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Ashford Hospitality Trust Reports Third Quarter Results

Ashford Hospitality Trust Reports Third Quarter Results

Category: Worldwide - Industry economy - Figures / Studies
This is a press release selected by our editorial committee and published online for free on 2009-11-05


Ashford Hospitality Trust, Inc. (NYSE: AHT) today reported the following results and performance measures for the third quarter ended September 30, 2009. The proforma performance measurements for Occupancy, Average Daily Rate (ADR), revenue per available room (RevPAR), and Hotel Operating Profit (or Hotel EBITDA) include the Company's 103 hotels owned and included in continuing operations as of September 30, 2009. Unless otherwise stated, all reported results compare the third quarter ended September 30, 2009, with the third quarter ended September 30, 2008 (see discussion below). The reconciliation of non-GAAP financial measures is included in the financial tables accompanying this press release.

FINANCIAL HIGHLIGHTS AND LIQUIDITY

-- Corporate unrestricted cash at the end of the quarter was $197.9 million
-- Total revenue decreased 22.7% to $220.6 million from $285.3 million
-- Net loss available to common shareholders was $33.6 million, or $0.52
per diluted share, compared with net income of $1.8 million, or $0.01
per diluted share, in the prior-year quarter
-- Adjusted funds from operations (AFFO) was $0.18 per diluted share
-- Cash available for distribution (CAD) was $0.09 per diluted share
-- Fixed charge ratio was 1.60x under the senior credit facility covenant
versus a required minimum of 1.25x

-- The company expects to close the refinancing of a $75 million loan, its
sole 2010 hard debt maturity (excludes the $29 million Hyatt Dearborn
loan due in 2010), together with a $65 million loan coming due in 2011.

CAPITAL ALLOCATION

-- Repurchased 6.3 million common shares in the quarter for a total of
$19.4 million

-- Capex invested in the quarter totaled $18.2 million

LOAN IMPAIRMENT CHARGES

During the third quarter of 2009, the Company elected to reserve for the remaining $9.1 million of its $18.2 million first mortgage participation in the Four Seasons Nevis due to additional uninsured costs incurred by the borrower and the delayed re-opening of the resort until 2010. The Company also announced it has signed a definitive agreement with the borrower on the Ritz Carlton Key Biscayne, subject to senior lender approval, to allow for a discounted payoff of the Company's $33.6 million loan that was to mature in 2017. If closing occurs, Ashford will receive $20 million in cash and a $4 million secured note that matures in 2017. The Company will reserve $10.7 million on this loan in anticipation of the discounted payoff. These reserves resulted in a non-cash impairment charge of $19.8 million, or $0.30 per diluted share, in the third quarter of 2009.

CAPITAL STRUCTURE

At September 30, 2009, the Company's net debt to total gross assets (as defined by the corporate credit facility) was 57.8%. As of September 30, 2009, the Company had $2.8 billion of gross debt with a blended average interest rate of 3.28%. Including its $1.8 billion interest rate swap, 97% of the Company's debt is variable-rate debt. The Company's weighted average debt maturity including extension options is 5.3 years and including the $29 millionHyatt Dearborn loan has only $104 million coming due before December 31, 2010 (the balance is in the process of being refinanced).

On July 1, 2009, the Company purchased two, one-year flooridors. The first flooridor, which is for a notional amount of $1.8 billion, is for the period commencing December 14, 2009, and ending December 13, 2010. Under this flooridor, the counterparty will make payments to the Company when LIBOR is below 1.75% but only down to LIBOR of 1.25% such that the counterparty's liability is capped at LIBOR of 1.25%.

The second flooridor, which is also for a notional amount of $1.8 billion, is for the period commencing December 13, 2010, and ending December 13, 2011. Under this flooridor, the counterparty will make payments to the Operating Partnership when LIBOR is below 2.75% but only down to LIBOR of 0.50% such that the counterparty's liability is capped at LIBOR of 0.50%. The Company paid a total of $22.3 million in upfront costs for the two flooridors and has no further liability under the flooridors to the counterparties.

On October 13, 2009, the Company purchased an additional flooridor for a notional amount of $2.7 billion with a term commencing October 1, 2009, and ending December 31, 2009. Under this flooridor, the counterparty will make payments to the Operating Partnership when one-month LIBOR is below 2.00% but only down to LIBOR of 1.00% such that the counterparty's liability is capped at LIBOR of 1.00%. The Company has paid $6.9 million in upfront cost for the flooridor and has no further liability under the flooridor to the counterparty.

PORTFOLIO REVPAR

As of September 30, 2009, the Company had a portfolio of direct hotel investments consisting of 103 properties classified in continuing operations. During the third quarter, 98 of the hotels included in continuing operations were not under renovation. The Company believes reporting its operating metrics for continuing operations on a proforma total basis (all 103 hotels) and proforma not-under-renovation basis (98 hotels) is a measure that reflects a meaningful and focused comparison of the operating results in its direct hotel portfolio. The Company's reporting by region and brand includes the results of all 103 hotels in continuing operations. Details of each category are provided in the tables attached to this release.

