DALLAS--(BUSINESS WIRE)--March 24, 2004--Ashford Hospitality
Trust, Inc. (NYSE: AHT) today reported results for the fourth quarter
and year ended December 31, 2003. The reconciliation of non-GAAP
financial measures is included in the financial tables accompanying
this press release.
HIGHLIGHTS
Direct Hotel Investments
-- Completes acquisitions of $94 million, including planned
capital improvements, in fourth quarter
-- Acquired and agreed to acquire assets since year end of $90
million, including planned capital improvements
-- Current portfolio to expand to 19 hotels totaling 3,104 rooms
from six hotels at IPO
Mezzanine Loans and First Mortgage Participations
-- Acquired $10 million mezzanine loan on Hilton Times Square in
fourth quarter
-- Originated one mezzanine loan for a total of $15 million since
year end
-- Acquired two mezzanine loans and one subordinate first
mortgage in 2004 for a total of $47 million
-- Current hotel financing portfolio totals $72 million
-- Weighted average spread of financing portfolio stands at 950
basis points over LIBOR with weighted average LIBOR floor of
2%
Reporting Basis
The financial results presented below and in the accompanying
financial tables include the results of the Company from October 1,
2003, to December 31, 2003, results of the Company since its formation
on August 29, 2003, and the results of the Predecessor prior to August
29, 2003.
Financial Results - Fourth Quarter
Total revenue for the fourth quarter ended December 31, 2003,
increased 79.1% to $14,870,000 from $8,302,000 for the Predecessor's
fourth quarter ended December 31, 2002, primarily as a result of the
acquisition of a total of nine properties in October and November
2003. Net loss was $1,329,000 compared with the Predecessor's net loss
of $1,627,000. Funds from operations (FFO, as defined by NAREIT) was
$43,000 compared with a loss of $304,000 for the Predecessor. EBITDA,
which represents Earnings before Interest (except for interest related
to our mezzanine loans), Income Taxes, Depreciation, and Amortization,
and excludes the portion of these items attributable to minority
interest, was $297,000 compared with $1,528,000 for the Predecessor.
The decreases in FFO and EBITDA primarily relate to approximately
$3,072,000 of corporate general and administrative expenses that the
Company incurred after its IPO, which includes approximately $636,000
of non-cash stock-based compensation. No such costs were incurred
prior to that time. The addition of the nine properties acquired in
the fourth quarter contributed approximately $6,117,000 to the
Company's total revenues and approximately $548,000 in net income to
both the fourth quarter and full year results.
Financial Results - 2003
Combined total revenue for the year ended December 31, 2003,
increased 19.6% to $42,279,000 from $35,358,000 for the Predecessor's
year ended December 31, 2002. Combined net loss was $3,920,000
compared with the Predecessor's net loss of $3,093,000. FFO was
$647,000 compared with $1,741,000 for the Predecessor. EBITDA was
$5,449,000 compared with $8,223,000 for the Predecessor. Both FFO and
EBITDA decreased primarily due to costs incurred after the Company's
IPO, as discussed above.
On October 16, 2003, the Company exercised its option to reassign
its rights under its asset management and consulting contracts back to
an affiliate until January 1, 2004, in order to meet real estate
investment trust ("REIT") eligible-income thresholds in 2003. However,
the related guarantee of payment associated with these fees was
extended for a like period.
Both FFO and EBITDA are non-GAAP financial measures within the
meaning of the Securities and Exchange Commission rules. 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 nor EBITDA 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 is it
indicative of funds available to fund our cash needs, including our
ability to make cash distributions. However, management believes both
FFO and EBITDA to be key 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.
Operating Results - Direct Hotel Investments
RevPAR for the Company's hotels for the fourth quarter of 2003
increased 1.3% to $64.12 from $63.28 due to a 40-basis point decrease
in occupancy to 66.3%, offset by a 2% increase in ADR to $96.79. For
2003, RevPAR for the Company's hotels increased 1.8% to $69.56 from
$68.31 on the strength of a 300-basis point increase in occupancy to
71.5%, offset by a 2.5% decrease in ADR to $97.28.
Balance Sheet
As of December 31, 2003, the Company had approximately $43.8
million of variable-rate debt outstanding at a weighted average
interest rate of 5.0% and approximately $6.4 million of fixed-rate
debt outstanding at an interest rate of 7.08%. Of the total
variable-rate debt, $27.8 million represented mortgage debt secured
during the fourth quarter on five properties. Ashford ended the year
with approximately $76.3 million of cash and equivalents. Subsequent
to the end of the year, the Company secured a three-year, $60 million
credit facility at an interest rate of 325 basis points over LIBOR.
