ASHFORD HOSPITALITY TRUST INC [AHT] Filings

10-Q 1 aht-20220331.htm 10-Q aht-20220331

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 March 31, 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						34,479,060
(Class)						Outstanding at May 4, 2022

ASHFORD HOSPITALITY TRUST, INC.

FORM 10-Q

FOR THE QUARTER ENDED March 31, 2022

TABLE OF CONTENTS


PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS (unaudited)
Consolidated Balance Sheets as of March 31, 2022 and December 31, 2021			2
Consolidated Statements of Operations for the three months ended March 31, 2022 and 2021			3
Consolidated Statements of Comprehensive Income (Loss) for the three months ended March 31, 2022 and 2021			4
Consolidated Statements of Equity (Deficit) for the three months ended March 31, 2022 and 2021			5
Consolidated Statements of Cash Flows for the three months ended March 31, 2022 and 2021			6
Notes to Consolidated Financial Statements			8
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS			32
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK			48
ITEM 4. CONTROLS AND PROCEDURES			48
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS			48
ITEM 1A. RISK FACTORS			49
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS			49
ITEM 3. DEFAULTS UPON SENIOR SECURITIES			50
ITEM 4. MINE SAFETY DISCLOSURES			50
ITEM 5. OTHER INFORMATION			50
ITEM 6. EXHIBITS			50
SIGNATURES			52

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)


	March 31, 2022		December 31, 2021
ASSETS


Investments in hotel properties, net	$	3,199,962	$	3,230,710
Cash and cash equivalents	548,592		592,110
Restricted cash	102,312		99,534

Accounts receivable, net of allowance of $470 and $455, respectively	51,692		37,720
Inventories	3,255		3,291
Notes receivable, net	4,805		8,723
Investments in unconsolidated entities	11,100		11,253
Deferred costs, net	4,467		5,001
Prepaid expenses	17,591		13,384
Derivative assets	3,636		501
Operating lease right-of-use assets	44,335		44,575
Other assets	16,604		16,150
Intangible assets	797		797


Due from Ashford Inc., net	—		25
Due from related parties, net	7,167		7,473
Due from third-party hotel managers	21,879		26,896

Total assets	$	4,038,194	$	4,098,143
LIABILITIES AND EQUITY/DEFICIT
Liabilities:
Indebtedness, net	$	3,883,012	$	3,887,822
Accounts payable and accrued expenses	122,281		117,650
Accrued interest payable	12,514		15,432
Dividends and distributions payable	3,103		3,104

Due to Ashford Inc., net	946		—

Due to related parties, net	—		728
Due to third-party hotel managers	1,606		1,204
Intangible liabilities, net	2,157		2,177
Operating lease liabilities	44,985		45,106

Other liabilities	4,704		4,832

Total liabilities	4,075,308		4,078,055
Commitments and contingencies (note 16)
Redeemable noncontrolling interests in operating partnership	23,249		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 March 31, 2022 and December 31, 2021	12		12
Series F Cumulative Preferred Stock, 1,251,044 shares issued and outstanding at March 31, 2022 and December 31, 2021	12		12
Series G Cumulative Preferred Stock, 1,531,996 shares issued and outstanding at March 31, 2022 and December 31, 2021	15		15
Series H Cumulative Preferred Stock, 1,308,415 shares issued and outstanding at March 31, 2022 and December 31, 2021	13		13
Series I Cumulative Preferred Stock, 1,252,923 shares issued and outstanding at March 31, 2022 and December 31, 2021	13		13
Common stock, $0.01 par value, 400,000,000 shares authorized, 34,479,057 and 34,490,381 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively	345		345
Additional paid-in capital	2,381,191		2,379,906
Accumulated deficit	(2,441,964)		(2,382,970)


