DALLAS, Aug. 2 /PRNewswire-FirstCall/ -- Ashford Hospitality Trust, Inc.
(NYSE: AHT) today reported the following results and performance measures for
the second quarter ended June 30, 2006. The proforma performance measurements
for Occupancy, ADR, RevPAR, and Hotel Operating Profit include the Company's
72 core hotels. Unless otherwise stated, all reported results compare the
second quarter ended June 30, 2006, to the second quarter ended June 30, 2005.
The reconciliation of non-GAAP financial measures is included in the financial
tables accompanying this press release.
FINANCIAL HIGHLIGHTS
- Total revenue increased 56.4% to $127.1 million from $81.3 million
- Net income available to common shareholders increased 87.1% to
$8.3 million from $4.4 million
- Net income available to common shareholders per share increased 36.4%
to $0.15 from $0.11
- Adjusted funds from operations (AFFO) increased 84.7% to $25.0 million
from $13.6 million
- AFFO per diluted share increased 36.0% to $0.34 from $0.25
- Cash available for distribution (CAD) increased 79.9% to $22.7 million
from $12.6 million
- CAD per share increased 34.8% to $0.31 from $0.23
- Declared quarterly common dividend of $0.20 per share
- Dividend coverage reaches 153.1%
STRONG INTERNAL GROWTH
- Proforma revenue per available room (RevPAR) increased 12.1% for hotels
not under renovation on a 7.45% increase in ADR to $114.87 and a 323-
basis point improvement in occupancy
- Proforma RevPAR increased 11.5% for consolidated hotels on a 7.7%
increase in ADR to $117.02 and 266-basis point improvement in occupancy
- Proforma same-property hotel operating profit for hotels not under
renovation improved 13.4%
- Adjusted Proforma same-property hotel operating profit margins for
hotels not under renovation improved 151 basis points
CAPITAL RECYCLING AND ASSET ALLOCATION
- Capex invested in second quarter totals $9.4 million
- Additional Capex estimated for 2006 totals approximately $30 to
$40 million
EXTERNAL GROWTH
- Total enterprise value improved to $1.7 billion at June 30, 2006
- Acquired the Pan Pacific Hotel in San Francisco for $95.0 million in
cash and planned capital improvements of $10.0 million
- Mezzanine and first mortgage loan portfolio totaled $112.6 million at
June 30, 2006, with an average annual unleveraged yield of 13.8%
- Announced Marriott Crystal City Gateway acquisition for $107.2 million
and planned capital improvements of $13.0 million
PORTFOLIO REVPAR REFLECTS BENEFIT OF VALUE-ADDED RENOVATIONS As of June 30, 2006, the Company had a portfolio of direct hotel
investments consisting of 72 properties, all of which were classified in
continuing operations. During the second quarter, 67 of the hotels included
in continuing operations were not under renovation. The Company believes
reporting its operating metrics for continuing operations on a proforma
consolidated and proforma not-under-renovation basis is a measure that
reflects a meaningful and more focused comparison of the operating results in
its direct hotel portfolio. The Company's reporting by region and brand
includes the results of all 72 hotels. Details of each category are provided
in the tables attached to this release.
- RevPAR growth by region was led by: West South Central (6 hotels) with
a 35.1% increase; New England (4) with 16.4%; Middle Atlantic (4) with
16.0%; South Atlantic (28) with 11.3%; West North Central (2) with
10.3%; East North Central (11) with 9.0%; Mountain (5) with 8.4%; East
South Central (4) with 7.4%; and Pacific (8) with 2.8%.
- RevPAR growth by brand was led by: Starwood (2 hotels) with a 24.7%
increase; Hilton (22) with 17.0%; InterContinental (2) with 12.2%;
Marriott (36) with 11.2%; Radisson (6) with 7.8 %; Hyatt (2) with 2.7%;
and independents (2) with a 0.6%.
Monty J. Bennett, President and CEO, commented, "We continued to reap the
benefits of our significant ongoing renovation program and the strong demand
in our core markets during the second quarter. This is our sixth consecutive
quarter of double-digit RevPAR gains, and we see no indications of this
momentum losing steam. We made great strides in improving our operating
margins during the quarter despite the continued cost pressures in energy,
insurance and property taxes. Although we consider our margins to be well
above our peers, we expect further margin growth during the second half of the
year as our property managers focus on flowthrough and we anniversary the
higher management fees."
FINANCING ACTIVITY LOWERS BORROWING COSTS
At June 30, 2006, the Company's net debt, defined as total debt less cash,
to total enterprise value, defined as net debt plus the market value of all
common shares, preferred shares and operating partnership units outstanding,
was 42.0% based upon the Company's closing stock price of $12.62. As of June
30, 2006, the Company's $802.5 million debt portfolio consisted of
approximately 87% of fixed-rate debt and approximately 13% of variable-rate
debt, with a total weighted average interest rate of 5.73%. The Company's
weighted average fixed rate debt maturity is 9.3 years.
On April 3, 2006, and July 26, 2006, the Company modified its $45.0
million mortgage note payable secured by the Hyatt Dulles, due October 10,
2007, at an interest rate of LIBOR plus 2%, to a $47.5 million revolving
credit facility, with a revolving period through October 11, 2007, maturing on
October 10, 2008. Interest rates during the revolving period range from LIBOR
plus 1% to LIBOR plus 1.5% depending on the outstanding balance. After the
revolving period expires, the interest rate resumes its original rate of LIBOR
plus 2%. Consistent with the original mortgage, the modified credit facility
requires monthly interest-only payments and has three one-year extension
options.
