ASHFORD HOSPITALITY TRUST INC [AHT-PG] Filings

10-Q 1 aht-20230331.htm 10-Q aht-20230331

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, 2023


☐			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						34,477,952
(Class)						Outstanding at May 4, 2023

ASHFORD HOSPITALITY TRUST, INC.

FORM 10-Q

FOR THE QUARTER ENDED March 31, 2023

TABLE OF CONTENTS


PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS (unaudited)
Consolidated Balance Sheets as of March 31, 2023 and December 31, 2022			2
Consolidated Statements of Operations for the three months ended March 31, 2023 and 2022			3
Consolidated Statements of Comprehensive Income (Loss) for the three months ended March 31, 2023 and 2022			4
Consolidated Statements of Equity (Deficit) for the three months ended March 31, 2023 and 2022			5
Consolidated Statements of Cash Flows for the three months ended March 31, 2023 and 2022			7
Notes to Consolidated Financial Statements			9
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS			31
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK			46
ITEM 4. CONTROLS AND PROCEDURES			46
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS			46
ITEM 1A. RISK FACTORS			47
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS			47
ITEM 3. DEFAULTS UPON SENIOR SECURITIES			47
ITEM 4. MINE SAFETY DISCLOSURES			47
ITEM 5. OTHER INFORMATION			47
ITEM 6. EXHIBITS			47
SIGNATURES			49

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, 2023		December 31, 2022
ASSETS


Investments in hotel properties, net	$	3,099,605	$	3,118,331
Cash and cash equivalents	344,935		417,064
Restricted cash	143,821		141,962

Accounts receivable, net of allowance of $427 and $501, respectively	62,049		49,809
Inventories	3,976		3,856
Notes receivable, net	5,151		5,062
Investments in unconsolidated entities	19,180		19,576
Deferred costs, net	2,234		2,665
Prepaid expenses	20,534		15,981
Derivative assets	37,348		47,182
Operating lease right-of-use assets	44,339		43,921
Other assets	21,492		21,653
Intangible assets	797		797


Due from Ashford Inc., net	—		486
Due from related parties, net	3,353		6,570
Due from third-party hotel managers	20,596		22,462

Total assets	$	3,829,410	$	3,917,377
LIABILITIES AND EQUITY/DEFICIT
Liabilities:
Indebtedness, net	$	3,786,065	$	3,838,543
Finance lease liabilities	18,765		18,847
Accounts payable and accrued expenses	127,892		115,970
Accrued interest payable	14,306		15,287
Dividends and distributions payable	3,193		3,118

Due to Ashford Inc., net	6,480		—


Due to third-party hotel managers	1,701		1,319
Intangible liabilities, net	2,077		2,097
Operating lease liabilities	45,109		44,661

Other liabilities	4,200		4,326

Total liabilities	4,009,788		4,044,168
Commitments and contingencies (note 17)
Redeemable noncontrolling interests in operating partnership	21,617		21,550
Series J Redeemable Preferred Stock, $0.01 par value, 501,864 and 87,115 shares issued and outstanding at March 31, 2023 and December 31, 2022, respectively	11,543		2,004
Series K Redeemable Preferred Stock, $0.01 par value, 34,250 and 1,800 shares issued and outstanding at March 31, 2023 and December 31, 2022, respectively	843		44
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, 2023 and December 31, 2022	12		12
Series F Cumulative Preferred Stock, 1,251,044 shares issued and outstanding at March 31, 2023 and December 31, 2022	12		12
Series G Cumulative Preferred Stock, 1,531,996 shares issued and outstanding at March 31, 2023 and December 31, 2022	15		15
Series H Cumulative Preferred Stock, 1,308,415 shares issued and outstanding at March 31, 2023 and December 31, 2022	13		13
Series I Cumulative Preferred Stock, 1,252,923 shares issued and outstanding at March 31, 2023 and December 31, 2022	13		13
Common stock, $0.01 par value, 400,000,000 shares authorized, 34,478,064 and 34,495,185 shares issued and outstanding at March 31, 2023 and December 31, 2022, respectively	345		345
Additional paid-in capital	2,384,000		2,383,244
Accumulated deficit	(2,598,791)		(2,534,043)


Total equity (deficit)	(214,381)		(150,389)
Total liabilities and equity/deficit	$	3,829,410	$	3,917,377

See Notes to Consolidated Financial Statements.

ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited, in thousands, except per share amounts)


	Three Months Ended March 31,
	2023		2022
REVENUE
Rooms	$	252,955	$	195,330
Food and beverage	58,991		36,760
Other hotel revenue	16,282		14,436
Total hotel revenue	328,228		246,526
Other	658		612
Total revenue	328,886		247,138
EXPENSES
Hotel operating expenses:
Rooms	59,203		47,406
Food and beverage	39,790		27,770
Other expenses	113,879		92,048
Management fees	12,246		9,554
Total hotel expenses	225,118		176,778
Property taxes, insurance and other	16,537		16,459
Depreciation and amortization	47,855		52,120



Advisory services fee	12,986		13,386
Corporate, general and administrative	2,612		3,104
Total operating expenses	305,108		261,847
Gain (loss) on disposition of assets and hotel properties	(24)		103
OPERATING INCOME (LOSS)	23,754		(14,606)
Equity in earnings (loss) of unconsolidated entities	(396)		(153)
Interest income	2,557		51
Other income (expense)	134		101
Interest expense and amortization of discounts and loan costs	(81,515)		(43,559)
Write-off of premiums, loan costs and exit fees	(420)		(727)