Total equity (deficit)	(60,363)		(2,654)
Total liabilities and equity/deficit	$	4,038,194	$	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 March 31,
	2022		2021
REVENUE
Rooms	$	195,330	$	97,114
Food and beverage	36,760		7,903
Other hotel revenue	14,436		10,428
Total hotel revenue	246,526		115,445
Other	612		385
Total revenue	247,138		115,830
EXPENSES
Hotel operating expenses:
Rooms	47,406		23,724
Food and beverage	27,770		6,527
Other expenses	92,048		55,769
Management fees	9,554		5,527
Total hotel expenses	176,778		91,547
Property taxes, insurance and other	16,459		17,471
Depreciation and amortization	52,120		57,627



Advisory services fee	13,386		12,161
Corporate, general and administrative	3,104		6,997
Total expenses	261,847		185,803
Gain (loss) on disposition of assets and hotel properties	103		(69)
OPERATING INCOME (LOSS)	(14,606)		(70,042)
Equity in earnings (loss) of unconsolidated entities	(153)		(137)
Interest income	51		13
Other income (expense)	101		229
Interest expense and amortization of discounts and loan costs	(43,559)		(33,264)
Write-off of premiums, loan costs and exit fees	(727)		(3,379)


Unrealized gain (loss) on derivatives	3,211		919
INCOME (LOSS) BEFORE INCOME TAXES	(55,682)		(105,661)
Income tax (expense) benefit	(120)		271



NET INCOME (LOSS)	(55,802)		(105,390)
(Income) loss attributable to noncontrolling interest in consolidated entities	—		81
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership	372		2,271
NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY	(55,430)		(103,038)
Preferred dividends	(3,103)		818
Gain (loss) on extinguishment of preferred stock	—		10,635
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS	$	(58,533)	$	(91,585)

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


Net income (loss) attributable to common stockholders	$	(1.71)	$	(11.01)
Weighted average common shares outstanding – basic	34,269		8,305
Diluted:


Net income (loss) attributable to common stockholders	$	(1.71)	$	(11.01)
Weighted average common shares outstanding – diluted	34,269		8,305

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 March 31,
	2022		2021
Net income (loss)	$	(55,802)	$	(105,390)
Other comprehensive income (loss), net of tax:


Total other comprehensive income (loss)	—		—
Comprehensive income (loss)	(55,802)		(105,390)
Less: Comprehensive (income) loss attributable to noncontrolling interest in consolidated entities	—		81
Less: Comprehensive (income) loss attributable to redeemable noncontrolling interests in operating partnership	372		2,271
Comprehensive income (loss) attributable to the Company	$	(55,430)	$	(103,038)

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 December 31, 2021		1,174	$	12	1,251	$	12	1,532	$	15	1,308	$	13	1,253	$	13	34,490	$	345	$	2,379,906	$	(2,382,970)	$	(2,654)	$	22,742

Purchases of common stock		—	—		—	—		—	—		—	—		—	—		(14)	—		(118)		—		(118)		—
Equity-based compensation		—	—		—	—		—	—		—	—		—	—		—	—		1,490		—		1,490		418

Issuance of restricted shares/units		—	—		—	—		—	—		—	—		—	—		3	—		—		—		—		—



Common stock offering costs		—	—		—	—		—	—		—	—		—	—		—	—		(87)		—		(87)		—


Dividends declared – preferred stock - Series D ($0.53/share)		—	—		—	—		—	—		—	—		—	—		—	—		—		(620)		(620)		—
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)		—	—		—	—		—	—		—	—		—	—		—	—		—		(613)		(613)		—
Dividends declared – preferred stock - Series I ($0.47/share)		—	—		—	—		—	—		—	—		—	—		—	—		—		(587)		(587)		—



Redemption value adjustment		—	—		—	—		—	—		—	—		—	—		—	—		—		(461)		(461)		461

Net income (loss)		—	—		—	—		—	—		—	—		—	—		—	—		—		(55,430)		(55,430)		(372)
Balance at March 31, 2022		1,174	$	12	1,251	$	12	1,532	$	15	1,308	$	13	1,253	$	13	34,479	$	345	$	2,381,191	$	(2,441,964)	$	(60,363)	$	23,249


