AHT - Earnings call 4 2023 | Ashford Hospitality Trust, Inc.

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

Operator

Hello, and welcome to Ashford Hospitality Trust Fourth Quarter 2023 Results Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded. At this time, I'd like to turn the call over to Jordan Jennings, Director of Investor Relations. Jordan, you may now go ahead and start the conference.

Jordan Jennings

Good day, everyone, and welcome to today's conference call to review results for Ashford Hospitality Trust for the fourth quarter and full year 2023 and to update you on recent developments.

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

the time, are well in safe as this and and and on the this basis yesterday conference as The them. based you or information securities. of company can Internet date and the during of buy At Exchange and in that is to filings results and a distributed which constitute this not as were release. assumptions contain upon included remind to statement a forward-looking conference call statements and call, listen-only call update in over Commission. the made to at conference let press found be revise forward-looking statements offer company's call an only afternoon harbor differ certain a Such obligated could the of unknown Statements offer being the subject factors any regulations. sell to are results materially made the registration this an which or securities made will with provisions Securities forward-looking These of anticipated. to more this federal are pursuant The to discussed by means solicitation risks, only prospectus, those offered of do actual www.sec.gov. cause be Securities call numerous known fully are not from statements assumptions, uncertainties or publicly

together and listener encouraged release on may and website the in all www.htreit.com. in in on have the through review Reconciliations terms the at be call other Form Each or schedules, filed company's of release. provided which the are financial provided to those is earnings in provided with X-K information certain non-GAAP tables this measures. in used with addition, company's also February In company's SEC earnings release accessed reconciliations the been which XXXX, are XX,

this otherwise to call Please XX, unless Also, ahead, and over in and quarter fourth will XXXX, discussed call year Hays. XXXX. full sir. December fourth year XX, to full compare the turn the Rob now quarter with go results stated, all ended December I reported ended

J. Hays

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

paying in positioning We is is As in we announced the a are the off dividend back this in order financing this earlier keenly to on future. Ashford of strategic Trust believe growth path year, common in reinstate step crucial XXXX. corporate in we and focused our a necessary

largest impact assets capturing assets, asset multifaceted accomplish stages a plan to Our which a preferred deleveraging unlikely also mortgage and of attractive our us this providing nontraded capital provides process. at to to sales, the And and accomplish are those goal. with determine combination our all most dozen valuations we sufficient the sell while raising currently working refinancings through assets to various of to sales debt diligently raising. capital optionality than We are includes of while the more That is significant efforts. have we're

the a letter intent. X have combined under X up under now $XXX and assets million. asset days another have approximately agreements, purchase ago, of We sales X sale announced price signed from and we These several assets

or sell definitive $XXX,XXX of agreement are have significant to signed key. these as $XXX progress the announced a a Hilton per having this the Massachusetts demonstration Boston Back in for room in XXX we morning, Bay Now efforts, Boston, we we million

expected hotel anticipated closing our to EBITDA XXXX be or X.X% sales net sale next operating represents rate on cap the company's expenditures, XXXX income in normal is to March price for and subject the is or completed adjusted XX.Xx conditions. When capital multiple. month a The

approximately we the pay to our net net sale from using $XX million the proceeds the after closing costs, anticipate proceeds financing. repayment down the mortgage the strategic of expect to We be debt the and underlying

to or When the to quarter we normal subsequent signed for definitive price Lake NOI March a we've sale early here Salt XXXX X.X% residency represents sell CapEx, net for that a our to hotel addition, our to City, be In end, completed announced rate Utah and million as multiple. $XX.X in the expected agreement EBITDA subject adjusted income closing sale on XX.Xx additions. XXXX cap is anticipated

pay secured transaction by the working We're located several Morgan Georgia. all Gateway in secured refinance the hotels the loan use Renaissance Marriott Stanley the the loan lenders to to the from expect also with Nashville by to proceeds with debt. secured Indigo We in Tennessee, and loan down loan this in a the Atlanta, states, Arlington, XX by Virginia Atlanta, Nashville, pool

the to strategic on, which of the used Nashville is it completed. we refinancing be to We which loan, running down process currently The substantial Westin, sales be from proceeds be a extent part unencumbered the as financing pay believe Renaissance this can Princeton there are could will company's financing. excess of

