AHT - Earnings call transcript Q3 2024 | Ashford Hospitality Trust, Inc.

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Operator

Hello, and welcome to the Ashford Hospitality Trust Third Quarter 2024 Results Conference Call. [Operator Instructions] Following the speakers' remarks, there will be a question-and-answer session. [Operator Instructions]. I would now like to turn the conference over to Deric Eubanks, Chief Financial Officer. Please go ahead.

Deric Eubanks

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

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

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

Stephen Zsigray

to significant an of provide than Good third million million gross $XXX of proceeds approximately today. from with used by am begin stock. We've $XXX sale some the and on introductory that reiterating said plan refinancing proceeds the in of that the After down million approximately comments, morning, each pay preferred since operational to and our a quarter plan We've and to we our financing. would review progress results, what to January. off nontraded more of our I over pleased our how sold executing since our hotels. we've Deric our our then announced $XX the year Nashville of million from Renaissance financing strategic excess $XXX these then, this welcome financial We've by efforts do. generated completed of strategic beginning back pay update the now raised made of we've done will proceeds significant my exactly we've Chris on our call. we And portfolio. I'll will We

fully next exit amendment reduced less million November by agreed This an provides financing by provided for amendment that the we've that $XX paid a to morning discounted is this announced company been opportunity or has the December with the balance Friday, if outstanding financing. we to Additionally, XX. to off XX, an strategic the fee

before entirely through the managing We and sales the in term, first are underwhelming financing continue paying light working hope our are of have end we viable quarters, believe X the to the revenue currently across on aggressively we lodging year. driving growth to of a managers industry a Operationally, in will transactions path and that the property of near off expenses. couple we this close

our growth X.X% saw this of line of We month to highest October monthly any RevPAR growth announce are pleased that year October with versus top XXXX.

the will in fourth of management additional quarter also see fully expense begin benefits XXXX. more the and initiatives throughout We to

We La as to well our Le ] addition Orleans Hotel about Key as are Pavillon New Worth in Hotel and the at excited downtown. also newest [ Concha Meridian the in portfolio, the West our Fort imminent Le conversions

This a is into it Hotel upper This up-branding West, premium commensurate Regarding well exterior exterior the bathrooms, by realize Orleans for RevPAR work. a Collection. high compared XX% corridors, hotel guest the to the Le we portfolio a bar to space. Ideally the will the end property in of market. Tribute restaurant, transforming Post Tribute a guest autograph bathrooms, in town proximity conversion, in downtown La is Located guestrooms, old we is in high convert to 'XX. and rebranded are in as niche includes this of New located convert the Budget [ by pool location as that [ year we premium Concha, La track to product. should lobby, managers West, the believe Concha RevPAR XX% extensive to entry, bar desirable expected on and it conversion, upgrading are conversion, to Marriott's to Autograph upscale major Marriott's Hotel Key well RevPAR to hotel lobby includes XX% Street], we ] a the with believe historic be a as property new the creating XX% in U.S. distinctive the luxury and to should Key meeting and style property traction barrier pre-conversion. new as prime theme on compared to Orleans. and Autograph guestrooms, elevate renovations to realize restaurant to the our also Autograph the New Upon to preconversion. We're Post Pavillon track portfolio end

expectations, also and Additionally, [ opened such Worth local Center recently Downtown, hotel close located walking ] land Fort historic we Lay the easy building. downtown and of Worth, lounge, in within offer Meridian we're the of have scenic Fort XX-story Convention distance X,XXX designed to to about Trinity Park and as well the redevelopment is the portfolio. Fort a our It's the the works city's XXX-room a ceiling to Worth views this Situated windows a following over and great to It's Sundance rooftop square prospects downtown. the function space excited features ahead of property. Square. he French-inspired cuisine, property running feet for very floor addition already of of

completing the of look financing will forward, page allow finally we the to As COVID repayment strategic era. the company the our on turn

deleveraging. substantially reductions, Ashford the are on our Perhaps and coming to profitability also performance, year corporate adviser, we value cost strategic commitment equally has Hospitality an profitability focused mentioned, importantly, the hotels. of maximizing continued provided Trust unwavering the As keenly over company's turnover of improve and Ashford portfolio through the Inc.

industry future growth call the third share years regarding given now improving we supply information of financial markets. increasingly We performance. company, attractive several financing to Deric and transaction will of months, quarter fundamentals, especially in turn those about more to the are limited and I efforts our have the coming to the will and coming over excited review

Deric Eubanks

Thanks, Stephen.