-- Proforma RevPAR decreased 19.4% for hotels not under renovation on a 12%
decrease in ADR to $122.76 and a 626 basis point decline in occupancy

-- Proforma RevPAR decreased 19.8% for all hotels on a 12.1% decrease in
ADR to $122.25 and a 650 basis point decline in occupancy

HOTEL EBITDA MARGINS AND QUARTERLY SEASONALITY TRENDS

For the 98 hotels as of September 30, 2009, that were not under renovation, Proforma Hotel EBITDA decreased 32.8% to $48.6 million. Proforma Hotel EBITDA margin (expressed as a percentage of Total Hotel Revenue) declined 437 basis points to 23.1%. For all 103 hotels included in continuing operations as of September 30, 2009, Proforma Hotel EBITDA decreased 34.2% to $49.8 million and Hotel EBITDA margin decreased 474 basis points to 22.4%.

Ashford 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 Proforma Hotel EBITDA and Proforma Hotel EBITDA margin for the current and certain prior-year periods based upon the number of core hotels in the portfolio as of the end of the current period. As Ashford's portfolio mix changes from time to time so will the seasonality for Proforma Hotel EBITDA and Proforma Hotel EBITDA margin. The details of the quarterly calculations for the previous four quarters for the current portfolio of 103 hotels included in continuing operations are provided in the tables attached to this release.

Monty J. Bennett, Chief Executive Officer, commented, "There have been recent signs of life in the broader lodging market, but the operating environment remains incredibly challenging. We continue to tightly manage our cost structure and work with the property management teams to offset the declining RevPAR trends as much as possible through aggressive asset management strategies. Preserving liquidity and eliminating near-term debt maturities are also at the top of our agenda, and we continue to have success in refinancing upcoming maturities, offsetting RevPAR declines with flooridor transactions and allocating capital to maximize long-term shareholder returns."

INVESTOR CONFERENCE CALL AND SIMULCAST

Ashford Hospitality Trust, Inc. will conduct a conference call on Thursday, November 5, 2009, at 12 p.m. ET. The number to call for this interactive teleconference is (212) 231-2900. A replay of the conference call will be available through November 12, 2009, by dialing (402) 977-9140 and entering the confirmation number, 21438862.

The Company will also provide an online simulcast and rebroadcast of its third quarter 2009 earnings release conference call. The live broadcast of Ashford's quarterly conference call will be available online at the Company's website at www.ahtreit.com on Thursday, November 5, 2009, beginning at 12 p.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, Hotel Operating Profit, and CAD. 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, Hotel Operating Profit, nor CAD 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, Hotel Operating Profit, and CAD 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 self-administered real estate investment trust focused on investing in the hospitality industry across all segments and at all levels of the capital structure, including direct hotel investments, second mortgages, mezzanine loans and sale-leaseback transactions. Additional information can be found on the Company's web site at www.ahtreit.com.

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 forward-looking statements include, but are not limited to, the timing for closing, the impact of the transaction on our business and future financial condition, our business and investment strategy, our understanding of our competition and current market trends and opportunities and projected capital expenditures. 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; and the degree and nature of our competition. 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. 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 or 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,
2009 2008
---------- ----------
(Unaudited)
ASSETS
Investment in hotel properties, net $3,489,746 $3,568,215
Cash and cash equivalents 197,920 241,597
Restricted cash 65,270 69,806
Accounts receivable, net 39,471 41,110
Inventories 3,132 3,341
Notes receivable 66,652 212,815
Investment in unconsolidated joint
venture 20,319 19,122
Deferred costs, net 19,458 24,211
Prepaid expenses 18,250 12,903
Interest rate derivatives 105,516 88,603
Other assets 4,520 6,766
Intangible assets, net 3,011 3,077
Due from third-party hotel managers 52,428 48,116
---------- ----------

Total assets $4,085,693 $4,339,682
========== ==========

LIABILITIES AND EQUITY
Liabilities
Indebtedness $2,801,824 $2,790,364
Capital leases payable 105 207
Accounts payable and accrued expenses 115,335 93,476
Dividends payable 5,527 6,285
Unfavorable management contract
liabilities 19,257 20,950
Due to related parties 1,403 2,378
Due to third-party hotel managers 2,024 3,855
Other liabilities 7,908 8,124
---------- ----------

Total liabilities 2,953,383 2,925,639
---------- ----------

Series B-1 Cumulative Convertible
Redeemable Preferred stock, 7,447,865
issued and outstanding 75,000 75,000
Redeemable noncontrolling interests in
Operating partnership 84,947 107,469