We stock also about continue preferred our to excited offering. be nontraded

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

gross To proceeds, during fourth the including raised $XXX quarter. of approximately $XX.X date, we've million million

are sales, these we we offering, that financing we the off in strategic trusts to continue the main and pay to strategic making right nontrade X refinancings our progress mortgage the preferred are on of through believe Given financing plan, the path payoff across XXXX. asset

our by RevPAR group rates, demand all prior led sources. over RevPAR the was compared year leisure, performance in quarter. increased in with fourth daily X.X% quarter year to This a benefit achieved clearly We're the X.X% high-quality seeing in hotels the for growth are we across portfolio prior average quarter. which we the diversified increased of the In a broadly portfolio corporate that's and balanced of terms fourth performance, strong operating pleased hotel quarter. growth RevPAR and very

Deric into quarter this revenue continuing total our is over the to review that performance. portfolio. are XXXX performance financial I We turn January our now of with fourth pleased to will growth for the X.X% call also strong

Deric Eubanks

Rob. Thanks,

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

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

$XXX.X had billion money the quarter of For full per the quarter, of of full negative $X.XX, for we year. $XX.X into all reported AFFO per we the current AFFO level EBITDAre At the million, $X.XX. a diluted SOFR caps. for the is Adjusted share and $X.X now the the account average we quarter, rate the loans reported of share for Considering year, fourth effectively rate and end million and was caps interest diluted interest interest blended rate of X% with of our corresponding rate in fixed XX% interest almost money. of of are debt the the now as our taking in caps,

During pool cash year Morgan Stanley quarter pay with we cash the extended no hotels, with for of ended quarter, cash extended million down. XX secured and the X $XXX our by We equivalents loan and restricted million. $XXX which we of

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

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

XXXX. is our count December stock the of of of shares comprised X included used portfolio approximately share associated calculate units. end XX average fully the with X.X diluted of weighted per As exit on which completed January share consolidated in common XX,XXX strategic In and consisted our million rooms. quarter, XX, year, financing XX.X million our fully approximately the At common OP share XXXX, consisted million million hotels AFFO the of fee outstanding, diluted count XX.X we the with to shares fourth shares of of

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

secured estimate financial during activities pool the Chris review, KEYS loan our those lender. time, are to an would on we provide concludes As of of the unable and quarter. continue I work this of to timing the management the when an to This we ownership of with like we hotels a on lender, for At loan KEYS over to transfer and our F ownership to the B the to of KEYS to asset the for occur. lender will it now pools transfer that turn transfer the update, the discuss the consensual and hotels completed that A quarter,

Christopher Nixon

Deric. you, Thank

the growth. prior For prior X.X% quarters year the hotel comparable increased hotel of over increased the RevPAR portfolio X.X% quarter, quarter, marking consecutive XX our RevPAR RevPAR for Full year comparable year-over-year year. over

year few double average. including some to position outlets our portfolio, events markets. would our a to strengthening minutes actively full across team, capitalizing some in beverage I group major national like and our of was and growth Our the on our nearly of RevPAR highlight food increasing take our work high-demand from the

the Group exceeded $XX We in year This room with the revenue for activity. quarter. room by a group quarter approximately prior quarter fourth on strong the book's XX%. the started year million full the is for bookings group for booking

the group $XX in During fourth additional added over revenue. room we quarter, million

revenue fourth $XX million comparison, quarter. just more the on a over basis, XXXX, stabilized As in a we group added of during

XXXX for X% for quarter enter the by had As and group -- largest up XX% pacing this XX%, performance XXXX year, one where Gateway, room revenue Crystal strong XXXX A revenue the of our and hotels, group year compared grew the Marriott to is room group respectively. prior hotel that quarter. we our was

increasing diem quarter, of which successful team over Much lower-rated in pattern production to and nights, the fourth Year's. transient hotel occurred government increased out the the traditionally yield the holiday slower per between room and was New During Christmas the allow business. group

to prior Savannah On and and food led respectively, grew margin occupied X%, per and food full grew Renaissance Hyatt basis improved XX%, achieved year by to improved revenue the food points to Nashville, compared by XXX a room the beverage of food points beverage This basis beverage compared XX% and prior and was the by the quarter. revenue margin revenue and year basis, Food year. beverage Regency which and prior XXX growth and XX% year beverage full and by year. compared

growing we spend. had across This to and benefited XX% banquet shopping banquet a Hyatt team record-breaking ran prices menu lower-rated The great items self-contained groups Renaissance Savannah which was year. entire portfolio. array comparable benchmarking compared year an a prior revenue from our menus. of by in across catering optimized the citywide initiative, Regency with Nashville demand successful backfilling with initiative higher had that

