8-K: Ashford Hospitality Trust Announces Preliminary Q4 and Full Year 2023 Results

Ashford Hospitality Trust released preliminary financial results for the fourth quarter and full year 2023, including estimated net losses, Adjusted EBITDAre, and Adjusted FFO.

Summary

• Ashford Hospitality Trust has announced preliminary financial results for the fourth quarter and full year of 2023.
• The company estimates a net loss attributable to common stockholders between $(32.3) million and $(30.3) million, or $(0.93) to $(0.87) per share, for the fourth quarter.
• Adjusted EBITDAre for the fourth quarter is estimated to be between $61.6 million and $63.6 million.
• Adjusted FFO available to common stockholders and OP unitholders is estimated to be between $(14.2) million and $(12.2) million for the fourth quarter.
• For the full year 2023, the company estimates a net loss attributable to common stockholders between $(194.7) million and $(192.7) million, or $(5.64) to $(5.58) per share.
• Full year Adjusted EBITDAre is estimated to be between $323.5 million and $325.5 million.
• Full year Adjusted FFO available to common stockholders and OP unitholders is estimated to be between $25.4 million and $27.4 million.
• Final results for the fourth quarter will be released on February 28, 2024.

Sentiment

Score: 3

Explanation: The sentiment is negative due to the significant net losses and negative Adjusted FFO in Q4. While there is a slight positive in RevPAR, the overall financial picture is concerning.

Positives

• January comparable RevPAR increased 1.5% over the prior year.
• The company is providing preliminary results, indicating transparency.

Negatives

• The company is reporting a significant net loss for both the fourth quarter and the full year of 2023.
• Adjusted FFO is negative for the fourth quarter, indicating a potential cash flow issue.

Risks

• The preliminary results are based on estimates and may change when final results are released.
• The company's financial performance is subject to various risks and uncertainties, including debt repayment and market conditions.
• The company's forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially.

Future Outlook

The company's future performance is subject to various risks and uncertainties, and the preliminary results are not necessarily indicative of future results. The company is not obligated to update forward-looking statements.

Management Comments

• The company believes that non-GAAP measures improve the understanding of operational results and make comparisons among peer REITs more meaningful.
• The preliminary estimated results were prepared by the company's management and are based on preliminary hotel operating results, corporate level expenses, and subjective judgements and assumptions.

Industry Context

The announcement provides insight into the financial performance of a major player in the hotel REIT sector, which is useful for understanding the current state of the industry. The results will be compared to other hotel REITs to assess relative performance.

Comparison to Industry Standards

• The company's performance will be compared to other hotel REITs such as Host Hotels & Resorts (HST), Park Hotels & Resorts (PK), and Pebblebrook Hotel Trust (PEB).
• The negative Adjusted FFO for Q4 is concerning and will be compared to the performance of peers to assess the severity of the issue.
• The RevPAR increase of 1.5% in January will be compared to industry averages and the performance of competitors to determine if it is a positive sign or if the company is underperforming.

Stakeholder Impact

• Shareholders will be negatively impacted by the reported net losses and negative Adjusted FFO.
• Employees may be concerned about the company's financial health.
• Creditors may be concerned about the company's ability to repay its debts.

Next Steps

• The company will release final results for the fourth quarter on February 28, 2024.
• Investors should review the final results and compare them to the preliminary estimates.

Key Dates

Keywords

Ashford Hospitality Trust, REIT, Real Estate Investment Trust, Preliminary Results, Net Loss, Adjusted EBITDAre, Adjusted FFO, RevPAR, Hotel Industry, Financial Results