On July 25, 2006, in an underwritten follow-on public offering, the
Company issued 14,950,000 shares of its common stock at $11.40 per share,
which generated net proceeds of approximately $162.7 million. The net
proceeds were used to pay-down the outstanding balance of $129 million on the
Company's credit facilities.
SECOND QUARTER INVESTMENT ACTIVITY
On April 1, 2006, Company management made a strategic decision to
discontinue further sales efforts related to the seven remaining hotels, a
portfolio of Towne Place Suites, classified as assets held for sale and
included in income from discontinued operations as of and for the three months
ended March 31, 2006. Year to date the RevPAR for these hotels has increased
over 14% while EBITDA has increased over 28%. Consequently, the Company is
classifying such assets and operating results as continuing operations. Such
assets are reported at the lower of carrying value (net of depreciation not
recognized while said assets were held for sale) or fair value. In addition,
all income statement results previously reported as discontinued related to
these hotels have been reclassified to continuing operations for all
comparative future periods.
On April 19, 2006, the Company acquired the Pan Pacific San Francisco
Hotel in San Francisco, California, for approximately $95.0 million in cash.
The Company used proceeds from its credit facility to fund this acquisition.
The Company immediately re-branded this hotel to a JW Marriott and expects to
invest $10 million to renovate and upgrade the property. On a forward twelve-
month basis, the purchase price equates to a 12.2x EBITDA multiple, an EBITDA
yield of 8.2% and a net operating income capitalization rate of 6.5% with
projected annual revenues of $32 million. The purchase price equates to a
trailing twelve-month net operating income capitalization rate of 3.9% and a
5.0% EBITDA yield. The property generated revenues of $25.5 million for the
calendar year 2005.
On June 9, 2006, the Company closed a $26.3 million junior mezzanine loan
on a portfolio of 107 select service hotels recently purchased by Goldman
Sachs' Whitehall Funds, referred to as the Tharaldson portfolio. The loan is a
pari passu participation in a $52.6 million junior mezzanine loan and bears
interest at a rate of LIBOR plus 500 basis points for a term of two years,
with three one-year extension options.
SUBSEQUENT INVESTMENT ACTIVITY
On July 13, 2006, the Company acquired the 697-room Marriott Crystal City
Gateway in Arlington, Virginia for total consideration of $107.2 million. The
consideration includes the assumption of approximately $53.3 million of
existing debt, at a fixed interest rate of 7.24%, maturing in 2017,
reimbursement of approximately $7.2 million of capital expenditure costs by
the seller and the issuance of approximately $42.7 million of limited
partnership units in our operating partnership. The limited partnership units
issued were priced at $11.20 per unit and are considered Class B units. They
have a fixed dividend rate of 6.82% in years one through three and 7.2%
thereafter, and have priority in payment of cash dividends over holders of
common units and common stock. The units do not have a priority in liquidation
and after ten years either party may convert the units to common units. In
addition, the Company paid approximately $2.5 million in cash in lieu of units
and approximately $1.5 million in other net closing costs and adjustments.
INVESTMENT OUTLOOK
Mr. Bennett concluded, "The outlook for the lodging industry and for
Ashford remains very optimistic. We see little chance of a slowdown in RevPAR
growth and greater opportunities to translate the continued improvement at our
properties into additional margin growth. On the acquisition front, we are
currently reviewing a multitude of investment opportunities. With the
additional investment capacity we now enjoy from our recent equity offering,
we expect to put our capital to work in a disciplined and deliberate fashion
to source accretive transactions over the next several quarters."
INVESTOR CONFERENCE CALL AND SIMULCAST
Ashford Hospitality Trust, Inc. will conduct a conference call at 11:00
a.m. eastern time on August 3, 2006, to discuss the second quarter results.
The number to call for this interactive teleconference is 913-981-5533. A
seven-day replay of the conference call will be available by dialing
719-457-0820 and entering the confirmation number, 7146010.
The Company will also provide an online simulcast and rebroadcast of its
second quarter 2006 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 on
http://www.videonewswire.com/event.asp?regd=y&id=34646 on August 3, 2006,
beginning at 11:00 a.m. eastern time. 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 be helpful 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 fund 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,
first 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, our business and
investment strategy, timing for closings, 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-3, (File Number 333-131878), 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.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Share and Per Share Amounts)
(Unaudited)
Three Months Three Months Six Months Six Months
Ended Ended Ended Ended
June 30, June 30, June 30, June 30,
2006 2005 2006 2005
REVENUE
Rooms $98,637 $59,564 $186,577 96,176
Food and beverage 19,209 14,653 35,283 22,226
Other 5,059 3,671 9,196 5,560
Total hotel
revenue 122,905 77,888 231,056 123,962
Interest income
from notes
receivable 3,920 3,114 7,866 5,662
Asset management
fees from
affiliates 318 310 636 648
Total Revenue 127,143 81,312 239,558 130,272
EXPENSES
Hotel operating
expenses
Rooms 21,383 13,023 40,352 21,162
Food and beverage 14,172 10,613 26,671 16,280
Other direct 1,993 1,370 3,754 2,219
Indirect 35,043 24,162 68,581 38,213
Management fees 4,844 2,416 9,215 3,873
Total hotel
expenses 77,435 51,584 148,573 81,747
Property taxes,
insurance, and
other 6,606 3,878 12,448 6,451
Depreciation and
amortization 12,374 5,849 23,308 10,140
Loss on
reclassification
from discontinued
to continuing 863 - 863 -
Corporate general
and
administrative:
Stock-based
compensation 1,770 912 2,710 1,531
Other corporate
and
administrative 3,569 2,312 7,439 4,992
Total Operating
Expenses 102,617 64,535 195,341 104,861
OPERATING INCOME 24,526 16,777 44,217 25,411
Interest income 566 180 1,060 457
Interest expense (11,330) (6,750) (22,766) (10,774)
Amortization of
loan costs (461) (1,040) (975) (1,987)
Write-off of loan
costs and exit
fees (102) - (788) (151)
Loss on debt
extinguishment - - - (2,257)
INCOME BEFORE
INCOME TAXES
AND MINORITY
INTEREST 13,199 9,167 20,748 10,699
(Provision for)
benefit from
income taxes (85) (219) (269) 22
Minority interest (2,091) (1,890) (3,381) (2,194)
INCOME FROM
CONTINUING
OPERATIONS 11,023 7,058 17,098 8,527
Income (loss) from
discontinued
operations, net - 6 1,387 (12)
NET INCOME 11,023 7,064 18,485 8,515
Preferred
dividends 2,719 2,626 5,438 4,014
NET INCOME
AVAILABLE TO
COMMON
SHAREHOLDERS $8,304 $4,438 $13,047 $4,501
Basic and Diluted:
Income From
Continuing
Operations Per
Share Available To
Common Shareholders $0.15 $0.11 $0.22 $0.12
Income (Loss)
From
Discontinued
Operations Per
Share $- $0.00 $0.02 $-
Net Income Per
Share Available
To Common
Shareholders $0.15 $0.11 $0.24 $0.12
Weighted Average
Common Shares
Outstanding 55,711,214 40,555,747 53,828,335 37,022,341
ASHFORD HOSPITALITY TRUST, INC.
CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share and Per Share Amounts)
(Unaudited)
June 30, December 31,
2006 2005
ASSETS
Investment in hotel properties, net $1,232,415 $1,106,668
Cash and cash equivalents 74,606 57,995
Restricted cash 13,097 27,842
Accounts receivable, net of allowance
of $392 and $366, respectively 22,780 21,355
Inventories 1,298 1,186
Assets held for sale 2,451 117,873
Notes receivable 112,332 107,985
Deferred costs, net 12,138 13,975
Prepaid expenses 5,544 9,662
Other assets 9,586 4,014
Intangible assets, net 1,109 1,181
Due from third-party hotel managers 16,228 12,274
Due from affiliates 2,257 476
Total assets $1,505,841 $1,482,486
LIABILITIES AND OWNERS' EQUITY
Indebtedness $802,450 $908,623
Capital leases payable 256 453
Accounts payable 11,340 9,984
Accrued expenses 24,430 21,054
Dividends payable 16,256 13,703
Deferred income 315 338
Deferred incentive management fees 4,963 -
Due to third-party hotel managers 2,689 1,385
Due to affiliates 2,120 5,654
Total liabilities 864,819 961,194
Commitments and contingencies
Minority interest 79,756 87,969
Preferred stock, $0.01 par value:
Series B Cumulative
Convertible Redeemable
Preferred Stock, 7,447,865
issued and outstanding at
June 30, 2006 and December 31,
2005 75,000 75,000
Preferred stock, $0.01 par value,
50,000,000 shares authorized:
Series A Cumulative Preferred
Stock, 2,300,000 issued and
outstanding at June 30, 2006
and December 31, 2005 23 23
Common stock, $0.01 par value,
200,000,000 shares authorized,
57,368,695 and 43,831,394 shares
issued and outstanding at June 30,
2006 and December 31, 2005,
respectively 574 438
Additional paid-in capital 537,406 403,919
Unearned compensation - (4,792)
Accumulated other comprehensive
income 660 1,372
Accumulated deficit (52,397) (42,637)
Total owners' equity 486,266 358,323
Total liabilities and owners'
equity $1,505,841 $1,482,486
ASHFORD HOSPITALITY TRUST, INC.
FFO and Adjusted FFO
(In Thousands, Except Share And Per Share Amounts)
(Unaudited)
Three Months Three Months Six Months Six Months
Ended Ended Ended Ended
June 30, June 30, June 30, June 30,
2006 2005 2006 2005
Net income available to
common shareholders $8,304 $4,438 $13,047 $4,501
Plus real estate
depreciation and
amortization 12,187 5,830 22,913 10,103
Remove minority interest 2,091 1,892 3,675 2,191
FFO available to common
shareholders $22,582 $12,160 $39,635 $16,795
Add back dividends on
redeemable preferred
stock 1,490 1,397 2,979 1,556
Add back write-off of
loan costs and exit
fees 102 - 788 151
Add back loss on debt
extinguishment - - - 2,257
Add back loss from
reclassification of
discontinued to
continuing 863 - 863 -
Adjusted FFO $25,037 $13,557 $44,265 $20,759
Adjusted FFO per diluted
share available to
common shareholders $0.34 $0.25 $0.61 $0.43
Diluted weighted average
shares outstanding 74,163,787 54,148,626 72,774,204 48,140,991
ASHFORD HOSPITALITY TRUST, INC.
EBITDA
(In Thousands)
(Unaudited)
Three Three Six Six
Months Months Months Months
Ended Ended Ended Ended
June 30, June 30, June 30, June 30,
2006 2005 2006 2005
Net income $11,023 $7,064 $18,485 $8,515
Add back:
Interest income 566 180 1,060 457
Interest expense and amortization
of loan costs (11,791) (7,790) (23,741) (12,761)
Minority interest (2,091) (1,892) (3,675) (2,191)
Depreciation and amortization (12,374) (5,849) (23,308) (10,145)
(Provision for) benefit from income
taxes (85) (219) (269) 22
(25,775) (15,570) (49,933) (24,618)
EBITDA $36,798 $22,634 $68,418 $33,133
For the three months ended June 30, 2006, EBITDA has not been adjusted to
add back the write-off of loan costs of approximately $102,000 and the
loss from reclassification from discontinued to continuing of
approximately $863,000.
