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Ashford Trust Reports Third Quarter Results Including Ashford Prime Metrics



 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

PR Newswire

DALLAS, Oct. 24, 2013

DALLAS, Oct. 24, 2013 /PRNewswire/ -- 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

  o RevPAR for the Ashford Prime Portfolio hotels not under renovation
    increased 4.6% during the quarter
  o RevPAR for the Ashford Trust Portfolio hotels not under renovation
    increased 3.1% during the quarter
  o RevPAR for all Ashford Prime Portfolio hotels increased 4.3% during the
    quarter
  o RevPAR for all Ashford Trust Portfolio hotels increased 1.5% during the
    quarter
  o Excluding assets located in the Washington, D.C. and Tampa, FL markets,
    RevPAR increased 7.9% for all Ashford Prime Portfolio hotels
  o Excluding assets located in the Washington, D.C., Tampa, FL, and
    Charlotte, NC markets, RevPAR increased 4.5% for all Ashford Trust
    Portfolio hotels
  o Adjusted EBITDA for the Company increased $5.5 million or 7% during the
    third quarter
  o Hotel EBITDA flow-through was 51% for all Ashford Trust Portfolio hotels
  o 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
  o 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
  o 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
  o 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

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

ASHFORD PRIME FINANCIAL AND OPERATING HIGHLIGHTS

  o 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
  o Hotel EBITDA flow-through for all Ashford Prime Portfolio hotels was 33%
  o Ashford Prime will have an initial cash balance, including property level
    working capital, of at least $160.0 million upon spin-off
  o Ashford Prime is expected to have an initial annual dividend policy of
    $0.04 per Ashford Trust share equivalent
  o No debt maturities until 2017; all debt is non-recourse

ASHFORD TRUST FINANCIAL AND OPERATING HIGHLIGHTS

  o 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
  o Hotel EBITDA flow-through for all Ashford Trust Portfolio hotels was 51%
  o 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 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.

  o 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
  o 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.

  o 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
  o 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.

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
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.

 

 

 

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      335,456        209,555
  securities
 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 30,520         35,116
 $265, respectively
 Inventories                                       2,243          2,111
 Notes receivable, net of allowance of $8,037 and  11,443         11,331
 $8,333, respectively
 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 1,422          1,641
 and other
 Other liabilities                                 6,040          6,348
  Total liabilities                                2,578,659      2,466,250
Redeemable noncontrolling interests in operating   196,427        151,179
partnership
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,    1,249          1,249
  respectively 
  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   (140,054)      (164,884)
  56,746,148 shares, respectively)
      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

 

 

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     155,102    143,143    459,351    432,642
          expenses
  Property taxes, insurance, and    12,474     11,487     36,385     33,337
  other
  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              9,309      6,519      25,631     19,326
     administrative
          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  (10,105)   (7,373)    (14,626)   (17,654)
  joint ventures
  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  —          —          (1,971)    —
  and exit fees
  Unrealized gain (loss) on         257        (48)       2,039      3,365
  marketable securities
  Unrealized loss on derivatives    (817)      (9,353)    (7,177)    (26,753)
LOSS FROM CONTINUING OPERATIONS     (18,783)   (14,980)   (28,269)   (38,675)
BEFORE INCOME TAXES
  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      175        219        890        444
interests
Net loss attributable to redeemable
noncontrolling interests in         2,892      2,665      5,152      6,902
operating partnership
NET LOSS ATTRIBUTABLE TO THE        (16,335)   (15,147)   (23,915)   (41,179)
COMPANY
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      (0.31)     (0.32)     (0.69)     (0.90)
     common shareholders
     Loss from discontinued                                          $      
     operations attributable to     —          (0.03)     —           (0.09)
     common shareholders
     Net loss attributable to       $          $          $          $      
     common shareholders             (0.31)     (0.35)     (0.69)     (0.99)
     Weighted average common shares 79,898     67,659     72,068     67,484
     outstanding – basic
  Diluted:
     Loss from continuing           $          $          $          $      
     operations attributable to      (0.31)     (0.32)     (0.69)     (0.90)
     common shareholders
     Loss from discontinued                    $                     $      
     operations attributable to     —           (0.03)    —           (0.09)
     common shareholders
     Net loss attributable to       $          $          $          $      
     common shareholders             (0.31)     (0.35)     (0.69)     (0.99)
     Weighted average common shares 79,898     67,659     72,068     67,484
     outstanding – diluted
  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)

 

 