Subject to certain conditions, the credit facility can be increased to
$75 million. The Company currently has $10.2 million of availability
under this facility and $25 million in cash, as well as additional
borrowing capacity on its unencumbered assets.
Fourth Quarter Investment Activity
During the fourth quarter, the Company acquired a five-property,
894-suite portfolio of Embassy Suites Hotels(R) and Doubletree Guest
Suites(R) hotels from FelCor Lodging Trust for approximately $50.0
million in cash and a four-property, 393-room portfolio of limited
service hotels for $33.9 million in cash from Noble Investment Group.
The purchase price of the portfolios equated to trailing 12-month
EBITDA multiples of 8.8x and 9.4x, respectively. The Company intends
to invest an additional $8.2 million and $1 million, respectively, in
these acquired assets for renovation. Ashford did not incur any
capital expenditures related to these investments in the fourth
quarter.
The Company also closed on the purchase of a $10 million junior
mezzanine loan on the Hilton Times Square in New York City. On an
unleveraged basis, Ashford receives an initial yield of 11% on this
high-profile investment. Ashford acquired the loan from Bear Stearns
Commercial Mortgage, the originator of the $42.9 million first
mortgage, $26.1 million senior mezzanine and the $10 million junior
mezzanine loans related to this property.
Monty J. Bennett, President and CEO of Ashford Hospitality Trust,
stated, "Consistent with our outlook at the end of the third quarter,
the second half of 2003 was stronger than the first half with greater
levels of business travel. The operating results in our portfolio
highlight this improved environment with increases in RevPAR.
"The majority of our investment activity has taken place
subsequent to the end of the fourth quarter, but the completion of our
first mezzanine investment and the two portfolio acquisitions in the
quarter were great momentum builders. The level of activity picked up
as we expected it would, and we have been able to diversify the
portfolio by capital structure, brand, segment, location and
investment type. The completion of a secured financing and closing of
our new credit facility were also important accomplishments that have
positioned us to continue to successfully execute our investment
strategy."
Subsequent Investment Activity
On January 26, 2004, the Company announced the acquisition of a
$15 million subordinated first-mortgage loan receivable related to the
1,225-room Adam's Mark Hotel in Denver, Colorado. The loan bears
interest at 900 basis points over LIBOR, matures in January 2006, and
provides for three one-year extension options subject to certain
conditions.
On February 26, 2004, the Company announced it had agreed to
acquire the Sea Turtle Inn in Atlantic Beach, Florida, for
approximately $23.1 million, consisting of approximately $4.9 million
in cash, approximately $15.7 million in assumed mortgage debt, and
approximately $2.5 million of limited partnership units based on the
market price of the Company's common stock. The purchase price equates
to a 10.1x trailing twelve month EBITDA multiple. Ashford expects to
close the acquisition by the end of March 2004.
On March 4, 2004, the Company acquired a $25 million mezzanine
loan receivable secured by 17 hotel properties totaling 5,354 rooms.
The mezzanine loan bears interest at 870 basis points over LIBOR with
a 2.5% LIBOR floor, matures in July 2005, and provides for three
one-year extension options subject to certain conditions.
On March 16, 2004, the Company announced a definitive agreement to
acquire the 187-room Sheraton Bucks County and adjacent office
building complex near Philadelphia, Pennsylvania, for approximately
$16.7 million in cash. The purchase price equates to a trailing
12-month EBITDA multiple of 7.6x including the office building and an
EBITDA multiple of 6.5x after the planned sale of the office building.
The acquisition is expected to close in May 2004. Ashford intends to
invest approximately $5.65 million in renovating the asset with
completion expected by the end of 2005.
On March 22, 2004, the Company announced the acquisition of a $15
million mezzanine loan receivable related to the 273-suite Embassy
Suites Logan Airport in Boston, Massachusetts. The mezzanine loan
bears interest at 1,025 basis points over LIBOR with a 1.75% LIBOR
floor, matures in March 2007, and provides for two one-year extension
options subject to certain conditions.