Equity:
Stockholders' equity of the Company
Preferred stock, $0.01 par value,
50,000,000 shares authorized:
Series A Cumulative Preferred Stock,
1,487,900 shares and 2,185,000
shares issued and outstanding at
September 30, 2009 and December 31,
2008 15 22
Series D Cumulative Preferred Stock,
5,666,797 shares and 6,394,347
shares issued and outstanding at
September 30, 2009 and December 31,
2008 57 64
Common stock, $0.01 par value,
200,000,000 shares authorized,
122,748,859 shares issued,
63,890,831 shares and 86,555,149
shares outstanding at September 30,
2009 and December 31, 2008 1,227 1,227
Additional paid-in capital 1,434,161 1,450,146
Accumulated other
comprehensive loss (732) (860)
Accumulated deficit (321,853) (124,782)
Treasury stock, at cost (58,858,028
shares and 36,193,710 shares at
September 30, 2009 and December 31,
2008) (158,430) (113,598)
---------- ----------
Total stockholders' equity
of the Company 954,445 1,212,219
Noncontrolling interests in
consolidated joint ventures 17,918 19,355
---------- ----------

Total equity 972,363 1,231,574
---------- ----------

Total liabilities and equity $4,085,693 $4,339,682
========== ==========



ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)

Three Months Nine Months
Ended Ended
September 30, September 30,
----------------- -----------------
2009 2008 2009 2008
------- ------- ------- -------
(Unaudited)
REVENUE
Rooms $167,494 $208,856 $516,653 $642,264
Food and beverage 38,630 53,143 133,864 175,153
Rental income from
operating leases 1,236 1,367 3,830 4,239
Other 11,298 12,604 34,940 38,924
------- ------- ------- -------

Total hotel revenue 218,658 275,970 689,287 860,580
Interest income from notes
receivable 1,761 8,801 10,397 15,273
Asset management fees and
other 173 510 552 1,953
------- ------- ------- -------

Total Revenue 220,592 285,281 700,236 877,806
------- ------- ------- -------

EXPENSES
Hotel operating expenses
Rooms 40,680 47,258 120,427 140,530
Food and beverage 30,284 39,468 97,819 124,237
Other direct 6,565 6,726 19,186 21,218
Indirect 66,792 80,110 205,051 238,405
Management fees 8,649 10,690 27,233 33,726
------- ------- ------- -------
Total hotel expenses 152,970 184,252 469,716 558,116
Property taxes, insurance,
and other 16,023 14,918 46,602 45,776
Depreciation and
amortization 38,935 44,406 118,927 126,405
Impairment charges 19,816 - 160,143 -
Corporate general and
administrative:
Stock-based compensation 1,139 1,719 3,896 5,188
Other general and
administrative 8,118 7,115 19,118 19,715
------- ------- ------- -------
Total Operating Expenses 237,001 252,410 818,402 755,200
------- ------- ------- -------
OPERATING (LOSS) INCOME (16,409) 32,871 (118,166) 122,606
Equity in earnings of
unconsolidated joint
venture 642 491 1,863 2,304
Interest income 56 697 253 1,594
Other income 13,228 3,379 35,140 6,244
Interest expense (34,704) (38,436) (103,780) (112,004)
Amortization of loan costs (1,841) (1,434) (5,883) (4,767)
Write-off of loan costs,
premiums and exit fees,
net - (1,226) 930 (1,226)
Unrealized gain (loss) on
derivatives 5,525 12,528 (14,166) (38,861)
------- ------- ------- -------
(LOSS) INCOME FROM
CONTINUING OPERATIONS BEFORE
INCOME TAXES (33,503) 8,870 (203,809) (24,110)
Income tax expense (193) (421) (585) (1,150)
------- ------- ------- -------

(LOSS) INCOME FROM
CONTINUING OPERATIONS (33,696) 8,449 (204,394) (25,260)
Income from discontinued
operations - 1,329 - 15,909
------- ------- ------- -------
NET (LOSS) INCOME (33,696) 9,778 (204,394) (9,351)
Loss (income) from
consolidated joint ventures
attributable to
noncontrolling interests 476 (123) 629 (2,907)
Net loss (income)
attributable to redeemable
noncontrolling interests in
operating partnership 4,424 (856) 25,567 738
------- ------- ------- -------
NET (LOSS) INCOME ATTRIBUTABLE
TO THE COMPANY (28,796) 8,799 (178,198) (11,520)
Preferred dividends (4,831) (7,018) (14,492) (21,054)
------- ------- ------- -------
NET (LOSS) INCOME
ATTRIBUTABLE TO COMMON
STOCKHOLDERS $(33,627) $1,781 $(192,690) $(32,574)
======== ====== ========= ========