 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   175            219          890          444
noncontrolling interests 
 Net loss attributable to
redeemable noncontrolling  2,892          2,665        5,152        6,902
interests in operating
partnership 
 Net loss attributable to  (16,335)       (15,147)     (23,915)     (41,179)
the Company 
     Interest income       (12)           (30)         (60)         (84)
     Interest expense and
    amortization of loan   36,120         37,190       106,621      108,280
    costs 
     Depreciation and      31,952         33,434       95,618       100,451
    amortization  
     Impairment charges    (101)          (5,066)      (296)        (1,133)
     Income tax expense    619            639          1,688        2,884
     Net loss attributable
    to redeemable
    noncontrolling         (2,892)        (2,665)      (5,152)      (6,902)
    interests in operating
    partnership 
     Equity in loss of
    unconsolidated joint   10,105         7,373        14,626       17,654
    ventures 
     Company's portion of
    EBITDA of              19,262         17,996       63,398       57,676
    unconsolidated joint
    ventures 
 EBITDA                    78,718         73,724       252,528      237,647
     Amortization of
    unfavorable management (533)          (565)        (1,730)      (1,694)
    contract liabilities 
     Write-off of loan     -              -            1,971        -
    costs and exit fees 
     Other income (1)      (314)          (8,671)      (6,446)      (22,988)
     Transaction,
    acquisition and        326            -            1,626        -
    management conversion
    costs 
     Transaction costs
    related to proposed    2,587          -            6,442        -
    spin-off 
     Legal costs related
    to litigation          -              755          -            2,463
    settlements (2) 
     Unrealized (gain)
    loss on marketable     (257)          48           (2,039)      (3,365)
    securities 
     Unrealized loss on    817            9,353        7,177        26,753
    derivatives 
     El Conquistador
    results since          -              897          -            897
    appointment of
    receiver (3) 
     Equity-based          4,156          4,332        17,049       13,701
    compensation 
     Company's portion of
    adjustments to EBITDA  2              81           24           225
    of unconsolidated
    joint ventures 
 Adjusted EBITDA           $              $            $            $  
                            85,502         79,954       276,602      253,639
    Other income, primarily consisting of income from interest rate
(1) 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.
    On August 15, 2012, a receiver was appointed to take over this hotel and
(3) 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   175            219          890          444
noncontrolling interests 
 Net loss attributable to
redeemable noncontrolling  2,892          2,665        5,152        6,902
interests in operating
partnership 
 Preferred dividends       (8,490)        (8,490)      (25,471)     (25,312)
 Net loss attributable to  (24,825)       (23,637)     (49,386)     (66,491)
common shareholders 
     Depreciation and
    amortization on real   31,842         33,398       95,304       100,289
    estate 
     Impairment charges    (101)          (5,066)      (296)        (1,133)
     Net loss attributable
    to redeemable
    noncontrolling         (2,892)        (2,665)      (5,152)      (6,902)
    interests in operating
    partnership 
     Equity in loss of
    unconsolidated joint   10,105         7,373        14,626       17,654
    ventures 
     Company's portion of
    FFO of unconsolidated  6,991          5,845        27,245       21,255
    joint ventures 
 FFO available to common   21,120         15,248       82,341       64,672
shareholders 
     Write-off of loan     -              -            1,971        -
    costs and exit fees 
     Other income (1)      (314)          (607)        (231)        1,065
     Legal costs related
    to litigation          -              755          -            2,463
    settlements (2) 
     Transaction,
    acquisition and        326            -            1,626        -
    management conversion
    costs 
     Transaction costs
    related to proposed    2,587          -            6,442        -
    spin-off 
     Unrealized (gain)
    loss on marketable     (257)          48           (2,039)      (3,365)
    securities 
     Unrealized loss on    817            9,353        7,177        26,753
    derivatives 
     El Conquistador
    results since          -              1,144        -            1,144
    appointment of
    receiver (3) 
     Equity-based
    compensation
    adjustment related to  -              -            4,678        480
    modified employment
    terms 
     Company's portion of
    adjustments to FFO of  2              89           24           233
    unconsolidated joint
    ventures 
 Adjusted FFO available to $              $            $            $    
common shareholders         24,281         26,030       101,989      93,445
 Adjusted FFO per diluted  $              $            $            $        
share available to common   0.25           0.31         1.12         1.10
shareholders 
 Weighted average diluted  98,982         85,344       90,800       84,976
shares 
(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.
    On August 15, 2012, a receiver was appointed to take over this hotel and
(3) 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.

 

 

