DALLAS - Ashford Hospitality Trust, Inc. (NYSE:AHT) has reported preliminary financial results for the third quarter of 2024, indicating a slight decrease in revenue per available room (RevPAR). The real estate investment trust, which primarily invests in upper upscale, full-service hotels, announced an occupancy rate of approximately 71% for the quarter with an average daily rate of around $187, leading to a RevPAR of roughly $132. This represents a 1.6% decline in comparable RevPAR compared to the same period in 2023.
The month-to-month comparison showed mixed results, with a minor increase of 0.3% in July 2024 compared to July 2023. However, August and September saw declines of 2.1% and 3.0%, respectively, when compared to the corresponding months of the previous year.
In addition to its operational metrics, Ashford (NYSE:AINC) Trust also provided an update on its capital raising efforts. The company began offering Non-Traded Preferred Equity in the third quarter of 2022. As of September 30, 2024, there are 6,158,835 shares of Series J non-traded preferred stock and 526,708 shares of Series K non-traded preferred stock outstanding. Through these offerings, the company has raised approximately $167 million in gross proceeds.
Ashford Trust's statement includes forward-looking statements that involve risks and uncertainties, including the company's ability to manage debt, complete asset transactions, and navigate market fluctuations. These statements are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
The company cautions that these forward-looking statements are not guarantees of future performance and that actual results could differ materially due to various factors, including market conditions, interest rates, and competition. Ashford Trust has stated that it is not obligated to publicly update or revise any forward-looking statements unless required by law.
This report is based on a press release statement from Ashford Hospitality Trust, Inc. and presents the facts without speculation or promotional language.
In other recent news, Ashford Hospitality Trust Inc . has been busy with several significant developments. The company received a non-compliance notice from the New York Stock Exchange (NYSE) for not meeting the minimum average share price requirement. To address this, Ashford Trust plans to implement a 1-for-10 reverse stock split, a move aimed at regaining compliance with the NYSE's requirements.
In its second-quarter 2024 earnings call, Ashford Hospitality Trust reported a net income of $44.3 million and adjusted funds from operations per diluted share of $0.27. The company also exchanged approximately 135,002 shares of its Preferred Stock for roughly 2.46 million shares of Common Stock, a strategic move for capital restructuring.
Ashford Hospitality Trust also amended its hotel management agreement with Remington Lodging & Hospitality, introducing a cap on the monthly Group Services fee charged per hotel room. This is part of the company's efforts to manage costs more effectively.
The company sold seven assets for over $310 million and raised nearly $147 million through non-traded preferred stock offerings. These are part of the recent developments that reflect Ashford Hospitality Trust's ongoing efforts to position itself for continued growth.
InvestingPro Insights
Ashford Hospitality Trust's preliminary Q3 2024 results reveal some challenges, which are reflected in the company's financial metrics and market performance. According to InvestingPro data, AHT's revenue for the last twelve months as of Q2 2024 stood at $1.28 billion, with a revenue growth decline of 4.98% over the same period. This aligns with the reported 1.6% decline in comparable RevPAR for Q3 2024.
The company's stock performance has been particularly weak, with InvestingPro data showing a one-year price total return of -68.61% as of the latest available data. This significant decline suggests that investors have been reacting negatively to the company's operational challenges and market conditions.
Despite these headwinds, there are some positive aspects to consider. An InvestingPro Tip indicates that Ashford Hospitality Trust's net income is expected to grow this year. Additionally, the company is trading at a low earnings multiple, which could potentially attract value-oriented investors.
It's worth noting that AHT's stock generally trades with high price volatility, as highlighted by another InvestingPro Tip. This volatility is evident in the company's recent performance metrics and could present both risks and opportunities for investors.
For readers interested in a more comprehensive analysis, InvestingPro offers 16 additional tips for Ashford Hospitality Trust, providing a deeper understanding of the company's financial health and market position.
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