For the six months ended June 30, 2006, EBITDA has not been adjusted to
add back the write-off of loan costs of approximately $788,000 and the
loss from reclassification from discontinued to continuing of
approximately $863,000.
For the six months ended June 30, 2005, EBITDA has not been adjusted to
add back the loss on debt extinguishment of approximately $2.3 million and
the write-off of loan costs and exit fees of approximately $151,000.
ASHFORD HOSPITALITY TRUST, INC.
CASH AVAILABLE FOR DISTRIBUTION ("CAD")
(In Thousands, Except Per Share Amounts)
(Unaudited)
Three Months Three Months
Ended Ended
(per (per
June 30, diluted June 30, diluted
2006 share) 2005 share)
Net income available to common
shareholders $8,304 $0.11 $4,438 $0.08
Add back dividends on redeemable
preferred stock 1,490 0.02 1,397 0.03
Total $9,794 $0.13 $5,835 $0.11
Plus real estate depreciation and
amortization 12,187 $0.16 5,830 $0.11
Remove minority interest 2,091 0.03 1,892 0.03
Plus stock-based compensation 1,770 0.02 912 0.02
Plus amortization of loan costs 461 0.01 1,040 0.02
Plus write-off of loan costs 102 0.00 - 0.00
Plus loss on debt extinguishment - 0.00 - 0.00
Plus loss from reclassification
of discontinued to continuing 863 0.01 - 0.00
Less debt premium amortization to
reduce interest expense - 0.00 (195) (0.00)
Less capital improvements reserve (4,560) (0.06) (2,693) (0.05)
CAD $22,708 $0.31 $12,621 $0.23
Six Months Six Months
Ended Ended
(per (per
June 30, diluted June 30, diluted
2006 share) 2005 share)
Net income available to common
shareholders $13,047 $0.18 $4,501 $0.09
Add back dividends on redeemable
preferred stock 2,979 0.04 1,556 0.03
Total $16,026 $0.22 $6,057 $0.13
Plus real estate depreciation and
amortization 22,913 $0.31 10,103 $0.21
Remove minority interest 3,675 $0.05 2,191 0.05
Plus stock-based compensation 2,710 $0.04 1,531 0.03
Plus amortization of loan costs 975 $0.01 1,987 0.04
Plus write-off of loan costs 788 $0.01 151 0.00
Plus loss on debt extinguishment - $- 2,257 0.05
Plus loss from reclassification
of discontinued to continuing 863 $0.01 - 0.00
Less debt premium amortization to
reduce interest expense - $- (270) (0.01)
Less capital improvements reserve (7,953) $(0.11) (4,399) (0.09)
CAD $39,997 $0.55 $19,608 $0.41
ASHFORD HOSPITALITY TRUST, INC.
KEY PERFORMANCE INDICATORS - PRO FORMA
(Unaudited)
Three Months Ended
June 30,
%
2006 2005 Variance
ALL HOTELS INCLUDED IN CONTINUING
OPERATIONS:
Room revenues $100,136,358 $91,399,460 9.56%
RevPAR $91.69 $82.22 11.52%
Occupancy 78.35% 75.69% 3.52%
ADR $117.02 $108.62 7.73%
Six Months Ended
June 30,
%
2006 2005 Variance
ALL HOTELS INCLUDED IN CONTINUING
OPERATIONS:
Room revenues $193,701,077 $175,519,178 10.36%
RevPAR $88.25 $79.27 11.33%
Occupancy 75.00% 73.01% 2.73%
ADR $117.66 $108.57 8.37%
NOTE: The above pro forma table assumes the 72 hotel properties owned at
June 30, 2006 were owned as of the beginning of the periods presented.
Three Months Ended
June 30,
%
2006 2005 Variance
ALL HOTELS NOT UNDER RENOVATION
INCLUDED IN CONTINUING OPERATIONS:
Room revenues $91,172,922 $82,937,545 9.93%
RevPAR $90.27 $80.55 12.06%
Occupancy 78.58% 75.35% 4.29%
ADR $114.87 $106.90 7.45%
Six Months Ended
June 30,
%
2006 2005 Variance
ALL HOTELS NOT UNDER RENOVATION
INCLUDED IN CONTINUING OPERATIONS:
Room revenues $176,972,297 $159,154,995 11.19%
RevPAR $87.12 $77.61 12.25%
Occupancy 75.38% 72.68% 3.72%
ADR $115.57 $106.78 8.23%
NOTE: The above pro forma table assumes the 67 hotel properties owned at
June 30, 2006 but not under renovation for the three and six months ended
June 30, 2006 were owned as of the beginning of the periods presented.
Excluded Hotels Under Renovation:
Embassy Suites West Palm Beach, Annapolis Inn, Residence Inn
Fairfax Merrifield, Courtyard Crystal City, Sheraton Minneapolis
ASHFORD HOSPITALITY TRUST, INC.