ASHFORD TRUST PORTFOLIO (INCLUDING 71.74% PRO RATA SHARE OF HIGHLAND HOSPITALITY PORTFOLIO, EXCLUDING
ASHFORD PRIME PORTFOLIO)
SUMMARY OF INDEBTEDNESS OF CONTINUING OPERATIONS
SEPTEMBER 30, 2013
(dollars in thousands)
(Unaudited)
                                                                                           Pro       Pro
                                                                                          Forma     Forma 
                                           Fixed-Rate       Floating-Rate       Total      TTM       TTM
                                                                                          Hotel     EBITDA 
Indebtedness         Maturity   Interest   Debt             Debt                Debt       EBITDA    Debt
                                Rate                                                                Yield 
 BoA MIP - 5         March      LIBOR +   $                $                   $          $      
hotels               2014       4.50%           -          167,327         (1)                      11.1%
                                                                                167,327   18,579
 Wells Senior - 25   March      LIBOR +   -                380,222         (5) 380,222    65,846    17.3%
hotels               2014       3.00%
                                Greater
 Mezz 1 - 28         March      of 7.00%  -                93,581          (5) 93,581     88,233    14.4%
hotels               2014       or LIBOR
                                + 6.00%
                                Greater
 Mezz 2 - 28         March      of 8.00%  -                89,087          (5) 89,087     88,233    12.6%
hotels               2014       or LIBOR
                                + 7.00%
                                Greater
 Mezz 3 - 28         March      of
hotels               2014       10.50%    -                76,360          (5) 76,360     88,233    11.3%
                                or LIBOR
                                + 9.50%
 Mezz 4 - 28         March      LIBOR +                    13,218          (5) 13,218     88,233    11.1%
hotels               2014       2.00%
 JPM Floater - 9     May 2014   LIBOR +   -                135,000         (2) 135,000    17,462    12.9%
hotels                          6.50%
 GEMSA Manchester -  May 2014   8.32%     5,147            -                   5,147      679       13.2%
1 hotel 
 Senior credit       September  LIBOR +
facility - Various   2014       2.75% to  -                -                   -           N/A      N/A
                                3.5%
                                Greater
 Goldman Sachs - 5   November   of 6.40%  -                211,000         (3) 211,000    24,225    11.5%
hotels               2014       or LIBOR
                                + 6.15%
 UBS 1 - 8 hotels    December   5.75%     102,948          -                   102,948    11,888    11.5%
                     2014
 Merrill 1 - 10      July 2015  5.22%     150,177          -                   150,177    21,402    14.3%
hotels 
 JPM Pier House - 1  September  LIBOR +   -                69,000          (4) 69,000     6,867     10.0%
hotel                2015       4.90%
 UBS 2 - 8 hotels    December   5.70%     95,415           -                   95,415     11,381    11.9%
                     2015
 Merrill 2 - 5       February   5.53%     108,557          -                   108,557    16,546    15.2%
hotels               2016
 Merrill 3 - 5       February   5.53%     90,027           -                   90,027     15,703    17.4%
hotels               2016
 Merrill 7 - 5       February   5.53%     77,983           -                   77,983     13,005    16.7%
hotels               2016
 Wachovia 1 - 5      April      5.95%     113,703          -                   113,703    12,458    11.0%
hotels               2017
 Wachovia 5 - 5      April      5.95%     102,201          -                   102,201    10,451    10.2%
hotels               2017
 Wachovia 6 - 5      April      5.95%     155,511          -                   155,511    16,415    10.6%
hotels               2017
 Wachovia 2 - 7      April      5.95%     124,391          -                   124,391    12,519    10.1%
hotels               2017
 Morgan Stanley      January
Boston Back Bay - 1  2018       4.38%     73,113           -                   73,113     9,223     12.6%
hotel 
 Morgan Stanley      January
Princeton/Nashville  2018       4.44%     79,938           -                   79,938     13,164    16.5%
- 2 hotels 
 GACC Gateway - 1    November   6.26%     101,604          -                   101,604    14,693    14.5%
hotel                2020
                                Greater
 Zion Jacksonville   April      of 6% or  -                6,393               6,393      1,278     20.0%
RI - 1 hotel         2034       Prime +
                                1%
 Unencumbered                             -                -                   -          973       N/A
hotels 
                                          $                $                   $          $      
 Total                                     1,380,715        1,241,188                               12.0%
                                                                               2,621,903  314,757
 Percentage                               52.7%            47.3%               100.0%
 Weighted average                         5.62%            5.50%               5.56%
interest rate 
 Weighted average interest rate with the  5.17%        (6) 5.50%           (6) 5.33%
effect of interest rate swaps 
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 PORTFOLIO
SUMMARY OF INDEBTEDNESS OF CONTINUING OPERATIONS
SEPTEMBER 30, 2013
(dollars in thousands)
(Unaudited)
                                                                                           Pro       Pro
                                                                                          Forma     Forma 
                                           Fixed-Rate       Floating-Rate       Total      TTM       TTM
                                                                                          Hotel     EBITDA 
Indebtedness         Maturity   Interest   Debt             Debt                Debt       EBITDA    Debt
                                Rate                                                                Yield 
 Wachovia Philly CY  April                $                $                   $          $      
- 1 hotel            2017       5.91%     34,420                -                                   30.6%
                                                                                34,420    10,530
 Wachovia 3 - 2      April      5.95%     126,147          -                   126,147    17,209    13.6%
hotels               2017
 Wachovia 7 - 3      April      5.95%     256,698          -                   256,698    25,443    9.9%
hotels               2017
 Aareal - 2 hotels   February   LIBOR +   -                198,666             198,666    23,910    12.0%
                     2018       3.50%
 TIF Philly CY - 1   June 2018  12.85%    8,098            -                   8,098      N/A       N/A
hotel 
                                          $                $                   $          $      
 Total                                    425,363          198,666                                  12.4%
                                                                                624,029   77,092
 Percentage                               68.2%            31.8%               100.0%
 Weighted average                         6.08%            3.68%               5.32%
interest rate 
All indebtedness is
non-recourse.

 

 

