Ashford Hospitality Trust swings to Q3 profit as comparable RevPAR rises

Overview

• U.S. hotel REIT's Q3 comparable RevPAR rose 7.3% on higher ADR and occupancy

• Company returned to net profit in Q3 after prior-year loss

• Ashford Trust sold four hotels, cut debt by 26%, and expects $17 mln advisory fee savings

Outlook

• Company intends to resume preferred dividends when market conditions allow

• Ashford Inc. committed to buy 2.5% of common stock in open market each quarter

• Company expects approximately $17 mln in advisory fee savings over next six months

Result Drivers

• REVPAR GROWTH - Co said Q3 comparable RevPAR rose 7.3% due to a 6.1% increase in average daily rate and a 1.2% rise in occupancy

• HOTEL SALES - Co closed on four hotel sales for $145.8 mln in gross proceeds, reducing capital expenditure needs and contributing to debt reduction

• INTEREST EXPENSE DECLINE - Lower debt and refinancing led to a 15.9% decrease in Q3 interest expense, per CEO Stephen Zsigray

Company press release: Full Story

Key Details

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)