XX% over efforts minimum aggressively required on had us revenue contracts. In catering within strong helped prior the banquet spend of Several the addition, achieve year our increased year quarters. portfolio team the These our year. growth full markets key throughout

hotels, example, RevPAR For of prior comparable the our XX% portfolio by count, compared quarter during DT which fourth our X% hotel by to make quarter. the year increased key up

During headwinds the potential occupancy government the which declining fourth XX related to basis in points. quarter, resulted the despite shutdown,

the the rate segments remixed nongovernment that quarter. year proactively in hotels drove compared prior X% Our to by

capital $XXX lobby XXXX, entire approximately Moving excluding and Across expenditures. meeting Suites in suite the bar the spent at our and on City space the In of Nashville. completed projects. premium renovation we Renaissance development the on and expenditures the added Crystal portfolio, to concierge XXXX, we lounge capital a at Atlanta, relocated million Embassy at Ritz-Carlton

outside on for beverage million ancillary revenue reported well increasing For looking and and and is $XX $XXX we pacing forward, coming Food and spending XXXX, business favorably capital is capture. expenditures. And in group profitability years. strengthening, for are we We anticipate us positioning between the XXXX. performance and million revenue

evaluate new to renovations. portfolio, as continue partnerships and additional conversions, brand across We several initiatives high-yield such strategic our

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

Operator

Batory [Operator Instructions] from question Tyler first Our comes from Oppenheimer.

Jonathan Jenkins

for Tyler. on Jonathan is This

one me. for First

off number and Boston the million announced dollar change potential would you're With or this that Oaktree thinking the Back the asset that morning proceeds, $XX of need sales of to amount paying Bay the about comfortable loan? and sales how net get you does remaining expected Hilton the

J. Hays

get impact decent does to do pay in to we're keep net just million is is the as paid financing. to $XX chunk And overall It optionality the proceeds Obviously, the attempting as we of path much off. able of a the financing down what's terms determining sized of being open the analysis. obviously, can what right

to said of So of in yes, sales sometimes but all does as remarks, these unlikely to And so we've given we're it. assets just kind how impact it again, choppy sell LOI the markets our the have had, just previously a been, create we through, that can. under wanted were we example, couple as much we've that as for of fell assets optionality

of finish I market the I we're these line and ourselves seem getting that to deals we're So loans as improve in mean the on some financing it several in as continues comments we think, markets improving. the over like seeing mentioned are refinancings. of our does the as odds,

seen And so in. come we rates have go down We've little seen bit. spreads a

hopeful over be take we're a think to the the translates we market, assets can I that, So financing. and to into get these able handful out of line transaction the finish that

Jonathan Jenkins

And Excellent. potentially be the Okay. you that, us embedded of any switching potential through are completed? walk then you're thinking And refinancings could the refinancing. maybe there? when gears how to timing Can those gains about that

J. Hays

Sure.

mentioned, pull that to just do not we million of the refinancings kind And talking the at but mentioned, we least of of be existing refinancings Nashville some think most think I the Renaissance we've of to levels. where million, like-for-like, that proceeds where mostly exception of there'll ability of proceeds we're as is or what $X The potentially millions consider dollars. we've material there. got tens $X out are

the of that in to proceeds months. that next able helpful, that so at Unencumbered of be for-sale obviously performance sell same which think the we which asset generate continue very the to asset, unencumbered is is several it time, Princeton, sizable and improve. on list, given And a amount our here to

we've loans market. of we're So the in got -- looking handful a these

XX next to For days. done most like XX them of we'd in them, get to the

financing markets to But move. again, continue the how see we'll

Jonathan Jenkins

for the Can us pedal Or maybe out strategic on plan for take is financing. to about Rob, deleverage growth financing one first through me. taken then And thinking credit will executing the of on cash communication continued walk a that? or the traps you color. last focus the appreciate team how give the of I I maybe I the the going mean, out? Great. and lot the now the be Okay. the working what playbook execution you after kind strategic of maybe you are forward? comes of

J. Hays

that I the to the obviously so we're the moving the this great moving AHT we're of the and And and is question. get focused kind a phase good financing. on strategic of stage but here And where They've focused move kind that's why a think on we expensive has next That's want of past Yes. capital to been been partners, next think it's company. that's story to we demonstration to of one.

