Ashford Hospitality Trust swings to Q3 profit as comparable RevPAR rises
AHT•Ashford Hospitality Trust returned to a net profit in Q3 as comparable RevPAR rose 7.3% to $140.80. It sold four hotels for $145.8 million in gross proceeds and reduced Q3 interest expense by 15.9%.
1. Q3 performance
Comparable RevPAR rose 7.3% to $140.80, driven by a 6.1% increase in average daily rate and a 1.2% rise in occupancy. The company returned to a net profit after reporting a loss in the prior-year quarter.
2. Hotel sales and debt
The company closed on four hotel sales for $145.8 million in gross proceeds. Lower debt and refinancing contributed to a 15.9% decrease in Q3 interest expense, CEO Stephen Zsigray said.
3. Outlook and capital
Ashford Hospitality Trust expects approximately $17 million in advisory fee savings over the next six months. Ashford Inc. committed to buy 2.5% of Ashford Trust’s common stock in the open market each quarter. The company intends to resume preferred dividends when market conditions allow.
