Ashford Hospitality Trust, Inc.

Ashford reported a 4Q 2024 net loss attributable to common stockholders of $131.1 million, or $23.83 per diluted share, versus a full-year net loss of $82.5 million, or $17.54 per diluted share. 4Q AFFO per diluted share was negative $2.21 and full-year AFFO per diluted share was negative $4.84. Adjusted EBITDAre was $45.2 million in the quarter and $235.9 million for the full year. Comparable hotel RevPAR increased 3% year over year in 4Q, group room revenue increased 5% year over year, and December hotel EBITDA increased 12% year over year. Gross operating margins expanded by approximately 141 basis points in 4Q. At quarter-end, the company had $2.6 billion of loans at a blended average interest rate of 7.9%, with 77% effectively floating. Cash and cash equivalents were $112.9 million, restricted cash was $107.6 million, and net working capital was approximately $122 million. On capital actions, Ashford said it completed a refinancing that produced about $31 million of excess proceeds and another refinancing that closed subsequent to quarter end; it also sold the 115-room Courtyard Boston Downtown for $123 million, or $1.07 million per key. Management said the sale price implied a 5.9% cap rate on trailing twelve-month NOI excluding anticipated capital expenditures, or 6.9% including them. For 2025, the company expects to spend between $95 million and $115 million on capital expenditures and does not expect to reinstate a common dividend in 2025.

Stephen Zsigray framed the quarter as evidence that prior strategic decisions are starting to show up in operations, pointing to new growth and 6.2% growth in comparable hotel EBITDA. He emphasized that revenue growth exceeding RevPAR was driven by ancillary revenue initiatives and said the portfolio’s quality and geographic diversity are supporting results. He also highlighted the Voyager Street/New Orleans conversion and said the Tribute Portfolio property is expected to command a 10% to 20% RevPAR premium versus pre-conversion. Overall, his tone was upbeat and focused on continued progress from GrowAHT and a improving transaction/financing backdrop.

Deric S. Eubanks focused on reported losses, leverage, liquidity, and financing activity. He gave the key hard numbers: 4Q net loss of $131.1 million, AFFO per share of negative $2.21, Adjusted EBITDAre of $45.2 million, $2.6 billion of loans at a 7.9% blended rate, $112.9 million of cash and cash equivalents, $107.6 million of restricted cash, and about $122 million of net working capital. He also noted that a refinancing generated about $31 million of excess proceeds, that roughly $72 million of excess proceeds was used to completely pay off the remaining strategic financing, and that the company raised about $195 million of gross proceeds from Series J and K preferred stock since 2022. He added that the company does not expect to reinstate a common dividend in 2025.

Analysts pressed management on the timing and quantification of GrowAHT benefits, the stability and runway of the conversion assets, the transaction market, and the increase in floating-rate exposure. Management said more than half of the GrowAHT initiatives are already rolled out, with the rest to follow through the year, and described early outperformance in December and January. On conversions, management said both La Pavavion and La Concha are outperforming underwriting, with La Pavion up north of 40% in January and a Super Bowl period RevPAR above $900, while La Concha is seeing especially strong ADR gains and still has some runway before stabilization. On transactions and rates, management said financing conditions are improving, bid-ask spreads remain in some markets, and the company expects to keep a mix of fixed and floating debt, with a natural tilt toward floating.