Ashford Hospitality Trust, Inc. Q2 FY2025 earnings call

• Grow AHT initiative aimed at $50 million run rate EBITDA improvement; comparable total revenue growth outpaced comparable RevPAR growth by 3.5 percentage points, and comparable hotel EBITDA increased 2.6 percentage points.
• Total reported revenue year-to-date declined over $41 million vs 2024, but year-to-date adjusted EBITDAre down less than $3 million.
• Extended MS 17 and Highland mortgage loans; nontraded preferred stock offering closed, with follow-on offering underway.
• Continued strategic dispositions, expecting to close Hilton Houston NASA Clear Lake sale and sell at least 3 additional assets near term.
• Portfolio demonstrated resilience despite challenging demand; comparable hotel revenue up 1.3% and EBITDA up 2.6%; resort assets and Renaissance Palm Springs performed well.
• Ancillary revenue initiatives gaining traction, expense optimization driving hotel EBITDA growth; capital expenditures completed and planned for various properties.

In the second quarter, comparable total revenue grew 1.3% and comparable hotel EBITDA grew 2.6%. Group revenue for the portfolio declined approximately 4% compared to the prior year period, but resort assets performed well with group revenue up 14% in the second quarter. Renaissance Palm Springs saw a 36% increase in group revenue. Other revenue increased 22% per occupied room compared to the prior year quarter. Absolute terms: Net loss attributable to common stockholders was $39.9 million or $6.88 per diluted share; AFFO per diluted share was $0.78; adjusted EBITDAre for the quarter was $73.8 million.

• Expect demand headwinds to continue subsiding and benefit from anticipated interest rate cuts.
• Plan to continue improving capital structure and exploring opportunistic dispositions.
• Anticipate spending between $90 million and $110 million on capital expenditures in 2025.
• Group demand healthy in third quarter with event-driven demand growing, including 2026 FIFA World Cup positioning portfolio well.

• Forward-looking statements subject to numerous assumptions, uncertainties, and known or unknown risks that could cause actual results to differ materially from anticipated.
• Macroeconomic headwinds driving RevPAR declines and pressuring margins industry-wide.

Q: Are there any questions?

A: No questions today.