ASHFORD TRUST PORTFOLIO (INCLUDING 71.74% PRO RATA SHARE OF HIGHLAND HOSPITALITY PORTFOLIO,
EXCLUDING ASHFORD PRIME PORTFOLIO)
 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          -       100,119   -         -         -         -             100,119
hotels 
 BoA MIP - 5        -       -         167,327   -         -         -             167,327
hotels 
 Merrill 1 - 10     -       -         142,922   -         -         -             142,922
hotels 
 UBS 2 - 8          -       -         90,680    -         -         -             90,680
hotels 
 Merrill 2 - 5      -       -         -         101,740   -         -             101,740
hotels 
 Merrill 3 - 5      -       -         -         84,374    -         -             84,374
hotels 
 Merrill 7 - 5      -       -         -         73,086    -         -             73,086
hotels 
 Wells Senior - 25  -       -         -         380,222   -         -             380,222
hotels 
 Mezz 1 - 28        -       -         -         93,581    -         -             93,581
hotels 
 Mezz 2 - 28        -       -         -         89,087    -         -             89,087
hotels 
 Mezz 3 - 28        -       -         -         76,360    -         -             76,360
hotels 
 Mezz 4 - 28        -       -         -         13,218    -         -             13,218
hotels 
 JPM Floater - 9    -       -         -         -         135,000   -             135,000
hotels 
 Wachovia 1 - 5     -       -         -         -         107,351   -             107,351
hotels 
 Wachovia 5 - 5     -       -         -         -         96,491    -             96,491
hotels 
 Wachovia 6 - 5     -       -         -         -         146,823   -             146,823
hotels 
 Wachovia 2 - 7     -       -         -         -         117,441   -             117,441
hotels 
 Goldman Sachs - 5  -       -         -         -         211,000   -             211,000
hotels 
 GACC Gateway - 1   -       -         -         -         -         89,886        89,886
hotel 
 JPM Pier House -   -       -         -         -         -         69,000        69,000
1 hotel 
 Morgan Stanley
Boston Back Bay - 1 -       -         -         -         -         67,358        67,358
hotel 
 Morgan Stanley
Princeton/Nashville -       -         -         -         -         73,703        73,703
- 2 hotels 
 Zion Jacksonville  -       -         -         -         -         -             -
RI - 1 hotel 
 Principal due in   $       $         $         $         $         $             $    
future periods                         400,929   911,667   814,106   299,946      2,531,772
                       -     105,123
 Scheduled
amortization        9,297   24,967    23,202    13,035    15,989    3,641         90,132
payments remaining 
 Total indebtedness $       $         $         $         $         $             $    
of continuing                          424,131   924,702   830,095   303,587      2,621,903
operations           9,297   130,090
 NOTE: These maturities assume no event of default would occur. 
 ASHFORD PRIME PORTFOLIO 
 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     -       -         -         -         119,245   -             119,245
hotels 
 Wachovia 7 - 3     -       -         -         -         242,201   -             242,201
hotels 
 Aareal - 2         -       -         -         -         -         186,259       186,259
hotels 
 TIF Philly CY - 1  -       -         -         -         -         8,098         8,098
hotel 
 Principal due in   $       $         $         $         $         $             $      
future periods                                         -   393,978   194,357       588,335
                       -         -    -
 Scheduled
amortization        3,030   8,403     8,917     9,464     5,350     530           35,694
payments remaining 
 Total indebtedness $       $         $         $         $         $             $      
of continuing                            8,917   9,464     399,328   194,887       624,029
operations           3,030   8,403

 

 

ASHFORD TRUST PORTFOLIO (INCLUDING 71.74% PRO RATA SHARE OF HIGHLAND
HOSPITALITY PORTFOLIO, EXCLUDING ASHFORD PRIME PORTFOLIO)
KEY PERFORMANCE INDICATORS - PRO FORMA
(dollars in thousands)
(Unaudited)
                   Three Months Ended               Nine Months Ended
                   September 30,                    September 30,
                   2013       2012       %          2013     2012     %
                                         Variance                     Variance
ALL HOTELS INCLUDED IN ASHFORD TRUST
CONTINUING OPERATIONS:
       Room
       revenues    $          $          1.55%      $        $        2.97%
       (in         204,188    201,080               625,474  607,446
       thousands)
       RevPAR      $          $          1.54%      $        $        3.06%
                   97.19      95.72                 99.92    96.95
       Occupancy   73.97%     74.78%     -0.81%     74.05%   74.26%   -0.21%
       ADR         $          $          2.65%      $        $        3.35%
                   131.39     128.00                134.93   130.56
NOTES:
       The above pro forma table assumes the 115 hotel properties owned and
  (1)  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       %          2013     2012     %
                                         Variance                     Variance
ALL HOTELS NOT
UNDER RENOVATION
  INCLUDED IN ASHFORD TRUST
  CONTINUING OPERATIONS:
       Room
       revenues    $          $          3.11%      $        $        3.43%
       (in         170,369    165,227               511,654  494,665
       thousands)
       RevPAR      $          $          3.10%      $        $        3.53%
                   97.12      94.20                 97.91    94.57
       Occupancy   74.76%     74.69%     0.07%      74.09%   73.95%   0.14%
       ADR         $          $          3.01%      $        $        3.35%
                   129.91     126.12                132.16   127.87
NOTES:
       The above pro forma table assumes the 100 hotel properties owned and
  (1)  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
       On January 1, 2013, Marriott converted from a fiscal year with 12 weeks
  (3)  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 pro forma table
       assumes the Marriott-managed properties were reported on calendar
       quarters for all periods presented.

 

 

ASHFORD PRIME PORTFOLIO
KEY PERFORMANCE INDICATORS - PRO FORMA
(dollars in thousands)
(Unaudited)
                       Three Months Ended           Nine Months Ended
                       September 30,                September 30,
                       2013      2012     %         2013     2012     %
                                          Variance                    Variance
ALL HOTELS INCLUDED IN ASHFORD PRIME
CONTINUING OPERATIONS:
        Room revenues  $         $                  $        $
        (in thousands)  47,184            4.32%     132,852  125,325  6.01%
                                  45,228
                       $         $                  $        $  
        RevPAR          163.02            4.32%     153.50   145.02   5.85%
                                  156.27
        Occupancy      84.44%    83.57%   0.87%     80.39%   79.33%   1.06%
                       $         $                  $        $  
        ADR             193.07            3.25%     190.94   182.80   4.45%
                                  187.00
NOTES:
        The above pro forma table assumes the eight hotel properties
   (1)  included in the Prime portfolio at September 30, 2013 were
        owned as of the
        beginning of the period
        presented.
        Prime portfolio includes:  Capital Hilton Washington DC, Hilton La
   (2)  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
        On January 1, 2013, Marriott converted from a fiscal year with 12
   (3)  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     %         2013     2012     %
                                          Variance                    Variance
ALL HOTELS NOT UNDER
RENOVATION
   INCLUDED IN ASHFORD PRIME
   CONTINUING OPERATIONS:
        Room revenues  $         $                  $        $
        (in thousands)  43,193            4.58%     119,922  113,463  5.69%
                                  41,303
                       $         $                  $        $  
        RevPAR          171.22            4.57%     159.05   150.66   5.57%
                                  163.73
        Occupancy      87.94%    86.31%   1.63%     82.35%   81.32%   1.03%
                       $         $                  $        $  
        ADR             194.70            2.64%     193.14   185.27   4.25%
                                  189.70
NOTES:
        The above pro forma table assumes the seven hotel properties included
   (1)  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
        On January 1, 2013, Marriott converted from a fiscal year with 12
   (3)  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 pro forma table
        assumes the Marriott-managed properties were reported on calendar
        quarters for
        all periods presented. 