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

of into account million interest $XXX.X our million money also ended the We $X.X primarily of share of rate and taking and property and of blended we in now vast diluted EBITDAre held of per of held third caps, by The corresponding interest lenders. At the Adjusted the is million. of cash We and quarter, represents AFFO one manager net had cash fixed with that held $X.X of average majority with for which a effectively of third-party approximately operating rate XX% and $XX.X to reported the cash caps. Considering by million. with end $XXX.X ended debt is restricted of hotel from restricted due lender current managers, reserve we related floating. accounts we rate of our is the quarter, capital the At negative This interest is costs. cash million of $XX.X equivalents million. and cash quarter the the the loans effectively fund quarter hotel of managers. also had $XXX X%, was the comprised level quarter working For available SOFR to the approximately cash $X.XX. trapped end quarter, billion XX%

reverse one of quarter hotels of XX of our As XX, After stock units. common of million share is portfolio into completed at rooms. fully million which stock and consisted outstanding, the OP count of XXXX, XX X.X X.X taking million split, recently end the shares account comprised consolidated our diluted X.X our shares approximately XX,XXX September of with consisted for

would it we currently asset and our now are turn dividends the not to management paying over we concludes quarterly While a I XXXX. our dividend for quarter. like anticipate common review, our Chris discuss preferred financial do to to monthly, or reinstating in activities This

Christopher Nixon

Deric. Thank you,

RevPAR over For for decreased quarter. year the hotel our comparable third portfolio X% prior quarter, the

several actively initiatives the year working compared team with has grow to to improving ancillary compared RevPAR increased prior in per revenue, corporate up year-to-date period. growth out quarter. Corporate is our revenue has properties XX% achieving While transient year occupied our roll the to been room prior with which to X% been challenging,

at an attendance seeing are major those we price acceleration Additionally, events. events decreased around in and sensitivity

We from nonannual events. have benefited also

revenue National by Many in increase the the Smith Chicago dominant now our and XX% achievements in the steam, group are example, XXXX. completed ADR. I XX% detail hosted levels when Group ahead group ahead some room surpassing of Silver will prior of ahead X% throughout August, revenue year in group revenue group room go quarter. Democratic seen at on for for significantly and the the Hotel quarters into our experienced markets historically all more full an full Convention, a in year of the full increase operating of For XXXX pacing XXXX with year last year. is pacing by pacing X%, is room

the and X% year pleased outlook momentum positive to to lead prior with increased quarter. our which group volume, by compared evidenced continue are build by the We as

diligently to and optimization window. booking team positive XXXX sizes with grow on seen extend group hotel across the the group to teams outlook the worked revenue has capitalize Our block the industry

for respectively, our Additionally, Gateway Crystal group and spending digital our set with across ahead and meticulously Renaissance This Marriott demand sales for teams is mix targets largest process team hotels pacing has in positioned has channels for by revenue room XX% portfolio Nashville generators. XXXX. X%, audited optimal X and event-based positions and favorable the group

Stephen we full-service of As last Lomberadian during attractions. week Fort near situated the demand and the August. [ mentioned, Worth well XX-story, opened The ] generators local is XXX-room hotel

synergies. redevelopment the the with in views Fort a our background, initial a managed Total including university part our a that adjacent we was first drove bolstered of been that lounge upscale an registered boutique downtown property, redevelopment stunning than of hotel out The for As restaurant gate. full outlets, operational revenue mid-XXXXs. features underwriting. This and property double compression. abandoned parents of local Hilton level a more rooftop The beverage weekend in market the historically of by month strong since this X that comprehensive from has operations lobby Skyline. Situated Fort food is to property and upscale was was of of Remington, the Worth's performance performance completed resulting Worth also

hotel weekend. a the weeks, to has able market over was team a the few the that for open Although push only $XX been ADR during premium property

Turning property to tax.

