Breaking News
Ashford Hospitality Belief, Inc. (NYSE: AHT) on the present time reported monetary outcomes and performance measures for the 2nd quarter ended June 30, 2023. The comparable performance measurements for Occupancy, Moderate Each day Rate (ADR), Revenue Per On hand Room (RevPAR), and Lodge EBITDA deem every of the hotel properties within the Company’s hotel portfolio as of June 30, 2023 used to be owned as of the beginning of every of the periods presented. Until in any other case stated, all reported outcomes compare the 2nd quarter ended June 30, 2023 with the 2nd quarter ended June 30, 2022.
SECOND QUARTER 2023 FINANCIAL HIGHLIGHTS
- Related RevPAR for all resorts increased 6.7% to $144.25 right via the quarter on a 3.8% amplify in Related ADR and a 2.8% amplify in Related Occupancy.
- Catch loss attributable to customary stockholders used to be $(30.3) million or $(0.88) per diluted fragment for the quarter.
- Adjusted EBITDAre used to be $104.0 million for the quarter, reflecting a enhance price of 8% over the prior year quarter.
- Adjusted funds from operations (AFFO) used to be $0.78 per diluted fragment for the quarter.
- Related Lodge EBITDA used to be $117.5 million for the quarter, reflecting a enhance price of 5% over the prior year quarter.
- The Company ended the quarter with cash and cash equivalents of $254.1 million and restricted cash of $150.5 million. The monumental majority of the restricted cash is made from lender and supervisor held reserves. At the tip of the quarter, there used to be furthermore $19.0 million in due from third-event hotel managers, which is basically the Company’s cash held by no doubt one of its property managers and is furthermore available to fund hotel working costs.
- Catch working capital on the tip of the quarter used to be $344.0 million.
- Capex invested right via the quarter used to be $34.0 million.
RECENT OPERATING HIGHLIGHTS
- All over the place in the quarter, the Company prolonged its BAML Highland Pool Loan till April 2024. As phase of this extension, the Company paid down the current mortgage steadiness by $Forty five million.
- All over the place in the quarter, the Company refinanced its mortgage loans for the 157-room La Posada de Santa Fe in Santa Fe, Fresh Mexico, which had a closing maturity date in November 2023, and the 252-room Hilton Alexandria in Alexandria, Virginia, which had a closing maturity date in June 2023. These two loans were the Company’s finest closing debt maturities in 2023.
- Up to now, the Company has issued approximately $51 million of its non-traded preferred stock.
- All over the place in the quarter, the Company prolonged its KEYS Pool C mortgage. Subsequent to quarter waste, the Company prolonged its KEYS Pool D mortgage and its KEYS Pool E mortgage. Within the fervour of defending stockholder price and liquidity, the Company elected to no longer invent the required paydowns to lengthen its KEYS Pool A mortgage, its KEYS Pool B mortgage and its KEYS Pool F mortgage.
CAPITAL STRUCTURE
As of June 30, 2023, the Company had entire loans of $3.7 billion with a blended realistic passion price of 7.8%, taking into memoir in-the-money passion price caps. Excluding the non-prolonged KEYS loans, basically basically based on the current diploma of LIBOR and SOFR and the corresponding passion price caps, approximately 95% of the Company’s debt is effectively mounted and approximately 5% is effectively floating. Excluding the non-prolonged KEYS loans, presently twelve of the Company’s resorts are in cash traps.
All over the place in the quarter, the Company prolonged its BAML Highland Pool Loan till April 2024. As phase of this extension, the Company paid down the current mortgage steadiness by $Forty five million.
Also, right via the quarter, the Company successfully refinanced its mortgage loans for the 157-room La Posada de Santa Fe in Santa Fe, Fresh Mexico, which had a closing maturity date in November 2023, and the 252-room Hilton Alexandria in Alexandria, Virginia, which had a closing maturity date in June 2023. These two loans were the Company’s finest closing debt maturities in 2023. The recent, non-recourse mortgage totals $98.5 million and has a 3-year initial term with two one-year extension choices, field to the delight of jog conditions. The mortgage is passion finest and provides for a floating passion price of SOFR + 4.00%.
All over the place in the quarter, the Company prolonged its KEYS Pool C mortgage – secured by five resorts with a paydown of approximately $62 million. Subsequent to quarter waste, the Company prolonged its KEYS Pool D mortgage – secured by five resorts with a paydown of approximately $26 million, and its KEYS Pool E mortgage – secured by five resorts with a paydown of approximately $41 million. Within the fervour of defending stockholder price and liquidity, the Company elected to no longer invent the required paydowns to lengthen its KEYS Pool A mortgage – secured by seven resorts, its KEYS Pool B mortgage – secured by seven resorts, and its KEYS Pool F mortgage – secured by five resorts. The Company famed that proactively selecting to no longer lengthen three of these mortgage pools improves its steadiness sheet by lowering leverage and materially improves future cash flows. The combo of the paydowns and the removal of the debt connected with the pools the Company didn’t lengthen will lower the Company’s debt by approximately $700 million.
The Company didn’t pay a dividend on its customary stock and customary objects for the 2nd quarter ended June 30, 2023. The Board of Directors will continue to video show the downside and assess future quarterly customary dividend declarations. The Company is current on the dividends on its prominent preferred stock and plans to pay dividends on its prominent preferred stock on a current foundation going ahead.
The Company commenced the offering of its Non-Traded Preferred Equity right via the third quarter of 2022. Up to now, the Company has issued 1,935,377 shares of its Series J and 90,323 shares of its Series Okay non-traded preferred stock raising approximately $50.6 million of irascible proceeds. The anticipated use of proceeds for the Non-Traded Preferred Equity is acquisitions, paying down debt, and other general corporate applications.
“All over the place in the 2nd quarter, our portfolio delivered robust working outcomes,” commented Rob Hays, Ashford Belief’s President and Chief Govt Officer. “We’ve been extremely impressed with the growth in both occupancy and ADR that we gain now been ready to manufacture and direct that robust performance reflects our high-quality, geographically diverse portfolio. Extra, we’re impressed that the monumental majority of our resorts are now out of their cash traps.” Mr. Hays added, “On the capital management entrance, proactively selecting to no longer lengthen three of the KEYS mortgage pools improves our steadiness sheet by lowering leverage and materially improves our future cash flows. Trying ahead, our portfolio remains neatly positioned to outperform and, from a capital construction and steadiness sheet standpoint, we can continue to point of curiosity on paying off our corporate financing and raising capital via our non-traded preferred stock.”