 

 

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 THE ASHFORD PRIME PORTFOLIO, AS IF THESE HOTELS WERE
OWNED 

AT THE BEGINNING OF THE FIRST COMPARATIVE REPORTING PERIOD.
                                                Ashford           Ashford
                                                Trust             Prime
                                                Portfolio         Portfolio
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 pro forma table assumes the 
      Marriott-managed properties were reported on calendar quarters for all
      periods presented. 

 

 

 

ASHFORD PRIME PORTFOLIO
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    %         2013    2012    %         2013
                                 Variance                  Variance
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
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 PORTFOLIO (INCLUDING 71.74% PRO RATA SHARE OF HIGHLAND
HOSPITALITY PORTFOLIO, EXCLUDING ASHFORD PRIME PORTFOLIO) 
 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      %         2013      2012       %
                                  Variance                       Variance 
 REVENUE 
  Rooms         $        $        1.5%       $         $         3.0%
                204,188  201,080             625,474   607,445
  Food and      39,906   42,255   -5.6%      136,722   138,892   -1.6%
 beverage 
  Other         10,129   9,353    8.3%       28,524    27,571    3.5%
      Total
     hotel      254,223  252,688  0.6%       790,720   773,908   2.2%
     revenue 
 EXPENSES 
  Rooms         46,804   45,640   2.6%       138,971   135,064   2.9%
  Food and      29,568   29,904   -1.1%      93,589    94,586    -1.1%
 beverage 
  Other         5,331    5,240    1.7%       15,560    15,641    -0.5%
 direct 
  Indirect      73,634   73,243   0.5%       219,691   217,013   1.2%
  Management
 fees,
 includes base  9,879    10,511   -6.0%      33,798    34,372    -1.7%
 and incentive
 fees 
      Total
     hotel      165,216  164,538  0.4%       501,609   496,676   1.0%
     operating
     expenses 
  Property
 taxes,         13,394   13,313   0.6%       40,371    37,321    8.2%
 insurance,
 and other 
 HOTEL
OPERATING       75,613   74,837   1.0%       248,740   239,911   3.7%
PROFIT (Hotel
EBITDA) 
      Hotel
     EBITDA     29.74%   29.62%   0.12%      31.46%    31.00%    0.46%
     Margin 
  Minority
 interest in
 earnings of    79       59       33.9%      192       154       24.7%
 consolidated
 joint
 ventures 
 HOTEL
OPERATING
PROFIT (Hotel
EBITDA), 
  excluding
 minority       $        $                   $         $  
 interest in    75,534   74,778   1.0%        248,548   239,757  3.7%
 joint
 ventures 
 NOTES: 
     The above pro forma table assumes the 115 hotel properties owned and
 (1) included in continuing operations at September 30, 2013 were owned as
     of the
     beginning of the period presented.
     On January 1, 2013, Marriott converted from a fiscal year with 12
 (2) 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 pro forma
     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      %         2013      2012       %
                                  Variance                       Variance 
 REVENUE 
  Rooms         $        $        3.1%       $         $         3.4%
                170,369  165,227             511,654   494,665
  Food and      28,989   29,693   -2.4%      95,728    97,095    -1.4%
 beverage 
  Other         7,849    7,564    3.8%       22,600    22,355    1.1%
      Total
     hotel      207,207  202,484  2.3%       629,983   614,115   2.6%
     revenue 
 EXPENSES 
  Rooms         38,694   37,308   3.7%       113,121   109,684   3.1%
  Food and      21,217   21,160   0.3%       65,844    66,570    -1.1%
 beverage 
  Other         4,420    4,291    3.0%       12,831    12,904    -0.6%
 direct 
  Indirect      59,893   59,044   1.4%       177,023   174,152   1.6%
  Management
 fees,
 includes base  8,655    8,758    -1.2%      26,851    27,077    -0.8%
 and incentive
 fees 
      Total
     hotel      132,879  130,562  1.8%       395,670   390,387   1.4%
     operating
     expenses 
  Property
 taxes,         10,561   10,416   1.4%       31,878    29,785    7.0%
 insurance,
 and other 
 HOTEL
OPERATING       63,766   61,506   3.7%       202,435   193,943   4.4%
PROFIT (Hotel
EBITDA) 
      Hotel
     EBITDA     30.77%   30.38%   0.39%      32.13%    31.58%    0.55%
     Margin 
  Minority
 interest in
 earnings of    1,428    1,575    -9.3%      4,953     4,984     -0.6%
 consolidated
 joint
 ventures 
 HOTEL
OPERATING
PROFIT (Hotel
EBITDA), 
  excluding
 minority       $        $                   $         $  
 interest in    62,338   59,931   4.0%        197,482   188,959  4.5%
 joint
 ventures 
 NOTES: 
     The above pro forma table assumes the 100 hotel properties owned and
 (1) 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
     On January 1, 2013, Marriott converted from a fiscal year with 12
 (3) 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 pro forma
     table assumes the Marriott-managed properties were reported on
     calendar quarters for
     all periods presented. 