(LOSS) INCOME PER SHARE - Basic and Diluted:
(Loss) income from
continuing operations
attributable to common
stockholders $(0.52) $- $(2.67) $(0.40)
Income from discontinued
operations attributable to
common stockholders - 0.01 - 0.12
------- ------- ------- -------
Net (loss) income
attributable to common
stockholders $(0.52) $0.01 $(2.67) $(0.28)
======= ======= ======= =======
Weighted average common
shares outstanding - basic 65,266 115,819 72,167 117,828
======= ======= ======= =======
Weighted average common
shares outstanding -
diluted 65,266 115,819 72,167 117,828
======= ======= ======= =======

Amounts attributable to common stockholders:
Income (loss) from
continuing operations, net
of tax $(28,796) $7,579 $(178,198) $(26,180)
Income from discontinued
operations, net of tax - 1,220 - 14,660
Preferred dividends (4,831) (7,018) (14,492) (21,054)
------- ------- ------- -------
Net (loss) income
attributable to common
stockholders $(33,627) $1,781 $(192,690) $(32,574)
======= ======= ======= =======



ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES
RECONCILIATION OF NET INCOME TO EBITDA
(in thousands)

Three Months
Ended Nine Months Ended
September 30, September 30,
----------------- -----------------
2009 2008 2009 2008
------- ------- ------- -------
(Unaudited)

Net (loss) income $(33,696) $9,778 $(204,394) $(9,351)
Loss (income) from
consolidated joint
ventures
attributable to
noncontrolling
interests 476 (123) 629 (2,907)
Net loss (income)
attributable to
redeemable
noncontrolling
interests in
operating
partnership 4,424 (856) 25,567 738
------- ------- ------- -------
Net (loss) income
attributable to the
Company (28,796) 8,799 (178,198) (11,520)

Interest income (54) (697) (245) (1,594)
Interest expense
and amortization
of loan costs 36,064 39,756 108,226 118,389
Depreciation and
amortization 38,140 44,731 116,566 131,716
Net loss (income)
attributable to
redeemable
noncontrolling
interests in
operating
partnership (4,424) 856 (25,567) (738)
Income tax expense 193 421 585 1,360
------- ------- ------- -------

EBITDA 41,123 93,866 21,367 237,613

Amortization of
unfavorable management
contract liabilities (565) (565) (1,694) (1,693)
Gain on sale of properties,
net of related income
taxes - (1,411) - (8,315)
Write-off of loan costs,
premiums and exit fees
(1) - 1,354 (930) 8
Impairment charges 19,816 - 160,143 -
Income from interest rate
derivatives (2) (11,279) (3,379) (33,203) (6,244)
Unrealized (gain) loss on
derivatives (5,525) (12,528) 14,166 38,861
------- ------- -------- --------

Adjusted EBITDA $43,570 $77,337 $159,849 $260,230
======= ======= ======== ========



RECONCILIATION OF NET INCOME TO FUNDS FROM OPERATIONS
("FFO")
(in thousands, except per share amounts)

Three Months
Ended Nine Months Ended
September 30, September 30,
----------------- ------------------
2009 2008 2009 2008
------- ------- -------- --------
(Unaudited)

Net (loss) income $(33,696) $9,778 $(204,394) $(9,351)
Loss (income) from
consolidated joint
ventures
attributable to
noncontrolling
interests 476 (123) 629 (2,907)
Net loss (income)
attributable to
redeemable
noncontrolling
interests in
operating
partnership 4,424 (856) 25,567 738
Preferred dividends (4,831) (7,018) (14,492) (21,054)
------- ------- -------- --------

Net loss
attributable to common
stockholders (33,627) 1,781 (192,690) (32,574)

Depreciation and
amortization on
real estate 38,071 44,609 116,350 131,351
Gain on sales of
hotel properties,
net of related
income taxes - (1,411) - (8,315)
Net loss (income)
attributable to
redeemable
noncontrolling
interests in
operating
partnership (4,424) 856 (25,567) (738)
------- ------- -------- --------

FFO available to common
stockholders 20 45,835 (101,907) 89,724

Dividends on convertible
preferred stock 1,043 1,564 3,128 4,692
Write-off of loan costs,
Premiums and exit fees
(1) - 1,354 (930) 8
Impairment charges 19,816 - 160,143 -
Unrealized (gain) loss
on derivatives (5,525) (12,528) 14,166 38,861
------- ------- -------- --------

Adjusted FFO $15,354 $36,225 $74,600 $133,285
======= ======= ======== ========

Adjusted FFO per diluted
Share available to
Common stockholders $0.18 $0.26 $0.80 $0.96
======= ======= ======== ========

Weighted average diluted
shares 86,747 137,690 93,424 139,372
======= ======= ======== ========

(1) The amounts include write-off of debt premiums of $1,341 for the
refinancing of a mortgage loan for the nine months ended September
30, 2009 and $2,086 for the sale of a hotel property for the nine
months ended September 30, 2008.
(2) Cash income from interest rate derivatives is excluded from the
adjusted EBITDA calculations for all periods presented, which is a
change from prior periods.



ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES
CASH AVAILABLE FOR DISTRIBUTION ("CAD")
(in thousands, except per share amounts)
(Unaudited)

Three Three
Months Months
Ended Per Ended Per
Sept. 30, Diluted Sept. 30, Diluted
2009 Share 2008 Share
--------- -------- --------- --------

Net (loss) income attributable
to common stockholders $(33,627) $(0.39) $1,781 $0.01
Dividends on convertible
preferred stock 1,043 0.01 1,564 0.01
-------- ------ ------- ------

Total (32,584) (0.38) 3,345 0.02

Depreciation and amortization
on real estate 38,071 0.44 44,609 0.33
Net (loss) income attributable
to redeemable noncontrolling
interests in operating
partnership (4,424) (0.05) 856 0.01
Stock-based compensation 1,139 0.01 1,719 0.01
Amortization of loan costs 1,776 0.02 1,440 0.01
Write-off of loan costs,
premiums and exit fees (1) - - 1,354 0.01
Amortization of unfavorable
management contract
liabilities (565) (0.01) (565) -
Gain on sales of properties,
net of related income taxes - - (1,411) (0.01)
Impairment charge 19,816 0.23 - 0.00
Unrealized (gain) loss on
derivatives (5,525) (0.06) (12,528) (0.09)
Capital improvements reserve (9,570) (0.11) (11,948) (0.09)
-------- ------ ------- ------

CAD $8,134 $0.09 $26,871 $0.20
======== ====== ======= ======


Nine Nine
Months Months
Ended Per Ended Per
Sept. 30, Diluted Sept. 30, Diluted
2009 Share 2008 Share
--------- -------- --------- --------

Net (loss) income attributable
to common stockholders $(192,690) $(2.06) $(32,574) $(0.23)
Dividends on convertible
preferred stock 3,128 0.03 4,692 0.03
-------- ------ ------- ------

Total (189,562) (2.03) (27,882) (0.20)

Depreciation and amortization
on real estate 116,350 1.25 131,351 0.94
Net (loss) income attributable
to redeemable noncontrolling
interests in operating
partnership (25,567) (0.27) (738) (0.01)
Stock-based compensation 3,896 0.04 5,188 0.04
Amortization of loan costs 5,679 0.06 4,924 0.04
Write-off of loan costs,
premiums and exit fees (1) (930) (0.01) 8 -
Amortization of unfavorable
management contract
liabilities (1,694) (0.02) (1,693) (0.01)
Gain on sales of properties,
net of related income taxes - - (8,315) (0.06)
Impairment charge 160,143 1.71 - -
Unrealized (gain) loss on
derivatives 14,166 0.15 38,861 0.28
Capital improvements reserve (30,269) (0.32) (38,061) (0.27)
-------- ------ ------- ------

CAD $52,212 $0.56 $103,643 $0.75
======== ====== ======== ======

(1) The amounts include write-off of debt premiums of $1,341 for the
refinancing of a mortgage loan for the nine months ended September
30, 2009 and $2,086 for the sale of a hotel property for the nine
months ended September 30, 2008.




ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES
DEBT SUMMARY
SEPTEMBER 30, 2009
(dollars in thousands)
(Unaudited)

Indebtedness Collateral Maturity Interest Rate
------------ ---------- ------------ -------------

Mortgage loan 10 hotels July 2015 5.22%
Mortgage loan 5 hotels February 2016 5.53%
Mortgage loan 5 hotels February 2016 5.53%
Mortgage loan 5 hotels February 2016 5.53%
Mortgage loan 8 hotels December 2014 5.75%
Mortgage loan 8 hotels December 2015 5.70%
Senior credit Notes April 2010 LIBOR + 2.75%
facility receivable to 3.5%
Mortgage loan 1 hotel December 2016 5.81%
Mortgage loan 5 hotels December 2009 LIBOR + 1.72%
Mortgage loan 5 hotels April 2017 5.95%
Mortgage loan 7 hotels April 2017 5.95%
Mortgage loan 2 hotels April 2017 5.95%
Mortgage loan 5 hotels April 2017 5.95%
Mortgage loan 5 hotels April 2017 5.95%
Mortgage loan 3 hotels April 2017 5.95%
Mortgage loan 1 hotel April 2017 5.91%
Mortgage loan 10 hotels May 2010 LIBOR + 1.65%
Mortgage loan 1 hotel January 2011 8.32%
Mortgage loan 1 hotel January 2023 7.78%
TIF loan 1 hotel June 2018 12.85%
Mortgage loan 1 hotel March 2010 5.60%
Mortgage loan 3 hotels April 2011 5.47%
Mortgage loan 4 hotels March 2010 5.95%
Mortgage loan 1 hotel June 2011 LIBOR + 2%
Mortgage loan 2 hotel August 2011 LIBOR + 2.75%
Mortgage loan 1 hotel March 2011 LIBOR + 3.75%
Mortgage loan 1 hotel March 2012 LIBOR + 4%
Mortgage loan 1 hotel April 2034 Greater of 6%
or Prime + 1%