Pro Forma Hotel RevPAR by Region
(Unaudited)
Three Months Ended
June 30,
Region Number
of Number of
Hotels Rooms 2006 2005
Pacific (1) 8 1,966 $101.98 $99.22
Mountain (2) 5 869 $96.42 $88.91
West North Central (3) 2 390 $80.57 $73.03
West South Central (4) 6 1,082 $95.14 $70.40
East North Central (5) 11 1,682 $70.69 $64.84
East South Central (6) 4 573 $68.85 $64.11
Middle Atlantic (7) 4 685 $82.94 $71.52
South Atlantic (8) 28 4,529 $102.72 $92.26
New England (9) 4 490 $55.49 $47.65
Total Portfolio 72 12,266 $91.69 $82.22
Six Months Ended Percent
June 30, Change in RevPAR
Region 2006 2005 Quarter YTD
Pacific (1) $102.54 $95.42 2.8% 7.5%
Mountain (2) $98.96 $91.73 8.4% 7.9%
West North Central (3) $73.08 $68.32 10.3% 7.0%
West South Central (4) $87.40 $68.97 35.1% 26.7%
East North Central (5) $64.03 $56.34 9.0% 13.6%
East South Central (6) $63.02 $58.62 7.4% 7.5%
Middle Atlantic (7) $71.56 $62.19 16.0% 15.1%
South Atlantic (8) $101.26 $92.07 11.3% 10.0%
New England (9) $45.09 $41.05 16.4% 9.8%
Total Portfolio $88.25 $79.27 11.5% 11.3%
(1) Includes California
(2) Includes Nevada, Arizona, New Mexico and Utah
(3) Includes Minnesota and Kansas
(4) Includes Texas
(5) Includes Ohio and Indiana
(6) Includes Kentucky and Alabama
(7) Includes New York, New Jersey and Pennsylvania
(8) Includes Virginia, Florida, Georgia, Maryland, and North Carolina
(9) Includes Massachusetts and Maine
NOTE: The above pro forma table assumes the 72 hotel properties owned
as of June 30, 2006 were owned as of the beginning of the periods
presented.
ASHFORD HOSPITALITY TRUST, INC.
Pro Forma Hotel RevPAR by Brand
(Unaudited)
Number of Number of June 30,
Brand Hotels Rooms 2006 2005
Hilton 22 3,638 $91.76 $78.42
Hyatt 2 970 $100.94 $98.34
InterContinental 2 420 $137.66 $122.64
Independent 2 317 $94.93 $94.34
Marriott 36 5,158 $88.58 $79.62
Radisson 6 1,354 $67.00 $62.14
Starwood 2 409 $86.71 $69.51
Total Portfolio 72 12,266 $91.69 $82.22
Six Months Ended Percent
June 30, Change in RevPAR
Brand 2006 2005 Quarter YTD
Hilton $89.23 $78.06 17.0% 14.3%
Hyatt $100.48 $92.78 2.7% 8.3%
InterContinental $145.13 $126.29 12.2% 14.9%
Independent $83.71 $88.18 0.6% -5.1%
Marriott $86.45 $77.85 11.2% 11.1%
Radisson $55.83 $52.53 7.8% 6.3%
Starwood $73.18 $58.81 24.7% 24.4%
Total Portfolio $88.25 $79.27 11.5% 11.3%
NOTE: The above pro forma table assumes the 72 hotel properties owned as
of June 30, 2006 were owned as of the beginning of the periods
presented.
ASHFORD HOSPITALITY TRUST, INC.
PRO FORMA HOTEL OPERATING PROFIT
(In Thousands)
(Unaudited)
ALL HOTELS INCLUDED IN CONTINUING OPERATIONS:
Three Months Ended
June 30, June 30, % Variance
2006 2005
REVENUE
Rooms $100,136 $91,400 9.56%
Food and beverage 19,468 19,108 1.88%
Other 4,495 4,126 8.94%
Total hotel revenue 124,099 114,634 8.26%
EXPENSES
Hotel operating expenses
Rooms 20,613 19,513 5.64%
Food and beverage 14,574 13,857 5.17%
Other direct 2,083 1,912 8.94%
Indirect 35,250 33,256 6.00%
Management fees, includes
base and incentive fees(1) 6,175 5,277 17.02%
Total hotel operating
expenses 78,695 73,815 6.61%
Property taxes, insurance, and
other 6,694 5,836 14.70%
HOTEL OPERATING PROFIT
(Hotel EBITDA) $38,710 $34,983 10.65%
Six Months Ended
June 30, June 30, % Variance
2006 2005
REVENUE
Rooms $193,701 $175,519 10.36%
Food and beverage 37,259 36,637 1.70%
Other 8,445 7,878 7.20%
Total hotel revenue 239,405 220,034 8.80%
EXPENSES
Hotel operating expenses
Rooms 40,379 37,453 7.81%
Food and beverage 28,430 26,950 5.49%
Other direct 3,973 3,727 6.60%
Indirect 71,431 65,348 9.31%
Management fees,
includes base and
incentive fees (1) 11,691 9,467 23.49%
Total hotel operating
expenses 155,904 142,945 9.07%
Property taxes, insurance, and
other 12,887 11,574 11.34%
HOTEL OPERATING PROFIT
(Hotel EBITDA) $70,614 $65,515 7.78%
NOTE: The above pro forma table assumes the 72 hotel properties owned at
June 30, 2006 were owned as of the beginning of the periods
presented.
(1) Includes a 32 basis points increase for the three months ended
June 30, 2006 due to a change in fee structure upon acquisition of 22
Marriott-managed properties.
