The following is a summary of the Ashford Hospitality Trust, Inc. (AHT) Q2 2024 Earnings Call Transcript:
Financial Performance:
Ashford Hospitality Trust reported a net income of $44.3 million, or $0.25 per diluted share, and AFFO per diluted share of $0.27 for Q2 2024.
Adjusted EBITDAre for the quarter was $78.7 million.
Total net working capital at the end of the quarter was approximately $187.4 million.
Business Progress:
Ashford has made significant progress in reducing its debt, evident from nearly $90 million in principal payments made since March 2024.
Successfully sold seven assets generating over $310 million, notably the 390-room Hilton Boston Back Bay for $171 million.
Secured a new non-recourse loan of $267.2 million for the Renaissance Nashville, enhancing financial flexibility.
Raised approximately $147 million from non-traded preferred stock offering, with $24 million raised in Q2.
Steady improvement in Comparable Hotel RevPAR and strong corporate transient recovery noted, with enhanced urban hotel performances such as the Renaissance Nashville showing a 16% increase in hotel EBITDA.
Opportunities:
Continued asset sales and refinancing opportunities, particularly with non-recourse loans, present significant opportunities for further financial restructuring and growth.
The ongoing capital raise from non-traded preferred stock offers substantial capital for strategic financial maneuvers.
Robust group booking pace, especially heading into softer occupancy quarters, alongside the strategic increase in group business for 2025 provides a cushion against macroeconomic headwinds and enables aggressive transient business yielding.
Risks:
Potential market risks highlighted by disparities in buyer interest and financing conditions affecting transaction dynamics. Particularly, the fluctuation in asset valuation depending on market conditions could impact the pace and profitability of asset sales.
More details: Ashford Hospitality Trust IR
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