ASHFORD HOSPITALITY TRUST INC [AHT] Filings

10-Q 1 aht-20220930.htm 10-Q aht-20220930

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q


☑			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2022


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________________ to ________________

Commission file number: 001-31775

ASHFORD HOSPITALITY TRUST, INC.

(Exact name of registrant as specified in its charter)


Maryland						86-1062192
(State or other jurisdiction of incorporation or organization)						(IRS employer identification number)

14185 Dallas Parkway
Suite 1200
Dallas
Texas						75254
(Address of principal executive offices)						(Zip code)

(972) 490-9600

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. þ Yes ¨ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). þ Yes ¨ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☑	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes þ No

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock

AHT

New York Stock Exchange

Preferred Stock, Series D

AHT-PD

New York Stock Exchange

Preferred Stock, Series F

AHT-PF

New York Stock Exchange

Preferred Stock, Series G

AHT-PG

New York Stock Exchange

Preferred Stock, Series H

AHT-PH

New York Stock Exchange

Preferred Stock, Series I

AHT-PI

New York Stock Exchange

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.


Common Stock, $0.01 par value per share						34,498,993
(Class)						Outstanding at November 3, 2022

ASHFORD HOSPITALITY TRUST, INC.

FORM 10-Q

FOR THE QUARTER ENDED September 30, 2022

TABLE OF CONTENTS


PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS (unaudited)
Consolidated Balance Sheets as of September 30, 2022 and December 31, 2021			2
Consolidated Statements of Operations for the three and nine months ended September 30, 2022 and 2021			3
Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended September 30, 2022 and 2021			4
Consolidated Statements of Equity (Deficit) for the three and nine months ended September 30, 2022 and 2021			5
Consolidated Statements of Cash Flows for the nine months ended September 30, 2022 and 2021			7
Notes to Consolidated Financial Statements			9
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS			34
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK			53
ITEM 4. CONTROLS AND PROCEDURES			53
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS			53
ITEM 1A. RISK FACTORS			54
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS			55
ITEM 3. DEFAULTS UPON SENIOR SECURITIES			55
ITEM 4. MINE SAFETY DISCLOSURES			55
ITEM 5. OTHER INFORMATION			55
ITEM 6. EXHIBITS			55
SIGNATURES			57

Table of Contents

PART I. FINANCIAL INFORMATION

ITEM 1. Financial Statements (unaudited)

ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(unaudited, in thousands, except share and per share amounts)


	September 30, 2022		December 31, 2021
ASSETS


Investments in hotel properties, net	$	3,114,528	$	3,230,710
Cash and cash equivalents	505,533		592,110
Restricted cash	132,055		99,534

Accounts receivable, net of allowance of $634 and $455, respectively	58,601		37,720
Inventories	3,788		3,291
Notes receivable, net	4,975		8,723
Investments in unconsolidated entities	10,802		11,253
Deferred costs, net	3,247		5,001
Prepaid expenses	19,797		13,384
Derivative assets	20,187		501
Operating lease right-of-use assets	44,082		44,575
Other assets	17,559		16,150
Intangible assets	797		797


Due from Ashford Inc., net	1,761		25
Due from related parties, net	6,597		7,473
Due from third-party hotel managers	27,361		26,896

Total assets	$	3,971,670	$	4,098,143
LIABILITIES AND EQUITY/DEFICIT
Liabilities:
Indebtedness, net	$	3,838,697	$	3,887,822
Accounts payable and accrued expenses	135,967		117,650
Accrued interest payable	10,577		15,432
Dividends and distributions payable	3,103		3,104



Due to related parties, net	—		728
Due to third-party hotel managers	727		1,204
Intangible liabilities, net	2,117		2,177
Operating lease liabilities	44,781		45,106

Other liabilities	4,452		4,832

Total liabilities	4,040,421		4,078,055
Commitments and contingencies (note 16)
Redeemable noncontrolling interests in operating partnership	21,988		22,742
Equity (deficit):
Preferred stock, $0.01 par value, 50,000,000 shares authorized:

Series D Cumulative Preferred Stock, 1,174,427 shares issued and outstanding at September 30, 2022 and December 31, 2021	12		12
Series F Cumulative Preferred Stock, 1,251,044 shares issued and outstanding at September 30, 2022 and December 31, 2021	12		12
Series G Cumulative Preferred Stock, 1,531,996 shares issued and outstanding at September 30, 2022 and December 31, 2021	15		15
Series H Cumulative Preferred Stock, 1,308,415 shares issued and outstanding at September 30, 2022 and December 31, 2021	13		13
Series I Cumulative Preferred Stock, 1,252,923 shares issued and outstanding at September 30, 2022 and December 31, 2021	13		13
Common stock, $0.01 par value, 400,000,000 shares authorized, 34,498,993 and 34,490,381 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively	345		345
Additional paid-in capital	2,382,863		2,379,906
Accumulated deficit	(2,474,012)		(2,382,970)


Total equity (deficit)	(90,739)		(2,654)
Total liabilities and equity/deficit	$	3,971,670	$	4,098,143

See Notes to Consolidated Financial Statements.

Table of Contents

ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited, in thousands, except per share amounts)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
REVENUE
Rooms	$	260,616	$	202,119	$	731,474	$	459,264
Food and beverage	48,633		29,744		139,709		57,487
Other hotel revenue	18,183		14,944		50,042		38,358
Total hotel revenue	327,432		246,807		921,225		555,109
Other	724		627		2,164		1,567
Total revenue	328,156		247,434		923,389		556,676
EXPENSES
Hotel operating expenses:
Rooms	61,464		48,035		169,250		109,095
Food and beverage	36,199		22,750		100,981		42,860
Other expenses	106,907		92,581		310,407		224,422
Management fees	11,686		8,976		33,552		21,944
Total hotel expenses	216,256		172,342		614,190		398,321
Property taxes, insurance and other	17,541		17,222		51,289		51,821
Depreciation and amortization	49,428		53,069		152,444		166,291



Advisory services fee	12,513		7,395		38,176		39,110
Corporate, general and administrative	(884)		2,414		6,730		12,113
Total expenses	294,854		252,442		862,829		667,656
Gain (loss) on disposition of assets and hotel properties	(11)		103		273		395
OPERATING INCOME (LOSS)	33,291		(4,905)		60,833		(110,585)
Equity in earnings (loss) of unconsolidated entities	(147)		(145)		(451)		(423)
Interest income	1,576		124		2,153		137
Other income (expense)	241		208		426		682
Interest expense and amortization of discounts and loan costs	(61,023)		(43,003)		(152,975)		(112,003)
Write-off of premiums, loan costs and exit fees	(1,378)		(1,034)		(3,076)		(5,200)
Gain (loss) on extinguishment of debt	—		1,292		—		11,896

Unrealized gain (loss) on derivatives	9,774		6,029		19,059		3,712
INCOME (LOSS) BEFORE INCOME TAXES	(17,666)		(41,434)		(74,031)		(211,784)
Income tax (expense) benefit	(4,657)		(2,615)		(10,340)		(2,916)



NET INCOME (LOSS)	(22,323)		(44,049)		(84,371)		(214,700)
(Income) loss attributable to noncontrolling interest in consolidated entities	—		(10)		—		84
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership	231		367		679		3,594
NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY	(22,092)		(43,692)		(83,692)		(211,022)
Preferred dividends	(3,104)		(2,039)		(9,311)		1,488
Gain (loss) on extinguishment of preferred stock	—		(1,789)		—		959
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS	$	(25,196)	$	(47,520)	$	(93,003)	$	(208,575)

INCOME (LOSS) PER SHARE - BASIC AND DILUTED
Basic:


Net income (loss) attributable to common stockholders	$	(0.73)	$	(1.70)	$	(2.71)	$	(11.89)
Weighted average common shares outstanding – basic	34,371		28,033		34,324		17,520
Diluted:


Net income (loss) attributable to common stockholders	$	(0.73)	$	(1.70)	$	(2.71)	$	(11.89)
Weighted average common shares outstanding – diluted	34,371		28,033		34,324		17,520

See Notes to Consolidated Financial Statements.

Table of Contents

ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(unaudited, in thousands)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Net income (loss)	$	(22,323)	$	(44,049)	$	(84,371)	$	(214,700)
Other comprehensive income (loss), net of tax:


Total other comprehensive income (loss)	—		—		—		—
Comprehensive income (loss)	(22,323)		(44,049)		(84,371)		(214,700)
Less: Comprehensive (income) loss attributable to noncontrolling interest in consolidated entities	—		(10)		—		84
Less: Comprehensive (income) loss attributable to redeemable noncontrolling interests in operating partnership	231		367		679		3,594
Comprehensive income (loss) attributable to the Company	$	(22,092)	$	(43,692)	$	(83,692)	$	(211,022)

See Notes to Consolidated Financial Statements.