 

 

 ASHFORD PRIME PORTFOLIO 
 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     %         2013      2012       %
                                      Variance                       Variance 
 REVENUE 
                     $        $                  $         $    
    Rooms                             4.3%        132,852   125,325  6.0%
                      47,184  45,228
    Food and         11,014   11,409  -3.5%      37,799    38,171    -1.0%
   beverage 
    Other            2,764    2,727   1.4%       7,738     7,344     5.4%
           Total
          hotel      60,962   59,364  2.7%       178,389   170,840   4.4%
          revenue 
 EXPENSES 
    Rooms            10,330   10,096  2.3%       30,183    28,614    5.5%
    Food and         8,045    8,263   -2.6%      25,323    25,346    -0.1%
   beverage 
    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 3,829    2,878   33.0%      9,695     8,127     19.3%
   incentive fees 
           Total
          hotel      37,124   36,436  1.9%       108,592   105,836   2.6%
          operating
          expenses 
    Property taxes,
   insurance, and    2,989    2,601   14.9%      8,448     7,708     9.6%
   other 
 HOTEL OPERATING
PROFIT (Hotel        20,849   20,327  2.6%       61,349    57,296    7.1%
EBITDA) 
           Hotel
          EBITDA     34.20%   34.24%  -0.04%     34.39%    33.54%    0.85%
          Margin 
    Minority
   interest in
   earnings of       1,349    1,516   -11.0%     4,761     4,830     -1.4%
   consolidated
   joint ventures 
 HOTEL OPERATING
PROFIT (Hotel
EBITDA), 
    excluding
   minority interest $        $       3.7%       $         $         7.9%
   in joint           19,500  18,811              56,588    52,466
   ventures 
 NOTES: 
          The above pro forma table assumes the eight hotel properties owned
   (1)    and included in continuing operations at September 30, 2013 were
          owned as of the
          beginning of the period presented.
          Prime portfolio includes:  Capital Hilton Washington DC, Hilton La
   (2)    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
          On January 1, 2013, Marriott converted from a fiscal year with 12
   (3)    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 pro forma
          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     %         2013      2012       %
                                      Variance                       Variance 
 REVENUE 
                     $        $                  $         $    
    Rooms                             4.6%        119,922   113,463  5.7%
                      43,193  41,303
    Food and         9,646    9,744   -1.0%      31,893    32,001    -0.3%
   beverage 
    Other            2,544    2,418   5.2%       7,001     6,536     7.1%
           Total
          hotel      55,383   53,465  3.6%       158,816   152,000   4.5%
          revenue 
 EXPENSES 
    Rooms            9,497    9,278   2.4%       27,600    26,195    5.4%
    Food and         7,037    7,199   -2.3%      21,914    22,002    -0.4%
   beverage 
    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 3,715    2,786   33.3%      8,587     7,288     17.8%
   incentive fees 
           Total
          hotel      33,566   32,762  2.5%       96,516    94,092    2.6%
          operating
          expenses 
    Property taxes,
   insurance, and    2,684    2,326   15.4%      7,524     6,891     9.2%
   other 
 HOTEL OPERATING
PROFIT (Hotel        19,133   18,377  4.1%       54,776    51,017    7.4%
EBITDA) 
           Hotel
          EBITDA     34.55%   34.37%  0.17%      34.49%    33.56%    0.93%
          Margin 
    Minority
   interest in
   earnings of       1,428    1,575   -9.3%      4,953     4,984     -0.6%
   consolidated
   joint ventures 
 HOTEL OPERATING
PROFIT (Hotel
EBITDA), 
    excluding
   minority interest $        $       5.4%       $         $         8.2%
   in joint           17,705  16,802              49,823    46,033
   ventures 
 NOTES: 
          The above pro forma table assumes the seven hotel properties owned
   (1)    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
          On January 1, 2013, Marriott converted from a fiscal year with 12
   (3)    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 pro forma
          table assumes the Marriott-managed properties were reported on
          calendar quarters for
          all periods presented. 

 

 

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 THE ASHFORD PRIME PORTFOLIO, AS IF THESE HOTELS WERE OWNED AT THE
BEGINNING
OF THE FIRST COMPARATIVE REPORTING PERIOD.
                  2013         2013         2013       2012
                  3rd Quarter  2nd Quarter  1st        4th         TTM
                                            Quarter    Quarter
Ashford Trust
Portfolio:
Total Hotel       $            $            $          $           $  
Revenue                                                             1,029,932
                   254,223      281,029     255,472    239,208
                  $            $            $          $           $      
Hotel EBITDA                                                       314,757
                   75,613       95,732      77,394     66,018
Hotel EBITDA      29.74%       34.06%       30.29%     27.60%      30.56%
Margin
EBITDA % of Total 24.0%        30.4%        24.6%      21.0%       100.0%
TTM
JV Interests in   $            $            $          $           $          
EBITDA                                                                247
                        79           75          37       56
Ashford Prime
Portfolio:
Total Hotel       $            $            $          $           $      
Revenue                                                            228,740
                   60,962       63,342      54,087     50,349
                  $            $            $          $           $        
Hotel EBITDA                                                       77,092
                   20,849       23,952      16,548     15,743
Hotel EBITDA      34.20%       37.81%       30.60%     31.27%      33.70%
Margin
EBITDA % of Total 27.0%        31.1%        21.5%      20.4%       100.0%
TTM
JV Interests in   $            $            $          $           $          
EBITDA                                                             5,978
                   1,349        2,056       1,357      1,216
      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 pro forma tables assume the 
            Marriott-managed properties were reported on calendar quarters for
            all periods presented. 

