Ashford Hospitality Trust provides update on recent operating performance

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DALLAS, August 16, 2021 / PRNewswire / – Ashford Hospitality Trust, Inc. (NYSE: AHT) (“Ashford Trust” or the “Company”) today announced its preliminary operating results for the month of July. For the month of July, the comparable net hotel result was $ 7.9 million. Comparable hotel EBITDA for the month of July was $ 26.4 million, an increase of 27% compared to comparable hotel EBITDA in June of $ 20.8 million. The Company’s current monthly execution rate for cash interest expense is approximately $ 11 million and its current monthly execution rate for general and administrative costs and consulting costs is approximately $ 4 million.

In addition, from June 30, 2021 the Company had a net working capital of $ 531 million, which is equivalent to approximately $ 18.32 per share based on the current number of fully diluted shares. This compares to the closing price of the Company’s common shares on August 16, 2021 of $ 13.50.

“We are delighted to report these strong results for the month of July and are excited by the positive momentum we have seen in the operational performance of our diversified portfolio, which has been driven by strong leisure and transitory demand,” said commented Rob hays, President and CEO of Ashford Trust. “The EBITDA performance of our hotels for July exceeded our own internal estimates. Additionally, we continue to see our stocks trade at a significant discount to our cash value per share and do not believe this reflects the intrinsic value of our high quality portfolio. ”

We use certain non-GAAP measures, in addition to the required GAAP presentations, because we believe these measures improve understanding of our operating results and make comparisons of operating results between peer real estate investment trusts more meaningful. Non-GAAP financial measures, which should not be considered a substitute for the GAAP measures, used in this press release are hotel EBITDA. Please refer to our last annual report filed on Form 10-K for a more detailed description of how these non-GAAP measures are calculated. Reconciliations of the non-GAAP measures to the closest GAAP measures are provided below and provide further details of our results for the current period.

The following tables are reconciliations of the Company’s hotel EBITDA for the months of July 2021 and June 2021:

ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES
RECONCILIATION OF NET INCOME (NET LOSS) AND HOTELS EBITDA
(in millions)
(unaudited)
July 2021 June 2021
Net income (loss) $ 7.9 $ (1.1)
Non-real estate adjustments 0.1
Interest charges 0.5 0.6
Amortization of loan cost 0.1 0.1
Depreciation and amortization 17.6 18.6
Tax expense (benefit) 0.1
Non-hotel EBITDA ownership charge 0.3 2.4
Hotel EBITDA $ 26.4 $ 20.8

Ashford Hospitality Trust is a real estate investment trust (REIT) focused on investing primarily in high-end, full-service hotels.

Follow CEO Rob hays on Twitter at https://twitter.com/aht_rob or @aht_rob.

Preliminary results estimated for the month ended July 31, 2021 included in this press release, which are the responsibility of management, have been prepared by management of the Company in connection with the preparation of the Company’s financial statements and are based on preliminary hotel operating results and a number of subjective judgments and assumptions. Additional items that may require adjustments to the Company’s preliminary estimated financial information may be identified and could result in material changes in the Company’s preliminary estimated results. The Company’s closing procedures for the month ended July 31, 2021 are not yet completed and, therefore, the Company’s final results following closing proceedings may differ from the preliminary estimates set out above. The Company’s registered independent public accounting firm, BDO United States, LLP, has not audited, reviewed, compiled or performed any procedure relating to the estimated preliminary financial information, nor has it expressed an opinion or any other form of assurance on such information or its feasibility, and does not assume any responsibility for, and disclaims any association with, this estimated preliminary financial information. In addition, these preliminary estimated results do not constitute a complete statement or estimate of the financial condition or results of operations of the Company for the month ended. July 31, 2021. These preliminary estimated results should not be considered a substitute for the complete quarterly financial statements prepared in accordance with generally accepted accounting principles (“GAAP”) or as a measure of the performance of the Company. In addition, the estimated preliminary financial information is not necessarily indicative of the results to be achieved for a future period. Therefore, investors are cautioned not to place undue reliance on this estimated preliminary financial information. See the information below under the headings “Forward-Looking Statements” and “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s Annual Report on Form 10-K for year closed. December 31, 2020.

Forward-looking statements

Certain statements and assumptions contained in this press release contain or are based on “forward-looking” information and are made in accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements contained in this press release press include, among others, statements on the Company’s strategy and future plans. 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 have intend to identify statements. Such statements are subject to many assumptions and uncertainties, many of which are beyond the control of Ashford Trust.

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: the impact of COVID-19, and the rate of adoption and effectiveness of vaccines to prevent COVID-19, on our business and investment strategy; the timing and outcome of the Securities and Exchange Commission investigation; our ability to regain S-3 eligibility; our ability to repay, refinance or restructure our indebtedness and the indebtedness of some of our subsidiaries; anticipated or expected asset purchases or sales; our projected operating results; the completion of all pending transactions; our understanding of our competitors; market trends; projected capital expenditures; the impact of technology on our operations and activities; general volatility in capital markets and the market price of our common and preferred shares; availability, conditions and deployment of capital; availability of qualified personnel; changes in our industry and the markets in which we operate, interest rates or the economy in general; and the degree and nature of our competition. These and other risk factors are discussed in more detail in documents filed by Ashford Trust with the Securities and Exchange Commission.

The forward-looking statements included in this press release are made only as of the date of this press release. These forward-looking statements are based on our beliefs, assumptions and expectations regarding our future performance, taking into account all the information currently available to us. These beliefs, assumptions and expectations can change due to many events or potential factors, not all of which we are aware of. If any change occurs, our business, financial condition, liquidity, results of operations, plans and other objectives may differ materially from those expressed in our forward-looking statements. You should carefully consider these risks when making an investment decision regarding our securities. Investors should not place undue reliance on these forward-looking statements. The Company cannot guarantee that these forward-looking statements will be achieved or that no deviations will occur. We are under no obligation 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, except to the extent required by law. law.

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SOURCE Ashford Hospitality Trust, Inc.



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