EX-99.1 2 d616818dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO    NEWS RELEASE

 

Contact:    David Kimichik    Deric Eubanks    Elise Chittick    Scott Eckstein
   Chief Financial Officer    SVP – Finance    Investor Relations    Financial Relations Board
   (972) 490-9600    (972) 490-9600    (972) 778-9487    (212) 827-3766

ASHFORD TRUST REPORTS THIRD QUARTER RESULTS

INCLUDING ASHFORD PRIME METRICS

RevPAR Growth of 4.3% for all hotels in the Ashford Prime Portfolio

Adjusted EBITDA for the Company increased 7% for the Third Quarter

DALLAS, October 24, 2013 — Ashford Hospitality Trust, Inc. (NYSE: AHT) (“the Company” or “Ashford Trust”) today reported the following results and performance measures for the third quarter ended September 30, 2013. In anticipation of the proposed forthcoming spinout of Ashford Prime, the Company has changed how it’s reporting its pro rata share of the Highland Hospitality Portfolio’s pro forma hotel operating statistics. Previously, the Company reported its Legacy Portfolio and its pro rata share of the Highland Hospitality Portfolio’s pro forma hotel operating statistics separately. Beginning with the third quarter, the Company is now reporting its pro forma hotel operating statistics for both the Ashford Trust Portfolio and the Ashford Prime Portfolio. The Ashford Trust Portfolio includes the Company’s pro rata share of the Highland Hospitality Portfolio, but excludes the Ashford Prime hotels. The performance measurements for Occupancy, Average Daily Rate (ADR), Revenue Per Available Room (RevPAR), and Hotel Operating Profit (or Hotel EBITDA) are pro forma. Unless otherwise stated, all reported results compare the third quarter ended September 30, 2013, with the third quarter ended September 30, 2012 (see discussion below). The reconciliation of non-GAAP financial measures is included in the financial tables accompanying this press release.

FINANCIAL AND OPERATING HIGHLIGHTS

    RevPAR for the Ashford Prime Portfolio hotels not under renovation increased 4.6% during the quarter
    RevPAR for the Ashford Trust Portfolio hotels not under renovation increased 3.1% during the quarter
    RevPAR for all Ashford Prime Portfolio hotels increased 4.3% during the quarter
    RevPAR for all Ashford Trust Portfolio hotels increased 1.5% during the quarter
    Excluding assets located in the Washington, D.C. and Tampa, FL markets, RevPAR increased 7.9% for all Ashford Prime Portfolio hotels
    Excluding assets located in the Washington, D.C., Tampa, FL, and Charlotte, NC markets, RevPAR increased 4.5% for all Ashford Trust Portfolio hotels
    Adjusted EBITDA for the Company increased $5.5 million or 7% during the third quarter
    Hotel EBITDA flow-through was 51% for all Ashford Trust Portfolio hotels
    Net loss attributable to common shareholders for the Company was $24.8 million, or $0.31 per diluted share, compared with net loss attributable to common shareholders of $23.6 million, or $0.35 per diluted share, in the prior-year quarter
    Adjusted funds from operations (AFFO) for the Company was $0.25 per diluted share for the quarter as compared with $0.31 from the prior-year quarter; the prior year quarter included $8.1 million of interest rate derivative income, or $0.09 per diluted share
    During the quarter, the Company completed a $69 million property-level debt financing for the previously-closed acquisition of the 142-room Pier House Resort in Key West, Florida which is not part of the Ashford Prime initial portfolio of hotels, but for which Ashford Prime will have an option to purchase the hotel

 

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AHT Reports Third quarter Results

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October 24, 2013

 

    At the end of the third quarter 2013, the Company had total net working capital of $492 million, including its pro rata share of the Highland Hospitality Portfolio net working capital

CAPITAL EXPENDITURES

    Capex invested in the quarter for the Ashford Prime Portfolio was $3.1 million
    Capex invested in the quarter for the Ashford Trust Portfolio was $40.2 million

ASHFORD PRIME FINANCIAL AND OPERATING HIGHLIGHTS

    RevPAR increased 4.3% to $163.02 for all hotels in the Ashford Prime Portfolio on a 3.3% increase in ADR and a 87 basis point increase in occupancy
    Hotel EBITDA flow-through for all Ashford Prime Portfolio hotels was 33%
    Ashford Prime will have an initial cash balance, including property level working capital, of at least $160.0 million upon spin-off
    Ashford Prime is expected to have an initial annual dividend policy of $0.04 per Ashford Trust share equivalent
    No debt maturities until 2017; all debt is non-recourse

ASHFORD TRUST FINANCIAL AND OPERATING HIGHLIGHTS

    RevPAR increased 1.5% to $97.19 for all hotels in the Ashford Trust Portfolio on a 2.7% increase in ADR and a 81 basis point decrease in occupancy
    Hotel EBITDA flow-through for all Ashford Trust Portfolio hotels was 51%
    All debt is non-recourse

Earlier this year, the Company’s Board of Directors approved a plan to spin-off an 80% ownership interest in an 8-hotel portfolio, totaling 3,146 rooms (2,912 owned rooms), to holders of Ashford Trust common stock in the form of a taxable special distribution. The distribution is expected to be comprised of common stock in Ashford Hospitality Prime, Inc. (“Ashford Prime”), a newly formed company to which Ashford Trust plans to transfer the portfolio interests. This distribution will be made on a pro rata basis to holders of Ashford Trust common stock as of the distribution record date. The Company currently expects to complete the spin-off sometime during the fourth quarter of this year. Ashford Prime is expected to qualify as a real estate investment trust (“REIT”) for federal income tax purposes, and has filed an application to list its shares of common stock on the New York Stock Exchange, under the symbol “AHP.”

The Company has also prepared an Ashford Prime Questions and Answers Presentation, available on the Company’s website at www.ahtreit.com both on the front page and under the Investors tab in the Presentations section. The presentation contains answers to commonly asked questions regarding the spin-off. Additional information can be found in the information statement for Ashford Hospitality Prime that has been filed with the SEC.

CAPITAL STRUCTURE

At September 30, 2013, the Company had total assets of $3.6 billion in continuing operations, and $4.5 billion overall including the Highland Hospitality Portfolio which is not consolidated. As of September 30, 2013, the Company had $2.4 billion of mortgage debt in continuing operations and $3.2 billion overall including the Highland Hospitality Portfolio. Ashford Trust’s total combined debt had a blended average interest rate of 5.3%, with a weighted average debt maturity of 3.0 years. Ashford Prime’s total combined debt had a blended average interest rate of 5.3%, with a weighted average debt maturity of 3.8 years.

On September 11, 2013, the Company announced it had completed a $69 million property-level debt financing

 

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AHT Reports Third quarter Results

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October 24, 2013

 

for the previously-closed acquisition of the 142-room Pier House Resort in Key West, Florida. The new financing has a two-year term and three, one-year extension options with no test requirements for the first two extensions. The loan provides for a floating interest rate of LIBOR + 4.90%, with no LIBOR Floor.

PORTFOLIO REVPAR

As of September 30, 2013, the Ashford Trust Portfolio consisted of direct hotel investments with 115 properties classified in continuing operations. During the third quarter of 2013, 100 of the Ashford Trust Portfolio hotels included in continuing operations were not under renovation. The Company believes reporting its operating metrics for the Ashford Trust Portfolio hotels in continuing operations on a pro forma total basis (all 115 hotels) and pro forma not under renovation basis (100 hotels) is a measure that reflects a meaningful and focused comparison of the operating results in its portfolio. Details of each category are provided in the tables attached to this release.

 

    Pro forma RevPAR increased 1.5% to $97.19 for all hotels in the Ashford Trust Portfolio on a 2.7% increase in ADR and a 81 basis point decrease in occupancy
    Pro forma RevPAR increased 3.1% to $97.12 for hotels not under renovation in the Ashford Trust Portfolio on a 3.0% increase in ADR and a 7 basis point increase in occupancy

As of September 30, 2013, the Ashford Prime Portfolio consisted of direct hotel investments with 8 properties classified in continuing operations. During the third quarter of 2013, 7 of the Ashford Prime Portfolio hotels included in continuing operations were not under renovation. The Company believes reporting its operating metrics for the Ashford Prime Portfolio hotels in continuing operations on a pro forma total basis (all 8 hotels) and pro forma not under renovation basis (7 hotels) is a measure that reflects a meaningful and focused comparison of the operating results in its portfolio. Details of each category are provided in the tables attached to this release.

 

    Pro forma RevPAR increased 4.3% to $163.02 for all hotels in the Ashford Prime Portfolio on a 3.3% increase in ADR and a 87 basis point increase in occupancy
    Pro forma RevPAR increased 4.6% to $171.22 for hotels not under renovation in the Ashford Prime Portfolio on a 2.6% increase in ADR and a 163 basis point increase in occupancy

HOTEL EBITDA MARGINS AND QUARTERLY SEASONALITY TRENDS

The Company believes year-over-year Hotel EBITDA and Hotel EBITDA Margin comparisons are more meaningful to gauge the performance of the Company’s hotels than sequential quarter-over-quarter comparisons. Given the substantial seasonality in the Company’s portfolio and its active capital recycling, to help investors better understand this seasonality, the Company provides quarterly detail on its Hotel EBITDA and Hotel EBITDA Margin for the current and certain prior-year periods based upon the number of hotels in the Ashford Trust Portfolio, including its pro-rata share of the Highland Hospitality Portfolio, and the Ashford Prime Portfolio as of the end of the current period. As the Company’s portfolio mix changes from time to time so will the seasonality for Pro forma Hotel EBITDA and Pro forma Hotel EBITDA margin. The details of the quarterly calculations for the previous four quarters for the 115 Ashford Trust Portfolio hotels included in continuing operations and the 8 Ashford Prime Portfolio hotels included in continuing operations are provided in the table attached to this release.

In addition, in 2013, Marriott Hotels and Resorts converted to a monthly reporting calendar as opposed to its traditional thirteen-period reporting calendar. Historically, the Company has recorded four of its Marriott-managed hotels’ accounting periods in the fourth quarter and three in each of the other quarters during the year. Presently, Marriott manages 38 hotels for the Company, comprising 32 hotels in the Ashford Trust Portfolio and 6 hotels in the Ashford Prime Portfolio, making it one of the Company’s largest property managers. Accordingly, this year the Company has converted its 2012 numbers on a pro forma basis to calendar months, consistent with the new Marriott monthly reporting calendar, to provide necessary consistency in period-to-period comparisons.