 

 

ASHFORD HOSPITALITY TRUST, INC. (ENTIRE COMPANY)
PRO FORMA HOTEL REVPAR BY MARKET
(Unaudited)
                               Three Months Ended           Nine Months Ended
               Number  Number  September 30,                September 30,
               of      of
Region         Hotels  Rooms   2013    2012   %             2013     2012     %
                                              Change                          Change
Atlanta, GA                    $       $                    $        $      
Area           9       1,429    87.93         8.4%                            8.0%
                                       81.15                 87.93    81.43
Boston, MA                     $       $                    $        $      
Area           2       506      185.30 187.25 -1.0%          163.45           -1.4%
                                                                      165.78
Dallas / Ft.                   $       $                    $        $      
Worth Area     7       1,745    91.01         1.5%                            4.3%
                                       89.70                 96.75    92.76
Houston, TX                    $       $                    $        $      
Area           3       608      105.50        8.3%           109.21           6.4%
                                       97.42                          102.63
Los Angeles,                   $       $                    $        $      
CA Metro Area  8       1,785    92.92         8.0%                            6.7%
                                       86.02                 96.06    90.01
Miami, FL                      $       $                    $        $      
Metro Area     3       576      77.16         2.5%           110.09           5.7%
                                       75.29                          104.20
Minneapolis -                  $       $                    $        $      
St. Paul,      2       522      101.52        3.5%                            3.4%
MN-WI Area                             98.05                 92.99    89.97
New York /                     $       $                    $        $      
New Jersey     7       1,560    107.52 102.83 4.6%           104.21           6.3%
Metro Area                                                            98.04
Orlando, FL                    $       $                    $        $      
Area           6       1,834    67.08         3.4%                            3.8%
                                       64.90                 79.67    76.78
Philadelphia,                  $       $                    $        $      
PA Area        4       1,147    106.27 111.69 -4.9%          107.75           0.2%
                                                                      107.54
San Diego, CA                  $       $                    $        $      
Area           3       706      136.56 128.99 5.9%           115.27           -0.6%
                                                                      115.94
San Francisco                  $       $                    $        $      
- Oakland, CA  6       1,416    150.77 136.72 10.3%          137.57           11.2%
Metro Area                                                            123.69
Seattle, WA                    $       $                    $        $      
Area           2       608      214.93 189.92 13.2%          159.02           11.7%
                                                                      142.39
Tampa, FL                      $       $                    $        $      
Area           4       875      77.53         -16.0%         100.55           -3.9%
                                       92.27                          104.66
Washington DC                  $       $                    $        $      
- MD - VA      11      2,698    112.65 127.97 -12.0%         129.52           -3.5%
Area                                                                  134.24
                               $       $                    $        $      
Other Areas    46      7,700    99.98         4.6%                            4.4%
                                       95.60                 99.09    94.92
Total                          $       $                    $        $      
Portfolio      123     25,715   105.16 103.05 2.1%           106.43           3.6%
                                                                      102.78
NOTES:
            The above pro forma table presents the 95 hotel properties included in
      (1)   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
               Number  Number  September 30,                         September 30,
               of      of
Region         Hotels  Rooms   2013     % of  2012    % of  %        2013      % of  2012      % of  %
                                       Total         Total  Change            Total           Total  Change
Atlanta, GA                    $              $                      $               $      
Area           9       1,429     3,963 4.1%          3.7%   13.1%             3.8%            3.4%   15.1%
                                              3,504                  11,757           10,216
Boston, MA     2       506     4,349   4.5%   4,470  4.7%   -2.7%    10,431   3.4%   10,647   3.6%   -2.0%
Area
Dallas / Ft.   7       1,745   5,128   5.3%   5,411  5.7%   -5.2%    19,797   6.4%   18,752   6.3%   5.6%
Worth Area
Houston, TX    3       608     2,588   2.7%   2,192  2.3%   18.1%    8,307    2.7%   8,037    2.7%   3.4%
Area
Los Angeles,   8       1,785   5,262   5.5%   4,813  5.1%   9.3%     19,002   6.1%   17,650   5.9%   7.7%
CA Metro Area
Miami, FL      3       576     526     0.5%   403    0.4%   30.5%    6,571    2.1%   5,718    1.9%   14.9%
Metro Area
Minneapolis -
St. Paul,      2       522     2,345   2.4%   2,369  2.5%   -1.0%    5,968    1.9%   5,990    2.0%   -0.4%
MN-WI Area
New York /
New Jersey     7       1,560   6,293   6.5%   6,335  6.7%   -0.7%    19,678   6.3%   17,899   6.0%   9.9%
Metro Area
Orlando, FL    6       1,834   2,434   2.5%   2,376  2.5%   2.4%     12,757   4.1%   11,646   3.9%   9.5%
Area
Philadelphia,  4       1,147   4,481   4.6%   4,547  4.8%   -1.5%    13,406   4.3%   13,070   4.4%   2.6%
PA Area
San Diego, CA  3       706     4,712   4.9%   4,248  4.5%   10.9%    11,028   3.6%   11,602   3.9%   -4.9%
Area
San Francisco
- Oakland, CA  6       1,416   8,602   8.9%   7,387  7.8%   16.4%    22,715   7.3%   18,858   6.3%   20.5%
Metro Area
Seattle, WA    2       608     6,501   6.7%   5,698  6.0%   14.1%    13,928   4.5%   12,208   4.1%   14.1%
Area
Tampa, FL      4       875     1,439   1.5%   2,370  2.5%   -39.3%   9,426    3.0%   10,171   3.4%   -7.3%
Area
Washington DC
- MD - VA      11      2,698   9,956   10.3%  13,395 14.1%  -25.7%   41,194   13.3%  44,874   15.1%  -8.2%
Area
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          123     25,715  $       100.0% $      100.0% 1.5%     $        100.0% $        100.0% 4.4%
Portfolio                      96,462         95,004                  310,089         297,047
NOTES:
            The above pro forma table presents the 95 hotel properties included in Company's continuing
      (1)   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.
            The above pro forma table includes hotel operating profit for 100% of the 95 hotel properties
      (2)   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) as if these hotels were owned as of
            the beginning of the periods presented.
            On January 1, 2013, Marriott converted from a fiscal year with 12 weeks of operations in each
      (3)   of the first three quarters of the year and 16 weeks in the fourth quarter of the year, to
            calendar quarters.
            The above pro forma table assumes the Marriott-managed properties were reported on calendar
            quarters for all periods presented.

