Ashford Hospitality Trust reports resilient Q3 performance with 2% hotel EBITDA growth, strategic asset sales, and focus on cost control despite industry headwinds.
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Summary
- Ashford Hospitality Trust reported a 2% growth in comparable hotel EBITDA for Q3 2025, despite a 1.5% decline in RevPAR due to economic headwinds.
- The company continued its 'Grow AHT' initiative aimed at improving EBITDA by $50 million through property-level performance enhancements and corporate cost-saving measures.
- Strategic dispositions resulted in a $65.5 million decline in total hotel revenue, but corporate adjusted EBITDARE declined only by $10.1 million, reflecting effective cost management.
- Successful refinancing activities, including the Highland Mortgage loan and the Renaissance Nashville, are expected to reduce interest expenses by $2-3 million annually.
- The company completed several asset sales, improving annualized cash flow after debt service by approximately $2 million and saving $36 million in projected capital expenditures.
- Future interest rate cuts could significantly benefit the company, with potential savings of over $6 million in annual interest expense for each 25 basis point reduction.
- Despite a net loss attributable to common stockholders of $69 million, the company maintains a strong focus on operational efficiency and capital structure improvements.
- The portfolio showed strong group demand, with assets like Renaissance Palm Springs achieving significant increases in group room revenue.
- Capital expenditures are expected to be between $70 million and $80 million for 2025, with several strategic renovations planned to align with long-term value creation goals.
Good morning and welcome to the Ashford Hospitality Trust Third Quarter 2025 Results Conference Call all participants are in a listen only mode. After the speaker's remarks, we will conduct a question and answer session. To ask a question at this time you'll need to press star followed by the number one on your telephone keypad. As a reminder, this conference call is being recorded. I would now like to turn the call over to Allison Beach, Director of Public Relations. Thank you. Please go ahead. Good morning and welcome to today's conference call to review results for Ashford Hospitality Trust for the third quarter of 2025 and to update you on recent developments on the call today will be Steven Ziegray, President and Chief Executive Officer Derek Eubanks, Chief Financial Officer and Chris Nixon, Executive Vice President and Head of Asset Management. The results, as well as notice of the accessibility of this conference call on a listen only basis over the Internet, were distributed yesterday afternoon in a press release at this time. Let me remind you that certain statements and assumptions in this conference call contain or are based upon forward looking information and are being made pursuant to the safe harbor provisions of the Federal Securities Regulations. Such forward looking statements are subject to numerous assumptions, uncertainties and known or unknown risks which could cause actual results to differ materially from those anticipated. These factors are more fully discussed in the Company's filings with the securities and Exchange Commission. The forward looking statements included in this conference call are only made as of the date of this call and the Company is not obligated to publicly update or revise them. Statements made during this call do not constitute an offer to sell or a solicitation of an offer to buy any securities. Securities will be offered only by means of registration, statement and prospectus which can be found at www.sec.gov. in addition, certain terms in this call are non GAAP financial measures, reconciliations of which are provided in the Company's earnings release and accompanying tables or schedules which have been filed on Form 8K with the SEC on November 4, 2025 and may also be accessed through the company's website@www.ahtret.com. each listener is encouraged to review those reconciliations provided in the earnings release together with all other information provided in the release. Also, unless otherwise stated, all reported results discussed in this call compare the third quarter ended September 30, 2025 with the third quarter ended September 30, 2024. I will now turn the call over to Steven Z. Gray. Please go ahead.