Fixed-Rate Floating-Rate Total
Indebtedness Debt Debt Debt
------------ ---------- ------------- ----------

Mortgage loan $160,490 $- $160,490
Mortgage loan 115,645 - 115,645
Mortgage loan 95,905 - 95,905
Mortgage loan 83,075 - 83,075
Mortgage loan 110,899 - 110,899
Mortgage loan 100,576 - 100,576
Senior credit
facility - 250,000(2)(3) 250,000
Mortgage loan 101,000 - 101,000
Mortgage loan - 203,400(2) 203,400
Mortgage loan 115,600 - 115,600
Mortgage loan 126,466 - 126,466
Mortgage loan 128,251 - 128,251
Mortgage loan 103,906 - 103,906
Mortgage loan 158,105 - 158,105
Mortgage loan 260,980 - 260,980
Mortgage loan 35,000 - 35,000
Mortgage loan - 167,202(2) 167,202
Mortgage loan 5,867 - 5,867
Mortgage loan 4,900 - 4,900
TIF loan 7,783 - 7,783
Mortgage loan 29,135(1) - 29,135
Mortgage loan 65,248 - 65,248
Mortgage loan 75,000 - 75,000
Mortgage loan 19,740 19,740
Mortgage loan 157,400(2) 157,400
Mortgage loan 52,500(2) 52,500
Mortgage loan 60,800(2) 60,800
Mortgage loan 6,951 6,951

Total debt $1,883,831 $917,993 $2,801,824
========== ======== ==========

Percentage 67.2% 32.8% 100.0%
========== ======== ==========

Weighted average
interest rate
at September 30,
2009 5.81% 2.91% 4.86%
========== ======== ==========

Total debt with
the effect of
interest rate
swap $83,831 $2,717,993 $2,801,824
========== ======== ==========


Percentage with
the effect of
interest rate
swap 3.0% 97.0% 100.0%
========== ======== ==========

Weighted average
interest rate
with the effect
of interest
rate swap 3.47% 2.91% 3.28%
========== ======== ==========

(1) We have received a notice of default and acceleration of the loan
and are cooperating with the lender for a deed-in-lieu or
consensual foreclosure.

(2) Each of these loans has two one-year extension options.

(3) Based on the debt-to-assets ratio defined in the loan agreement,
interest rate on this debt was at LIBOR plus 3% as of September 30,
2009.




ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES
DEBT BY MATURITY ASSUMING EXTENSION OPTIONS NOT SUBJECT TO COVERAGE/LTV
TESTS ARE EXERCISED
SEPTEMBER 30, 2009
(in thousands)
(Unaudited)


2009 2010 2011 2012
---- ---- ---- ----

Mortgage loan secured
by 10 hotel
properties, Merrill
Lynch Pool 1 $- $- $- $-
Mortgage loan secured
by five hotel
properties, Merrill
Lynch Pool 2 - - - -
Mortgage loan secured
by five hotel
properties, Merrill
Lynch Pool 3
Mortgage loan secured
by five hotel
properties, Merrill
Lynch Pool 7
Mortgage loan
secured by eight
hotel properties,
UBS Pool 1 - - - -
Mortgage loan
secured by eight
hotel properties,
UBS Pool 2 - - - -
Secured credit
facility - 250,000 (2) - -
Mortgage loan secured
by Westin O'Hare - - - -
Mortgage loan secured
by five hotel
properties - - 203,400 -
Mortgage loan secured
by five hotel
properties, Wachovia
Fixed Rate Pool 1 - - - -
Mortgage loan secured
by seven hotel
properties, Wachovia
Fixed Rate Pool 2 - - - -
Mortgage loan secured
by two hotel
properties, Wachovia
Fixed Rate Pool 3 - - - -
Mortgage loan secured
by five hotel
properties, Wachovia
Fixed Rate Pool 5 - - - -
Mortgage loan secured
by five hotel
properties, Wachovia
Fixed Rate Pool 6 - - - -
Mortgage loan secured
by three hotel
properties, Wachovia
Fixed Rate Pool 7 - - - -
Mortgage loan secured
by Philadelphia
Courtyard, Wachovia
Stand-Alone - - - -
Mortgage loan secured
by 10 hotel
properties, Wachovia
Floater - - - 167,202
Mortgage loan secured
by Manchester Courtyard - - 5,867 -
Mortgage loan secured
by Houston Hampton Inn - - - -
TIF loan secured by
Philadelphia Courtyard - - - -
Mortgage loan secured
by Dearborn Hyatt
Regency - 29,135 (1) - -
Mortgage loan secured
by three hotel
properties - - 65,248 -
Mortgage loan secured
by four hotel
properties - 75,000 - -
Mortgage loan
secured by El
Conquistador
Hilton - - 19,740 -
Mortgage loan secured
by two hotel properties - - 157,400 (3) -
Mortgage loan
secured by JW
Marriott San
Francisco - - - 52,500 (2)
Mortgage loan secured
by Arlington Marriott - - - -
Mortgage loan
secured by
Jacksonville
Residence Inn - - - -