ALL HOTELS NOT UNDER RENOVATION INCLUDED IN CONTINUING OPERATIONS:
Three Months Ended
June 30, June 30, % Variance
2006 2005
REVENUE
Rooms $91,173 $82,937 9.93%
Food and beverage 17,964 17,401 3.24%
Other 4,138 3,814 8.50%
Total hotel revenue 113,275 104,152 8.76%
EXPENSES
Hotel operating expenses
Rooms 18,915 17,946 5.40%
Food and beverage 13,413 12,685 5.74%
Other direct 1,957 1,808 8.24%
Indirect 32,299 30,589 5.59%
Management fees, includes
base and incentive fees
(1) 5,348 4,720 13.31%
Total hotel operating
expenses 71,932 67,748 6.18%
Property taxes, insurance, and
other 6,022 5,258 14.53%
HOTEL OPERATING PROFIT
(Hotel EBITDA) $35,321 $31,146 13.40%
Six Months Ended
June 30, June 30, % Variance
2006 2005
REVENUE
Rooms $176,972 $159,155 11.19%
Food and beverage 34,334 33,394 2.81%
Other 7,844 7,277 7.79%
Total hotel revenue 219,150 199,826 9.67%
EXPENSES
Hotel operating expenses
Rooms 37,148 34,424 7.91%
Food and beverage 26,107 24,644 5.94%
Other direct 3,733 3,506 6.47%
Indirect 65,483 59,958 9.21%
Management fees,
includes base and
incentive fees (1) 10,348 8,457 22.36%
Total hotel operating
expenses 142,819 130,989 9.03%
Property taxes, insurance, and
other 11,578 10,495 10.32%
HOTEL OPERATING PROFIT
(Hotel EBITDA) $64,753 $58,342 10.99%
NOTE: The above pro forma table assumes the 67 hotel properties owned at
June 30, 2006 but not under renovation for the three and six months
ended June 30, 2006 were owned as of the beginning of the periods
presented.
(1) Includes a 23 basis points increase for the three months ended
June 30, 2006 due to a change in fee structure upon acquisition of 20
Marriott-managed properties.
ASHFORD HOSPITALITY TRUST, INC.
PRO FORMA HOTEL OPERATING PROFIT MARGIN
(Unaudited)
ALL HOTELS NOT UNDER RENOVATION INCLUDED IN CONTINUING OPERATIONS:
HOTEL OPERATING PROFIT (EBITDA) MARGIN:
2nd Quarter 2006 31.18%
2nd Quarter 2005 29.90%
Variance 1.28%
HOTEL OPERATING PROFIT (EBITDA) MARGIN VARIANCE BREAKDOWN:
Rooms -0.53%
Food & Beverage and Other Departmental -0.35%
Administrative & General -0.05%
Sales & Marketing -0.60%
Hospitality -0.05%
Repair & Maintenance -0.54%
Energy 0.05%
Franchise Fee 0.37%
Management Fee (1) 0.10%
Incentive Management Fee (1) 0.09%
Insurance 0.34%
Taxes -0.07%
Leases/Other -0.03%
Total -1.28%
ADJUSTMENT TO RECONCILE VARIANCE DUE TO FEE STRUCTURE CHANGE ON 20
MARRIOTT MANAGED HOTELS:
Management Fee 0.12%
Incentive Management Fee 0.11%
Adjusted Variance 1.51%
(1) These fees have increased due to an unfavorable comparison for the
Marriott managed properties which had a different fee structure in
place prior to our acquisition from CNL. A comparable fee comparison
for these assets will begin in the third quarter of 2006.
ASHFORD HOSPITALITY TRUST, INC.
Pro Forma Hotel Operating Profit by Region
(In Thousands)
(Unaudited)
Region Number of Hotels Number of Rooms
Pacific (1) 8 1,966
Mountain (2) 5 869
West North Central (3) 2 390
West South Central (4) 6 1,082
East North Central (5) 11 1,682
East South Central (6) 4 573
Middle Atlantic (7) 4 685
South Atlantic (8) 28 4,529
New England (9) 4 490
Total Portfolio 72 12,266
Three Months Ended
June 30,
Region 2006 % Total 2005 % Total
Pacific (1) $6,600 17.0% $7,242 20.7%
Mountain (2) $2,966 7.7% $2,420 6.9%
West North Central (3) $1,171 3.0% $1,066 3.0%
West South Central (4) $2,787 7.2% $2,511 7.2%
East North Central (5) $4,216 10.9% $3,849 11.0%
East South Central (6) $1,302 3.4% $1,256 3.6%
Middle Atlantic (7) $1,804 4.7% $971 2.8%
South Atlantic (8) $17,156 44.3% $15,078 43.1%
New England (9) $708 1.8% $590 1.7%
Total Portfolio $38,710 100.0% $34,983 100.0%
Six Months Ended
June 30,
Region 2006 % Total 2005 % Total
Pacific (1) $13,186 18.7% $13,540 20.7%
Mountain (2) $5,834 8.3% $5,269 8.0%
West North Central (3) $1,943 2.8% $1,798 2.7%
West South Central (4) $5,153 7.3% $4,778 7.3%
East North Central (5) $6,614 9.4% $5,578 8.5%
East South Central (6) $2,102 3.0% $1,951 3.0%
Middle Atlantic (7) $2,163 3.1% $1,207 1.8%
South Atlantic (8) $33,212 47.0% $30,938 47.2%
New England (9) $407 0.6% $456 0.7%
Total Portfolio $70,614 100.0% $65,515 100.0%
Percent Change in
Hotel Operating Profit
Region Quarter YTD
Pacific (1) -8.9% -2.6%
Mountain (2) 22.6% 10.7%
West North Central (3) 9.8% 8.1%
West South Central (4) 11.0% 7.8%
East North Central (5) 9.5% 18.6%
East South Central (6) 3.7% 7.7%
Middle Atlantic (7) 85.8% 79.2%
South Atlantic (8) 13.8% 7.4%
New England (9) 20.0% -10.7%
Total Portfolio 10.7% 7.8%
(1) Includes California
(2) Includes Nevada, Arizona, New Mexico and Utah
(3) Includes Minnesota and Kansas
(4) Includes Texas
(5) Includes Ohio and Indiana
(6) Includes Kentucky and Alabama
(7) Includes New York, New Jersey and Pennsylvania
(8) Includes Virginia, Florida, Georgia, Maryland, and North Carolina
(9) Includes Massachusetts and Maine
NOTE: The above pro forma table assumes the 72 hotel properties owned as
of June 30, 2006 were owned as of the beginning of the periods
presented.