of reduce real Board During total States. markets $XXX resolved review third largest during had in over our generated late the the assessment The the we savings were from $XX over Also to which and we refunds by Land. reduction subsequent approximately our estimated at by reduced successfully hotels locations United September several tax $X.X million of on by approximately successful have DFW million payment prior savings will which appeals savings tax Marriott current quarter, Airport, litigation of appraisal The Marriott were and estate estimated total agreed Southeastern impacted of in on Milton October, a the in the assessments appeal the quarter, Hurricanes million. and resulted with of and assessment an early Helene generate $XXX,XXX. number $XXX,XXX. In Sugar

we hotels believe important the and stay always, to it's communities these a open storms. as As of for service during place our refuge

time of and open, well-being provides safety We for guests. We've not positioned mitigate quickly members, safe disaster the relief we on of have crew and our community, employees here, a local capitalize hotels and to any seen lot and and time to hotel be again property and staff but the prioritize haven keeping a only experience the able demand. hotel the that damage

quarter, all During pleased of to hotels say third our are remain the we that open.

the procedures risk proactively with procedures, occurring identifying hurricanes procedures allowing hotels, them to helped relief relationships to and then and quarter. a have our hurricane adding of the handles preemptively to of hotels strong forge some that have spots, ensure We companies by our as during minor team outage. These on in financial Overall, Our equipment. to sand impact prepare. low power identifying and quick hotels positive preparation a at management aid potentially down with hotels the strapping us ample debris hotels, results notifying access align minimal We of provide generators in bags, operational resulted disaster the despite time impacted removing cleanup. towards all damage case such approach who

to on Moving expenditures. capital

million anticipate year-end. Concha third a $XX loyalty by Le West hotels we X hotel. [ New ] sales, extensive the Pavillon The of million benefit strategic Tribute finalized, XXXX, into brand We During conversions. renovations and and La platforms. Once into transformation will Key $XX guest completed renovation Orleans Marriott's distribution both Autograph space of an the and properties convert a fully to of room Hotel for public from portfolio Collection significantly quarter the respect both both

slated of significant the progress Dallas Embassy both extensive year. project completion spaces Suites also rooms guest public and renovation on the the made later at for have this with We

a Beach. initiated we Embassy Additionally, at Palm comprehensive guestroom the West renovation Suites

capital million we invest For continue XXXX, as we portfolio. key renovations our and $XXX on and upgrades to anticipate spending between across $XX million strategic expenditures in

show group As mentioned businesses earlier, growth. continued to

open We demand optimistic Q&A. the strong ancillary the in and about initiatives remain for and now have up experiencing revenue well. this call are portfolio, for markets outlook We our various performed we'll

Operator

[Operator Instructions] from of Your line the first Oppenheimer. with Batory question Tyler comes

Jonathan Jenkins

Jonathan is Tyler. This on for

a maybe quarter First on Day us pickup Has it on BT quarter? but could side? also, trends saw you helpful was a commentary side in for one basis? there any kind BT me. from demand maybe Chris, side, from monthly the group of on leisure the And post-Labor walk what you and the last on been of continuation through noticeable the

Deric Eubanks

talk I'd happy Jonathan. to be Thanks, Yes. to that.

on for hotels within retail see soft other both to markets. us We softening Weekend continue and the leisure our side. was

for some not up continued we were there. split and increases year. we QX some So between saw see last business Those -- in softening corporate over strong. continued softness. The It's just was portfolio ADR. BT necessarily occupancy accelerating. X% remains our to It's

unease that Day quarter progress. see we softness we So segment government it And around we segment. over, that -- think and of increase hotels. half D.C. continue as election some roughly starts One of and weekend. now We that up We're just half our that kind see pick was did saw the hoping the government-related to is was accelerate the that some impacted government some as we travel election, post is what Labor anticipate. to the for that that I was soft we some in segment saw there and was

Jonathan Jenkins

Okay. switching release this a Very positive Stephen, morning, gears maybe helpful. And there, update. the obviously, then

details some type their mean can can assuming transactions they additional your I You December coming sales, the noted transactions? provide I'm on the close hoping deadline. before you I'm those of kind the of optimism weeks. some of in kind asset

on maybe you any hoping color add that. Just could

Stephen Zsigray

is it transactions. combination Yes. I will say a of

some as those watch entail. you on some at have what to exactly comment couple over plenty next announce But sales to we'll to it transactions I'm of weeks, think at asset will still. as looking we're I the refinancing. So prematurely looking We're hesitant those. relates