Table of Contents

ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT)

(unaudited, in thousands except per share amounts)


		Preferred Stock																		Additional Paid-in Capital		Accumulated Deficit		Total		Redeemable Noncontrolling Interests in Operating Partnership
	Series D		Series F			Series G			Series H			Series I			Common Stock
		Shares	Amount		Shares	Amount		Shares	Amount		Shares	Amount		Shares	Amount		Shares	Amount
Balance at June 30, 2022		1,174	$	12	1,251	$	12	1,532	$	15	1,308	$	13	1,253	$	13	34,487	$	345	$	2,382,197	$	(2,448,350)	$	(65,743)	$	21,308

Purchases of common stock		—	—		—	—		—	—		—	—		—	—		(21)	—		(164)		—		(164)		—
Equity-based compensation		—	—		—	—		—	—		—	—		—	—		—	—		830		—		830		445

Issuance of restricted shares/units		—	—		—	—		—	—		—	—		—	—		33	—		—		—		—		—






Dividends declared – preferred stock - Series D ($0.53/share)		—	—		—	—		—	—		—	—		—	—		—	—		—		(621)		(621)		—
Dividends declared – preferred stock - Series F ($0.46/share)		—	—		—	—		—	—		—	—		—	—		—	—		—		(577)		(577)		—
Dividends declared – preferred stock - Series G ($0.46/share)		—	—		—	—		—	—		—	—		—	—		—	—		—		(706)		(706)		—
Dividends declared – preferred stock - Series H ($0.47/share)		—	—		—

ASHFORD HOSPITALITY TRUST INC [AHT] Filings
ASHFORD HOSPITALITY TRUST INC [AHT-PG] Filings
ASHFORD HOSPITALITY TRUST INC [AHT-PH] Filings
ASHFORD HOSPITALITY TRUST INC [AHT-PD] Filings
ASHFORD HOSPITALITY TRUST INC [AHT-PI] Filings
ASHFORD HOSPITALITY TRUST INC [AHT-PF] Filings
10-Q	[2022-11-07]
10-Q	[2022-08-05]
10-Q	[2022-05-06]
10-K	[2022-02-28]
10-Q	[2021-11-08]
10-Q	[2021-08-06]
10-Q	[2021-05-10]
10-K	[2021-03-16]
10-Q	[2020-11-09]
10-Q	[2020-08-03]
10-Q	[2020-05-28]
10-K	[2020-03-12]
10-Q	[2019-11-06]
10-Q	[2019-08-06]
10-Q	[2019-05-08]
10-K	[2019-03-01]
10-Q	[2018-11-02]
10-Q	[2018-08-09]
10-Q	[2018-05-09]
10-K	[2018-03-14]
10-Q	[2017-11-07]
10-Q	[2017-08-08]
10-Q	[2017-05-10]
10-K	[2017-03-16]
10-Q	[2016-11-09]
10-Q	[2016-08-09]
10-Q	[2016-05-10]
10-K	[2016-02-29]
10-Q	[2015-11-09]
10-Q	[2015-08-10]
10-Q	[2015-05-11]
10-K	[2015-03-02]
10-Q	[2014-11-07]
10-Q	[2014-08-11]
10-Q	[2014-05-12]
10-K	[2014-03-03]
10-Q	[2013-11-07]
10-Q	[2013-08-07]
10-Q	[2013-05-09]
10-K	[2013-03-01]
10-Q	[2012-11-07]
10-Q	[2012-08-03]
10-Q	[2012-05-08]
10-K	[2012-02-28]

ASHFORD HOSPITALITY TRUST INC [AHT] Filings

ASHFORD HOSPITALITY TRUST INC [AHT-PG] Filings

ASHFORD HOSPITALITY TRUST INC [AHT-PH] Filings

ASHFORD HOSPITALITY TRUST INC [AHT-PD] Filings

ASHFORD HOSPITALITY TRUST INC [AHT-PI] Filings

ASHFORD HOSPITALITY TRUST INC [AHT-PF] Filings