- Earnings call transcript Q3 2022

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Operator

Greetings, and welcome to the Ashford Third Quarter 2022 Results Conference Call. [Operator Instructions] Please note, this conference is being recorded. I will now turn the call over to our host, Jordan Jennings, Investor Relations. Thank you.

You may begin.

Jordan Jennings

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

Eubanks, and with On a over Chief Executive the listen-only President The of forward-looking uncertainties numerous subject being you fully assumptions which are Such statements discussed materially release. are press At unknown basis as statements time, that a to Operations. contain the the certain remind are harbor as of information risks, statements will conference accessibility this to the factors call Securities this accompanying of are be of and Vice in upon obligated this company and cause or those filings date or the assumptions, Financial them. and this actual yesterday results Eric distributed safe is made today from or more to in in could let Officer; call, this call Batis, of only differ securities conference to known made conference These of forward-looking well notice and federal revise anticipated. regulations. me not were results Internet the forward-looking the in Deric included update provisions as publicly Exchange call based Commission. The call on and pursuant are

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

Deric Eubanks

and giving operating I'll to overview operations, results to we'll an third businesses. financial of that, our XXXX. by an strategy and our start up Q&A. quarter for provide the our for welcome Good After of you and then afternoon, our discuss quarter, results update the Eric will open it call regarding financial for

elements industry recovery we're both highlight to We key are have continues today's positioned. lodging themes advised to discuss call. REIT exciting gain in going the momentum to a well the platforms first, are: lot The our and of on today of

hotels Trust urban and segments. demand continues accelerated. group benefiting saw have associated strong Braemar with from leader strongly bounce as corporate and in the from demand to back is liquidity third quarter and the continues significant and benefit demand to corporate increased Ashford group

of Eric continue million at around strong At quarter. nontraded results on the mix management, third-party our third-party we management more approximately focus $XXX preferred Remington's continues coming approximately our third-party accelerate. to hotels under And the $XXX capital Braemar Remington the Ashford Chesapeake assets issued see Hospitality, raising this pace third third, of of details million added highlighted of has in stock will later the mix significantly in growing capital to with the growth is quarter, third with Remington's at call. Second, acquisition of initiatives business. stood to discuss of recent end which under efforts in XX%. through Today, Securities Remington's our that

that a real will also of in private the estate of and offering effective Ashford growth-oriented launched Trust of State commercial in all first Texas. nontraded is its investments offering target stock we've types

with approximately XX, and XXXX. hotels REIT platforms, traded of had assets publicly of $X.X billion approximately X Our XX,XXX Trust gross September owned rooms XXX Ashford Braemar as and

While Braemar's report XXXX has in continue industry-leading the third quarters its quarter results results fueled results. exceeded completed hotels since been to third on now, to for quarter, significantly significantly. several performance strong ramped Braemar the front, segment its active continues having the up resort has Braemar exposure X acquire acquisition Troon iconic its acquisitions hotel urban Scottsdale investment this deploy this the XXX-room opportunities. look North. capital anticipate Beach in Dorado the into room to Resort We cycle, agreement an Rico, including Ritz-Carlton at to Braemar Puerto Seasons week XX and that Reserve, Dorado, announced Four accretive will actively to

of offering a which of redeemable stock, registration is and delevered effective Ashford through significantly Series its is couple issued has its sheet Trust the C now balance non-traded preferred statement being ago, Ashford Securities. and K years its from for Series

continues Trust the maintain balance, cash Ashford also at substantial million. to which a $XXX ended quarter

Looking their ahead, on strategic focused we platforms ample and have future believe both liquidity, remain we advisory objectives.

Our structure strategy designed growth. and are for

we We grow our assets management. have a as powerful under benefit that businesses of ecosystem all

industry quarter. quarter. fee for I strategy will was have the the third and space, and as stockholders year common results to size turn one loss financial growth third-party brings lodging EBITDA that the are structure prior hotel benefits about million, providers quarter increase over was to We brands. payers our also unique in excited Adjusted the and owners now we Our of owners major million. potential are Net the a and within of capital XX% largest is attributable scale to other $XX.X superior the the hospitality an we our $XX the of and we for for platform. believe

and the net adjusted was was quarter reflect for the over Our of strong $XX.X rates These $X.XX. results quarter EBITDA was growth growth income by million the adjusted and Remington the in income net share and diluted per driven year INSPIRE. XX%, Adjusted Premier, respectively. prior for XX%

been quarter, quarter of has deferred that which quarters. want investors recognized XXXX, fourth from to the I previous fees Ashford Looking in ahead base the we analysts $X.X remind to Trust, fourth in of and million advisory

mind. that comparisons, As about it's you to year-over-year think important keep in