		Preferred Stock																		Additional Paid-in Capital		Accumulated Deficit		Noncontrolling Interests In Consolidated Entities		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 December 31, 2020		1,791	$	18	2,891	$	29	4,423	$	44	2,669	$	27	3,391	$	34	6,436	$	64	$	1,809,455	$	(2,093,292)	$	166	$	(283,455)	$	22,951

Purchases of common stock		—	—		—	—		—	—		—	—		—	—		(1)	—		(46)		—		—		(46)		—
Equity-based compensation		—	—		—	—		—	—		—	—		—	—		—	—		1,279		—		—		1,279		665

Issuance of restricted shares/units		—	—		—	—		—	—		—	—		—	—		13	1		(1)		—		—		—		—


Issuance of common stock		—	—		—	—		—	—		—	—		—	—		1,623	16		46,105		—		—		46,121		—
PSU dividend claw back upon cancellation		—	—		—	—		—	—		—	—		—	—		—	—		—		178		—		178		—







Performance LTIP dividend claw back upon cancellation		—	—		—	—		—	—		—	—		—	—		—	—		—		—		—		—		454

Redemption value adjustment		—	—		—	—		—	—		—	—		—	—		—	—		—		(2,884)		—		(2,884)		2,884
Extinguishment of preferred stock		(112)	(1)		(853)	(9)		(1,251)	(12)		(667)	(7)		(1,391)	(14)		2,943	29		(10,621)		10,635		—		—		—
Net income (loss)		—	—		—	—		—	—		—	—		—	—		—	—		—		(103,038)		(81)		(103,119)		(2,271)
Balance at March 31, 2021		1,679	$	17	2,038	$	20	3,172	$	32	2,002	$	20	2,000	$	20	11,014	$	110	$	1,846,171	$	(2,188,401)	$	85	$	(341,926)	$	24,683

Table of Contents

ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited, in thousands)


	Three Months Ended March 31,
	2022		2021
Cash Flows from Operating Activities
Net income (loss)	$	(55,802)	$	(105,390)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:


Depreciation and amortization	52,120		57,627

Amortization of intangibles	33		33
Recognition of deferred income	(127)		(125)
Bad debt expense	669		279
Deferred income tax expense (benefit)	(67)		(5)
Equity in (earnings) loss of unconsolidated entities	153		137
(Gain) loss on disposition of assets and hotel properties	(103)		69







Realized and unrealized (gain) loss on derivatives	(3,211)		(919)

Amortization of loan costs, discounts and capitalized default interest and write-off of premiums, loan costs and exit fees	2,048		(6,068)

Equity-based compensation	1,908		1,944

Non-cash interest income	(82)		(223)
Paid-in kind interest expense	—		6,663






Changes in operating assets and liabilities, exclusive of the effect of dispositions of hotel properties:
Accounts receivable and inventories	(15,567)		(11,593)
Prepaid expenses and other assets	(5,304)		1,880
Operating lease right-of-use assets	187		126
Operating lease liabilities	(121)		(125)

Accounts payable and accrued expenses and accrued interest payable	3,126		(20,354)
Due to/from related parties	(422)

ASHFORD HOSPITALITY TRUST INC [AHT] Filings
ASHFORD HOSPITALITY TRUST INC [AHT-PF] Filings
ASHFORD HOSPITALITY TRUST INC [AHT-PG] Filings
ASHFORD HOSPITALITY TRUST INC [AHT-PH] Filings
ASHFORD HOSPITALITY TRUST INC [AHT-PI] Filings
ASHFORD HOSPITALITY TRUST INC [AHT-PD] Filings
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-PF] Filings

ASHFORD HOSPITALITY TRUST INC [AHT-PG] Filings

ASHFORD HOSPITALITY TRUST INC [AHT-PH] Filings

ASHFORD HOSPITALITY TRUST INC [AHT-PI] Filings

ASHFORD HOSPITALITY TRUST INC [AHT-PD] Filings