Executive Summary

Comparable RevPAR rose 3.2% YoY to $133, with comparable hotel EBITDA up 8.7%; GAAP diluted EPS was -$4.91 and Adjusted EBITDAre was $61.7M, reflecting cost controls and ancillary revenue initiatives under “GRO AHT” .
Versus Wall Street: EPS materially beat consensus while revenue modestly missed; Adjusted EBITDAre exceeded consensus EBITDA, aided by corporate and property-level savings and brand conversions (La Concha, Le Pavillon) .
Balance sheet de-risking: fully repaid corporate strategic financing using proceeds from a $580M refinancing; extended a $410M Morgan Stanley pool to 2026–2028 with asset release flexibility, improving maturity profile .
Near-term catalysts: execution on asset dispositions at attractive cap rates, continued GRO AHT savings (> $30M annual run-rate already identified), and event-driven/group demand strength in key markets (D.C., Miami, Dallas) .

What Went Well and What Went Wrong

What Went Well

Brand conversions outperformed: Le Pavillon (Tribute) +78% total revenue YoY; La Concha (Autograph) +27% total revenue YoY, with strong ADR and occupancy gains, supporting portfolio mix upgrade and incremental EBITDA .
Event-driven group strength: inauguration-related demand drove 95% occupancy across D.C. hotels and ~$1.6M incremental room revenue; FIFA World Cup pipeline cited for 2026, with group pace ahead across 2025–2026 .
Capital structure improvement: $580M nonrecourse refinancing (SOFR+4.37%) funded payoff of corporate strategic financing; Morgan Stanley 17-hotel loan extended to 2026–2028; ongoing flexibility for asset releases .
Management quote: “Completely eliminating our corporate-level debt strengthens our balance sheet…positions Ashford Trust for long-term success” – CEO Stephen Zsigray .

What Went Wrong

Reported hotel revenue declined YoY due to portfolio changes; GAAP net loss attributable to common stockholders was -$27.8M, and AFFO/share was -$0.98, reflecting interest expense and non-comparable adjustments .
Government segment softness, particularly in D.C., led to cancellations and near-term block reductions; management is backfilling with business transient and other segments .
Some markets saw weakness or mixed trends: Minneapolis and San Diego underperformed; New York/New Jersey modest; select “Other Areas” down on hotel net income contributions .

Financial Results

Metric	Q1 2024	Q4 2024	Q1 2025
Total Revenue ($USD Millions)	$303.9	$275.5	$277.4
Net Income Attributable to Common ($USD Millions)	$67.4	$(131.1)	$(27.8)
Diluted EPS ($)	$5.99	$(23.83)	$(4.91)
Adjusted EBITDAre ($USD Millions)	$59.5	$45.2	$61.7
Hotel EBITDA Margin % (Actual)	25.82%	25.24%	28.32%

Estimated vs Actual (Q1 2025):

Metric	Consensus	Actual
Revenue ($USD Millions)	$282.5*	$277.4
Primary EPS ($)	$(11.13)*	$(4.91)
EBITDA ($USD Millions)	$48.1*	$61.7 (Adjusted EBITDAre)

Note: Values retrieved from S&P Global*. EBITDA consensus reflects SPGI standardized EBITDA; company reports Adjusted EBITDAre.

KPIs and Portfolio Performance:

KPI (Comparable)	Q1 2024	Q4 2024	Q1 2025
RevPAR ($)	$128.60	$125.95	$132.71
Occupancy (%)	67.25%	66.09%	67.78%
ADR ($)	$191.24	$190.58	$195.80
Comparable Hotel EBITDA ($USD Millions)	$71.0	$65.5	$77.2

Selected Market Hotel EBITDA (Q1 2025):

Market	Hotel EBITDA ($USD Millions)	% of Total
Washington D.C.-MD-VA	$11.240	14.6%
Nashville, TN	$9.476	12.3%
Tampa, FL	$5.998	7.8%
Miami, FL	$5.558	7.2%
Other Areas	$14.808	18.3%

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Capex ($USD Millions)	FY 2025	$95–$115	$95–$115	Maintained
Common Dividend	FY 2025	Not anticipated in 2025	Do not anticipate reinstating common dividend in 2025	Maintained
GRO AHT EBITDA Improvement	Run-rate	Target +$50M announced Dec-2024	>$30M per year expected from implemented initiatives toward $50M goal	Progress update
Corporate Strategic Financing	Corporate debt	In process/paydown (Q4)	Fully paid off (Feb 12, 2025)	Improved
MS Pool 17 Loan	Debt maturity	Original maturity Nov-2024	Extended to 2026 with 2x 1-yr options (final 2028)	Extended
Non-traded Preferred Offering	Capital	Closing planned Mar 31, 2025	Closed; ~$212M gross proceeds	Realized