 

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AHT Reports Third quarter Results

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October 24, 2013

 

ASSET MANAGEMENT

On August 12, 2013, the Company announced that it had entered into a franchise agreement to convert the 258-room, Crowne Plaza Beverly Hills, in the Ashford Trust Portfolio, to a Marriott after the expiration of the existing Crowne Plaza license agreement in March of 2015. The conversion includes an extensive product improvement plan (PIP), estimated at $25 million, to include an upgrade of the Heating, Ventilation and Air Conditioning (HVAC) system, an extensive renovation of the guestrooms and public areas, including a transformational lobby renovation, and exterior improvements which will enhance the sense of arrival for guests. The newly-minted Marriott Beverly Hills will continue to be managed by Remington Lodging & Hospitality following the completion of the conversion.

Additionally, the Company also announced that on May 31, 2013, it completed the transfer of management from Marriott to Remington Lodging & Hospitality at seven of its select-service hotels in the Ashford Trust Portfolio (SpringHill Suites Richmond Virginia Center; Residence Inn Phoenix Airport; Residence Inn Newark Silicon Valley, CA; Courtyard Oakland Airport; Courtyard Newark Silicon Valley, CA; Courtyard Palm Desert; and Residence Inn Palm Desert) and one full-service hotel in the Ashford Trust Portfolio (Marriott Suites Market Center Dallas). All of the franchise agreements include PIPs.

COMMON STOCK DIVIDEND

On September 13, 2013, the Company announced that its Board of Directors had declared a quarterly cash dividend of $0.12 per diluted share for the Company’s common stock for the third quarter ending September 30, 2013, payable on October 15, 2013, to shareholders of record as of September 30, 2013.

“Our Ashford Prime Portfolio experienced solid RevPAR growth during the quarter as our west coast assets continued to outperform, despite difficult year-over year comparisons we faced in the Tampa and Charlotte markets due to last year’s political conventions. Additionally, our investment in the Pier House Resort continues to pay off as this asset showed further increases in both RevPAR growth and Hotel EBITDA Margin,” commented Monty J. Bennett, Ashford’s Chairman and Chief Executive Officer. “The Pier House also demonstrates the opportunities we are currently seeing in the debt markets, given the successful property-level debt financing we were able to achieve. Interest rates and other market conditions remain very favorable and we will selectively pursue refinancing opportunities throughout our portfolio to capitalize on these trends, consistent with our standing goal of finding new and innovative ways to maximize shareholder value.”

INVESTOR CONFERENCE CALL AND SIMULCAST

Ashford Hospitality Trust, Inc. will conduct a conference call on Friday, October 25, 2013, at 11:00 a.m. ET. The number to call for this interactive teleconference is (480) 629-9819. A replay of the conference call will be available through Friday November 1, 2013, by dialing (303) 590-3030 and entering the confirmation number, 4644872.

The Company will also provide an online simulcast and rebroadcast of its third quarter 2013 earnings release conference call. The live broadcast of Ashford Hospitality Trust’s quarterly conference call will be available online at the Company’s web site, www.ahtreit.com on Friday, October 25, 2013, beginning at 11:00 a.m. ET. The online replay will follow shortly after the call and continue for approximately one year.

Substantially all of our non-current assets consist of real estate investments and debt investments secured by real estate. Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, most industry investors consider supplemental measures of performance, which are not measures of

 

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AHT Reports Third quarter Results

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operating performance under GAAP, to assist in evaluating a real estate company’s operations. These supplemental measures include FFO, AFFO, EBITDA, and Hotel Operating Profit. FFO is computed in accordance with our interpretation of standards established by NAREIT, which may not be comparable to FFO reported by other REITs that do not define the term in accordance with the current NAREIT definition or that interpret the NAREIT definition differently than us. Neither FFO, AFFO, EBITDA, nor Hotel Operating Profit represents cash generated from operating activities as determined by GAAP and should not be considered as an alternative to a) GAAP net income (loss) as an indication of our financial performance or b) GAAP cash flows from operating activities as a measure of our liquidity, nor are such measures indicative of funds available to satisfy our cash needs, including our ability to make cash distributions. However, management believes FFO, AFFO, EBITDA, and Hotel Operating Profit to be meaningful measures of a REIT’s performance and should be considered along with, but not as an alternative to, net income and cash flow as a measure of our operating performance.

* * * * *

Ashford Hospitality Trust is a real estate investment trust (REIT) focused on investing opportunistically in the hospitality industry across all segments and at all levels of the capital structure primarily within the United States.

Ashford Hospitality Prime will be a conservatively capitalized real estate investment trust (REIT) focused on investing in high RevPAR full-service and urban select-service hotels located predominantly in domestic and international gateway markets.

Follow Chairman and CEO Monty Bennett on Twitter at www.twitter.com/MBennettAshford or @MBennettAshford.

Certain statements and assumptions in this press release contain or are based upon “forward-looking” information and are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties. When we use the words “will likely result,” “may,” “anticipate,” “estimate,” “should,” “expect,” “believe,” “intend,” or similar expressions, we intend to identify forward-looking statements. Such statements are subject to numerous assumptions and uncertainties, many of which are outside Ashford’s control.

These forward-looking statements are subject to known and unknown risks and uncertainties, which could cause actual results to differ materially from those anticipated, including, without limitation: general volatility of the capital markets and the market price of our common stock; changes in our business or investment strategy; availability, terms and deployment of capital; availability of qualified personnel; changes in our industry and the market in which we operate, interest rates or the general economy; the degree and nature of our competition; the satisfaction of the conditions to the completion of the spin-off; and the estimated timing of completion. These and other risk factors are more fully discussed in Ashford’s filings with the Securities and Exchange Commission. EBITDA is defined as net income before interest, taxes, depreciation and amortization. EBITDA yield is defined as trailing twelve month EBITDA divided by the purchase price. A capitalization rate is determined by dividing the property’s annual net operating income by the purchase price. Net operating income is the property’s funds from operations minus a capital expense reserve of either 4% or 5% of gross revenues. Hotel EBITDA flow-through is the change in Hotel EBITDA divided by the change in total revenues. Hotel EBITDA Margin is Hotel EBITDA divided by total revenues. Funds from operations (“FFO”), as defined by the White Paper on FFO approved by the Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”) in April 2002, represents net income (loss) computed in accordance with generally accepted accounting principles (“GAAP”), excluding gains (or losses) from sales of properties and extraordinary items as defined by GAAP, plus depreciation and amortization of real estate assets, and net of adjustments for the portion of these items related to unconsolidated entities and joint ventures.

The forward-looking statements included in this press release are only made as of the date of this press release. Investors should not place undue reliance on these forward-looking statements. We are not obligated to publicly update or revise any forward-looking statements, whether as a result of new information, future events or circumstances, changes in expectations or otherwise.

 

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ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except share amounts)

 

     September 30,     December 31,  
     2013     2012  
     (Unaudited)  

ASSETS

    

Cash and cash equivalents

   $ 310,427      $ 185,935   

Marketable securities

     25,029        23,620   
  

 

 

   

 

 

 

Total cash, cash equivalents and marketable securities

     335,456        209,555   

Investment in hotel properties, net

     2,929,773        2,872,304   

Restricted cash

     84,215        84,786   

Accounts receivable, net of allowance of $396 and $265, respectively

     30,520        35,116   

Inventories

     2,243        2,111   

Notes receivable, net of allowance of $8,037 and $8,333, respectively

     11,443        11,331   

Investment in unconsolidated joint ventures

     144,068        158,694   

Deferred costs, net

     14,010        17,194   

Prepaid expenses

     13,832        10,145   

Derivative assets, net

     256        6,391   

Other assets

     6,252        4,594   

Intangible asset, net

     2,654        2,721   

Due from affiliates

     1,416        1,168   

Due from third-party hotel managers

     53,218        48,619   
  

 

 

   

 

 

 

Total assets

   $ 3,629,356      $ 3,464,729   
  

 

 

   

 

 

 

LIABILITIES AND EQUITY

    

Liabilities:

    

Indebtedness

   $ 2,440,413      $ 2,339,410   

Capital leases payable

     37        —     

Accounts payable and accrued expenses

     98,697        84,293   

Dividends payable

     20,734        18,258   

Unfavorable management contract liabilities

     8,313        11,165   

Due to related party, net

     1,157        3,725   

Due to third-party hotel managers

     1,846        1,410   

Liabilities associated with marketable securities and other

     1,422        1,641   

Other liabilities

     6,040        6,348   
  

 

 

   

 

 

 

Total liabilities

     2,578,659        2,466,250   
  

 

 

   

 

 

 

Redeemable noncontrolling interests in operating partnership

     196,427        151,179   

Equity:

    

Preferred stock, $0.01 par value, 50,000,000 shares authorized -

    

Series A Cumulative Preferred Stock, 1,657,206 shares issued and outstanding at September 30, 2013 and December 31, 2012

     17        17   

Series D Cumulative Preferred Stock, 9,468,706 shares issued and outstanding at September 30, 2013 and December 31, 2012

     95        95   

Series E Cumulative Preferred Stock, 4,630,000 shares issued and outstanding at September 30, 2013 and December 31, 2012

     46        46   

Common stock, $0.01 par value, 200,000,000 shares authorized, 124,896,765 shares issued, 80,565,563 and 68,150,617 shares outstanding, respectively

     1,249        1,249   

Additional paid-in capital

     1,882,100        1,766,168   

Accumulated other comprehensive loss

     (240     (282

Accumulated deficit

     (889,035     (770,467

Treasury stock, at cost (44,331,202 shares and 56,746,148 shares, respectively)

     (140,054     (164,884
  

 

 

   

 

 

 

Total shareholders’ equity of the Company

     854,178        831,942   

Noncontrolling interests in consolidated entities

     92        15,358   
  

 

 

   

 

 

 

Total equity

     854,270        847,300   
  

 

 

   

 

 

 

Total liabilities and equity

   $ 3,629,356      $ 3,464,729   
  

 

 

   

 

 

 

 

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ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

 

     Three Months Ended     Nine Months Ended  
     September 30,     September 30,  
     2013     2012     2013     2012  
     (Unaudited)     (Unaudited)  

REVENUE

        

Rooms

   $ 197,067      $ 181,511      $ 586,276      $ 540,799   

Food and beverage

     34,444        33,732        117,328        115,382   

Other

     10,364        8,852        28,509        25,595   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total hotel revenue

     241,875        224,095        732,113        681,776   

Other

     149        100        392        252   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Revenue