On March 24, 2004, the Company reached a definitive agreement to
acquire the 133-suite SpringHill Suites at Baltimore Washington
International Airport for total consideration of $15,860,000. The
purchase price equates to a 10.3x trailing twelve month EBITDA
multiple. The acquisition is expected to close in April 2004. The
purchase price includes approximately $9,060,000 in cash and
approximately $6,800,000 in non-recourse debt that bears interest at
350 basis points over the 30-day yield on Commercial Paper based upon
a 20-year amortization schedule. The loan matures in April 2011, can
be prepaid subject to declining premiums and provides a one-time
option to borrow additional funds subject to certain conditions.
On March 24, 2004, the Company acquired a $6.6 million mezzanine
loan receivable related to the 231-suite Northland Inn and Executive
Conference Center in Brooklyn Park, Minnesota. The mezzanine loan
bears interest at 1,000 basis points over LIBOR with a 2% LIBOR floor
and matures in January 2006. In addition, if certain operating
conditions are met, the Company will receive an additional interest
payment equal to a 15% accrual upon maturity.
On March 24, 2004, the Company completed the previously announced
acquisition of the 210-room Residence Inn in Lake Buena Vista,
Florida, for approximately $25.3 million in cash. The purchase price
equates to a 9.7x trailing twelve month EBITDA multiple.
Mr. Bennett concluded, "Our investment pace has clearly
accelerated since the end of the year as we have begun to reap the
benefits of carefully allocating our capital as well as building
strategic relationships with sellers, brokers and lending partners and
raising the awareness of our lending and participation programs."
First Quarter 2004 Dividend
On March 15, 2004, the Company declared its first dividend of
$0.06 per fully diluted share to shareholders of record as of March
31, 2004. The dividend is payable on April 15, 2004, three months
earlier than the Company had originally anticipated. With the pace of
investments accelerating since the end of the year, the Company
expects its investment strategy will position the Company to increase
the dividend over the course of 2004.
2004 Outlook
Mr. Bennett concluded, "Our industry outlook for 2004 is more
optimistic than it was in 2003. Historically, we have seen that
lodging demand in the United States correlates to U.S. GDP growth,
with typically a two quarter lag period. Given the relatively strong
U.S. GDP growth in the second half of 2003 and the forecasts for 2004,
we are optimistic about improvement in lodging demand in 2004 and
2005. In addition, based on these GDP forecasts, as well as the
anticipated strengthening of corporate profits and capital investment,
we expect an increase in business-related travel and improvement in
the pace of group bookings."
Investor Conference Call and Simulcast
Ashford Hospitality Trust, Inc. will conduct a conference call at
10:00 am EST on March 25, 2004, to discuss the fourth quarter results.
The number to call for this interactive teleconference is
913-981-5508. A seven-day replay of the conference call will be
available by dialing 719-457-0820 and entering the pass code: 524690.
The Company will also provide an online simulcast and rebroadcast
of its fourth quarter 2003 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 as well as
www.firstcallevents.com/service/ajwz399339519gf12.html on March 25,
2004, beginning at 10:00 a.m. EST. The online replay will follow
shortly after the call and continue through April 25, 2004.
Ashford Hospitality Trust is a self-administered real estate
investment trust focused exclusively on investing in the hospitality
industry across all segments and at all levels of the capital
structure, including direct hotel investments, first mortgages,
mezzanine loans, and sale-leaseback transactions. Additional
information can be found on the Company's website 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, our business and investment strategy, our
understanding of our competition, 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 the section entitled "Risk Factors" in Ashford's
Registration Statement on Form S-11, as amended (File Number
333-105277), and from time to time, in Ashford's other filings with
the Securities and Exchange Commission.
