Q1 2024 Ashford Hospitality Trust Inc Earnings Call Transcript
Key Points
- Ashford Hospitality Trust Inc has made significant progress in paying off its strategic corporate financing, reducing the debt by almost 50%.
- The company successfully sold several assets, including a major sale of the Hilton Boston Back Bay for $171 million, which significantly contributed to debt reduction.
- Ashford Hospitality Trust Inc has raised approximately $122 million through its non-traded preferred stock offering, enhancing its capital structure.
- The company's diversified, high-quality hotel portfolio showed resilience with a revenue growth of approximately 3% in April, despite a soft March.
- Ashford Hospitality Trust Inc is actively managing its asset portfolio, with ongoing renovations and conversions expected to boost future revenue and profitability.
- The company reported an AFFO per diluted share of negative $0.35 for the first quarter, indicating potential challenges in operational efficiency.
- Comparable hotel RevPAR for the portfolio decreased by 1% over the prior year quarter, reflecting some ongoing demand challenges.
- Ashford Hospitality Trust Inc is not planning to reinstate a common dividend in 2024, which might be a concern for income-focused investors.
- The company has a substantial amount of debt, with $2.9 billion in loans at a blended average interest rate of 8.1%, which could pose financial risks.
- Some of the company's properties are undergoing significant renovations and conversions, which involve substantial capital expenditures and operational disruptions.
Thank you for standing by and my name is Greg and I will be your conference operator today. At this time, I would like to welcome everyone to the Ashford Hospitality Trust first quarter 2024 results conference call. (Operator Instructions)
I would now like to turn the call over to Jordan Jennings, Vice President, Investor Relations. Jordan, please go ahead.
And to everyone, and welcome to today's conference call to review results for Ashford Hospitality Trust for the first quarter 2024. And to update you on recent developments on the call today will be Rob Hays, President and Chief Executive Officer, Deric Eubanks, Chief Financial Officer, and Chris NexCen, Executive Vice President and Head of Asset Management, the results as well as notice of the accessibility of this conference call on a listen-only basis over the Internet were distributed yesterday afternoon in a press release.
At this time, I remind you that certain statements and assumptions in this conference call
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