Aug 12, 2026, 4:17 PM ETReal Estate

Ashford Hospitality Trust — Second Quarter 2026 Earnings Summary

AHTASHFORD HOSPITALITY TRUST INC

Financial Performance

Net income attributable to common stockholders was $120.7 million ($1.62 per diluted share) for the quarter ended June 30, 2026, compared to a loss of $39.9 million in the prior-year quarter.
Adjusted EBITDAre was $69.4 million for the quarter.
Adjusted funds from operations (AFFO) per diluted share was $2.67, an increase from $0.78 in the prior-year quarter.
Comparable Hotel EBITDA was $79.9 million, reflecting a 9.6% year-over-year increase.
Comparable Hotel EBITDA margin expanded 158 basis points to 32.5%.
Comparable RevPAR increased 6.6% to $155.7, driven by a 5.8% increase in Comparable ADR and a 0.7% increase in Comparable Occupancy.
Total debt was $2.0 billion at June 30, 2026, a decrease of $599.5 million (23.3%) from $2.6 billion at December 31, 2025.
Cash and cash equivalents were $75.0 million, with restricted cash of $137.0 million.
Net working capital was $83.8 million at quarter-end.
CapEx invested during the quarter was $20.7 million.
Total hotel revenue for the quarter was $273.1 million, down 9.4% year-over-year on an actual basis, while comparable total hotel revenue increased 4.2%.

Management expects strategic asset sales to remain an important lever for closing the gap between market value and underlying asset value while strengthening the balance sheet and improving cash flow.
The company intends to resume capital returns to preferred holders when conditions allow, though no specific timeline was provided.
Management noted that the forward curve for interest rates no longer reflects anticipated easing, and the probability of rate hikes has risen considerably.

The company operates a portfolio of upper upscale, full-service hotels.
During the quarter, the Company closed on nine hotel sales for combined gross proceeds of $385.3 million ($194,200 per key).
Subsequent to quarter-end, the Company closed on two additional hotel sales for combined gross proceeds of $79.1 million.
The nine sales closed during the quarter are expected to result in anticipated capital expenditure savings of $90.8 million ($45,800 per key).
Specific hotels sold during the quarter included Embassy Suites by Hilton Palm Beach Gardens PGA Boulevard, Embassy Suites by Hilton Dallas Near the Galleria, Lakeway Resort & Spa, Sheraton Indianapolis City Centre, Silversmith Hotel Chicago Downtown, Sheraton Mission Valley San Diego, Hilton Garden Inn Jacksonville JTB/Deerwood Park, Hilton Garden Inn Austin Downtown, and Hyatt Regency Savannah.
Hotels sold subsequent to quarter-end included Marriott Fremont Silicon Valley and Hyatt Regency Long Island.

Comparable RevPAR growth was rate-led, with Comparable ADR up 5.8%.
The portfolio includes 53 comparable hotel properties as of June 30, 2026.
Market trends indicate a disconnect between market valuation and underlying asset value, prompting continued asset sales.

The path to resuming capital returns to preferred holders is constrained by the requirement to apply the majority of sale proceeds to retire senior mortgage debt.
Rising interest rates and the lack of anticipated rate relief present challenges to future capital returns.
One mortgage loan (JPMorgan Chase - 8 hotels) was in default as of June 30, 2026, with 5.00% default interest accrued.
The company faces risks related to the completion of pending transactions, ability to secure additional financing, and the impact of technology on operations.

Stephen Zsigray, President and CEO, described the results as "the clearest evidence yet of Ashford Trust's operational turnaround."
Management highlighted that the company converted 70% of incremental revenue into Hotel EBITDA.
Zsigray noted that deleveraging has made refinancing possible, preserving portfolio equity.
The tone was confident regarding operational performance and balance sheet improvements, while cautious regarding the timing of preferred dividend resumption due to interest rate environments.

On August 7, 2026, the Company refinanced the Highland mortgage loan with a new $525.0 million mortgage loan.
The new Highland loan has a two-year initial term, is interest-only, bears interest at SOFR + 5.24% (down from SOFR + 5.47%), and has three one-year extension options.
The Highland refinancing released 14 hotels from a cash sweep that had been in effect for more than a year and addressed the Company's final remaining 2026 maturity.
Approximately 94% of the Company's current consolidated debt is floating-rate, with a blended average interest rate of 8.2% (taking into account in-the-money interest rate caps).
Preferred dividends are cumulative and continue to accumulate while suspended.
The company reported a gain on disposition of assets and hotel properties of $150.0 million for the quarter.
Adjusted FFO improved by $12.8 million versus the prior-year quarter.