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 PREDECESSOR
CONSOLIDATED AND COMBINED STATEMENTS OF OPERATIONS
The Company The Predecessor
-------------- ---------------
Quarter Ended Quarter Ended
Dec. 31, 2003Dec. 31, 2002
-------------- --------------
(unaudited) (unaudited)
REVENUE
Rooms $12,229,711 $6,562,354
Food and beverage 2,065,984 1,426,007
Other 437,222 313,337
-------------- --------------
Total hotel revenue 14,732,917 8,301,698
Interest income from
mezzanine loans 110,000 -
Asset management fees from
related parties 26,728 -
-------------- --------------
Total Revenue 14,869,645 8,301,698
EXPENSES
Hotel operating expenses
Rooms 2,968,725 1,603,367
Food and beverage 1,528,465 1,083,339
Other direct 326,406 152,744
Indirect 5,051,170 2,993,560
Management fees, including
related parties 552,483 246,915
-------------- --------------
Total hotel expenses 10,427,249 6,079,925
Property taxes, insurance,
and other 1,008,068 694,134
Depreciation and
amortization 1,675,341 1,322,540
Corporate general and
administrative:
Stock-based compensation 636,237 -
Other corporate general
and administrative 2,435,928 -
-------------- --------------
Total Operating Expenses 16,182,823 8,096,599
-------------- --------------
OPERATING INCOME (LOSS) (1,313,178) 205,099
-------------- --------------
Interest income 165,846 12,489
Interest expense (332,011) (1,844,294)
Loss before minority
interest and provision -------------- --------------
for income taxes (1,479,343) (1,626,706)
-------------- --------------
Provision for income taxes (142,178) -
Minority interest 292,360 -
-------------- --------------
NET LOSS $(1,329,161) $(1,626,706)
============== ==============
Basic and diluted loss per
share (0.05)
==============
Weighted average basic and
diluted shares outstanding 25,015,730
==============
ASHFORD HOSPITALITY TRUST, INC. AND PREDECESSOR
CONSOLIDATED AND COMBINED STATEMENTS OF OPERATIONS
The The Company & The
Company Predecessor Predecessor Predecessor
------------ ------------ ------------ ------------
Period From Period From Year Year
Aug. 29, 2003Jan. 1, 2003 Ended Ended
to Dec. 31, to Aug. 28, Dec. 31, Dec. 31,
2003 2003 2003 2002
------------ ------------ ------------ ------------
REVENUE
Rooms $14,994,567 $19,688,349 $34,682,916 $28,529,640
Food and
beverage 2,529,109 3,629,807 6,158,916 5,698,029
Other 507,794 681,656 1,189,450 1,130,112
------------ ------------ ------------ ------------
Total hotel
revenue 18,031,470 23,999,812 42,031,282 35,357,781
Interest income
from mezzanine
loans 110,000 - 110,000 -
Asset
management
fees from
related
parties 137,319 - 137,319 -
------------ ------------ ------------ ------------
Total Revenue 18,278,789 23,999,812 42,278,601 35,357,781
EXPENSES
Hotel operating
expenses
Rooms 3,601,465 4,511,632 8,113,097 6,461,721
Food and
beverage 1,901,778 2,801,002 4,702,780 4,183,371
Other direct 402,536 498,085 900,621 621,693
Indirect 6,136,070 8,687,362 14,823,432 12,370,304
Management
fees,
including
related
parties 651,480 718,408 1,369,888 1,059,867
------------ ------------ ------------ ------------
Total hotel
expenses 12,693,329 17,216,489 29,909,818 24,696,956
Property taxes,
insurance, and
other 1,257,968 1,600,082 2,858,050 2,437,482
Depreciation
and
amortization 2,016,899 2,915,777 4,932,676 4,833,551
Corporate
general and
administrative:
Stock-based
compensation 864,452 - 864,452 -
Other corporate
general and
administrative 3,138,498 - 3,138,498 -
------------ ------------ ------------ ------------
Total Operating
Expenses 19,971,146 21,732,348 41,703,494 31,967,989
------------ ------------ ------------ ------------
OPERATING
INCOME (LOSS) (1,692,357) 2,267,464 575,107 3,389,792
------------ ------------ ------------ ------------
Interest income 266,333 22,800 289,133 53,485
Interest
expense (417,060) (4,583,146) (5,000,206) (6,536,195)
Loss before
minority
interest and
provision for ------------ ------------ ------------ ------------
income taxes (1,843,084) (2,292,882) (4,135,966) (3,092,918)
------------ ------------ ------------ ------------
Provision for
income taxes (142,178) - (142,178) -
Minority
interest 357,943 - 357,943 -