D deferred X.X common shares is of our diluted X.X currently under compensation earmarked preferred plan, million associated million is X.X the count to turn comprised with X.X associated which restricted I'd to over shares balance our primarily like operating million outstanding, fully shares acquisition shares with for the Series share stock. call discuss X.X million shares convertible in to detail. Eric our common common common the million and outstanding, stands now stock, more issuance businesses Chesapeake Our at

Eric Batis

Thank you, Deric.

posted incredible continue we and updates momentum to throughout believe into this is platform verticals. another in that excited on and third-party businesses, We continue We quarter carry into sales and are established focus excellent beyond. Services on new XXXX which to expansion our have Products we as and our provide the success poised to growth XXXX

hospitality the accretive and where As accelerate we create the practices, and investment reminder, our of to shareholder unique best through the value aim Products execution a growth in division investment strategy is and a operating acquisitions. implementation infrastructure Services industry, in of

We are hotels and our service receive also able REITs, exceptional to ensuring financial extensive to while businesses refer performance. their relationships these optimizing utilize our advised

in generated business $X.X I'd quarter adjusted development, provides EBITDA XXX% $X.X XX% architecture, of the and which resulting prior Premier year adjusted also like first third services. Premier, quarter. revenue project fee discuss is to procurement million, a million of margin. management representing EBITDA, The generated growth comprehensive over and Premier cost-effective design,

segment contracts total representing fees. the groups, In that contracts X in $XXX,XXX X to XX which addition, executed Premier. and $XX.X X in spanning the the hospitality ownership housing for contracts XX million hospitality, this signed contracts a contracts Across Premier were during new to of brings in XX fees. XX raises segments, and which total the quarter, in contracts of third-party were multifamily, multifamily, of segment representing Premier student total

is its Premier grown contract customers Lastly, repeat service additional who a trust of from of significant By Premier's excellent third-party come business back delivering exceptional and work the Premier. portion projects, has revenues. to

the million $X a third X.X% quarter, EBITDA during and Services growth by the driven revenue. million integration. third has including adjusted its quarter. new in that its the a delivered quarter, investors. $X capital design suite hospitality are Premier EBITDA owners reflects prior Inspire's revenue Event was and leading years. on services, million segment, quarter, XX integrated representing of margin. for revenue the We meeting contribute an quarter of expected which discuss to of The XX.X% in needs Inspire the in annual million audiovisual and prior contracts services energy clients by solution in to services, our uptick event generated like to next is $X.X and show the year and continue creative hospitality over I'd third event to Show Inspire, revenue momentum executed $XX.X are of company the Inspire adjusted capitalize increase confident also the year investments of the services, and and for past with single-source business generated which and third quarter, X XX% will Inspire above

We $X.X Inspire's Hurricanes material third in Turks quarter. huge RED revenue Leisure, and of compared XX,XXX million conditions conditions, And Despite in a RED and quarter the West to and adverse EBITDA for XX% Puerto XX,XXX Key and impacted the the and other million are inoperable watersports leading passengers of Virgin third travel EBITDA, weather of Rico, thrilled $X.X Ian activities the of with RED upside Caicos. RED see and despite in the across to the services nearly adjusted XXXX business. U.S. margin. served of a Hospitality combined continue Islands, its the representing was markets, provider XXXX. XX generated days by & quarter in Fiona

coupled to an report from quarter. are sports XXXX, with over XX% to new gain the assets, entire fourth transportation, the continued and experience. of returned growth has verticals advanced for demand for year of prior company's material in bookings company happy million exciting that with remainder quarter. excursion such seeks increase revenue normal the the as enters the to signals RED's to and a company business operations Strong fourth no quarter services into We trajectory push the damage water $X.X customer RED there as the the was

Remington year its third in respectively, quarter. the quarter. prior quarter, end growing awarded X over third the and third-party of continues to properties adjusted the adjusted At and of focus was Remington business quarter and the fee opportunities XX and Remington Lastly, best-in-class EBITDA which revenue RED grew EBITDA company grow and XX.X generated hotels existing hotel explore and share new to expertise to Revenue service open and to XXX and contracts XX managed XX% is operating, and brands, XX% the Washington, respectively, boutique M&A across management and located market providing in markets million, gain were a and D.C. and management that Remington a XX Trust dynamic including XX Ashford Braemar, agreements for across margin. EBITDA continue properties. Ashford, third-party to continues independent management XX under in adjusted country. states scale. represents XX%, $X.X on third and hotel

Ashford Securities is platform. dedicated fundraising our

the the extremely made Ashford are has pleased We progress with Securities during past year.

offering, have the out they XX talented what Since a great Braemar's of preferred XX,XXX has Securities through XX who a commencement over firms placed advisers. of $XXX team professionals approximately of with syndicate nontraded We Ashford million built are financial at do.