Realized and unrealized gain (loss) on derivatives	(5,415)		3,211
INCOME (LOSS) BEFORE INCOME TAXES	(61,301)		(55,682)
Income tax (expense) benefit	(221)		(120)



NET INCOME (LOSS)	(61,522)		(55,802)

Net (income) loss attributable to redeemable noncontrolling interests in operating partnership	600		372
NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY	(60,922)		(55,430)
Preferred dividends	(3,243)		(3,103)
Deemed dividends on redeemable preferred stock	(407)		—

NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS	$	(64,572)	$	(58,533)

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


Net income (loss) attributable to common stockholders	$	(1.88)	$	(1.71)
Weighted average common shares outstanding – basic	34,381		34,269
Diluted:


Net income (loss) attributable to common stockholders	$	(1.88)	$	(1.71)
Weighted average common shares outstanding – diluted	34,381		34,269

See Notes to Consolidated Financial Statements.

ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(unaudited, in thousands)


	Three Months Ended March 31,
	2023		2022
Net income (loss)	$	(61,522)	$	(55,802)
Other comprehensive income (loss), net of tax:


Total other comprehensive income (loss)	—		—
Comprehensive income (loss)	(61,522)		(55,802)

Less: Comprehensive (income) loss attributable to redeemable noncontrolling interests in operating partnership	600		372
Comprehensive income (loss) attributable to the Company	$	(60,922)	$	(55,430)

See Notes to Consolidated Financial Statements.

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
	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, 2022		1,174	$	12	1,251	$	12	1,532	$	15	1,308	$	13	1,253	$	13	34,495	$	345	$	2,383,244	$	(2,534,043)	$	(150,389)

Purchases of common stock		—	—		—	—		—	—		—	—		—	—		(17)	—		(56)		—		(56)
Equity-based compensation		—	—		—	—		—	—		—	—		—	—		—	—		812		—		812

Issuance of preferred shares		—	—		—	—		—	—		—	—		—	—		—	—		—		—		—






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)



Dividends declared – preferred stock - Series J ($0.50/share)		—	—		—	—		—	—		—	—		—	—		—	—		—		(133)		(133)
Dividends declared – preferred stock - Series K ($0.51/share)		—	—		—	—		—	—		—	—		—	—		—	—		—		(7)		(7)
Redemption value adjustment		—	—		—	—		—	—		—	—		—	—		—	—		—		(176)		(176)

Redemption value adjustment - preferred stock		—	—		—	—		—	—		—	—		—	—		—	—		—		(407)		(407)
Net income (loss)		—	—		—	—		—	—		—	—		—	—		—	—		—		(60,922)		(60,922)
Balance at March 31, 2023		1,174	$	12	1,251	$	12	1,532	$	15	1,308	$	13	1,253	$	13	34,478	$	345	$	2,384,000	$	(2,598,791)	$	(214,381)


	Preferred Stock						Redeemable Noncontrolling Interests in Operating Partnership
		Series J		Series K
			Shares	Amount		Shares				Amount
Balance at December 31, 2022			87	$	2,004	2		$	44		$	21,550

Purchases of common stock			—	—		—		—			—
Equity-based compensation			—	—		—		—			491

Issuance of preferred shares			415	9,159		32		772			—






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



Dividends declared – preferred stock - Series J ($0.50/share)			—	—		—		—			—
Dividends declared – preferred stock - Series K ($0.51/share)			—	—		—		—			—
Redemption value adjustment			—	—		—		—			176

Redemption value adjustment - preferred stock			—	380		—		27			—
Net income (loss)			—	—		—		—			(600)
Balance at March 31, 2023			502	$	11,543	34		$	843		$	21,617


		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)		—	—		—	—		—	—		—	—		—	—		—	—		—

ASHFORD HOSPITALITY TRUST INC [AHT-PG] Filings
ASHFORD HOSPITALITY TRUST INC [AHT] Filings
ASHFORD HOSPITALITY TRUST INC [AHT-PD] Filings
ASHFORD HOSPITALITY TRUST INC [AHT-PH] Filings
ASHFORD HOSPITALITY TRUST INC [AHT-PI] Filings
ASHFORD HOSPITALITY TRUST INC [AHT-PF] Filings
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10-Q	[2021-11-08]
10-Q	[2021-08-06]
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10-Q	[2020-11-09]
10-Q	[2020-08-03]
10-Q	[2020-05-28]
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10-Q	[2019-11-06]
10-Q	[2019-08-06]
10-Q	[2019-05-08]
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10-Q	[2018-11-02]
10-Q	[2018-08-09]
10-Q	[2018-05-09]
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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]
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10-Q	[2014-11-07]
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10-Q	[2013-11-07]
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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-PG] Filings

ASHFORD HOSPITALITY TRUST INC [AHT] Filings

ASHFORD HOSPITALITY TRUST INC [AHT-PD] Filings

ASHFORD HOSPITALITY TRUST INC [AHT-PH] Filings

ASHFORD HOSPITALITY TRUST INC [AHT-PI] Filings

ASHFORD HOSPITALITY TRUST INC [AHT-PF] Filings