Jonathan Jenkins

interest on then pickup for demand provide in given or you broadly? the Great. me, color spread there of the noticeable helpful late? environment line. as valuations additional the provide last I maybe large smaller changes versus Okay. one would can is any color if as move And changes assets? kind [ there of Has in in Any Could rates on bid-ask of been be the could, that Any ] you late? some transaction more

Stephen Zsigray

rate number Sure, buyers. from think uptick in we've our cut I particularly marketed in those assets, inbound interest, certainly sure. interest Yes, we've institutional We've certainly, of post that where we've seen more seen September, in deals the an a gotten some assets and interest.

a the significant the amount uncertainty to election think I also market. brought around the uncertainty that and of

with and that both rely us transaction in behind that and the on we here, continued spread the tightening bid-ask hopefully, start And improvement, markets that so financing of to continued largely it. markets see

Operator

have a Baird. We Instructions] Michael [Operator with Bellisario from question

Michael Bellisario

the on or in you to think remarks, savings the Inc.? is potential elaborate I related think Inc. the you said, fees? savings something around that Could prepared would related just level cost at something advisory related and Ashford mentioned Is the Remington agreement Or Ashford cost that? that to, I that some to management you for be property

Stephen Zsigray

So committed to managers more and is yes, But the making significant there Trust property everything announce on they at improvement look, we property the of our this beyond. very look months. have can forward Hospitality and next the to Ashford to profitability couple of we'll to XXXX very, over details level. expenses doing are Inc. we Ashford as as manage move

what as the And so from I corporate some portfolio. level getting well believe in see we'll cost to addition we're savings

Michael Bellisario

quantify this too process And is point? at it to that early in the

Stephen Zsigray

Yes.

out premature. Trust and like. as look comment I more what details -- to relates Hospitality that And certainly Obviously, we will think Inc. those little put there into on this. as will it bit view negotiations a be Ashford changes it's between and starts around Ashford

Deric Eubanks

really, the platform convey to of we're the Deric. I'll this meant comment was is just comment, middle Inc. budget season. successful platform. also level right in Ashford the this attention a and making And thriving Mike, that has of and commitment the Yes, in just

focused doing. what that's so we're And on

Michael Bellisario

one then Can how maybe the And last me, end in you financing? of just expect to of just you've for Oaktree priorities the and your remind us completed once near-term the off paid it. allocate and transactions Got you Oaktree. fast off these year, you've forward paid capital XXXX strategic to

Stephen Zsigray

Sure, one next we've the Oaktree us, of number for payoff, upcoming once in priorities months. first sure. a maturities the completed debt is have we the Strategic XX

us for out, throughout I is extensions think the maturities getting pushed getting those refinancings done one priority done, portfolio. getting

we're to there through performance do opportunities the to XXXX on be I start towards of look and portfolio existing geared date have been of Again, kind forward that we over driving assets. strategically portfolio, within we've some As those off done the sales think will paying turn to Oaktree.

forward, we excited. The thing on XM and I the supply We've return to do X think the far few industry think to X be ways portfolio strategic ] or the in is years. something is Amazon I so really do some virtually harped I and it. people but very it's will that X And seen fundamentals on, have for more think now saw as are up [ we in next the look touched everybody's reposition it nicely. we're office that and lining and other The similar. something growth looking come

of more and more bring are more it's and corporates think people back to these centralized to I locations. -- starting more

great business the was assumed segment group out so could strides we transient side. we've on I kind that think a all think for driver I tapped be that of tremendous seen that and

to has strong segments. I opportunity portfolio, those we'll of which with and Ashford a Trust advantage on take look think the exposure that business to there's really side.

Operator

for to concludes This remarks. the I'll session. turn call question-and-answer the management closing

Stephen Zsigray

quarter. We forward with again you Thank our look to you for speaking call. next joining

Operator

joining. today's conference concludes call. Thank for you This

You lines. may your now disconnect

Ashford Hospitality Trust (AHT) 6 Nov 242024 Q3 Earnings call transcript