ASHFORD HOSPITALITY TRUST, INC.
Debt Summary
As of June 30, 2006
(in millions)
Fixed-Rate Floating-Rate Total
Debt Debt Debt
$487.1 million mortgage note payable
secured by 32 hotel properties,
matures between July 1, 2015 and
February 1, 2016, at an average
interest rate of 5.41% $487.1 $- $487.1
$211.5 million term loan secured by
16 hotel properties, matures between
December 11, 2014 and December 11,
2015, at an average interest rate of
5.73% 211.5 - 211.5
$100.0 million secured credit facility
secured by 6 hotel properties, matures
August 17, 2008, at an interest rate
of LIBOR plus a range of 1.6% to 1.95%
depending on the loan-to-value ratio - 73.9 73.9
$100.0 million secured credit
facility secured by 8 mezzanine
notes receivable, matures
December 23, 2008, at an interest
rate of LIBOR plus a range of
1.5% to 2.75% depending on the
loan-to-value ratio and collateral
pledged - - -
$47.5 million secured credit facility
secured by 1 hotel property, matures
October 10, 2007, at an interest
rate of LIBOR plus 1.0% to 1.5%
depending on the outstanding balance - 30.0 30.0
Total Debt $698.6 $103.9 $802.5
Percentage of Total 87.05% 12.95% 100.00%
Weighted Average
Interest Rate at
June 30, 2006 5.73%
ASHFORD HOSPITALITY TRUST, INC.
Capital Expenditures Calendar
72 Core Hotels
2004
Actual Actual Actual Actual
Rooms 1Q 2Q 3Q 4Q
Doubletree Suites Columbus 194 x x x
Doubletree Suites Dayton 137 x x x
Embassy Suites East Syracuse 215 x x x
Embassy Suites Phoenix Airport 229 x x x
Sheraton Bucks County 187 x x
Hyatt Regency Orange County 654 x
Hampton Inn Mall of Georgia 92
Hampton Inn Terre Haute 112
Hampton Inn Horse Cave 101
Hampton Inn Evansville 141
Hilton St. Petersburg Bayfront 333
Fairfield Inn Evansville West 110
Residence Inn Evansville 78
Fairfield Inn Princeton 73
Courtyard Columbus Tipton Lakes 90
Courtyard Bloomington 117
Radisson Milford 173
Residence Inn Salt Lake City 144
Hilton Fort Worth 294
Historic Inns of Annapolis 124
Residence Inn Palm Desert 130
Embassy Suites Houston 150
Radisson Rockland 127
Residence Inn San Diego Sorrento Mesa 150
Radisson Hotel Airport - Indianapolis 259
Hilton Nassau Bay - Clear Lake 243
Sheraton Minneapolis West 222
Embassy Suites West Palm Beach 160
Crowne Plaza Beverly Hills 260
Radisson City Center - Indianapolis 371
Residence Inn Fairfax Merrifield 159
Courtyard Crystal City Reagan Airport 272
Crowne Plaza La Concha - Key West 160
Hilton Santa Fe 157
Hyatt Dulles 316
SpringHill Suites Kennesaw 90
SpringHill Suites Jacksonville 102
Sea Turtle Inn Jacksonville 193
Courtyard Palm Desert 151
Courtyard Atlanta Alpharetta 154
Hilton Garden Inn Jacksonville 119
SpringHill Suites BWI Airport 133
SpringHill Suites Centreville 136
SpringHill Suites Gaithersburg 162
Courtyard Overland Park 168
Marriott at Research Triangle Park 225
JW Marriott San Francisco 338
TownePlace Suites Boston Tewksbury 95
TownePlace Suites Miami Lakes 95
TownePlace Suites Ft. Worth 95
TownePlace Suites Miami Airport 95
TownePlace Suites Newark Silicon Valley 127
TownePlace Suites Mt. Laurel 95
TownePlace Suites Portland Scarborough 95
Courtyard Ft. Lauderdale Weston 174
Courtyard Foothill Ranch Irvine 156
Courtyard Louisville Airport 150
Embassy Suites Austin Arboretum 150
Embassy Suites Dallas Galleria 150
Embassy Suites Dulles Int'l 150
Embassy Suites Flagstaff 119
Embassy Suites Las Vegas Airport 220
Fairfield Inn and Suites Kennesaw 87
Hampton Inn Lawrenceville 86
Homewood Suites Mobile 86
Radisson Cincinnati Riverfront 236
Radisson Hotel MacArthur Airport 188
Residence Inn Lake Buena Vista 210
Residence Inn Orlando Sea World 350
SpringHill Suites Charlotte 136
SpringHill Suites Mall of Georgia 96
SpringHill Suites Raleigh Airport 120
2005
Actual Actual Actual Actual
1Q 2Q 3Q 4Q
Doubletree Suites Columbus
Doubletree Suites Dayton
Embassy Suites East Syracuse
Embassy Suites Phoenix Airport
Sheraton Bucks County x x
Hyatt Regency Orange County
Hampton Inn Mall of Georgia x x
Hampton Inn Terre Haute x x x
Hampton Inn Horse Cave x x x
Hampton Inn Evansville x x x
Hilton St. Petersburg Bayfront x x x
Fairfield Inn Evansville West x x x
Residence Inn Evansville x x x
Fairfield Inn Princeton x x x
Courtyard Columbus Tipton Lakes x x x