     242,024        224,195        732,505        682,028   
  

 

 

   

 

 

   

 

 

   

 

 

 

EXPENSES

        

Hotel operating expenses

        

Rooms

     45,079        41,673        132,310        122,076   

Food and beverage

     25,860        24,486        80,651        78,436   

Other expenses

     74,275        67,723        215,923        203,988   

Management fees

     9,888        9,261        30,467        28,142   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total hotel operating expenses

     155,102        143,143        459,351        432,642   

Property taxes, insurance, and other

     12,474        11,487        36,385        33,337   

Depreciation and amortization

     32,777        33,558        98,099        100,691   

Impairment charges

     (101     (5,066     (296     (5,253

Transaction acquisition costs

     126        —          1,296        —     

Corporate, general, and administrative:

        

Stock/unit-based compensation

     4,156        4,332        17,049        13,701   

Other general and administrative

     9,309        6,519        25,631        19,326   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Operating Expenses

     213,843        193,973        637,515        594,444   
  

 

 

   

 

 

   

 

 

   

 

 

 

OPERATING INCOME

     28,181        30,222        94,990        87,584   

Equity in loss of unconsolidated joint ventures

     (10,105     (7,373     (14,626     (17,654

Interest income

     12        30        61        84   

Other income

     314        8,671        6,446        22,988   

Interest expense

     (34,679     (35,532     (102,300     (104,046

Amortization of loan costs

     (1,946     (1,597     (5,731     (4,243

Write-off of deferred loan costs and exit fees

     —          —          (1,971     —     

Unrealized gain (loss) on marketable securities

     257        (48     2,039        3,365   

Unrealized loss on derivatives

     (817     (9,353     (7,177     (26,753
  

 

 

   

 

 

   

 

 

   

 

 

 

LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

     (18,783     (14,980     (28,269     (38,675

Income tax expense

     (619     (639     (1,688     (2,884
  

 

 

   

 

 

   

 

 

   

 

 

 

LOSS FROM CONTINUING OPERATIONS

     (19,402     (15,619     (29,957     (41,559

Loss from discontinued operations

     —          (2,412     —          (6,966
  

 

 

   

 

 

   

 

 

   

 

 

 

NET LOSS

     (19,402     (18,031     (29,957     (48,525

Loss from consolidated entities attributable to noncontrolling interests

     175        219        890        444   

Net loss attributable to redeemable noncontrolling interests in operating partnership

     2,892        2,665        5,152        6,902   
  

 

 

   

 

 

   

 

 

   

 

 

 

NET LOSS ATTRIBUTABLE TO THE COMPANY

     (16,335     (15,147     (23,915     (41,179

Preferred dividends

     (8,490     (8,490     (25,471     (25,312
  

 

 

   

 

 

   

 

 

   

 

 

 

NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS

   $ (24,825   $ (23,637   $ (49,386   $ (66,491
  

 

 

   

 

 

   

 

 

   

 

 

 

INCOME (LOSS) PER SHARE – BASIC AND DILUTED

        

Basic:

        

Loss from continuing operations attributable to common shareholders

   $ (0.31   $ (0.32   $ (0.69   $ (0.90

Loss from discontinued operations attributable to common shareholders

     —          (0.03     —        $ (0.09
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss attributable to common shareholders

   $ (0.31   $ (0.35   $ (0.69   $ (0.99
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average common shares outstanding – basic

     79,898        67,659        72,068        67,484   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted:

        

Loss from continuing operations attributable to common shareholders

   $ (0.31   $ (0.32   $ (0.69   $ (0.90

Loss from discontinued operations attributable to common shareholders

     —        $ (0.03     —        $ (0.09
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss attributable to common shareholders

   $ (0.31   $ (0.35   $ (0.69   $ (0.99
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average common shares outstanding – diluted

     79,898        67,659        72,068        67,484   
  

 

 

   

 

 

   

 

 

   

 

 

 

Dividends declared per common share:

   $ 0.12      $ 0.11      $ 0.36      $ 0.33   
  

 

 

   

 

 

   

 

 

   

 

 

 

Amounts attributable to common shareholders:

        

Loss from continuing operations

   $ (16,335   $ (13,038   $ (23,915   $ (35,082

Loss from discontinued operations

     —          (2,109     —          (6,097

Preferred dividends

     (8,490     (8,490     (25,471     (25,312
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss attributable to common shareholders

   $ (24,825   $ (23,637   $ (49,386   $ (66,491
  

 

 

   

 

 

   

 

 

   

 

 

 

 

- MORE -


ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

RECONCILIATION OF NET LOSS TO EBITDA

(in thousands)

(Unaudited)

 

     Three Months Ended     Nine Months Ended  
     September 30,     September 30,  
     2013     2012     2013     2012  

Net loss

   $ (19,402   $ (18,031   $ (29,957   $ (48,525

Loss from consolidated entities attributable to noncontrolling interests

     175        219        890        444   

Net loss attributable to redeemable noncontrolling interests in operating partnership

     2,892        2,665        5,152        6,902   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss attributable to the Company

     (16,335     (15,147     (23,915     (41,179

Interest income

     (12     (30     (60     (84

Interest expense and amortization of loan costs

     36,120        37,190        106,621        108,280   

Depreciation and amortization

     31,952        33,434        95,618        100,451   

Impairment charges

     (101     (5,066     (296     (1,133

Income tax expense

     619        639        1,688        2,884   

Net loss attributable to redeemable noncontrolling interests in operating partnership

     (2,892     (2,665     (5,152     (6,902

Equity in loss of unconsolidated joint ventures

     10,105        7,373        14,626        17,654   

Company’s portion of EBITDA of unconsolidated joint ventures

     19,262        17,996        63,398        57,676   
  

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

     78,718        73,724        252,528        237,647   

Amortization of unfavorable management contract liabilities

     (533     (565     (1,730     (1,694

Write-off of loan costs and exit fees

     —          —          1,971        —     

Other income (1)

     (314     (8,671     (6,446     (22,988

Transaction, acquisition and management conversion costs

     326        —          1,626        —     

Transaction costs related to proposed spin-off

     2,587        —          6,442        —     

Legal costs related to litigation settlements (2)

     —          755        —          2,463   

Unrealized (gain) loss on marketable securities

     (257     48        (2,039     (3,365

Unrealized loss on derivatives

     817        9,353        7,177        26,753   

El Conquistador results since appointment of receiver (3)

     —          897        —          897   

Equity-based compensation

     4,156        4,332        17,049        13,701   

Company’s portion of adjustments to EBITDA of unconsolidated joint ventures

     2        81        24        225   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

   $ 85,502      $ 79,954      $ 276,602      $ 253,639   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) Other income, primarily consisting of income from interest rate derivatives in both periods and net realized loss on marketable securities in both periods, is excluded from Adjusted EBITDA.
(2) Legal costs associated with litigation settlements are excluded from Adjusted EBITDA.
(3) On August 15, 2012, a receiver was appointed to take over this hotel and had full control of the hotel operations and cash flow. The operating results for the Hilton El Conquistador in Tucson, AZ from that date through September 30, 2012 are excluded from Adjusted EBITDA.

RECONCILIATION OF NET LOSS TO FUNDS FROM OPERATIONS (“FFO”)

(in thousands, except per share amounts)

(Unaudited)

 

     Three Months Ended     Nine Months Ended  
     September 30,     September 30,  
     2013     2012     2013     2012  

Net loss

   $ (19,402   $ (18,031   $ (29,957   $ (48,525

Loss from consolidated entities attributable to noncontrolling interests

     175        219        890        444   

Net loss attributable to redeemable noncontrolling interests in operating partnership

     2,892        2,665        5,152        6,902   

Preferred dividends

     (8,490     (8,490     (25,471     (25,312
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss attributable to common shareholders

     (24,825     (23,637     (49,386     (66,491

Depreciation and amortization on real estate

     31,842        33,398        95,304        100,289   

Impairment charges

     (101     (5,066     (296     (1,133

Net loss attributable to redeemable noncontrolling interests in operating partnership

     (2,892     (2,665     (5,152     (6,902

Equity in loss of unconsolidated joint ventures

     10,105        7,373        14,626        17,654   

Company’s portion of FFO of unconsolidated joint ventures

     6,991        5,845        27,245        21,255   
  

 

 

   

 

 

   

 

 

   

 

 

 

FFO available to common shareholders

     21,120        15,248        82,341        64,672   

Write-off of loan costs and exit fees

     —          —          1,971        —     

Other income (1)

     (314     (607     (231     1,065   

Legal costs related to litigation settlements (2)

     —          755        —          2,463   

Transaction, acquisition and management conversion costs

     326        —          1,626        —     

Transaction costs related to proposed spin-off

     2,587        —          6,442        —     

Unrealized (gain) loss on marketable securities

     (257     48        (2,039     (3,365

Unrealized loss on derivatives

     817        9,353        7,177        26,753   

El Conquistador results since appointment of receiver (3)

     —          1,144        —          1,144   

Equity-based compensation adjustment related to modified employment terms

     —          —          4,678        480   

Company’s portion of adjustments to FFO of unconsolidated joint ventures

     2        89        24        233   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted FFO available to common shareholders

   $ 24,281      $ 26,030      $ 101,989      $ 93,445   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted FFO per diluted share available to common shareholders

   $ 0.25      $ 0.31      $ 1.12      $ 1.10   
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average diluted shares

     98,982        85,344        90,800        84,976   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) Other income, primarily consisting of net realized loss on marketable securities in both periods, is excluded from Adjusted FFO.
(2) Legal costs associated with litigation settlements are excluded from Adjusted FFO.
(3) On August 15, 2012, a receiver was appointed to take over this hotel and had full control of the hotel operations and cash flow. The operating results for the Hilton El Conquistador in Tucson, AZ from that date through September 30, 2012 are excluded from Adjusted FFO.