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2024)	Previous Mentions (Q4 2024)	Current Period (Q1 2025)	Trend
GRO AHT cost and revenue initiatives	Ashford Inc. commitment to corporate cost savings; ancillary revenue uplift focus	GRO AHT launched; three pillars; early margin gains in Dec	>$30M annual run-rate identified; hotel EBITDA margins +131 bps YoY	Strengthening execution
Capital structure/refinancing	Strategic financing paydown plan; transactions in pipeline	$121.5M Crystal Gateway refi; maturity extensions; plan to fully repay corporate strategic debt	$580M refi completed; corporate strategic financing fully repaid; MS 17 loan extended; Indigo Atlanta extended	Material de-risking
Demand mix: group/BT/leisure	Corporate transient up ~4%; leisure soft; gov’t segment cautious pre-election	Group pace +5% FY25; Dec EBITDA +12% YoY	Group pace ahead across 2025–2026; inauguration drove 95% occupancy in D.C.; gov’t softness in D.C. with backfill via BT	Broadly constructive despite gov’t softness
Asset sales/transactions	Improved institutional interest post-rate cut; narrowing bid–ask spread	Courtyard Boston Downtown sold at attractive cap rate	Additional sales underway (e.g., Hilton Houston NASA Clear Lake at attractive cap rate)	Opportunistic deleveraging
Brand conversions/product performance	Conversions underway; expected RevPAR premiums	La Concha and Le Pavillon completed; outperforming underwriting	Strong first full quarter: La Concha +27% revenue, Le Pavillon +78% revenue; high ADR/Super Bowl impact	Outperformance sustained
Macro/regulatory	Hurricane impacts managed; property tax appeals savings	—	Calendar shifts (Easter/Leap day) impacted monthly comps; gov’t segment volatility	Mixed, manageable

Management Commentary

“I’m extremely pleased with Ashford Trust’s strong first quarter financial results, underscored by solid RevPAR growth of approximately 3.2%…completely eliminating our corporate-level debt strengthens our balance sheet…positions Ashford Trust for long-term success.” – Stephen Zsigray, CEO .
“Adjusted EBITDAre for the quarter was $61.7 million…Our blended average interest rate is 8.1%…approximately 23% of our debt is effectively fixed and 77% effectively floating.” – Deric Eubanks, CFO .
“Every quarter of 2025 group rate is pacing ahead…first quarter hotel EBITDA margin expanded by ~131 bps YoY…we’re focused on reducing energy costs and optimizing contract labor.” – Chris Nixon, EVP Asset Management .

Q&A Highlights

Monthly RevPAR cadence: January strongest; softness emerged post-inauguration; calendar effects (loss of Feb 29; Easter shift) affected comps; gov’t demand primarily D.C.; backfilling with BT; productivity/labor efficiencies improving (hours per occupied room; contract labor down) .
GRO AHT progress: Low-hanging fruit largely realized, but >$10M corporate savings still targeted; expect delivery on $50M goal, with ongoing updates .
BAML loan update: Forbearance in place; extension option to next month; management expects a favorable resolution via refinancing or extension .
Dispositions: Focus shifting to select-service and underperforming full-service assets ($50–$75M equity range) with improved asset-release flexibility; goal to deleverage further .

Estimates Context

Q1 2025 results vs S&P Global consensus: Revenue $277.4M vs $282.5M*, Primary EPS -$4.91 vs -$11.13*, Adjusted EBITDAre $61.7M vs EBITDA consensus $48.1M*. The EPS beat reflects cost controls and portfolio optimization; revenue miss modest given comparable RevPAR growth and non-comparable portfolio adjustments .
Implications: Street models likely to adjust higher on EBITDA/FFO trajectory given GRO AHT savings realization, conversions ramp, and de-risked corporate debt. Revenue trajectory remains sensitive to gov’t segment and discrete calendar shifts .

Note: Values retrieved from S&P Global*.

Key Takeaways for Investors

Execution on de-leveraging is a key upside driver: corporate strategic financing eliminated; maturities pushed; nonrecourse structure maintained; further asset sales at attractive cap rates enhance equity value .
Operating momentum is resilient: comparable RevPAR and hotel EBITDA growth with +131 bps margin expansion, supported by cost initiatives and brand upgrades; expect continued ancillary revenue uplift .
GRO AHT is tracking ahead: >$30M of annual run-rate savings identified; additional corporate savings targeted; watch for updates to bridge toward +$50M run-rate .
Estimates likely re-rate: EPS beat and EBITDA outperformance suggest upward revisions to forward EBITDA/AFFO, though revenue is tempered by non-comparable adjustments and gov’t softness in D.C. .
Near-term trading: positive bias on de-risking catalysts and cost realization; volatility tied to government demand normalization and calendar effects; monitor June asset sale closings and additional loan extensions .
Medium-term thesis: brand conversions and portfolio optimization in high-barrier markets (Key West, New Orleans) plus disciplined capex ($95–$115M FY25) underpin margin and cash flow durability .
Dividends: common dividend unlikely in 2025; preferred dividends current; capital rotation favors deleveraging and growth investments .

ASHFORD HOSPITALITY TRUST INC (AHT)·Q1 2025 Earnings Summary