Executive Summary

Comparable total revenue rose 1.3% YoY to $297.1M on a comparable basis despite industry RevPAR pressure, and comparable Hotel EBITDA grew 2.6% with 39 bps margin expansion, reflecting early benefits from the “GRO AHT” initiative .
Reported total revenue was $302.0M; net loss to common was $(39.9)M, or $(6.88) diluted EPS; AFFO per diluted share was $0.78, but would have been $1.93 excluding ~$6.8M of default interest that was subsequently eliminated via Highland loan extension; Adjusted EBITDAre was $73.8M .
Consensus comparison: modest beats on revenue and EPS; revenue $302.0M vs $301.6M; EPS $(6.88) vs $(7.36); note S&P Global single-analyst coverage. EBITDA comparisons depend on definition differences (company Adjusted EBITDAre vs SPGI EBITDA) . Values retrieved from S&P Global*.
Capital structure progress is a clear catalyst: extension of the Highland loan (default interest eliminated) and earlier MS-17 loan extension, plus active non-core asset sales to delever; management does not anticipate reinstating a common dividend in 2025; preferred dividends remain current and were declared for Q3 .

What Went Well and What Went Wrong

What Went Well

Comparable Hotel EBITDA increased 2.6% YoY to $91.0M with 39 bps margin expansion despite RevPAR declines; management credited ancillary revenue initiatives and cost controls under “GRO AHT” .
Strategic financing actions: extended MS-17 loan to March 2026 with options to 2028 and extended the Highland loan to January 2026 (option to July 2026) while eliminating default interest; expected asset sale proceeds and flexibility to release collateral improve deleveraging capacity .
Non-core dispositions: agreement to sell Hilton Houston NASA Clear Lake ($27M), later closed along with another sale, at attractive cap rates/multiples, supporting deleveraging and cash flow after debt service .
Quote: “We remain focused on executing our GRO AHT strategy to drive outsized EBITDA growth and believe our assets are well-positioned to deliver meaningful outperformance in the quarters ahead” — CEO Stephen Zsigray .

What Went Wrong

Industry headwinds pressured top line drivers: comparable RevPAR fell 2.2% YoY, driven by a 2.7% ADR decline; government room nights dropped ~26% YoY, weighing on RevPAR and group .
Interest burden still heavy: interest expense (including amortization) and related charges contributed to a net loss to common of $(39.9)M and diluted EPS of $(6.88) despite hotel-level growth .
High floating-rate exposure remains a risk: ~76% of consolidated debt effectively floating at quarter end, keeping earnings sensitive to rates despite in-the-money caps .

Financial Results

Summary P&L and Profitability

Metric	Q2 2024	Q1 2025	Q2 2025
Total Revenue ($M)	$316.5	$277.4	$302.0
Net Income to Common ($M)	$44.3	$(27.8)	$(39.9)
Diluted EPS ($)	$2.50	$(4.91)	$(6.88)
Adjusted EBITDAre ($M)	$78.7	$61.7	$73.8
Comparable Hotel EBITDA ($M)	$88.7	$77.2	$91.0
Comparable Hotel EBITDA Margin (%)	30.24%	28.28%	30.63%

Notes: AFFO per diluted share was $0.78; excluding ~$6.8M default interest, AFFO would have been ~$1.93, aided by the Highland loan extension eliminating default interest post quarter .

Lodging KPIs (Comparable)

KPI	Q2 2024	Q1 2025	Q2 2025
RevPAR ($)	$147.98	$132.71	$144.73
Occupancy (%)	74.78%	67.78%	75.13%
ADR ($)	$197.90	$195.80	$192.65

Markets Snapshot (Comparable RevPAR YoY % change, selected)

Market	Q2 2024 RevPAR ($)	Q2 2025 RevPAR ($)	YoY Change
Washington D.C. Area	185.91	175.51	(5.6%)
Miami, FL Metro	156.58	174.80	11.6%
San Francisco–Oakland	137.79	144.07	4.6%
Tampa, FL Area	135.91	144.52	6.3%
Nashville, TN	260.93	246.56	(5.5%)

Balance Sheet and Liquidity Highlights

Cash and cash equivalents $100.0M; restricted cash $153.9M; due from third-party hotel managers $21.8M; net working capital ~$184.2M at quarter end .
Total loans $2.7B; blended average interest rate 8.1% (with in-the-money caps); ~24% effectively fixed, ~76% floating .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Capital Expenditures	FY 2025	$95–$115M (Q1 call)	$90–$110M (Q2 call)	Lowered
Common Dividend	2025	Not anticipated to reinstate (Q1)	Not anticipated to reinstate (Q2)	Maintained
Preferred Dividends	Q3 2025	Current on preferred dividends (Q1)	Declared Q3 preferred dividends with detailed amounts and pay dates	Maintained/Declared