 

- MORE -


ASHFORD TRUST (INCLUDING 71.74% PRO RATA SHARE OF HIGHLAND HOSPITALITY PORTFOLIO, EXCLUDING ASHFORD PRIME)

SUMMARY OF INDEBTEDNESS OF CONTINUING OPERATIONS

SEPTEMBER 30, 2013

(dollars in thousands)

(Unaudited)

 

                              Proforma     Proforma  
            Fixed-Rate     Floating-Rate     Total     TTM Hotel     TTM EBITDA  

Indebtedness

 

Maturity

 

Interest Rate

  Debt     Debt     Debt     EBITDA     Debt Yield  

BoA MIP - 5 hotels

  March 2014   LIBOR + 4.50%   $ —        $ 167,327 (1)    $ 167,327      $ 18,579        11.1

Wells Senior - 25 hotels

  March 2014   LIBOR + 3.00%     —          380,222 (5)      380,222        65,846        17.3

Mezz 1 - 28 hotels

  March 2014   Greater of 7.00% or LIBOR + 6.00%     —          93,581 (5)      93,581        88,233        14.4

Mezz 2 - 28 hotels

  March 2014   Greater of 8.00% or LIBOR + 7.00%     —          89,087 (5)      89,087        88,233        12.6

Mezz 3 - 28 hotels

  March 2014   Greater of 10.50% or LIBOR + 9.50%     —          76,360 (5)      76,360        88,233        11.3

Mezz 4 - 28 hotels

  March 2014   LIBOR + 2.00%       13,218 (5)      13,218        88,233        11.1

JPM Floater - 9 hotels

  May 2014   LIBOR + 6.50%     —          135,000 (2)      135,000        17,462        12.9

GEMSA Manchester - 1 hotel

  May 2014   8.32%     5,147        —          5,147        679        13.2

Senior credit facility - Various

  September 2014   LIBOR + 2.75% to 3.5%     —          —          —          N/A        N/A   

Goldman Sachs - 5 hotels

  November 2014   Greater of 6.40% or LIBOR + 6.15%     —          211,000 (3)      211,000        24,225        11.5

UBS 1 - 8 hotels

  December 2014   5.75%     102,948        —          102,948        11,888        11.5

Merrill 1 - 10 hotels

  July 2015   5.22%     150,177        —          150,177        21,402        14.3

JPM Pier House - 1 hotel

  September 2015   LIBOR + 4.90%     —          69,000 (4)      69,000        6,867        10.0

UBS 2 - 8 hotels

  December 2015   5.70%     95,415        —          95,415        11,381        11.9

Merrill 2 - 5 hotels

  February 2016   5.53%     108,557        —          108,557        16,546        15.2

Merrill 3 - 5 hotels

  February 2016   5.53%     90,027        —          90,027        15,703        17.4

Merrill 7 - 5 hotels

  February 2016   5.53%     77,983        —          77,983        13,005        16.7

Wachovia 1 - 5 hotels

  April 2017   5.95%     113,703        —          113,703        12,458        11.0

Wachovia 5 - 5 hotels

  April 2017   5.95%     102,201        —          102,201        10,451        10.2

Wachovia 6 - 5 hotels

  April 2017   5.95%     155,511        —          155,511        16,415        10.6

Wachovia 2 - 7 hotels

  April 2017   5.95%     124,391        —          124,391        12,519        10.1

Morgan Stanley Boston Back Bay - 1 hotel

  January 2018   4.38%     73,113        —          73,113        9,223        12.6

Morgan Stanley Princeton/Nashville - 2 hotels

  January 2018   4.44%     79,938        —          79,938        13,164        16.5

GACC Gateway - 1 hotel

  November 2020   6.26%     101,604        —          101,604        14,693        14.5

Zion Jacksonville RI - 1 hotel

  April 2034   Greater of 6% or Prime + 1%     —          6,393        6,393        1,278        20.0

Unencumbered hotels

        —          —          —          973        N/A   
     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

      $ 1,380,715      $ 1,241,188      $ 2,621,903      $ 314,757        12.0
     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Percentage

        52.7     47.3     100.0    
     

 

 

   

 

 

   

 

 

     

Weighted average interest rate

        5.62     5.50     5.56    
     

 

 

   

 

 

   

 

 

     

Weighted average interest rate with the effect of interest rate swaps

    5.17 %(6)      5.50 %(6)      5.33    
     

 

 

   

 

 

   

 

 

     

 

All indebtedness is non-recourse with the exception of the senior credit facility.

(1)  This mortgage loan has a one-year extension option beginning March 2014, subject to satisfaction of certain conditions.
(2)  This mortgage loan has three one-year extension options beginning May 2014, subject to satisfaction of certain conditions.
(3)  This mortgage loan has three one-year extension options beginning November 2014, subject to satisfaction of certain conditions.
(4)  This mortgage loan has three one-year extension options beginning September 2015, subject to satisfaction of certain conditions.
(5)  Each of these loans has two one-year extension options beginning March 2014.
(6)  These rates are calculated assuming the LIBOR rate stays at the September 30, 2013 level and with the effect of our interest rate derivatives.

ASHFORD PRIME

SUMMARY OF INDEBTEDNESS OF CONTINUING OPERATIONS

SEPTEMBER 30, 2013

(dollars in thousands)

(Unaudited)

 

                              Proforma      Proforma  
            Fixed-Rate     Floating-Rate     Total     TTM Hotel      TTM EBITDA  

Indebtedness

 

Maturity

 

Interest Rate

  Debt     Debt     Debt     EBITDA      Debt Yield  

Wachovia Philly CY - 1 hotel

  April 2017   5.91%   $ 34,420      $ —        $ 34,420      $ 10,530         30.6

Wachovia 3 - 2 hotels

  April 2017   5.95%     126,147        —          126,147        17,209         13.6

Wachovia 7 - 3 hotels

  April 2017   5.95%     256,698        —          256,698        25,443         9.9

Aareal - 2 hotels

  February 2018   LIBOR + 3.50%     —          198,666        198,666        23,910         12.0

TIF Philly CY - 1 hotel

  June 2018   12.85%     8,098        —          8,098        N/A         N/A   
     

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Total

      $ 425,363      $ 198,666      $ 624,029      $ 77,092         12.4
     

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Percentage

        68.2     31.8     100.0     
     

 

 

   

 

 

   

 

 

      

Weighted average interest rate

        6.08     3.68     5.32     
     

 

 

   

 

 

   

 

 

      

All indebtedness is non-recourse.

 

- MORE -


ASHFORD TRUST (INCLUDING 71.74% PRO RATA SHARE OF HIGHLAND HOSPITALITY PORTFOLIO, EXCLUDING ASHFORD PRIME)

INDEBTEDNESS BY MATURITY ASSUMING EXTENSION OPTIONS ARE EXERCISED

SEPTEMBER 30, 2013

(in thousands)

(Unaudited)

 

     2013      2014      2015      2016      2017      Thereafter      Total  

GEMSA Manchester - 1 hotel

   $ —         $ 5,004       $ —         $ —         $ —         $ —         $ 5,004   

Senior credit facility - Various

     —           —           —           —           —           —           —     

UBS 1 - 8 hotels

     —           100,119         —           —           —           —           100,119   

BoA MIP - 5 hotels

     —           —           167,327         —           —           —           167,327   

Merrill 1 - 10 hotels

     —           —           142,922         —           —           —           142,922   

UBS 2 - 8 hotels

     —           —           90,680         —           —           —           90,680   

Merrill 2 - 5 hotels

     —           —           —           101,740         —           —           101,740   

Merrill 3 - 5 hotels

     —           —           —           84,374         —           —           84,374   

Merrill 7 - 5 hotels

     —           —           —           73,086         —           —           73,086   

Wells Senior - 25 hotels

     —           —           —           380,222         —           —           380,222   

Mezz 1 - 28 hotels

     —           —           —           93,581         —           —           93,581   

Mezz 2 - 28 hotels

     —           —           —           89,087         —           —           89,087   

Mezz 3 - 28 hotels

     —           —           —           76,360         —           —           76,360   

Mezz 4 - 28 hotels

     —           —           —           13,218         —           —           13,218   

JPM Floater - 9 hotels

     —           —           —           —           135,000         —           135,000   

Wachovia 1 - 5 hotels

     —           —           —           —           107,351         —           107,351   

Wachovia 5 - 5 hotels

     —           —           —           —           96,491         —           96,491   

Wachovia 6 - 5 hotels

     —           —           —           —           146,823         —           146,823   

Wachovia 2 - 7 hotels

     —           —           —           —           117,441         —           117,441   

Goldman Sachs - 5 hotels

     —           —           —           —           211,000         —           211,000   

GACC Gateway - 1 hotel

     —           —           —           —           —           89,886         89,886   

JPM Pier House - 1 hotel

     —           —           —           —           —           69,000         69,000   

Morgan Stanley Boston Back Bay - 1 hotel

     —           —           —           —           —           67,358         67,358   

Morgan Stanley Princeton/Nashville - 2 hotels

     —           —           —           —           —           73,703         73,703   

Zion Jacksonville RI - 1 hotel

     —           —           —           —           —           —           —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Principal due in future periods

   $ —         $ 105,123       $ 400,929       $ 911,667       $ 814,106       $ 299,946       $ 2,531,772   

Scheduled amortization payments remaining

     9,297         24,967         23,202         13,035         15,989         3,641         90,132   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total indebtedness of continuing operations

   $ 9,297       $ 130,090       $ 424,131       $ 924,702       $ 830,095       $ 303,587       $ 2,621,903   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

NOTE: These maturities assume no event of default would occur.

ASHFORD PRIME

INDEBTEDNESS BY MATURITY ASSUMING EXTENSION OPTIONS ARE EXERCISED

SEPTEMBER 30, 2013

(in thousands)

(Unaudited)

 

     2013      2014      2015      2016      2017      Thereafter      Total  

Wachovia Philly CY - 1 hotel

   $ —         $ —         $ —         $ —         $ 32,532       $ —         $ 32,532   

Wachovia 3 - 2 hotels

     —           —           —           —           119,245         —           119,245   

Wachovia 7 - 3 hotels

     —           —           —           —           242,201         —           242,201   

Aareal - 2 hotels

     —           —           —           —           —           186,259         186,259   

TIF Philly CY - 1 hotel

     —           —           —           —           —           8,098         8,098   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Principal due in future periods

   $ —         $ —         $ —         $ —         $ 393,978       $ 194,357       $ 588,335   

Scheduled amortization payments remaining

     3,030         8,403         8,917         9,464         5,350         530         35,694   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total indebtedness of continuing operations

   $ 3,030       $ 8,403       $ 8,917       $ 9,464       $ 399,328       $ 194,887       $ 624,029   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

- MORE -


ASHFORD TRUST (INCLUDING 71.74% PRO RATA SHARE OF HIGHLAND HOSPITALITY PORTFOLIO, EXCLUDING ASHFORD PRIME)

KEY PERFORMANCE INDICATORS - PRO FORMA

(dollars in thousands)

(Unaudited)

 

    Three Months Ended     Nine Months Ended  
    September 30,     September 30,  
    2013     2012     % Variance     2013     2012     % Variance  

ALL HOTELS INCLUDED IN ASHFORD TRUST CONTINUING OPERATIONS:

           

Room revenues (in thousands)

  $ 204,188      $ 201,080        1.55   $ 625,474      $ 607,446        2.97

RevPAR

  $ 97.19      $ 95.72        1.54   $ 99.92      $ 96.95        3.06

Occupancy

    73.97     74.78     -0.81     74.05     74.26     -0.21

ADR

  $ 131.39      $ 128.00        2.65   $ 134.93      $ 130.56        3.35

NOTES:

 

(1) The above pro forma table assumes the 115 hotel properties owned and included in continuing operations at September 30, 2013 were owned as of the beginning of the period presented.

