Download PDF

1. Company Snapshot

1.a. Company Description

Ashford Hospitality Trust is a real estate investment trust (REIT) focused on investing predominantly in upper upscale, full-service hotels.

Show Full description

1.b. Last Insights on AHT

Ashford Hospitality Trust's recent performance was negatively impacted by a significant quarterly loss of $2.85 per share, exceeding the estimated loss of $1.14. This widened loss compared to $1.71 per share a year ago. The company's Q3 2025 earnings call highlighted challenges, but specific details on the underperformance were not provided. The hospitality industry's uncertain landscape, with fluctuating demand and economic pressures, likely affected the company's results. Additionally, the company's strategic portfolio sales, such as the Hilton Houston NASA Clear Lake and Residence Inn Evansville East, may have impacted its short-term financials.

1.c. Company Highlights

2. Ashford Hospitality Trust's Q4 Earnings: A Closer Look

Ashford Hospitality Trust reported a net loss of $131.1 million, or $23.83 per diluted share, for the fourth quarter, and $82.5 million, or $17.54 per diluted share, for the full year 2024. The actual EPS came out at '-2.45' relative to estimates at '-5.4', indicating a better-than-expected performance. Adjusted EBITDAre was $45.2 million for the quarter and $235.9 million for the full year. The company's financial performance was marked by a blended average interest rate of 7.9% on its $2.6 billion in loans and $112.9 million in cash and cash equivalents.

Publication Date: Mar -08

📋 Highlights
  • Net Loss:: Q4 net loss of $131.1M ($23.83/share), full-year loss of $82.5M ($17.54/share).
  • Adjusted EBITDAre:: Q4 $45.2M, full-year $235.9M, showing operational recovery despite losses.
  • EBITDA Growth:: Comparable hotel EBITDA rose 6.2% due to demand and revenue strategies.
  • Hotel Sale:: Sold Courtyard Boston for $123M ($1,070K/key) at 5.9% cap rate on net income.
  • CapEx Plans:: $95–115M allocated in 2025 for portfolio enhancements and brand conversions.

Operational Highlights

The company's comparable hotel EBITDA grew 6.2%, driven by strong demand and strategic revenue management initiatives. Total revenue growth exceeded RevPAR growth, reflecting efforts to grow ancillary revenues. Group room revenue for the fourth quarter increased 5% over the prior-year period, demonstrating the resilience of the portfolio. The company's asset management team delivered strong performance across the portfolio, with comparable hotel RevPAR increasing 3% over the prior-year period.

Strategic Initiatives

The company completed the sale of the Courtyard Boston Downtown for $123 million and implemented strategic measures to drive hotel EBITDA, focusing on food and beverage, parking, and labor expenses. The company also completed the strategic repositioning of Crowne Plaza La Concha Hotel in Key West, Florida, into Autograph La Concha, and the conversion of La Pavion Hotel in downtown New Orleans to a Tribute Portfolio property. These conversions are expected to benefit significantly from Marriott's sales distribution and loyalty platforms, enhancing long-term performance and value.

Outlook and Valuation

The company expects to spend between $95 million and $115 million in 2025 on capital expenditures to enhance and elevate the portfolio. Analysts estimate next year's revenue growth at -1.3%. The company's GrowAHT initiatives are aimed at driving hotel EBITDA and maximizing value. With a P/E Ratio of -0.11 and an EV/EBITDA of 11.59, the market appears to be pricing in some level of distress. However, the company's ROIC of 2.11% and ROE of 56.27% suggest that it is still generating returns on its investments. Deric S. Eubanks explained that the increase in floating rate exposure is due to interest rate caps expiring and SOFR dropping below strike prices, highlighting the company's preference for floating-rate financing for its flexibility and natural hedge to the business.

Debt and Financing

The company's net debt to EBITDA ratio stands at 11.5, indicating a high level of leverage. However, the company expects to maintain a mix of fixed and floating rates, with a bias towards more floating, allowing for more flexibility and potentially lower costs over time.

3. NewsRoom

Card image cap

Ashford Hospitality Trust, Inc. Investigated by the Portnoy Law Firm

Mar -24

Source: globenewswire.com

Card image cap

ASHFORD ANNOUNCES PLANNED RETIREMENT OF CHIEF FINANCIAL OFFICER DERIC EUBANKS

Mar -06

Source: prnewswire.com

Card image cap

INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Ashford Hospitality Trust, Inc. - AHT

Mar -03

Source: globenewswire.com

Card image cap

ASHFORD HOSPITALITY TRUST MOURNS THE LOSS OF BOARD MEMBER, SONNY SRA

Mar -02

Source: prnewswire.com

Card image cap

How To Separate Good Management From The Bad

Mar -01

Source: seekingalpha.com

Card image cap

Seeking Shelter In A Shifting Market

Mar -01

Source: seekingalpha.com

Card image cap

INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Ashford Hospitality Trust, Inc. - AHT

Feb -26

Source: prnewswire.com

Card image cap

Ashford Hospitality Trust, Inc. (AHT) Q4 2025 Earnings Call Prepared Remarks Transcript

Feb -26

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.80%)

6. Segments

Rooms

Expected Growth: 4.83%

Ashford Hospitality Trust's 4.83% growth in rooms is driven by increasing demand from business and leisure travelers, strategic acquisitions, and effective asset management. Additionally, the company's focus on renovating and repositioning its properties has improved RevPAR, contributing to the growth. Furthermore, the expansion of its presence in high-growth markets and the implementation of revenue-enhancing initiatives have also supported the growth.