-- -------- -------- --------
$- $354,135 $451,655 $219,702
== ======== ======== ========



2013 Thereafter Total
---- -------------- ---------

Mortgage loan secured
by 10 hotel
properties, Merrill
Lynch Pool 1 $- $160,490 $160,490
Mortgage loan secured
by five hotel
properties, Merrill
Lynch Pool 2 - 115,645 115,645
Mortgage loan secured
by five hotel
properties, Merrill
Lynch Pool 3 95,905 95,905
Mortgage loan secured
by five hotel
properties, Merrill
Lynch Pool 7 83,075 83,075
Mortgage loan
secured by eight
hotel properties,
UBS Pool 1 - 110,899 110,899
Mortgage loan
secured by eight
hotel properties,
UBS Pool 2 - 100,576 100,576
Secured credit
facility - - 250,000
Mortgage loan secured
by Westin O'Hare - 101,000 101,000
Mortgage loan secured
by five hotel
properties - - 203,400
Mortgage loan secured
by five hotel
properties, Wachovia
Fixed Rate Pool 1 - 115,600 115,600
Mortgage loan secured
by seven hotel
properties, Wachovia
Fixed Rate Pool 2 - 126,466 126,466
Mortgage loan secured
by two hotel
properties, Wachovia
Fixed Rate Pool 3 - 128,251 128,251
Mortgage loan secured
by five hotel
properties, Wachovia
Fixed Rate Pool 5 - 103,906 103,906
Mortgage loan secured
by five hotel
properties, Wachovia
Fixed Rate Pool 6 - 158,105 158,105
Mortgage loan secured
by three hotel
properties, Wachovia
Fixed Rate Pool 7 - 260,980 260,980
Mortgage loan secured
by Philadelphia
Courtyard, Wachovia
Stand-Alone - 35,000 35,000
Mortgage loan secured
by 10 hotel
properties, Wachovia
Floater - - 167,202
Mortgage loan secured
by Manchester Courtyard - - 5,867
Mortgage loan secured
by Houston Hampton Inn - 4,900 4,900
TIF loan secured by
Philadelphia Courtyard - 7,783 7,783
Mortgage loan secured
by Dearborn Hyatt
Regency - - 29,135
Mortgage loan secured
by three hotel
properties - - 65,248
Mortgage loan secured
by four hotel
properties - - 75,000
Mortgage loan
secured by El
Conquistador
Hilton - - 19,740
Mortgage loan secured
by two hotel properties - - 157,400
Mortgage loan
secured by JW
Marriott San
Francisco - - 52,500
Mortgage loan secured
by Arlington Marriott - 60,800 60,800
Mortgage loan
secured by
Jacksonville
Residence Inn - 6,951 6,951

-- ---------- ----------
$- $1,776,332 $2,801,824
== ========== ==========

NOTE: These maturities assume no event of default would occur.
(1) We have received a notice of default and acceleration of the loan and
are cooperating with the lender for a deed-in-lieu or consensual
foreclosure.
(2) Extensions available but certain coverage tests have to be met.
(3) Extensions available but certain LTV tests have to be met.



ASHFORD HOSPITALITY TRUST, INC.
KEY PERFORMANCE INDICATORS - PRO FORMA
(Unaudited)



Three Months Ended Nine Months Ended
September 30, September 30,
------------- -------------
% %
Vari- Vari-
2009 2008 ance 2009 2008 ance
---- ---- ------ ---- ---- ------

ALL HOTELS
INCLUDED IN
CONTINUING
OPERATIONS:
Room
revenues
(in
thousands) $171,548 $213,820 -19.77% $529,716 $657,903 -19.48%
RevPAR $83.22 $103.75 -19.79% $86.21 $106.86 -19.32%
Occupancy 68.07% 74.57% -6.50% 66.12% 73.87% -7.75%
ADR $122.25 $139.12 -12.13% $130.39 $144.67 -9.87%



Three Months Ended Nine Months Ended
September 30, September 30,
------------- -------------
% %
Vari- Vari-
2009 2008 ance 2009 2008 ance
---- ---- ------ ---- ---- ------