I it's of things. a think combo

And key turn to to I the see Securities we that clean a I long-term select assets be see, it's that's, of grow think RevPAR, think time, important health nontrade deals do we'd Ashford delever. you'll longer of and do our in all higher-quality to we assets why preferred capital think point up full-service continue assets, and portfolio, we have are kind on do time. to with And up is dividend and assets the I assets our variety to this that think turning that part growth are invest crucial we like to one then a partnership sales back some some on signal a clean we selective in side. I that and is, don't like unlikely to think assets term, necessarily that of lower do as service some at is think, have potential just to but think, I order some that of of so we over predominantly the go continue to be we do company because in able dividend that in to It's right the by out we'd like want to gate, sizable obviously on. the something

improvement will there's the the I delever, pieces -- with So right? to moving there think several going but here, then the be the in help offense Securities platform. Ashford continue portfolio of on

Operator

Michael next comes from Our Baird. question from Bellisario

Michael Bellisario

should for modeling for purposes, Rob, just $XX or and million proceeds, the we million just first the question, beyond about backpay? the million net think proceeds gross how of $XXX above $XXX

J. Hays

to $XX an million to -- million. going incremental be It's probably probably somewhere $XX

Michael Bellisario

about then calculation potential? out dollars principal balance? your Oaktree. stated pocket need you many you That's as the of exit what's and then above beyond other any How us paying remind what's might off more Can go the share the And helpful. there? thinking fee, we're And to dilution

J. Hays

Sure.

factor that think in just principal XX% the in was is which total currently ability to a drawn biggest and that of stock. that total balance $XX drawn pay up the half was of I -- fee, the really principal the the of and of down, fee that is XX% was total balance to exit exit have we million the

million So on $XXX it's of top of $XX of $XX between cash cash to million. million somewhere the

Michael Bellisario

it. REIT seated to more contribute with nontraded to I And the Is X but the it, REIT about fundraising your then at what that think we think for What sterling corporate you then trying nontraded longer-term assets Understood. preferred assets. about Got there? versus level are do you the created, how talk the a have to you're it's guys didn't plans platform? thought should that that there And fundraising? for

J. Hays

what be there time. assets thought could there that we it trust cash. It's just is to was for over the not for involved over away Sure. successful opportunities potentially let of assets. service that, the I And side be take we were that sell I'll something high-quality so in of than that Trust. contribute thought and where because strategy we Deric long-term assets. We those with potentially to hope consistent am. potentially first Ashford was But Well, more then the have X those me select it out step on very Sterling to he's actively part Sterling If

contribute was it think, where into to it. way got focus sit take we've let some get today, no longer-term Deric again, something more There a we of strategy. its I'll But But just intention, were assets started. kind trust benefits of It's here kind of it. the to to, view them to of as kind I

Deric Eubanks

Yes.

the it's and running. Resorts to a terms Sterling up Mike, In platform, Hotels process and that get of

the rasing of through RIAs. through syndicate which capital are We and Ashford go a Securities, broker-dealers and will network a

And that's way that a privately pretty got at capital. And it's REITs raise at being to especially when And It's we're investors. we've scenario trade to hotel offered so interesting investors a credited raise process. think structure discounts the can get that we allow be liquidity hotel forward. NAV interesting and and NAV pretty that it will vehicle a at at capital NAV we have out to going to investment for some optimistic and

Michael Bellisario

it. P&L. Understood. the shares the correct? Got then that time for And owns the comp Those just AHT excluded and being, XXX% hotels are effectively the through from runs base, of

Deric Eubanks

right. That's

it's the close that that so to the ownership is Trust Ashford on those we in exactly And raise as ownership diluted some. end financial consolidated capital properties were but will then fourth down So be very statements. diluted that I XXX%, until not will case of anticipate Sterling the platform, be down. quarter, currently. -- XXX% at That

on unconsolidated. kind become So of still when it's would those assets TBD

Operator

next from Our comes Riley B. Maher from Bryan question Instructions] [Operator Securities.

Bryan Maher

Just trying to little clarify the math bit. a

X Did $XXX from I on $XXX think Boston? LOI, the said $XXX you that million. you million include sale, total, X under the purchase had X assets so million

J. Hays

all are Those Yes. combined.

Bryan Maher

the Utah?. does residents And also number that in include

J. Hays

does. it Yes,

Bryan Maher

Okay.

