about the of And start

less we expensive QX. And obviously on see because So contract this in that labor's were a becoming pullback of QX much more expecting labor, we're into coming is than much didn't which in year, we contract in-house as reliant labor. then great

We're kind think market. of in improvements well. labor slow the seeing I so you of steady it phrased terms And and

Chris Woronka

XX% Okay. three I with mentioned think Thanks, Chris. fixed whatever. helpful. swaps that the for is a you're Does you with mean that housekeeping we get that that run forward? or going three -- Maybe that quick the, effectively one KEYS, a the effectively pools, -- rate interest QX when I Super those expense, just our guess -- to with you're caps Deric. or the the after Deric,

Deric Eubanks

Assuming loans. the or that caps initial stay they we maturity where times, the caps and are of place, are yes. of that expire stay SOFR caps have with structured maturity different and LIBOR dates an array co-terminus dates the at expire to or all typically in underlying the Unfortunately,

it's so of all But loans. of for probably the with pretty runway. they'll a And for think kind purposes and quarter, up the I match intents good underlying maturities the next

Operator

you. Thank

and Tyler is question Company. from Oppenheimer next with Batory Our Please proceed.

Tyler Batory

morning. you. Good Thank

that really corporate the is there's mean, in there's playing kind out seeing on quarter in are I of year RevPAR thinking portfolio trends is you industry evidence corporate how travel of out about your think play how is travel I slowing that has leisure these less peaked. power are portfolio, out? the the for of on your the terms question so trends in a there First sort view wide, pricing and rest of strong, you those in of any quite me travel

Chris Nixon

Hey, Yes. question, thanks that Tyler. for

can to Trust the corporate out of travel. of corporate see So in strength with continuing We're second up I revenue. year-over-year In signs corporate Ashford recovery was XX% and start the segment. quarter,

that a were ADR, room X%. by -- ADR broadly is of X% was Now nights I and lot up over up just that's driven

seeing broadly, continued we're so out And corporate. of strength

of significant of within have our Now lot that we're to kind are A year-over-year nuances. down and tech market revenue. in markets that, there specific companies exposure

softness corporate Austin, and on Portland Clara, corporate. like seeing of we're continued Santa in But signs tech business. from lot we're the and So markets seeing out rely recovery of of strength a that whole, on

are And really look the urban markets, last things side, say within to weekend stabilization at see I really we we go. continuing broadly this On occupancies flat leisure more seeing within It's It's where more in that necessarily portfolio. seeing say where wouldn't were leisure. to But of We're a year. softening we're wouldn't within it's that, markets resorts. customers leisure you're I growth. our

group rates flat quarter-over-quarter. to in seen I growth, a terms And seeing we've a softness But in look to with that's some increase up portfolio, little not bit strong more see group of this weekend of in starting year. leisure. remains we we think expect We're kind strong. when recent high-single-digits to as leisure continued last we're to in as We're see then Nashville. of in of for and side, we're from starting significantly a ahead segment see demand QX. for continues corporate short-term QX The stabilizing occupancy pace but to So pace months, stabilization it's

Tyler Batory

perhaps assets is in update helpful. on kind you very of bringing some sales, more that That's of process market. Question the I to asset any Okay. mean, going? mentioned terms there how

spend the what what's of interest and out are and right now of kind how might and there to have kind you market you bring you future? deciding in when thinking Just on what the

Rob Hays

round say full got end market Tyler. of We've service three they're of said, in assets in or now. four a getting of are towards I'd limited kind pack second the I assets Yes. that service of in question. kind Thanks, a kind We've of the Good the got process like processes. right and of asset those a the

have the in should some that here next obviously the on we to we be months fine internally color So then close. those before more a couple in extent deals, and it'll At successfully those or least of have month had probably so.

that at do loan. Like it's that we us I is really path had I to do financing. up coming you'll the the sales we order some partners going the to off want which best well. the more in the are a off few both pay preferred, have aggressive pay on our But bit think I that here what see of think do proceeds for them, from with as think quarters likely next looking some We is non-trade great said, strategic we've us towards get but in to in portfolio. little clean asset

value internally additional and couple order coming have of are So capital equity Those we're of order want but still to market you'll of some the asset solid like decisions crucial the see generate way forward over assets that on assets a to to sales get in years see that are have looking some some doing in the are assets, that at we those. terms we're kind potentially may structure we non-core. the some next that proceeds. in that them we what assets to do it. where of a But you and part But move portfolio as right in are