------------ ------------ ------------ ------------
NET LOSS $(1,627,319) $(2,292,882) $(3,920,201) $(3,092,918)
============ ============ ============ ============
Basic and
diluted loss
per share $(0.07)
============
Weighted
average basic
and diluted
shares
outstanding 24,627,298
============
ASHFORD HOSPITALITY TRUST, INC. AND PREDECESSOR
CONSOLIDATED AND COMBINED BALANCE SHEETS
The Company The Predecessor
Dec. 31, 2003Dec. 31, 2002
---------------- ---------------
ASSETS
Investment in hotel properties, net $173,723,998 $85,246,801
Cash and cash equivalents 76,254,052 2,968,814
Restricted cash 1,373,591 3,353,554
Accounts receivable, net of
allowance of $19,408 and $9,368,
respectively 1,534,843 1,226,152
Inventories 262,619 210,620
Notes receivable 10,000,000 -
Deferred costs, net 2,386,937 1,278,832
Prepaid expenses 1,577,628 772,008
Other assets 550,636 44,572
Due from affiliates 218,113 315,093
---------------- ---------------
Total assets $267,882,417 $95,416,446
================ ===============
LIABILITIES AND OWNERS' EQUITY
LIABILITIES:
Mortgage notes payable $50,201,779 $82,126,150
Capital leases payable 456,869 621,351
Accounts payable 2,127,611 1,053,632
Accrued payroll expense 1,035,985 366,974
Accrued vacation expense 288,634 202,967
Accrued sales and occupancy taxes 512,086 293,804
Accrued income taxes 142,178 -
Accrued real estate taxes 1,265,767 638,025
Accrued expenses 1,138,600 411,594
Accrued interest 189,344 301,388
Due to affiliates 584,643 89,607
---------------- ---------------
Total liabilities 57,943,496 86,105,492
Minority interest 37,646,673 -
Commitments and contingencies
OWNERS' EQUITY:
Preferred stock, $0.01 par value,
50,000,000 shares authorized,
none issued or outstanding - -
Common stock, $0.01 par value,
200,000,000 shares authorized,
25,730,047 shares issued and
outstanding 257,300 -
Additional paid-in capital 179,226,668 -
Unearned compensation (5,564,401) -
Accumulated deficit (1,627,319) -
Owners' equity - 9,310,954
---------------- ---------------
Total owners' equity 172,292,248 9,310,954
---------------- ---------------
Total liabilities and owners' equity $267,882,417 $95,416,446
================ ===============
The following table illustrates the key performance indicators for our
portfolio for the three months and year ended Dec. 31, 2003 and 2002:
(unaudited)
Quarter Ended Dec. 31, Year Ended Dec. 31,
------------------------- -------------------------
2003 2002 2003 2002
------------ ------------ ------------ ------------
Consolidated
(all properties)
RevPar $64.12 $63.28 $69.56 $68.31
ADR $96.79 $94.86 $97.28 $99.77
Occupancy 66.30% 66.70% 71.50% 68.50%
ASHFORD HOSPITALITY TRUST, INC. AND PREDECESSOR
FFO
(Unaudited)
The Company The Predecessor
------------- ---------------
Quarter Ended Quarter Ended
Dec. 31, 2003Dec. 31, 2002
------------- ---------------
NET LOSS $(1,329,161) $(1,626,706)
------------- ---------------
Exclude:
Real estate
depreciation and
amortization (1,673,616) (1,322,540)
Minority
interest 292,360 -
------------- ---------------
(1,381,256) (1,322,540)
------------- ---------------
Gross FFO 52,095 (304,166)
FFO related to
minority interest 9,393 -
------------- ---------------
FFO $42,702 $(304,166)
============= ===============
The The Company & The
Company Predecessor Predecessor Predecessor
------------ ------------ ------------- -----------
Period From Period From Year Year
Aug. 29, 2003Jan. 1, 2003 Ended Ended
to Dec. 31, to Aug. 28, Dec. 31, Dec. 31,
2003 2003 2003 2002
------------ ------------ ------------ -----------
NET LOSS $(1,627,319) $(2,292,882) $(3,920,201) $(3,092,918)
------------ ------------ ------------ ------------
Exclude:
Real estate
depreciation and
amortization (2,015,019) (2,915,777) (4,930,796) (4,833,551)
Minority
interest 357,943 - 357,943 -
------------ ------------ ------------ ------------
(1,657,076) (2,915,777) (4,572,853) (4,833,551)
------------ ------------ ------------ ------------
Gross FFO 29,757 622,895 652,652 1,740,633
FFO related to
minority interest 5,365 - 5,365 -
------------ ------------ ------------ ------------
FFO $24,392 $622,895 $647,287 $1,740,633
============ ============ ============ ============