 

    Three Months Ended     Nine Months Ended  
    September 30,     September 30,  
    2013     2012     % Variance     2013     2012     % Variance  

ALL HOTELS NOT UNDER RENOVATION

           

INCLUDED IN ASHFORD TRUST CONTINUING OPERATIONS:

           

Room revenues (in thousands)

  $ 170,369      $ 165,227        3.11   $ 511,654      $ 494,665        3.43

RevPAR

  $ 97.12      $ 94.20        3.10   $ 97.91      $ 94.57        3.53

Occupancy

    74.76     74.69     0.07     74.09     73.95     0.14

ADR

  $ 129.91      $ 126.12        3.01   $ 132.16      $ 127.87        3.35

NOTES:

 

(1) The above pro forma table assumes the 100 hotel properties owned and included in continuing operations at September 30, 2013, but not under renovation for three and nine months ended September 30, 2013 were owned as of the beginning of the periods presented.
(2) Excluded Hotels Under Renovation:

Hampton Inn Buford, Hampton Inn Terre Haute, Embassy Suites Palm Beach Gardens, Hilton Garden Inn Jacksonville, Marriott DFW, Hilton St. Petersburg, Residence Inn Atlanta Buckhead, Hyatt Coral Gables, Marriott Crystal Gateway, Courtyard Boston Downtown, Hyatt Regency Wind Watch, Silversmith, Renaissance Nashville, Hilton Parsippany, Hilton Garden Inn Austin

(3) On January 1, 2013, Marriott converted from a fiscal year with 12 weeks of operations in each of the first three quarters of the year and 16 weeks in the fourth quarter of the year, to calendar quarters. The above proforma table assumes the Marriott-managed properties were reported on calendar quarters for all periods presented.

 

- MORE -


ASHFORD PRIME

KEY PERFORMANCE INDICATORS - PRO FORMA

(dollars in thousands)

(Unaudited)

 

    Three Months Ended     Nine Months Ended  
    September 30,     September 30,  
    2013     2012     % Variance     2013     2012     % Variance  

ALL HOTELS INCLUDED IN ASHFORD PRIME CONTINUING OPERATIONS:

           

Room revenues (in thousands)

  $ 47,184      $ 45,228        4.32   $ 132,852      $ 125,325        6.01

RevPAR

  $ 163.02      $ 156.27        4.32   $ 153.50      $ 145.02        5.85

Occupancy

    84.44     83.57     0.87     80.39     79.33     1.06

ADR

  $ 193.07      $ 187.00        3.25   $ 190.94      $ 182.80        4.45

NOTES:

 

(1) The above pro forma table assumes the eight hotel properties included in the Prime portfolio at September 30, 2013 were owned as of the beginning of the period presented.
(2) Prime portfolio includes: Capital Hilton Washington DC, Hilton La Jolla Torrey Pines, Courtyard Philadelphia Downtown, Marriott Dallas Plano Legacy, Courtyard San Francisco Downtown, Courtyard Seattle Downtown Lake Union, Marriott Seattle Waterfront, Renaissance Tampa International Plaza
(3) On January 1, 2013, Marriott converted from a fiscal year with 12 weeks of operations in each of the first three quarters of the year and 16 weeks in the fourth quarter of the year, to calendar quarters. The above proforma table assumes the Marriott-managed properties were reported on calendar quarters for all periods presented.

 

    Three Months Ended     Nine Months Ended  
    September 30,     September 30,  
    2013     2012     % Variance     2013     2012     % Variance  

ALL HOTELS NOT UNDER RENOVATION

           

INCLUDED IN ASHFORD PRIME CONTINUING OPERATIONS:

           

Room revenues (in thousands)

  $ 43,193      $ 41,303        4.58   $ 119,922      $ 113,463        5.69

RevPAR

  $ 171.22      $ 163.73        4.57   $ 159.05      $ 150.66        5.57

Occupancy

    87.94     86.31     1.63     82.35     81.32     1.03

ADR

  $ 194.70      $ 189.70        2.64   $ 193.14      $ 185.27        4.25

NOTES:

 

(1) The above pro forma table assumes the seven hotel properties included in the Prime portfolio at September 30, 2013, but not under renovation for the three and nine months ended September 30, 2013 were owned as of the beginning of the periods presented.
(2) Excluded Hotels Under Renovation:

Marriott Dallas Plano Legacy

(3) On January 1, 2013, Marriott converted from a fiscal year with 12 weeks of operations in each of the first three quarters of the year and 16 weeks in the fourth quarter of the year, to calendar quarters. The above proforma table assumes the Marriott-managed properties were reported on calendar quarters for all periods presented.

 

- MORE -


ASHFORD HOSPITALITY TRUST, INC.

PRO FORMA HOTEL OPERATING PROFIT MARGIN

(Unaudited)

THE FOLLOWING PRO FORMA EBITDA MARGIN TABLES REFLECT: (I) THE 87 HOTELS INCLUDED IN THE COMPANY’S CONTINUING OPERATIONS AND THE COMPANY’S 71.74% SHARE OF THE 28 HOTELS INCLUDED IN HIGHLAND HOSPITALITY PORTFOLIO (PIM HIGHLAND HOLDING LLC), AND (II) THE EIGHT HOTELS INCLUDED IN ASHFORD PRIME, AS IF THESE HOTELS WERE OWNED AT THE BEGINNING OF THE FIRST COMPARATIVE REPORTING PERIOD.

 

     115 Ashford     8 Ashford  
    

Trust

    Prime  
     Properties     Properties  

HOTEL OPERATING PROFIT (HOTEL EBITDA) MARGIN:

    

3rd Quarter 2013

     29.74     34.20

3rd Quarter 2012

     29.62     34.24
  

 

 

   

 

 

 

Variance

     0.12     -0.04
  

 

 

   

 

 

 

HOTEL OPERATING PROFIT (HOTEL EBITDA) MARGIN VARIANCE BREAKDOWN:

    

Rooms

     -0.22     0.06

Food & Beverage and Other Departmental

     0.18     0.79

Administrative & General

     0.00     0.29

Sales & Marketing

     0.23     0.27

Hospitality

     -0.12     0.00

Repair & Maintenance

     -0.18     0.24

Energy

     0.04     0.35

Franchise Fee

     -0.10     0.00

Management Fee

     0.01     -0.08

Incentive Management Fee

     -0.01     -1.36

Insurance

     0.04     -0.08

Property Taxes

     -0.03     -0.42

Other Taxes

     0.03     0.00

Leases/Other

     0.25     -0.10
  

 

 

   

 

 

 

Total

     0.12     -0.04
  

 

 

   

 

 

 

NOTE:

On January 1, 2013, Marriott converted from a fiscal year with 12 weeks of operations in each of the first three quarters of the year and 16 weeks in the fourth quarter of the year, to calendar quarters. The above proforma table assumes the Marriott-managed properties were reported on calendar quarters for all periods presented.

 

- MORE -


ASHFORD PRIME

SELECTED PRO FORMA FINANCIAL AND OPERATING INFORMATION BY PROPERTY

(in thousands, except operating information)

The following tables present selected financial and operating information by property for the eight properties included in Ashford Hospitality Prime, Inc.

 

     Three Months Ended     Nine Months Ended     TTM  
     September 30,     September 30,     September 30,  
     2013     2012     % Variance     2013     2012     % Variance     2013  

CAPITAL HILTON WASHINGTON DC

              

Selected Financial Information:

              

Room Revenue

   $ 8,116      $ 8,508        -4.61   $ 27,983      $ 27,126        3.16   $ 35,917   

Total Revenue

   $ 10,773      $ 11,695        -7.88   $ 38,719      $ 37,758        2.55   $ 50,122   

EBITDA

   $ 2,356      $ 3,471        -32.12   $ 12,144      $ 12,227        -0.68   $ 15,202   

EBITDA Margin

     21.87     29.68     -7.81     31.36     32.38     -1.02     30.33

Selected Operating Information:

              

RevPAR

   $ 162.16      $ 170.00        -4.61   $ 188.42      $ 181.99        3.53   $ 180.89   

Occupancy

     91.59     90.26     1.47     87.17     84.96     2.60     83.95

ADR

   $ 177.05      $ 188.34        -6.00   $ 216.16      $ 214.20        0.92   $ 215.46   

LA JOLLA HILTON TORREY PINES

              

Selected Financial Information:

              

Room Revenue

   $ 6,048      $ 5,522        9.53   $ 14,578      $ 14,560        0.12   $ 18,215   

Total Revenue

   $ 9,136      $ 8,353        9.37   $ 23,899      $ 24,101        -0.84   $ 30,731   

EBITDA

   $ 3,039      $ 2,593        17.20   $ 6,901      $ 7,092        -2.69   $ 8,708   

EBITDA Margin

     33.26     31.04     2.22     28.88     29.43     -0.55     28.34

Selected Operating Information:

              

RevPAR

   $ 166.86      $ 152.35        9.52   $ 135.53      $ 134.87        0.49   $ 126.66   

Occupancy

     93.47     86.61     7.92     78.26     79.99     -2.17     74.52

ADR

   $ 178.51      $ 175.90        1.49   $ 173.18      $ 168.61        2.71   $ 169.96   

PHILADELPHIA COURTYARD DOWNTOWN

              

Selected Financial Information:

              

Room Revenue

   $ 5,844      $ 5,850        -0.10   $ 18,194      $ 17,682        2.90   $ 23,273   

Total Revenue

   $ 7,135      $ 7,063        1.02   $ 21,941      $ 21,265        3.18   $ 28,151   

EBITDA

   $ 2,755      $ 2,484        10.91   $ 8,422      $ 7,697        9.42   $ 10,530   

EBITDA Margin

     38.61     35.17     3.44     38.38     36.20     2.19     37.41

Selected Operating Information:

