Ashford Hospitality Trust — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net income attributable to common stockholders was $2.5 million ($0.12 per diluted share) for the quarter, compared to a net loss of $69.0 million ($11.35 per share) in the prior-year quarter.
• Adjusted EBITDAre was $34.9 million for the quarter.
• Year-to-date Adjusted Funds from Operations (AFFO) per diluted share was $0.44, compared to $(3.13) in the prior-year period; quarterly AFFO per diluted share was $(2.22), compared to $(2.85) in the prior-year quarter.
• Comparable Hotel EBITDA was $55.5 million for the quarter, a 6.9% increase year-over-year; year-to-date Comparable Hotel EBITDA increased 6.8%.
• Comparable Hotel EBITDA margin expanded 70 basis points to 29.8% year-to-date.
• Total debt was $1.9 billion at September 30, 2026, a decrease of $677.4 million (26.4%) from $2.6 billion at December 31, 2025.
• Interest expense, net of discount amortization, was $47.4 million for the quarter, a 15.9% decrease from $56.3 million in the prior-year quarter.
• Cash and cash equivalents were $87.3 million, with restricted cash of $122.1 million; $29.1 million was held by a third-party hotel manager.
• Net working capital at quarter-end was $68.4 million.
• CapEx invested during the quarter was $18.6 million.
• Total hotel revenue was $214.3 million for the quarter, down 19.35% from $265.7 million in the prior-year quarter; year-to-date revenue was $754.9 million, down 10.58%.
• Comparable RevPAR increased 7.3% to $140.8 for the quarter, driven by a 6.1% increase in Comparable ADR and a 1.2% increase in Comparable Occupancy.

Guidance and Future Outlook:

• Management stated the operational turnaround is gaining momentum, citing the strongest quarterly RevPAR growth of the year (7.3%) following 3.3% in Q1 and 6.6% in Q2.
• The company intends to resume capital returns to preferred holders when conditions allow, though elevated interest rates currently constrain this ability.
• Dividends on preferred stock are cumulative and continue to accumulate while suspended.
• Ashford Inc. committed to purchasing 2.5% of the Company's common stock in the open market each quarter, with purchases for Q3 2026 required to be completed by March 31, 2027.

Business Segments and Product Lines:

• The Company closed on four hotel sales during the quarter for combined gross proceeds of $145.8 million ($134,300 per key), including the Marriott Fremont Silicon Valley, Hyatt Regency Long Island, Embassy Suites by Hilton Dulles Airport, and Embassy Suites by Hilton Las Vegas.
• Subsequent to the quarter, the Company closed on the sale of the Embassy Suites by Hilton Philadelphia Airport for $26.0 million.
• Total hotel sales for the year reached 19 hotels for approximately $796 million.
• The portfolio consists of 49 hotel properties as of September 30, 2026.

Market and Competitive Landscape:

• Comparable RevPAR growth was 7.3% for the quarter and 5.90% year-to-date.
• Comparable ADR increased 6.08% year-to-date, while Comparable Occupancy increased 1.07% year-to-date.
• The Company operates in various markets including Atlanta, Dallas/Ft. Worth, Houston, Los Angeles, Miami, Minneapolis, Nashville, New York/New Jersey, Orlando, Philadelphia, San Francisco-Oakland, Tampa, and Washington D.C.-MD-VA.
• One mortgage loan (JPMorgan Chase - 8 hotels) was in default as of September 30, 2026, with 5.00% default interest accrued.

Risks and Challenges:

• Elevated interest rates continue to constrain the Company's ability to return capital to preferred holders.
• The Company faces risks related to the completion of pending transactions, restructuring of property-level indebtedness, and securing additional financing.
• Forward-looking statements note potential material variations in business, financial condition, and results of operations due to unknown events or factors.
• One hotel loan pool (JPMorgan Chase) was in default, impacting net income calculations.

Management Commentary and Tone:

• Stephen Zsigray, President and CEO, stated that the third quarter results demonstrate the operational turnaround is gaining momentum.
• Management highlighted the reduction of total debt from $2.6 billion to $1.9 billion and the refinancing of the Highland loan pool at a lower spread (SOFR + 5.24% vs. prior SOFR + 5.47%).
• The refinancing of the Highland loan pool released the 14-hotel pool from a cash sweep that had been in effect for over a year.
• Management noted that interest expense declined 16% from the third quarter of the prior year due to debt reduction and refinancing.

Other Key Points:

• On October 20, 2026, Ashford Inc. irrevocably waived base and incentive advisory fees for a six-month period, expected to save approximately $17 million.
• On October 20, 2026, the Company terminated its at-the-market (ATM) equity offering program with Virtu Americas LLC.
• Ashford Inc. committed to a share purchase agreement to buy 2.5% of outstanding common stock quarterly; if the full amount is not purchased within six months, Ashford Inc. must provide a credit against future advisory fees equal to 150% of the volume-weighted average price for each unpurchased share.
• The Company sold 19 hotels in 2026 for approximately $796 million, avoiding an estimated $26.7 million in capital expenditures on the four Q3 sales alone.
• Total Enterprise Value (TEV) was $2,196.1 million as of September 30, 2026, with a market capitalization of $15.6 million based on a share price of $2.37.
• The Company has multiple series of redeemable and cumulative preferred stock outstanding (Series D, F, G, H, I, J, K, L, M).