Ashford Hospitality Trust Reports $60.3M Net Loss for 2024, Revenue Declines by 14.2%

Ashford Hospitality Trust, Inc. reported a net loss attributable to the company of $60.3 million for the year ended December 31, 2024, a significant improvement from the $178.5 million net loss reported in 2023. Total revenue decreased by $195.1 million (14.2%) to $1.2 billion in 2024 compared to 2023. This decrease was primarily driven by a $169.4 million (16%) decline in rooms revenue, a $20.2 million (8.7%) decrease in food and beverage revenue, and a $4.9 million (6.8%) reduction in other hotel revenue. These declines were partially offset by gains from asset sales and derecognition of assets.

Hotel operating expenses decreased by $110.1 million (11.9%) to $815.4 million in 2024 compared to 2023. This reduction resulted from the disposition of several hotels and the derecognition of assets related to hotels placed into receivership. However, advisory service fees increased by $9.7 million (19.8%) to $58.6 million, and corporate, general, and administrative expenses rose by $8.5 million (52.4%) to $24.7 million. Impairment charges of $59.3 million were recorded in 2024, primarily related to the Hilton Costa Mesa and Embassy Suites Portland.

Significant developments during the year included the derecognition of assets related to the KEYS Pool A and B mortgage loans, resulting in a gain of $167.2 million. The company also completed several hotel sales, including the Courtyard Boston Downtown in January 2025 for $123 million. Other key developments involved refinancing activities, including a $580 million refinancing secured by 16 hotels in February 2025, and a reverse stock split of 1-for-10 in October 2024 to meet NYSE listing requirements. The company also launched a strategic initiative, "GRO AHT," focused on improving EBITDA growth and shareholder value.

As of December 31, 2024, Ashford Hospitality Trust held $112.9 million in cash and cash equivalents and $107.6 million in restricted cash. The company's portfolio consisted of 68 consolidated operating hotel properties with 17,051 rooms, along with interests in other properties through various ownership structures. The company does not employ its own staff; all services are provided by Ashford LLC, a subsidiary of Ashford Inc. The company's liquidity and capital resources are expected to be sufficient to meet near-term obligations, but future financing remains dependent on market conditions.

The company does not anticipate paying any dividends on its outstanding common stock during 2025, but expects to pay dividends on its outstanding preferred stock. The company's outlook is contingent upon various factors, including macroeconomic conditions, industry performance, and the success of its strategic initiatives. The company's financial performance is subject to various risks, including those related to interest rate fluctuations, competition, and the cyclical nature of the hotel industry, as detailed in the filing's risk factors section.