Ashford Hospitality Trust, Inc. reported a significant decline in financial performance for the first quarter of 2025, with a net loss attributable to common stockholders of $27.8 million, compared to a profit of $67.4 million in the same period last year. Total revenue decreased by 8.7% to $277.4 million, primarily driven by a 10% drop in rooms revenue, which fell to $206.3 million. This decline was attributed to reduced revenue from hotel dispositions and properties that went into receivership, partially offset by increased revenue from comparable hotel properties and the recent opening of the Le Meridien hotel.
In terms of operational metrics, the company reported a RevPAR (revenue per available room) of $132.81, up from $128.60 in the previous year, indicating a slight improvement in pricing power despite lower occupancy rates. The average daily rate (ADR) increased to $195.75, reflecting a 2.4% rise. However, occupancy rates also saw a marginal increase to 67.84%, suggesting that while room rates improved, overall demand remained a challenge.
Strategically, Ashford Hospitality Trust completed the sale of the Courtyard Boston Downtown for $123 million in January 2025, which contributed to a gain on the consolidation of variable interest entities (VIEs) and asset dispositions of $31.9 million. The company also refinanced $580 million in debt secured by 16 hotels, which included paying off the Oaktree Credit Agreement. This refinancing is expected to enhance liquidity and reduce interest expenses moving forward.
As of March 31, 2025, the company held cash and cash equivalents of $85.8 million and restricted cash of $139.2 million, indicating a solid liquidity position. However, 29 of its hotels were under cash trap provisions, limiting operational flexibility. The company’s total indebtedness stood at approximately $2.7 billion, with a net debt to gross assets ratio of 70.9%. Looking ahead, Ashford Hospitality Trust aims to focus on capital preservation, potential acquisitions, and strategic asset management to navigate the current market conditions and enhance shareholder value.
About ASHFORD HOSPITALITY TRUST INC
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