              

RevPAR

   $ 127.55      $ 127.67        -0.09   $ 132.37      $ 129.11        2.52   $ 128.03   

Occupancy

     82.78     80.20     3.22     80.52     79.94     0.73     78.34

ADR

   $ 154.07      $ 159.20        -3.22   $ 164.39      $ 161.51        1.78   $ 163.44   

PLANO MARRIOTT LEGACY TOWN CENTER

              

Selected Financial Information:

              

Room Revenue

   $ 3,991      $ 3,925        1.68   $ 12,930      $ 11,861        9.01   $ 16,938   

Total Revenue

   $ 5,578      $ 5,899        -5.44   $ 19,572      $ 18,839        3.89   $ 26,063   

EBITDA

   $ 1,716      $ 1,950        -12.00   $ 6,572      $ 6,280        4.65   $ 8,684   

EBITDA Margin

     30.76     33.06     -2.29     33.58     33.34     0.24     33.32

Selected Operating Information:

              

RevPAR

   $ 107.38      $ 105.60        1.69   $ 115.96      $ 106.76        8.62   $ 114.86   

Occupancy

     60.66     64.94     -6.59     67.16     65.85     1.99     67.36

ADR

   $ 177.02      $ 162.61        8.86   $ 172.66      $ 162.13        6.50   $ 170.52   

SAN FRANCISCO COURTYARD DOWNTOWN

              

Selected Financial Information:

              

Room Revenue

   $ 8,421      $ 7,745        8.73   $ 22,624      $ 20,144        12.31   $ 28,523   

Total Revenue

   $ 9,804      $ 8,882        10.38   $ 26,189      $ 23,387        11.98   $ 33,034   

EBITDA

   $ 3,828      $ 3,188        20.08   $ 9,617      $ 7,751        24.07   $ 12,001   

EBITDA Margin

     39.05     35.89     3.15     36.72     33.14     3.58     36.33

Selected Operating Information:

              

RevPAR

   $ 226.01      $ 207.86        8.73   $ 202.39      $ 180.87        11.90   $ 192.95   

Occupancy

     92.70     92.69     0.01     90.09     86.94     3.62     87.75

ADR

   $ 243.82      $ 224.25        8.72   $ 224.66      $ 208.04        7.99   $ 219.89   


ASHFORD PRIME

SELECTED PRO FORMA FINANCIAL AND OPERATING INFORMATION BY PROPERTY

(in thousands, except operating information)

The following tables present selected financial and operating information by property for the eight properties included in Ashford Prime.

 

     Three Months Ended     Nine Months Ended     TTM  
     September 30,     September 30,     September 30,  
     2013     2012     % Variance     2013     2012     % Variance     2013  

SEATTLE COURTYARD DOWNTOWN

              

Selected Financial Information:

              

Room Revenue

   $ 4,074      $ 3,475        17.24   $ 8,903      $ 7,683        15.88   $ 10,960   

Total Revenue

   $ 4,655      $ 3,970        17.25   $ 10,343      $ 8,965        15.37   $ 12,801   

EBITDA

   $ 1,776      $ 1,716        3.50   $ 4,248      $ 3,900        8.92   $ 5,207   

EBITDA Margin

     38.15     43.22     -5.07     41.07     43.50     -2.43     40.68

Selected Operating Information:

              

RevPAR

   $ 177.15      $ 151.08        17.26   $ 129.03      $ 111.75        15.46   $ 120.10   

Occupancy

     87.11     87.21     -0.12     76.96     73.11     5.27     74.95

ADR

   $ 203.37      $ 173.24        17.39   $ 167.66      $ 152.86        9.68   $ 160.25   

SEATTLE MARRIOTT WATERFRONT

              

Selected Financial Information:

              

Room Revenue

   $ 7,948      $ 7,149        11.18   $ 17,782      $ 16,124        10.28   $ 21,940   

Total Revenue

   $ 9,860      $ 9,009        9.45   $ 23,215      $ 21,420        8.38   $ 28,990   

EBITDA

   $ 4,725      $ 3,982        18.66   $ 9,680      $ 8,308        16.51   $ 11,893   

EBITDA Margin

     47.92     44.20     3.72     41.70     38.79     2.91     41.02

Selected Operating Information:

              

RevPAR

   $ 241.31      $ 217.04        11.18   $ 179.97      $ 163.78        9.89   $ 167.90   

Occupancy

     88.56     88.24     0.36     80.21     79.70     0.65     78.09

ADR

   $ 272.47      $ 245.96        10.78   $ 224.36      $ 205.50        9.18   $ 215.02   

TAMPA RENAISSANCE

              

Selected Financial Information:

              

Room Revenue

   $ 2,742      $ 3,055        -10.25   $ 9,858      $ 10,144        -2.82   $ 12,574   

Total Revenue

   $ 4,019      $ 4,494        -10.57   $ 14,512      $ 15,104        -3.92   $ 18,844   

EBITDA

   $ 655      $ 943        -30.54   $ 3,764      $ 4,042        -6.88   $ 4,866   

EBITDA Margin

     16.30     20.98     -4.69     25.94     26.76     -0.82     25.82

Selected Operating Information:

              

RevPAR

   $ 101.72      $ 113.33        -10.24   $ 121.90      $ 125.89        -3.17   $ 117.57   

Occupancy

     75.87     77.00     -1.47     78.55     79.90     -1.69     76.93

ADR

   $ 134.07      $ 147.17        -8.90   $ 155.20      $ 157.56        -1.50   $ 152.82   

PRIME PROPERTIES TOTAL (8)

              

Selected Financial Information:

              

Room Revenue

   $ 47,184      $ 45,228        4.32   $ 132,852      $ 125,325        6.01   $ 168,339   

Total Revenue

   $ 60,961      $ 59,364        2.69   $ 178,388      $ 170,839        4.42   $ 228,737   

EBITDA

   $ 20,849      $ 20,327        2.57   $ 61,349      $ 57,296        7.07   $ 77,091   

EBITDA Margin

     34.20     34.24     -0.04     34.39     33.54     0.85     33.70

Selected Operating Information:

              

RevPAR

   $ 163.02      $ 156.27        4.32   $ 153.50      $ 145.02        5.85   $ 146.60   

Occupancy

     84.44     83.57     1.04     80.39     79.33     1.34     78.20

ADR

   $ 193.07      $ 187.00        3.25   $ 190.94      $ 182.80        4.45   $ 187.46   


ASHFORD TRUST (INCLUDING 71.74% PRO-RATA SHARE OF HIGHLAND HOSPITALITY PORTFOLIO, EXCLUDING ASHFORD PRIME)

PRO FORMA HOTEL OPERATING PROFIT

(dollars in thousands)

(Unaudited)

ALL HOTELS INCLUDED IN ASHFORD TRUST CONTINUING OPERATIONS:

 

     Three Months Ended     Nine Months Ended  
     September 30,     September 30,  
     2013     2012     % Variance     2013     2012     % Variance  

REVENUE

            

Rooms

   $ 204,188      $ 201,080        1.5   $ 625,474      $ 607,445        3.0

Food and beverage

     39,906        42,255        -5.6     136,722        138,892        -1.6

Other

     10,129        9,353        8.3     28,524        27,571        3.5
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total hotel revenue

     254,223        252,688        0.6     790,720        773,908        2.2
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EXPENSES

            

Rooms

     46,804        45,640        2.6     138,971        135,064        2.9

Food and beverage

     29,568        29,904        -1.1     93,589        94,586        -1.1

Other direct

     5,331        5,240        1.7     15,560        15,641        -0.5

Indirect

     73,634        73,243        0.5     219,691        217,013        1.2

Management fees, includes base and incentive fees

     9,879        10,511        -6.0     33,798        34,372        -1.7
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total hotel operating expenses

     165,216        164,538        0.4     501,609        496,676        1.0

Property taxes, insurance, and other

     13,394        13,313        0.6     40,371        37,321        8.2
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

HOTEL OPERATING PROFIT (Hotel EBITDA)

     75,613        74,837        1.0     248,740        239,911        3.7

Hotel EBITDA Margin

     29.74     29.62     0.12     31.46     31.00     0.46

Minority interest in earnings of consolidated joint ventures

     79        59        33.9     192        154        24.7
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

HOTEL OPERATING PROFIT (Hotel EBITDA), excluding minority interest in joint ventures

   $ 75,534      $ 74,778        1.0   $ 248,548      $ 239,757        3.7
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

NOTES:

 

(1) The above pro forma table assumes the 115 hotel properties owned and included in continuing operations at September 30, 2013 were owned as of the beginning of the period presented.
(2) On January 1, 2013, Marriott converted from a fiscal year with 12 weeks of operations in each of the first three quarters of the year and 16 weeks in the fourth quarter of the year, to calendar quarters. The above proforma table assumes the Marriott-managed properties were reported on calendar quarters for all periods presented.

ALL HOTELS NOT UNDER RENOVATION INCLUDED IN ASHFORD TRUST CONTINUING OPERATIONS:

 

     Three Months Ended     Nine Months Ended  
     September 30,     September 30,  
     2013     2012     % Variance     2013     2012     % Variance  

REVENUE

            

Rooms

   $ 170,369      $ 165,227        3.1   $ 511,654      $ 494,665        3.4

Food and beverage

     28,989        29,693        -2.4     95,728        97,095        -1.4

Other

     7,849        7,564        3.8     22,600        22,355        1.1
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total hotel revenue

     207,207        202,484        2.3     629,983        614,115        2.6
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EXPENSES

            

Rooms

     38,694        37,308        3.7     113,121        109,684        3.1

Food and beverage

     21,217        21,160        0.3     65,844        66,570        -1.1

Other direct

     4,420        4,291        3.0     12,831        12,904        -0.6

Indirect

     59,893        59,044        1.4     177,023        174,152        1.6

Management fees, includes base and incentive fees

     8,655        8,758        -1.2     26,851        27,077        -0.8
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total hotel operating expenses

     132,879        130,562        1.8     395,670        390,387        1.4

Property taxes, insurance, and other

     10,561        10,416        1.4     31,878        29,785        7.0
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

HOTEL OPERATING PROFIT (Hotel EBITDA)

     63,766        61,506        3.7     202,435        193,943        4.4

Hotel EBITDA Margin

     30.77     30.38     0.39     32.13     31.58     0.55

Minority interest in earnings of consolidated joint ventures

     1,428        1,575        -9.3     4,953        4,984        -0.6
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

HOTEL OPERATING PROFIT (Hotel EBITDA), excluding minority interest in joint ventures

   $ 62,338      $ 59,931        4.0   $ 197,482      $ 188,959        4.5
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

NOTES:

 

(1) The above pro forma table assumes the 100 hotel properties owned and included in continuing operations at September 30, 2013, but not under renovation for the three and nine months ended September 30, 2013 were owned as of the beginning of the periods presented.
(2) Excluded Hotels Under Renovation:

Hampton Inn Buford, Hampton Inn Terre Haute, Embassy Suites Palm Beach Gardens, Hilton Garden Inn Jacksonville, Marriott DFW, Hilton St. Petersburg, Residence Inn Atlanta Buckhead, Hyatt Coral Gables, Marriott Crystal Gateway, Courtyard Boston Downtown, Hyatt Regency Wind Watch, Silversmith, Renaissance Nashville, Hilton Parsippany, Hilton Garden Inn Austin

(3) On January 1, 2013, Marriott converted from a fiscal year with 12 weeks of operations in each of the first three quarters of the year and 16 weeks in the fourth quarter of the year, to calendar quarters. The above proforma table assumes the Marriott-managed properties were reported on calendar quarters for all periods presented.