ALL HOTELS
NOT UNDER
RENOVATION
INCLUDED IN
CONTINUING
OPERATIONS:
Room
revenues
(in
thousands) $162,872 $202,020 -19.38% $502,428 $621,779 -19.20%
RevPAR $83.99 $104.21 -19.40% $86.92 $107.35 -19.03%
Occupancy 68.42% 74.68% -6.26% 66.38% 74.02% -7.64%
ADR $122.76 $139.54 -12.03% $130.94 $145.03 -9.72%


Excluded Hotels Under Renovation: Hilton Rye Town, Hilton Nassau Bay,
Residence Inn Orlando Sea World, Courtyard Edison, Embassy Suites Orlando
Airport

OTHER NOTE:
As the Company's Courtyard by Marriott hotel in Philadelphia,
Pennsylvania, is leased to a third-party tenant on a triple-net lease
basis, the Company only records rental income related to this operating
lease for GAAP purposes. However, in the above pro forma table, all
room revenues related to this hotel are reflected, which is consistent
with the Company's other hotels.




ASHFORD HOSPITALITY TRUST, INC.
PRO FORMA HOTEL OPERATING PROFIT
(dollars in thousands)
(Unaudited)

ALL HOTELS INCLUDED IN CONTINUING OPERATIONS:

Three Months Ended Nine Months Ended
September 30, September 30,
------------- -------------
2009 2008 % Variance 2009 2008 % Variance
---- ---- ---------- ---- ---- ----------
REVENUE
Rooms $171,548 $213,820 -19.8% $529,716 $657,903 -19.5%
Food and
beverage 39,428 53,853 -26.8% 136,164 177,490 -23.3%
Other 11,172 10,850 3.0% 34,510 37,375 -7.7%
------ ------ ----- ------ ------ -----
Total hotel
revenue 222,148 278,523 -20.2% 700,390 872,768 -19.8%
------ ------ ----- ------ ------ -----

EXPENSES
Rooms 41,627 48,341 -13.9% 123,387 143,817 -14.2%
Food and
beverage 30,817 40,017 -23.0% 99,404 125,943 -21.1%
Other direct 6,622 6,792 -2.5% 19,361 21,410 -9.6%
Indirect 67,805 79,150 -14.3% 206,824 237,135 -12.8%
Management
fees, includes
base and
incentive fees 9,213 13,376 -31.1% 30,360 40,796 -25.6%
------ ------ ----- ------ ------ -----
Total hotel
operating
expenses 156,084 187,676 -16.8% 479,336 569,101 -15.8%
Property
taxes,
insurance,
and other 16,250 15,182 7.0% 47,259 46,069 2.6%
------ ------ ----- ------ ------ -----
HOTEL
OPERATING
PROFIT (Hotel
EBITDA) 49,814 75,665 -34.2% 173,795 257,598 -32.5%
Hotel EBITDA
Margin 22.42% 27.16% -4.74% 24.81% 29.51% -4.70%

Minority
interest in
earnings of
consolidated
joint ventures 1,139 1,676 -32.0% 4,548 6,368 -28.6%
------ ------ ----- ------ ------ -----
HOTEL
OPERATING
PROFIT (Hotel
EBITDA),
excluding
minority
interest in
joint ventures $48,675 $73,989 -34.2% $169,247 $251,230 -32.6%
====== ====== ===== ======= ======= =====



ALL HOTELS NOT UNDER RENOVATION INCLUDED IN CONTINUING OPERATIONS:


Three Months Ended Nine Months Ended
September 30, September 30,
------------- -------------
2009 2008 % Variance 2009 2008 % Variance
---- ---- ---------- ---- ---- ----------
REVENUE
Rooms (1) $162,872 $202,020 -19.4% $502,428 $621,779 -19.2%
Food and
beverage 36,817 50,681 -27.4% 128,362 167,061 -23.2%
Other 10,854 10,601 2.4% 33,580 36,172 -7.2%
------ ------ ---- ------ ------ -----
Total hotel
revenue 210,543 263,302 -20.0% 664,370 825,012 -19.5%
------ ------ ---- ------ ------ -----

EXPENSES
Rooms (1) 39,227 45,503 -13.8% 116,441 135,363 -14.0%
Food and
beverage 28,767 37,562 -23.4% 93,236 117,884 -20.9%
Other direct 6,362 6,500 -2.1% 18,583 20,528 -9.5%
Indirect 63,697 74,503 -14.5% 194,428 223,083 -12.8%
Management
fees,
includes
base and
incentive
fees 8,736 12,745 -31.5% 28,860 38,831 -25.7%
------ ------ ---- ------ ------ -----
Total hotel
operating
expenses 146,789 176,813 -17.0% 451,548 535,689 -15.7%
Property
taxes,
insurance,
and other 15,142 14,199 6.6% 44,360 43,015 3.1%
------ ------ ---- ------ ------ -----
HOTEL OPERATING
PROFIT
(Hotel
EBITDA) 48,612 72,290 -32.8% 168,462 246,308 -31.6%
Hotel E



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