Food and Beverage

Expected Growth: 4.65%

Ashford Hospitality Trust's Food and Beverage segment growth of 4.65% is driven by increasing RevPAR, strategic hotel acquisitions, and effective cost management. Additionally, the company's focus on upscale and luxury hotels, which typically have higher F&B revenue, contributes to the growth. Furthermore, the company's efforts to enhance the guest experience through renovated restaurants and bars also support the segment's growth.

Other Hotel

Expected Growth: 4.83%

Ashford Hospitality Trust's Other Hotel segment growth of 4.83% is driven by increasing demand for luxury accommodations, strategic property renovations, and effective revenue management. Additionally, the company's focus on high-growth markets, such as urban areas and tourist destinations, contributes to the segment's growth.

Other

Expected Growth: 4.83%

Ashford Hospitality Trust's 4.83% growth is driven by increasing RevPAR (Revenue per Available Room) due to strong demand in the hospitality industry, strategic acquisitions, and effective cost management. Additionally, the company's diversified portfolio of hotels across the US and its focus on high-growth markets contribute to its growth momentum.

7. Detailed Products

Hotel Rooms

Ashford Hospitality Trust, Inc. owns and operates a diverse portfolio of hotels across the United States, offering a range of accommodations and amenities to guests.

Food and Beverage Services

The company's hotels offer a variety of on-site dining options, including restaurants, bars, and room service, providing guests with convenient and delicious meal options.

Meeting and Event Spaces

Ashford Hospitality Trust, Inc.'s hotels feature meeting and event spaces, catering to corporate events, weddings, and other gatherings, offering amenities such as audio-visual equipment and catering services.

Amenities and Services

The company's hotels offer a range of amenities, including fitness centers, pools, and business centers, to enhance the guest experience.

8. Ashford Hospitality Trust, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Ashford Hospitality Trust, Inc. operates in the hospitality industry, which is characterized by a moderate level of substitutes. While there are alternative accommodations available, such as Airbnb and vacation rentals, hotels and resorts remain a popular choice for travelers. The company's focus on providing unique experiences and amenities helps to differentiate it from substitutes.

Bargaining Power Of Customers

Ashford Hospitality Trust, Inc. has a diverse customer base, including individual travelers, groups, and corporate clients. While customers have some bargaining power due to the availability of online booking platforms, the company's strong brand reputation and loyalty programs help to mitigate this power.

Bargaining Power Of Suppliers

Ashford Hospitality Trust, Inc. relies on various suppliers, including food and beverage providers, linen suppliers, and maintenance contractors. While suppliers have some bargaining power due to the company's dependence on their services, Ashford's scale and negotiating power help to balance this power.

Threat Of New Entrants

The hospitality industry has significant barriers to entry, including high capital requirements, regulatory hurdles, and the need for specialized expertise. While new entrants may emerge, Ashford Hospitality Trust, Inc.'s established brand, scale, and operational expertise provide a competitive advantage.

Intensity Of Rivalry

The hospitality industry is highly competitive, with numerous players vying for market share. Ashford Hospitality Trust, Inc. faces intense competition from other hotel and resort operators, as well as alternative accommodation providers. The company's focus on delivering exceptional customer experiences and investing in its properties helps to differentiate it from competitors.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 108.32%
Debt Cost 10.53%
Equity Weight -8.32%
Equity Cost 14.96%
WACC 10.16%
Leverage -1301.39%

11. Quality Control: Ashford Hospitality Trust, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Chatham Lodging

A-Score: 5.6/10

Value: 6.7

Growth: 5.3

Quality: 4.9

Yield: 6.0

Momentum: 2.5

Volatility: 8.0

1-Year Total Return ->

View Full Report
Stock-Card
Braemar Hotels & Resorts

A-Score: 5.4/10

Value: 9.8

Growth: 3.0

Quality: 4.9

Yield: 9.0

Momentum: 2.5

Volatility: 3.3

1-Year Total Return ->

View Full Report
Stock-Card
Sotherly Hotels

A-Score: 4.7/10

Value: 9.3

Growth: 4.0

Quality: 4.2

Yield: 0.0

Momentum: 10.0

Volatility: 0.3

1-Year Total Return ->

View Full Report
Stock-Card
Pebblebrook Hotel

A-Score: 4.2/10

Value: 8.2

Growth: 4.3

Quality: 3.6

Yield: 0.0

Momentum: 3.5

Volatility: 5.3

1-Year Total Return ->

View Full Report
Stock-Card
Ashford Hospitality Trust

A-Score: 3.6/10

Value: 10.0

Growth: 3.8

Quality: 5.9

Yield: 0.0

Momentum: 0.5

Volatility: 1.3

1-Year Total Return ->

View Full Report
Stock-Card
InnSuites Hospitality

A-Score: 3.2/10

Value: 5.9

Growth: 2.4

Quality: 1.1

Yield: 3.0

Momentum: 5.5

Volatility: 1.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

2.64$

Current Price

2.64$

Potential

-0.00%

Expected Cash-Flows