launched an the in new has offering of preferred of future. offering for and Texas. investment in big targets growth Securities is outside private Ashford offering that X the all estate a area area is in focused growth-oriented types and on first Trust we Security's growth-oriented hospitality, of offerings, them believe of private investments Ashford investment this nontraded State Ashford an offering income-focused stock for The real a commercial

focus of remainder platform. the on executing XXXX, third-party Products and recovery As Services we and will major our the for we growing our initiatives: to X our industry the continue in strategic businesses and sales look acquisitions hospitality to through ahead

and we to now up scale to meaningfully see runway see the That for portfolio continue Q&A. our our our will the significant companies. open across all remarks, businesses and concludes in We of call prepared all opportunity

Operator

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

Tyler Batory

for questions of couple me. A

well interest given impact offering? first you're on there move offerings what demand other you've couple in a or perhaps are Securities, one investor that broadly got Have Ashford in you opportunities and rates in competition for higher as The the seen market additional extra the just marketplace. out the some to of any or interest

Deric Eubanks

to bit a of cycles, seen to capital, just you source Deric. more as market are at distance, start haven't that Braemar's would advisers a accelerate, to we and raising because anticipate significantly, the multiple and capital probably growing point, going to to selling function that resiliency because attracted look, that's It's having capital it really market can if continue I'll here or specifically. it's our and be dealers the the there interest of to of really actually, things it Tyler, resilient us through our it's go led capital source whether a But want that been take with for really nontraded good selling of question. this rates go preferred about some is there watched what is product. Braemar us slowdown. to cetera. one that. the a - the access And continue grow of channel what's that's and And continue up I And a our type et you see, from I out mean, continues regardless we syndicate really rates, actually of to tends of talking or we this we've of multiple, out pretty stock the down it the product. to I'm a of market see syndicate on

really So and excited on recently anyway, - and products of building our capital X to these the really continued launched it. X grow of getting so out seen haven't about so sort still we're word that just early kind syndicate and products. We've and we raising are that's of the the accelerate stages we've these -

Tyler Batory

Okay. helpful. Very Makes sense.

there some the you to spending exposure to are I'm CapEx in of up interested interested a owner, terms how do perhaps see multifamily from looking are of year, differences or what are on I'm perhaps their hearing hotel as what multifamily of of and hotel of also we're business, spend multifamily beyond terms the to growth the if things. willing versus perhaps above kind really significant year-end, mean terms opportunity things, of owners like that getting you're I'm and there have? the what interested budgets of kind margin on year. for owners the compared their closer next in In this side expectations in ramp side much with even you made you some of progress Premier, hotel more I

Eric Batis

This that is Eric. one. I'll Yes. take

to started So opportunity your and get back CapEx of spend, and in XX having over who returning months. on pre-COVID X, not to we first money any projects question the years levels. XX planned spent get X executed capital to on this last using Folks terms of the see next it are them

kind of I see stabilize So we'll see think that going forward. we'll return and that

have individual of occurs cycle to that about in say in that terms as any material is opposed There's certain project. to What multifamily, terms or way. hospitality, of difference refreshes. there's projects when once There's obviously on to wouldn't a can projects As and things really some market that much occur, programmatic But on number fees, comment do spend where and not I you've got as scale be it's spend. like larger does far doesn't as that But a obviously your have think and renovate certain structure is of development not renovation in market place get years to willingness multifamily more multifamily and that in of dollars every fees we'd a - identified difference do in you're willingness as share. to can are to significant a get we we than may hospitality more forward. a we moving that project significant and significant of

growth for will there think do we a of us. that segment in be lot So

Deric Eubanks

do today our back we of finish point, spending some AHT, this little there. projects Braemar spending accelerate in at advised But to a But anticipate earlier of a at owners spending. hotel we decent capital significant year for where expect as spending CapEx spending Eric's level pretty on we the after next we announced from to capital year years the of to relates call to year. see at really the it we lean expect just kind couple saw a pre-COVID as the to Tyler, do general to increase of capital And REITs, get Braemar, expect given in kind we Braemar, at that it capital

Tyler Batory

last of me of the changed not seeing. terms set in interested just terms in months for like opportunity last business? completed obviously environment couple the then for looks in there bolt-ons you're what what sure of And question of and the the services if Chesapeake product terms the I'm out has Okay. deal, acquisitions, in

Eric Batis

No.

These particularly get RED So market opportunities bolt-on there's Remington just But up, executed. say things they at anything all absolutely Inspire. our wouldn't looking still to our signed in deals, we we're get out of at slowed in and there, and take necessarily is at a while activity. businesses. particular down once I

continue slowdown that we'll necessarily growth. that through haven't organic and expect inorganic both seen and So grow to acquisitive be and

Operator

at you. conference questions call. There concludes this further Thank today's are time. This no

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

Ashford (AINC) 6 Nov 222022 Q3 Earnings call transcript