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4’24 and Q1’25)	Current Period (Q2’25)	Trend
“GRO AHT” EBITDA uplift (target $50M)	Rolled out; >50% initiatives underway; early margin gains; expecting >$30M run-rate contribution	Comparable revenue +1.3% YoY; Comparable Hotel EBITDA +2.6% YoY; 39 bps margin expansion reflecting GRO AHT	Positive execution, incremental impact
Capital structure/deleveraging	Paid off corporate strategic financing; refinanced 16 hotels ($580M); extended MS-17; raised ~$212M non-traded preferred	Extended Highland loan; eliminated default interest; MS-17 extension reiterated; asset sale proceeds to delever	Improving flexibility, reduced near-term risk
Demand mix: group/government	Group pacing up; DC cancellations manageable; international small exposure (<5%)	Government room nights down ~26% YoY; group down ~4% in Q2; resorts strong (+14% group)	Government softness persisted; selective strength
Property conversions/renovations	La Concha (Autograph) and Le Pavillon (Tribute) outperforming underwriting; strong event-driven gains	Continued outperformance at converted assets; ancillary F&B growth (e.g., La Concha)	Sustained ROI traction
Asset sales market	Better financing backdrop; selective disposals to delever	Executed/announced non-core sales at attractive cap rates/multiples	Active portfolio pruning
Rates, debt mix	Preference for floating historically; caps burn-off/levels affect exposure	~76% floating exposure persists; blended 8.1% with caps	Exposure remains elevated; extensions mitigate maturities

Management Commentary

“With macroeconomic headwinds driving RevPAR declines and pressuring margins industry wide in the quarter, we're very pleased with our operating performance... and the strength of our high quality geographically diverse portfolio.” — CEO Stephen Zsigray .
“If we had not accrued the default interest, our AFFO and AFFO per diluted share for the quarter would have been approximately $11.4 million and $1.93 respectively.” — CFO Deric Eubanks .
“Our asset management team's focus on driving ancillary income and controlling costs has laid a strong foundation... comparable hotel EBITDA margin expanded by 39 basis points.” — EVP Chris Nixon .
Capital structure: extensions of MS-17 and Highland loans improved flexibility and eliminated default interest, respectively .

Q&A Highlights

No Q&A; call concluded without analyst questions .

Estimates Context

Q2 2025 revenue: $302.0M actual vs $301.6M consensus — slight beat . Values retrieved from S&P Global*.
Q2 2025 EPS (diluted): $(6.88) actual vs $(7.36) consensus — better than expected loss . Values retrieved from S&P Global*.
Note: Different EBITDA definitions (company Adjusted EBITDAre $73.8M) vs SPGI EBITDA may not be directly comparable . Values retrieved from S&P Global*.

Estimates vs Actuals (Q2 2025)

Metric	Consensus	Actual
Revenue ($M)	301.6*	302.0
Diluted EPS ($)	(7.36)*	(6.88)

*Values retrieved from S&P Global

Key Takeaways for Investors

Hotel-level resilience: Comparable Hotel EBITDA and margins expanded YoY despite RevPAR declines; “GRO AHT” initiatives continue to support ancillary revenue and cost efficiency .
Capital structure momentum: Loan extensions (Highland, MS-17) reduce near-term refinancing risk and eliminated default interest exposure; asset sales provide deleveraging and improve cash flow after debt service .
Mix headwinds manageable: Government demand drop (~26% YoY) pressured RevPAR, but resorts and certain markets (Miami, SF, Tampa) offset; group declines may be transitory with pacing constructive .
Near-term EPS optics vs cash metrics: GAAP loss reflects interest burden; AFFO ex-default interest shows stronger underlying cash earnings power this quarter .
No common dividend in 2025; preferred dividends remain current (declared for Q3), suggesting capital preservation and balance sheet priorities in the near term .
Trading setup: Potential catalysts include additional asset sales, further GRO AHT margin capture, and rate cuts benefiting ~76% floating-rate exposure; watch demand normalization in DC/government-exposed properties .

Appendix: Additional Context and Data Points

Reported total hotel revenue: $301.5M vs $315.8M prior-year; comparable total hotel revenue +1.3% YoY reflecting disposals/non-comparable adjustments .
Adjusted FFO per diluted share: $0.78; shares outstanding diluted ~5.9–6.0M at/around quarter end (reverse split in effect) .
Debt summary: $2.65B total; weighted average interest rate 8.14% (adjusted for in-the-money caps) .

ASHFORD HOSPITALITY TRUST INC (AHT)·Q2 2025 Earnings Summary