 

- MORE -


ASHFORD PRIME

PRO FORMA HOTEL OPERATING PROFIT

(dollars in thousands)

(Unaudited)

ALL HOTELS INCLUDED IN ASHFORD PRIME CONTINUING OPERATIONS:

 

     Three Months Ended     Nine Months Ended  
     September 30,     September 30,  
     2013     2012     % Variance     2013     2012     % Variance  

REVENUE

            

Rooms

   $ 47,184      $ 45,228        4.3   $ 132,852      $ 125,325        6.0

Food and beverage

     11,014        11,409        -3.5     37,799        38,171        -1.0

Other

     2,764        2,727        1.4     7,738        7,344        5.4
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total hotel revenue

     60,962        59,364        2.7     178,389        170,840        4.4
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EXPENSES

            

Rooms

     10,330        10,096        2.3     30,183        28,614        5.5

Food and beverage

     8,045        8,263        -2.6     25,323        25,346        -0.1

Other direct

     1,106        1,114        -0.7     3,132        3,171        -1.2

Indirect

     13,814        14,085        -1.9     40,259        40,578        -0.8

Management fees, includes base and incentive fees

     3,829        2,878        33.0     9,695        8,127        19.3
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total hotel operating expenses

     37,124        36,436        1.9     108,592        105,836        2.6

Property taxes, insurance, and other

     2,989        2,601        14.9     8,448        7,708        9.6
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

HOTEL OPERATING PROFIT (Hotel EBITDA)

     20,849        20,327        2.6     61,349        57,296        7.1

Hotel EBITDA Margin

     34.20     34.24     -0.04     34.39     33.54     0.85

Minority interest in earnings of consolidated joint ventures

     1,349        1,516        -11.0     4,761        4,830        -1.4
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

HOTEL OPERATING PROFIT (Hotel EBITDA), excluding minority interest in joint ventures

   $ 19,500      $ 18,811        3.7   $ 56,588      $ 52,466        7.9
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

NOTES:

 

(1) The above pro forma table assumes the eight hotel properties owned and included in continuing operations at September 30, 2013 were owned as of the beginning of the period presented.
(2) Prime portfolio includes: Capital Hilton Washington DC, Hilton La Jolla Torrey Pines, Courtyard Philadelphia Downtown, Marriott Dallas Plano Legacy, Courtyard San Francisco Downtown, Courtyard Seattle Downtown Lake Union, Marriott Seattle Waterfront, Renaissance Tampa International Plaza
(3) On January 1, 2013, Marriott converted from a fiscal year with 12 weeks of operations in each of the first three quarters of the year and 16 weeks in the fourth quarter of the year, to calendar quarters. The above proforma table assumes the Marriott-managed properties were reported on calendar quarters for all periods presented.

ALL HOTELS NOT UNDER RENOVATION INCLUDED IN ASHFORD PRIME CONTINUING OPERATIONS:

 

     Three Months Ended     Nine Months Ended  
     September 30,     September 30,  
     2013     2012     % Variance     2013     2012     % Variance  

REVENUE

            

Rooms

   $ 43,193      $ 41,303        4.6   $ 119,922      $ 113,463        5.7

Food and beverage

     9,646        9,744        -1.0     31,893        32,001        -0.3

Other

     2,544        2,418        5.2     7,001        6,536        7.1
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total hotel revenue

     55,383        53,465        3.6     158,816        152,000        4.5
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EXPENSES

            

Rooms

     9,497        9,278        2.4     27,600        26,195        5.4

Food and beverage

     7,037        7,199        -2.3     21,914        22,002        -0.4

Other direct

     1,000        994        0.6     2,774        2,817        -1.5

Indirect

     12,317        12,505        -1.5     35,641        35,790        -0.4

Management fees, includes base and incentive fees

     3,715        2,786        33.3     8,587        7,288        17.8
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total hotel operating expenses

     33,566        32,762        2.5     96,516        94,092        2.6

Property taxes, insurance, and other

     2,684        2,326        15.4     7,524        6,891        9.2
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

HOTEL OPERATING PROFIT (Hotel EBITDA)

     19,133        18,377        4.1     54,776        51,017        7.4

Hotel EBITDA Margin

     34.55     34.37     0.17     34.49     33.56     0.93

Minority interest in earnings of consolidated joint ventures

     1,428        1,575        -9.3     4,953        4,984        -0.6
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

HOTEL OPERATING PROFIT (Hotel EBITDA), excluding minority interest in joint ventures

   $ 17,705      $ 16,802        5.4   $ 49,823      $ 46,033        8.2
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

NOTES:

 

(1) The above pro forma table assumes the seven hotel properties owned and included in continuing operations at September 30, 2013 but not under renovation for three and nine months ended September 30, 2013 were owned as of the beginning of the periods presented.
(2) Excluded Hotels Under Renovation:

Marriott Dallas Plano Legacy

(3) On January 1, 2013, Marriott converted from a fiscal year with 12 weeks of operations in each of the first three quarters of the year and 16 weeks in the fourth quarter of the year, to calendar quarters. The above proforma table assumes the Marriott-managed properties were reported on calendar quarters for all periods presented.

 

- MORE -


ASHFORD HOSPITALITY TRUST, INC.

PRO FORMA HOTEL REVENUE & EBITDA FOR TRAILING TWELVE MONTHS

(dollars in thousands)

(Unaudited)

THE FOLLOWING PRO FORMA SEASONALITY TABLES REFLECT: (I) THE 87 HOTELS INCLUDED IN THE COMPANY’S CONTINUING OPERATIONS AND THE COMPANY’S 71.74% SHARE OF THE 28 HOTELS INCLUDED IN HIGHLAND HOSPITALITY PORTFOLIO (PIM HIGHLAND HOLDING LLC), AND (II) THE EIGHT HOTELS INCLUDED IN ASHFORD PRIME, AS IF THESE HOTELS WERE OWNED AT THE BEGINNING OF THE FIRST COMPARATIVE REPORTING PERIOD.

 

     2013     2013     2013     2012        
     3rd Quarter     2nd Quarter     1st Quarter     4th Quarter     TTM  

Ashford Trust

  

   

Total Hotel Revenue

   $ 254,223      $ 281,029      $ 255,472      $ 239,208      $ 1,029,932   

Hotel EBITDA

   $ 75,613      $ 95,732      $ 77,394      $ 66,018      $ 314,757   

Hotel EBITDA Margin

     29.74     34.06     30.29     27.60     30.56

EBITDA % of Total TTM

     24.0     30.4     24.6     21.0     100.0

JV Interests in EBITDA

   $ 79      $ 75      $ 37      $ 56      $ 247   

Ashford Prime

          

Total Hotel Revenue

   $ 60,962      $ 63,342      $ 54,087      $ 50,349      $ 228,740   

Hotel EBITDA

   $ 20,849      $ 23,952      $ 16,548      $ 15,743      $ 77,092   

Hotel EBITDA Margin

     34.20     37.81     30.60     31.27     33.70

EBITDA % of Total TTM

     27.0     31.1     21.5     20.4     100.0

JV Interests in EBITDA

   $ 1,349      $ 2,056      $ 1,357      $ 1,216      $ 5,978   

NOTE:

On January 1, 2013, Marriott converted from a fiscal year with 12 weeks of operations in each of the first three quarters of the year and 16 weeks in the fourth quarter of the year, to calendar quarters. The above proforma tables assume the Marriott-managed properties were reported on calendar quarters for all periods presented.

 

- MORE -


ASHFORD HOSPITALITY TRUST, INC. (ENTIRE COMPANY)

PRO FORMA HOTEL REVPAR BY MARKET

(Unaudited)

 

                   Three Months Ended     Nine Months Ended  
     Number of      Number of      September 30,     September 30,  

Region

   Hotels      Rooms      2013      2012      % Change     2013      2012      % Change  

Atlanta, GA Area

     9         1,429       $ 87.93       $ 81.15         8.4   $ 87.93       $ 81.43         8.0

Boston, MA Area

     2         506       $ 185.30       $ 187.25         -1.0   $ 163.45       $ 165.78         -1.4

Dallas / Ft. Worth Area

     7         1,745       $ 91.01       $ 89.70         1.5   $ 96.75       $ 92.76         4.3

Houston, TX Area

     3         608       $ 105.50       $ 97.42         8.3   $ 109.21       $ 102.63         6.4

Los Angeles, CA Metro Area

     8         1,785       $ 92.92       $ 86.02         8.0   $ 96.06       $ 90.01         6.7

Miami, FL Metro Area

     3         576       $ 77.16       $ 75.29         2.5   $ 110.09       $ 104.20         5.7

Minneapolis - St. Paul, MN-WI Area

     2         522       $ 101.52       $ 98.05         3.5   $ 92.99       $ 89.97         3.4

New York / New Jersey Metro Area

     7         1,560       $ 107.52       $ 102.83         4.6   $ 104.21       $ 98.04         6.3

Orlando, FL Area

     6         1,834       $ 67.08       $ 64.90         3.4   $ 79.67       $ 76.78         3.8

Philadelphia, PA Area

     4         1,147       $ 106.27       $ 111.69         -4.9   $ 107.75       $ 107.54         0.2

San Diego, CA Area

     3         706       $ 136.56       $ 128.99         5.9   $ 115.27       $ 115.94         -0.6

San Francisco - Oakland, CA Metro Area

     6         1,416       $ 150.77       $ 136.72         10.3   $ 137.57       $ 123.69         11.2

Seattle, WA Area

     2         608       $ 214.93       $ 189.92         13.2   $ 159.02       $ 142.39         11.7

Tampa, FL Area

     4         875       $ 77.53       $ 92.27         -16.0   $ 100.55       $ 104.66         -3.9

Washington DC - MD - VA Area

     11         2,698       $ 112.65       $ 127.97         -12.0   $ 129.52       $ 134.24         -3.5

Other Areas

     46         7,700       $ 99.98       $ 95.60         4.6   $ 99.09       $ 94.92         4.4
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total Portfolio

     123         25,715       $ 105.16       $ 103.05         2.1   $ 106.43       $ 102.78         3.6
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

NOTES:

 

(1) The above pro forma table presents the 95 hotel properties included in Company’s continuing operations and the 28 hotel properties included in Highland Hospitality Portfolio (PIM Highland Holding LLC) as if these hotels were owned as of the beginning of the periods presented.