Operator

you. Thank

is question from with next Bellisario Baird. Please proceed. Our Michael

Michael Bellisario

color EBITDA timing more maybe the you or and sell beyond these to just helpful? and for more also it about last preferred of and timeline thinking four? being is Good Do you're raise that But to sort able I simply you go talk need just occur sequencing the back sequencing morning, any just hotels around answer you needs think would recover? you. to maybe be Oaktree to that need waiting that question Thank to today. and your about to Do continue to sort the of everyone. patient and Rob, to pay be want there, maybe to

Rob Hays

very -- these of it how with But as versus We've it mean, it's preferred gone to comparable know is it thus to that been for do and a Michael, going at while. far. never going I exactly like on just what one little the know we you Sure. like. stay all -- it REIT non-traded happy continue what it's way goes. just other to levels to want what things, a depends trajectory everything is accelerate It's that the bit has looks we the hard

And so pay for the us, we've in got and that to for we internal order planning we numbers purposes, off capital have we grow financing need those need make the to on sure the want. strategic to as we assume cash want, somewhat fronts conservative order and as to in

I years we twofold asset have time. mean, got proceeds said, mean, to what pay on strategic sales. I I off we've the think we're to order We've on really X.X is generating make is So -- still the two the I sure on left in financing. available focused like one cash it. got

think I perspective, said, our symbol it's of and our and from But the more to growth know on don't towards Street, like of of out an kind market this moving post we're a the I structure. sustainable phase our moving COVID capital that company important I

out. to on And why now really that's so taking focus to us that it's important right

of some I so bit going of these pay down. we're asset in we're little And a sales more to an how preferred be that aggressive and using to think non-traded proceeds

we sold see you're are sales that WorldQuest that pack where down one able we to Those the service likely proceeds right to some market assets in So pay be down. closed just may some down. pay like help asset bring this going generate are other of some some assets to The then can three now that the may limit yesterday. are that of proceeds generate to like likely to and market proceeds we going

same either just, I'd quality years, At that next that just not holds. I'd strong have say lower say requirements long-term are maybe think brands some that about don't that feel we non-core got, housekeeping CapEx the we've few they assets time, for our that we more are the assets

you'll a And months of see come perspective. months so those market to think XX the X to our over next I from mix

know be in in -- sure if I just is the right how don't sequencing So in we to conservative are it's happens the -- bit make of the need word to industry, assumptions non-traded that we to the a preferred, it's comes of the need in little how the prepared do, from situation. what we of are just properties capital and how regardless going to we're

Michael Bellisario

helpful. are bit expect to Fair And enough. you some renovate projects CapEx Are year, a Any are not press And be not it. least or Got falling color you. would you're looks Thank your them but release XXXX? under you or of CapEx to $XXX same the are gears but reduced switching costs then significant it's those are those of the in more? costing sounds a and are $XXX properties handing then because going dollars this just million, handful little at the also that significantly like, like the to back, hotels on you're if to of schedule. around portfolio some are same spend -- renovation that the you've of renovate your number KEYS obviously presumably part deciding of million

Rob Hays

Sure. were those we terms pools, process the as in portfolios that where some that, began in It's led similar we projects analyzing Yes, were lot on that a to absolutely. a we hold about once also anyway. at thinking ago also of of in that of us time put number that these

had pushing putting of time, things you projects, thinking I if process Chris, some been of of into XXXX. we about So of but it going have colors. ahead know don't we a also through are other

Chris Nixon

go said, to a -- So the already we the kind lot those of as going path we Michael, had that deferred were had were once with Rob we determined AVNF hotels. projects, determined of

the to I see we those of from XXXX. XXXX more significant think pools in is loan terms expect spend savings where CapEx and to be going

the had for down we'd was But portfolio. hotels what would so the that if of of number baked come a projection in number XXXX, of provided those kind without included projects. had and deferral of And fairly spend already XXXX a we the those

Operator

Instructions]. [Operator you. Thank

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

Bryan Maher

Great. Thank you.

in fundamentals going listen fluid -- As questions, a the Rob, of of relates back, don't can more assets more and probably the forward the lot you're quarters to say kind being and upon there want which you big out, and it, give the portfolio of related bring and/or how macro as in sell plan are the ability questions or rates all to cost you is sell couple hotels next several color like more quarter-to-quarter quarters little I to see hedges on, strategic and you'll approach a maybe depending hand it I is as kind plan can a but to to it interest more of years? winging and you you

Rob Hays

talking obviously we've this say it'll out. laid of we've a think No, at we've that, to as but historically, point service I that there's a as be I I as mean, portfolio are what necessarily I long-term long-term limit kind also assets, portion identified don't got of some kind that matter fruition got don't would a in we've of now, are we've in hold hopefully time a right that, mean, about of that, come we assets to our we we plan fact, holder a we've -- want portfolio. mean got talked

within our MS some back that are handed we but are are which pools, or have still and handed in don't XX number of those portfolio our a I in still those we our long-term in Highland here great this still holds decent assets, And portfolio. think back while

through and significant right at what our rebuy company going a pretty in every our needs. asset are anticipated in well of And so CapEx of really actually now we're the as looking pool, the in analysis process