ASHFORD HOSPITALITY TRUST, INC. AND PREDECESSOR
EBITDA
(Unaudited)
The Company The Predecessor
------------- ---------------
Quarter Ended Quarter Ended
Dec. 31, 2003Dec. 31, 2002
------------- ---------------
NET LOSS $(1,329,161) $(1,626,706)
------------- ---------------
Exclude:
Interest income 165,846 12,489
Interest expense (332,011) (1,844,294)
Minority
interest 292,360 -
Depreciation and
amortization (1,675,341) (1,322,540)
Income taxes (142,178) -
------------- ---------------
(1,691,324) (3,154,345)
------------- ---------------
Gross EBITDA 362,163 1,527,639
EBITDA related to
minority interest 65,298 -
------------- ---------------
EBITDA $296,865 $1,527,639
============= ===============
The The Company & The
Company Predecessor Predecessor Predecessor
------------ ------------ ------------ ------------
Period From Period From Year Year
Aug. 29, 2003Jan. 1, 2003 Ended Ended
to Dec. 31, to Aug. 28, Dec. 31, Dec. 31,
2003 2003 2003 2002
------------ ------------ ------------ ------------
NET LOSS $(1,627,319) $(2,292,882) $(3,920,201) $(3,092,918)
------------ ------------ ------------ ------------
Exclude:
Interest income 266,333 22,800 289,133 53,485
Interest expense (417,060) (4,583,146) (5,000,206) (6,536,195)
Minority
interest 357,943 - 357,943 -
Depreciation and
amortization (2,016,899) (2,915,777) (4,932,676) (4,833,551)
Income taxes (142,178) - (142,178) -
------------ ------------ ------------ ------------
(1,951,861) (7,476,123) (9,427,984) (11,316,261)
------------ ------------ ------------ ------------
Gross EBITDA 324,542 5,183,241 5,507,783 8,223,343
EBITDA related to
minority interest 58,515 - 58,515 -
------------ ------------ ------------ ------------
EBITDA $266,027 $5,183,241 $5,449,268 $8,223,343
============ ============ ============ ============
ASHFORD HOSPITALITY TRUST, INC. AND PREDECESSOR
HOTEL OPERATING PROFIT
(Unaudited)
The Company The Predecessor
------------ ----------------
Three Months Three Months
Ended Ended
Dec. 31, 2003Dec. 31, 2002
------------ ----------------
REVENUE
Rooms $12,229,711 $6,562,354
Food and
beverage 2,065,984 1,426,007
Interest income
from mezzanine
loans 110,000 -
Other 463,950 313,337
------------ --------------
Total hotel
revenue 14,869,645 8,301,698
EXPENSES
Hotel operating
expenses
Rooms 2,968,725 1,603,367
Food and
beverage 1,528,465 1,083,339
Other direct 326,406 152,744
Indirect 5,051,170 2,993,560
Management fees 552,483 246,915
------------ --------------
Total hotel
operating
expenses 10,427,249 6,079,925
Property taxes,
insurance, and
other 1,008,068 694,134
------------ --------------
HOTEL OPERATING
INCOME $3,434,328 $1,527,639
============ ==============
The The Company & The
Company Predecessor Predecessor Predecessor
------------ ------------ ------------ ------------
Period From Period From Year Year
Aug. 29, 2003Jan. 1, 2003 Ended Ended
to Dec. 31, to Aug. 28, Dec. 31, Dec. 31,
2003 2003 2003 2002
------------ ------------ ------------ ------------
REVENUE
Rooms $14,994,567 $19,688,349 $34,682,916 $28,529,640
Food and
beverage 2,529,109 3,629,807 6,158,916 5,698,029
Interest income
from mezzanine
loans 110,000 - 110,000 -
Other 645,113 681,656 1,326,769 1,130,112
------------ ------------ ------------ ------------
Total hotel
revenue 18,278,789 23,999,812 42,278,601 35,357,781
EXPENSES
Hotel operating
expenses
Rooms 3,601,465 4,511,632 8,113,097 6,461,721
Food and
beverage 1,901,778 2,801,002 4,702,780 4,183,371
Other direct 402,536 498,085 900,621 621,693
Indirect 6,136,070 8,687,362 14,823,432 12,370,304
Management fees 651,480 718,408 1,369,888 1,059,867
------------ ------------ ------------ ------------
Total hotel
operating
expenses 12,693,329 17,216,489 29,909,818 24,696,956
Property taxes,
insurance, and
other 1,257,968 1,600,082 2,858,050 2,437,482
------------ ------------ ------------ ------------
HOTEL OPERATING
INCOME $4,327,492 $5,183,241 $9,510,733 $8,223,343
============ ============ ============ ============
CONTACT: Ashford Hospitality Trust Inc., Dallas
David Kimichik, 972-490-9600
or
Corporate Communications, Inc.
Tripp Sullivan, 615-254-3376
SOURCE: Ashford Hospitality Trust, Inc.