ASHFORD HOSPITALITY TRUST, INC. (ENTIRE COMPANY)

PRO FORMA HOTEL OPERATING PROFIT (HOTEL EBITDA) BY MARKET

(Unaudited)

 

                Three Months Ended     Nine Months Ended  
                September 30,     September 30,  

Region

  Number of
Hotels
    Number of
Rooms
    2013     % of
Total
    2012     % of
Total
    % Change     2013     % of
Total
    2012     % of
Total
    % Change  

Atlanta, GA Area

    9        1,429      $ 3,963        4.1   $ 3,504        3.7     13.1   $ 11,757        3.8   $ 10,216        3.4     15.1

Boston, MA Area

    2        506        4,349        4.5     4,470        4.7     -2.7     10,431        3.4     10,647        3.6     -2.0

Dallas / Ft. Worth Area

    7        1,745        5,128        5.3     5,411        5.7     -5.2     19,797        6.4     18,752        6.3     5.6

Houston, TX Area

    3        608        2,588        2.7     2,192        2.3     18.1     8,307        2.7     8,037        2.7     3.4

Los Angeles, CA Metro Area

    8        1,785        5,262        5.5     4,813        5.1     9.3     19,002        6.1     17,650        5.9     7.7

Miami, FL Metro Area

    3        576        526        0.5     403        0.4     30.5     6,571        2.1     5,718        1.9     14.9

Minneapolis - St. Paul, MN-WI Area

    2        522        2,345        2.4     2,369        2.5     -1.0     5,968        1.9     5,990        2.0     -0.4

New York / New Jersey Metro Area

    7        1,560        6,293        6.5     6,335        6.7     -0.7     19,678        6.3     17,899        6.0     9.9

Orlando, FL Area

    6        1,834        2,434        2.5     2,376        2.5     2.4     12,757        4.1     11,646        3.9     9.5

Philadelphia, PA Area

    4        1,147        4,481        4.6     4,547        4.8     -1.5     13,406        4.3     13,070        4.4     2.6

San Diego, CA Area

    3        706        4,712        4.9     4,248        4.5     10.9     11,028        3.6     11,602        3.9     -4.9

San Francisco - Oakland, CA Metro Area

    6        1,416        8,602        8.9     7,387        7.8     16.4     22,715        7.3     18,858        6.3     20.5

Seattle, WA Area

    2        608        6,501        6.7     5,698        6.0     14.1     13,928        4.5     12,208        4.1     14.1

Tampa, FL Area

    4        875        1,439        1.5     2,370        2.5     -39.3     9,426        3.0     10,171        3.4     -7.3

Washington DC - MD - VA Area

    11        2,698        9,956        10.3     13,395        14.1     -25.7     41,194        13.3     44,874        15.1     -8.2

Other Areas

    46        7,700        27,884        28.9     25,486        26.8     9.4     84,124        27.1     79,712        26.8     5.5
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Portfolio

    123        25,715      $ 96,462        100.0   $ 95,004        100.0     1.5   $ 310,089        100.0   $ 297,047        100.0     4.4
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

NOTES:

 

(1) The above pro forma table presents the 95 hotel properties included in Company’s continuing operations and the 28 hotel properties included in Highland Hospitality Portfolio (PIM Highland Holding LLC) as if these hotels were owned as of the beginning of the periods presented.
(2) The above pro forma table includes hotel operating profit for 100% of the 95 hotel properties included in the Company’s continuting operations and the Company’s 71.74% share of the 28 hotels included in Highland Hospitality Portfolio (PIM Highland Holding LLC) as if these hotels were owned as of the beginning of the periods presented.
(3) On January 1, 2013, Marriott converted from a fiscal year with 12 weeks of operations in each of the first three quarters of the year and 16 weeks in the fourth quarter of the year, to calendar quarters. The above proforma table assumes the Marriott-managed properties were reported on calendar quarters for all periods presented.

 

- MORE -


ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES (ENTIRE COMPANY)

TOTAL ENTERPRISE VALUE

SEPTEMBER 30, 2013

(in thousands except share price)

(Unaudited)

 

     September 30,  
     2013  

End of quarter common shares outstanding

     80,566   

Partnership units outstanding (common share equivalents)

     18,991   

Combined common shares and partnership units outstanding

     99,557   

Common stock price at quarter end

   $ 12.34   

Market capitalization at quarter end

   $ 1,228,533   

Series A preferred stock

   $ 41,430   

Series D preferred stock

   $ 236,718   

Series E preferred stock

   $ 115,750   

Debt on balance sheet date*

   $ 3,245,932   

Joint venture partners’ share of consolidated debt

   $ (50,439

Net working capital (see below)*

   $ (492,096
  

 

 

 

Total enterprise value (TEV)

   $ 4,325,829   
  

 

 

 

Cash & cash equivalents*

   $ 332,448   

Marketable securities, net

     23,607   

Restricted cash*

     155,451   

Accounts receivable, net*

     42,748   

Prepaid expenses*

     20,548   

Due from affiliates, net*

     (1,270

Due from 3rd party hotel managers, net*

     66,957   
  

 

 

 

Total current assets

   $ 640,489   

Accounts payable, net & accrued expenses*

   $ 127,659   

Dividends payable

     20,734   
  

 

 

 

Total current liabilities

   $ 148,393   
  

 

 

 

Net working capital

   $ 492,096   
  

 

 

 

 

* Includes AHT’s 71.74% interest in Highland Hospitality

 

- MORE -


Ashford Trust

Anticipated Capital Expenditures Calendar (a)

 

            2013      Proposed 2014  
            1st Quarter      2nd Quarter      3rd Quarter      4th Quarter      1st Quarter      2nd Quarter      3rd Quarter      4th Quarter  
     Rooms      Actual      Actual      Actual      Estimated      Estimated      Estimated      Estimated      Estimated  

Courtyard Hartford Manchester

     90         x                        

Courtyard Savannah

     156         x                        

Embassy Suites Dulles

     150         x                        

Embassy Suites East Syracuse

     215         x                        

Hampton Inn Lawrenceville

     86         x                        

Hyatt Regency Savannah

     351         x                           x   

Marriott San Antonio Plaza

     251         x                        

Residence Inn Lake Buena Vista

     210         x                        

Sheraton San Diego Mission Valley

     260         x                        

The Melrose

     240         x                        

Hilton Boston Back Bay

     390         x         x                     

Courtyard Dallas Plano in Legacy Park

     153         x         x                     

Hilton Santa Fe

     158         x         x                     

Courtyard Boston Downtown

     315         x         x         x         x         x         x         

Hilton Costa Mesa

     486         x               x         x            

Marriott Sugarland

     300         x               x         x            

Embassy Suites Walnut Creek

     249            x                     

Hilton Garden Inn BWI

     158            x                     

Hilton Garden Inn Virginia Beach

     176            x                     

Residence Inn Palm Desert

     130            x                     

Hampton Inn Buford

     92            x         x                  

Hampton Inn Terre Haute

     112            x         x                  

Hyatt Regency Wind Watch

     358            x         x         x         x         x         

Embassy Suites Palm Beach Garden

     160               x               x         x      

Hilton Garden Inn Austin

     254               x                  

Hilton Garden Inn Jacksonville

     119               x                  

Hyatt Coral Gables

     250               x               x         

Marriott Crystal Gateway

     697               x               x         

Marriott DFW

     491               x                  

Hilton Parsippany

     354               x         x                  x   

Hilton St Petersburg

     333               x         x               

Renaissance Nashville

     673               x         x         x         x         

Residence Inn Atlanta Buckhead Lenox Park

     150               x         x               

Silversmith

     143               x         x               

Courtyard Marriott Village at LBV

     312                  x               

Crowne Plaza Key West

     160                  x         x         x         

Crowne Plaza Ravinia

     495                  x         x         x         

Embassy Suites Dallas

     150                  x               

Embassy Suites Portland Downtown

     276                  x         x            

Residence Inn Salt Lake City

     144                  x               

Residence Inn San Diego Sorrento Mesa

     150                  x               

Residence Inn Hartford

     96                     x            

Sheraton Indianapolis

     378                     x         x         

Residence Inn Newark

     168                     x         x         

Courtyard Bloomington

     117                     x         x         

Westin Princeton

     296                           x         x   

Hilton Minneapolis

     300                           x         x   

Residence Inn Phoenix Airport

     200                           x         x   

Courtyard Newark/Silicon Valley

     181                           x         x   

Springhill Suites Orlando LBV

     400                           x         x   

Crowne Plaza Beverly Hills

     258                           x         x   

Sheraton Bucks County

     186                              x   

 

(a) Only hotels which have had or are expected to have significant capital expenditures that could result in displacement during 2013-2014 are included in this table.


Ashford Prime

Anticipated Capital Expenditures Calendar (a)

 

            2013    Proposed 2014
            1st Quarter    2nd Quarter    3rd Quarter    4th Quarter    1st Quarter    2nd Quarter    3rd Quarter    4th Quarter
     Rooms      Actual    Actual    Actual    Estimated    Estimated    Estimated    Estimated    Estimated

Hilton LaJolla Torrey Pines

     394       x    x                  

Marriott Dallas Plano Legacy

     404          x    x    x    x         

Courtyard Philadelphia Downtown

     498                x    x    x      

Marriott Seattle Waterfront

     358                   x    x      

 

(a) Only hotels which have had or are expected to have significant capital expenditures that could result in displacement during 2013-2014 are included in this table.