Courtyard Bloomington x x x
Radisson Milford x x x
Residence Inn Salt Lake City x
Hilton Fort Worth x x x
Historic Inns of Annapolis x x
Residence Inn Palm Desert x x
Embassy Suites Houston x
Radisson Rockland x
Residence Inn San Diego Sorrento Mesa x
Radisson Hotel Airport - Indianapolis x
Hilton Nassau Bay - Clear Lake x
Sheraton Minneapolis West x
Embassy Suites West Palm Beach x
Crowne Plaza Beverly Hills x
Radisson City Center - Indianapolis x
Residence Inn Fairfax Merrifield
Courtyard Crystal City Reagan Airport
Crowne Plaza La Concha - Key West
Hilton Santa Fe
Hyatt Dulles
SpringHill Suites Kennesaw
SpringHill Suites Jacksonville
Sea Turtle Inn Jacksonville
Courtyard Palm Desert
Courtyard Atlanta Alpharetta
Hilton Garden Inn Jacksonville
SpringHill Suites BWI Airport
SpringHill Suites Centreville
SpringHill Suites Gaithersburg
Courtyard Overland Park
Marriott at Research Triangle Park
JW Marriott San Francisco
TownePlace Suites Boston Tewksbury
TownePlace Suites Miami Lakes
TownePlace Suites Ft. Worth
TownePlace Suites Miami Airport
TownePlace Suites Newark Silicon Valley
TownePlace Suites Mt. Laurel
TownePlace Suites Portland Scarborough
Courtyard Ft. Lauderdale Weston
Courtyard Foothill Ranch Irvine
Courtyard Louisville Airport
Embassy Suites Austin Arboretum
Embassy Suites Dallas Galleria
Embassy Suites Dulles Int'l
Embassy Suites Flagstaff
Embassy Suites Las Vegas Airport
Fairfield Inn and Suites Kennesaw
Hampton Inn Lawrenceville
Homewood Suites Mobile
Radisson Cincinnati Riverfront
Radisson Hotel MacArthur Airport
Residence Inn Lake Buena Vista
Residence Inn Orlando Sea World
SpringHill Suites Charlotte
SpringHill Suites Mall of GeorgiaSpringHill Suites Raleigh Airport
2006
Actual Actual Actual Actual
1Q 2Q 3Q 4Q
Doubletree Suites Columbus
Doubletree Suites Dayton
Embassy Suites East Syracuse
Embassy Suites Phoenix Airport
Sheraton Bucks County
Hyatt Regency Orange County
Hampton Inn Mall of Georgia
Hampton Inn Terre Haute
Hampton Inn Horse Cave
Hampton Inn Evansville
Hilton St. Petersburg Bayfront
Fairfield Inn Evansville West
Residence Inn Evansville
Fairfield Inn Princeton
Courtyard Columbus Tipton Lakes
Courtyard Bloomington
Radisson Milford x
Residence Inn Salt Lake City
Hilton Fort Worth x
Historic Inns of Annapolis x x
Residence Inn Palm Desert
Embassy Suites Houston x
Radisson Rockland x
Residence Inn San Diego Sorrento Mesa x
Radisson Hotel Airport - Indianapolis x
Hilton Nassau Bay - Clear Lake x
Sheraton Minneapolis West x x
Embassy Suites West Palm Beach x x x
Crowne Plaza Beverly Hills x x x
Radisson City Center - Indianapolis x x
Residence Inn Fairfax Merrifield x x
Courtyard Crystal City Reagan Airport x x
Crowne Plaza La Concha - Key West x x
Hilton Santa Fe x x
Hyatt Dulles x x
SpringHill Suites Kennesaw x x
SpringHill Suites Jacksonville x x
Sea Turtle Inn Jacksonville x x
Courtyard Palm Desert x x
Courtyard Atlanta Alpharetta x x
Hilton Garden Inn Jacksonville x
SpringHill Suites BWI Airport x
SpringHill Suites Centreville x
SpringHill Suites Gaithersburg x
Courtyard Overland Park x
Marriott at Research Triangle Park
JW Marriott San Francisco
TownePlace Suites Boston Tewksbury
TownePlace Suites Miami Lakes
TownePlace Suites Ft. Worth
TownePlace Suites Miami Airport
TownePlace Suites Newark Silicon Valley
TownePlace Suites Mt. Laurel
TownePlace Suites Portland Scarborough
Courtyard Ft. Lauderdale Weston
Courtyard Foothill Ranch Irvine
Courtyard Louisville Airport
Embassy Suites Austin Arboretum
Embassy Suites Dallas Galleria
Embassy Suites Dulles Int'l
Embassy Suites Flagstaff
Embassy Suites Las Vegas Airport
Fairfield Inn and Suites Kennesaw
Hampton Inn Lawrenceville
Homewood Suites Mobile
Radisson Cincinnati Riverfront
Radisson Hotel MacArthur Airport
Residence Inn Lake Buena Vista
Residence Inn Orlando Sea World
SpringHill Suites Charlotte
SpringHill Suites Mall of GeorgiaSpringHill Suites Raleigh Airport
Contact: David Kimichik Tripp Sullivan
Chief Financial Officer Corporate Communications, Inc.
(972) 490-9600 (615) 254-3376
SOURCE Ashford Hospitality Trust, Inc.
Contact: David Kimichik, Chief Financial Officer of Ashford Hospitality Trust, Inc., +1-972-490-9600; or Tripp Sullivan of Corporate Communications, Inc., +1-615-254-3376