So the are kind fairly low a going other ones price. towards of

J. Hays

Yes. service assets. They're the select

Bryan Maher

fall Can fell assets were mainly And to the you buyers? that through. who buyers they Are you something why transactions any they you're of bigger local talking kind through? us it. that Are as for that marketing? some said And are still would of you're Got entities? color give sale,

J. Hays

what that been out by mean, it's buyers the started the started equity variety it's kind and service I the private assets from big funds mean basically you foot full of sizes. I've encouraged it's it's it's good had all combination select actually kind Yes, into there, of a name and said. we to side. of I of maybe that a looking in extremely the boys breadth their a a have get exactly everything door, of question. that of service up the smaller to get to been group looking in

Savannah. assets Jersey, the are these local there are that are a regional Florida, of But ones to Princeton, then New that owner as well mean are around do vibes that in Southeast in them. kind I lot and of with operators have are as that

So mix a we're finding both. good of

are in sometimes the of get or In kind things terms don't just trying out, typically aggressive why know, try -- related and of maybe up falling a a been I preempt little it's deal people to lock to process. financing

a story, the was got each a And and of kind that the to or little line its they But it's we well executing the we're realize impetus optionality through few more where again, isn't in movements start a realize process and or kind one of bit, kind been But X and it into then have own one just not only once on to their they to that to maybe see of finish just of that getting get skis. get of can them. little create, -- X, again, execute so to going fall then over trying again. it having little

trying think, to more for and create and value the those to about lines I putting lots quickest be, going We're to on financing the win. water strategic of move aggressive proceeds the and can from us in they're create that thoughtful and much

Bryan Maher

looking the at lighten you on standpoint are get can an your purely sale, another? to the dollar reason assets that assets are up it So in you or there looking bang you're on the where economic for marketing most Or one market you're buck? are for there where for

J. Hays

kind the the asset You're of we those have exactly I not may so the But wish, tension. the right? one getting that be And that right, Bryan, frustration or it's traction markets is that's that that both.

we there, it agreement yes, certain have maybe whatever something that's -- lot a of the that and may value maybe interest of have expiring, of all due, there's coming lot CapEx equal where that of equal and franchise let's assets on exposure say a a absolutely already it's if kind be. had Now assets, maybe

and we a over have prefer being the all transaction dealing another. -- of I'd just of, from again, market out that and I put do is assets to what And equal, prefer these and really see and proceeds. we to there's with selling the best they like at some asset But can keep. kind we've that of But there all we're day, that reality that standpoint, got them to to And would that the end navigate we're generate obviously just the both. that I things some

so to -- a I'm not but in try And to the trying those more the number how of reduce keep sell the of to out market we'll that assets minimize prefer of some of to that months. I couple sell next I try plays and ones exposure, that or the process see

Bryan Maher

A them, or they that me. for some is least think I are on what's X buyers on the X these I mean, this for take back? would transacting Just that at B, holding and last months. out up? there decent and holdup On banks is and flip is process that as going fairly are taking market mean, these there pools long as hotels I like What one and would the things the this mean

J. Hays

Yes.

a you, So shareholders your hopefully our match frustration frustrations not because of I do I'll color give you -- and frustration. our promise that bit little

with decisions one, make move and servicers these they around of sheet quickly is with as special so dealing them servicers, quickly there's happens, aren't -- So loans. a like, empowered at what as you're lender, -- right? bit CMBS complication you're when And dealing balance just and as a to these just little CMBS trust they're and least

by whatnot. anything certain just those and documents, there's of the are amount process So and reasons outside of they're just documents, to reliability hemmed they a do and in beloved

step it And of existing same through go kind mezz that from to So therefore, F process, one quicker KEYS very, aspect ended it of pieces all didn't and just bit to willing a think, the itself. there's was mezz up of I the moving one the little process because -- have The a the to into right? defensive-minded of someone buy the holders.

into the step much quickly via could it They more mezz.

in the it So one. A one before and moves B to seems and that mezz that's going participating be why where be this going that is to isn't isn't This it.

process out And itself to move so basically time them takes the capital structure. that and of

Our been that recently understanding is completed. has

And clearing to that, are this so the for that therefore, hopeful is quicker. path now move we

But as we we said don't comments, know. in our

happening be so I notified know literally get to this today or a it's be these some going that longer. in of do ASAP I can little what been going that has bit is And not to say movement still is But I if there processes.

be with CMBS special So we we nature slow to just that of and documents. soon. complicated dealing servicers that just hopeful it But the very just it's given a the servicers process, are and are it will tends be

Operator

any I'd over hand As their like of now right back raised now, we to management to don't have the for hands. final remarks.

J. Hays

you, Thank right. today. All call everybody, for your this on time

support will on talk your getting and continue paid We all execute this as we we you our during off. next financing to to to appreciate committed call. the very are strategic We quarterly plan,

Operator

Thank attending today. you for

Ashford Hospitality Trust (AHT) 29 Feb 242023 Q4 Earnings call transcript