And winging is we've call and franchise we CapEx years five what think wave we spend? that years got it's pips those do isn't on on a So do and to of it that think deliberate, spend CapEx really coming agreements, ROI honestly that over the are say next up see very seven to extensions looking the whatnot it. there's and those,

And or for right? you economy depending flexible, in to what's because a what's that be us certain to have going always accelerate you combination it's you time, upon could that on. of same the the either cause initiatives decelerate going have at on However,

preferred, of going we non-trade front the it's opportunities would really If a little sooner than we may offense and see our that we with a be thing see Same in bit right? us, we on accelerate bit slower. little if

or say the you where to So that the plan it we be is, want I'd ways, we're long-term flexible it got to over enough capital we got when economy a through a jive rate portfolio where the to to can the in in be. some and order time, get you capital where want same the to At be changes working structure changes. seem we've

little So a it's guess a -- both. little bit I bit of of some ways in

Bryan Maher

whatever, or mean, or money. day when trade preferreds, but that, that non-treated outstanding appreciate Oaktree your if about all taken up we and can point off and get debt cleaned it's X% I the I X% this think debt? basically issue to to wouldn't pay XX% preferreds at on preferreds you've XX% found why you're out long out issuing got you wanting

Rob Hays

if are show answer And or I of take is that if -- mez And people that over now tomorrow, or that when pools within you've a are pay pieces heck XX% -- chunk paper XXX structure, have that tomorrow, on putting than money a this some XXX right? that. I new of you're XX% than that the are off mean, even we were more -- our mortgage could cheaper So mortgages the and out $XXX it expensive on and it mortgages got if and even I would to it No. million capital it is X% the -- get could right. up

right now So we're age in very financing. of an expensive debt

And the us so variety coming Ashford from X% fronts. of a is attractive to Securities is money platform very on the

uses. plenty demand So that building we've just question a It's say of, I'd of got up on the accretive side.

Bryan Maher

of capacity or they just in assets growth of that year back the or the XX, two? really $XXX to XX lack word where XX, your bank's at a that wouldn't those shell that don't and Is back $XXX and them of handing peer took hotels you he's and are you XX for to has of something with and redeploy worth now some around that kind situation same XX you we expect million and have million see generate hotels the better why at next loan you've that turn XX those that And Yes. just unfold pay me, or a XX, also way. could lender, into debt, last we couple see $XXX of million take a hand got here worth but game for over this to or worth taking and

Rob Hays

don't I have right? but back places process the I the it's the I step of them right? are assets, be sorts stack think assets, lenders. the think intercreditor complicated, it's I trying here to the on mean, not some but it -- have I in happens even it's gone be certain in process. it's happen, There's mean, on the that more of I going through those and to other mean of I I that a things where that peers and hanging and other different these debt there's overnight, of mez to situation to don't buying you mean, or going slow these loans are different and and debt of fiduciary loan something because agreement know rights. you processes statuses mean servicers XX that's into the there's know. I could if have pools whether simple, back tends

these things time. take of all And

you experience many we I've lot a So on taking be foreclosure weeks. something we something Do deeded is that's formally And don't not that whether over? so it our in place will our know that process several Or goes longer back a XX know that even assets, could them through handing or if typically complicated issues things way three now always think. debt than people past of just the of it's just as my are through and through, lot COVID of years these of be a more is months? telling having gone restructuring obviously

Bryan Maher

or up that of which our kind important, holding do question another Which out one when It's not I hand Right. we back that I right? of I XX mean, and out that it's recommend had I XX worth or of $XXX fourth It's conservative effective quarter when two debt. the these of million or three, Deric state? mean, pull do who model? cares? we on, these beginning hotels for you was all brings is,

Deric Eubanks

ahead a it Look, happen I now. go could good I question, imminently Bryan. out from mean, drag perspective, of and on. could mean, my the portfolio them and take that it's I'd

ready to ahead from so go the over So KEYS perspective, from a modeling out. them perspective, and we're hand our and take I'd

Operator

This closing concludes comments. today's to question-and-answer the over like session. back floor I turn management would the to for

Rob Hays

on with everybody you, us quarter I you quarter. speaking forward Thank look joining right. our to call. for All second next

Operator

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

disconnect now You may your lines.

Ashford Hospitality Trust (AHT) 2 Aug 232023 Q2 Earnings call transcript