 

 

 

 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            18,991
equivalents) 
 Combined common shares and partnership units           99,557
outstanding 
 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

 

 

Ashford Trust Portfolio
Anticipated Capital Expenditures Calendar^(a)
                     2013                                2014
               Rooms 1st     2nd     3rd     4th         1st       2nd       3rd        4th
                     Quarter Quarter Quarter Quarter     Quarter   Quarter   Quarter    Quarter
                     Actual  Actual  Actual  Estimated   Estimated Estimated Estimated  Estimated 
Courtyard
Hartford       90    x
Manchester
Courtyard      156   x
Savannah
Embassy Suites 150   x
Dulles
Embassy Suites 215   x
East Syracuse
Hampton Inn    86    x
Lawrenceville
Hyatt Regency  351   x                                                                  x
Savannah
Marriott San   251   x
Antonio Plaza 
Residence Inn
Lake Buena     210   x
Vista
Sheraton San
Diego Mission  260   x
Valley
The Melrose    240   x
Hilton Boston  390   x       x
Back Bay
Courtyard
Dallas Plano   153   x       x
in Legacy
Park 
Hilton Santa   158   x       x
Fe
Courtyard
Boston         315   x       x       x       x           x         x
Downtown
Hilton Costa   486   x                       x           x
Mesa 
Marriott       300   x                       x           x
Sugarland 
Embassy Suites 249           x
Walnut Creek
Hilton Garden  158           x
Inn BWI
Hilton Garden
Inn Virginia   176           x
Beach
Residence Inn  130           x
Palm Desert
Hampton Inn    92            x       x
Buford
Hampton Inn    112           x       x
Terre Haute
Hyatt Regency  358           x       x       x           x         x
Wind Watch
Embassy Suites
Palm Beach     160                   x                             x         x
Garden
Hilton Garden  254                   x
Inn Austin
Hilton Garden
Inn            119                   x
Jacksonville
Hyatt Coral    250                   x                             x
Gables
Marriott
Crystal        697                   x                             x
Gateway
Marriott DFW   491                   x
Hilton         354                   x       x                                          x
Parsippany
Hilton St      333                   x       x
Petersburg
Renaissance    673                   x       x           x         x
Nashville
Residence Inn
Atlanta        150                   x       x
Buckhead Lenox
Park
Silversmith    143                   x       x
Courtyard
Marriott       312                           x
Village at LBV
Crowne Plaza   160                           x           x         x
Key West
Crowne Plaza   495                           x           x         x
Ravinia
Embassy Suites 150                           x
Dallas
Embassy Suites
Portland       276                           x           x
Downtown 
Residence Inn  144                           x
Salt Lake City
Residence Inn
San Diego      150                           x
Sorrento Mesa
Residence Inn  96                                        x
Hartford
Sheraton       378                                       x         x
Indianapolis
Residence Inn  168                                       x         x
Newark
Courtyard      117                                       x         x
Bloomington
Westin         296                                                           x          x
Princeton
Hilton         300                                                           x          x
Minneapolis
Residence Inn
Phoenix        200                                                           x          x
Airport
Courtyard
Newark/Silicon 181                                                           x          x
Valley
Springhill
Suites Orlando 400                                                           x          x
LBV
Crowne Plaza   258                                                           x          x
Beverly Hills
Sheraton Bucks 186                                                                      x
County
(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 Portfolio
Anticipated Capital Expenditures Calendar ^(a)
                   2013                               2014
             Rooms 1st     2nd     3rd     4th        1st       2nd       3rd       4th
                   Quarter Quarter Quarter Quarter    Quarter   Quarter   Quarter   Quarter
                   Actual  Actual  Actual  Estimated  Estimated Estimated Estimated Estimated
Hilton
LaJolla      394   x       x
Torrey Pines
Marriott
Dallas Plano 404           x       x       x          x
Legacy
Courtyard
Philadelphia 498                           x          x         x
Downtown
Marriott
Seattle      358                                      x         x
Waterfront
(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.

 

SOURCE Ashford Hospitality Trust, Inc.

Website: http://www.ahtreit.com
Contact: David Kimichik, Chief Financial Officer, (972) 490-9600; Deric
Eubanks, SVP - Finance, (972) 490-9600; Elise Chittick, Investor Relations,
(972) 778-9487; Scott Eckstein, Financial Relations Board, (212) 827-3766
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