Ashford Hospitality Trust Inc Stock price
Is Ashford Hospitality Trust Inc a Top Scorer Stock based on the Dividend, High-Growth-Investing or Leverman Strategy?
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Key metrics
📘 Market Capitalization
📈 What is it?
Market capitalization shows how much a company is currently worth on the stock market.
🧮 How is it calculated?
🏛️ Why is it important?
It helps classify companies by size (Large, Mid, Small Cap) and indicates their market presence and relative stability.
🧮 Calculation
🎯 What does this mean for investors?
- Large-cap companies tend to be more stable, often pay dividends, but may grow more slowly.
- Smaller firms may offer higher growth potential but come with more volatility.
- Market capitalization is a useful indicator of company size — but not a measure of whether a stock is undervalued or overvalued.
📘 Enterprise Value (EV)
📈 What is it?
Enterprise Value represents the total cost to acquire a company — including its debt and excluding its cash reserves.
🧮 How is it calculated?
(= Market Cap + Net Debt)
🏛️ Why is it important?
EV gives a more complete picture of a company's value than market cap alone and is used in key valuation ratios like EV/FCF or EV/Sales.
🧮 Calculation
🎯 What does this mean for investors?
- Enterprise Value shows the true cost of buying a company, including all financial obligations.
- It is more accurate than just looking at market cap, especially when comparing companies with different levels of debt or cash.
- Professional investors prefer EV-based multiples because they better reflect the company’s full financial footprint.
📘 Net Debt
📈 What is it?
Net Debt shows how much debt remains after subtracting a company’s available cash reserves.
🧮 How is it calculated?
🏛️ Why is it important?
It indicates how dependent a company is on borrowed money and how easily it can service its debt in the short term.
🧮 Calculation
🎯 What does this mean for investors?
- Low or negative net debt signals financial strength and flexibility.
- Companies with strong cash positions are better positioned in crises.
- High net debt increases financial risk — especially in environments with rising interest rates or economic downturns.
📘 Cash
📈 What is it?
Cash represents all liquid assets a company can access immediately — including cash, bank deposits, and short-term investments.
🧮 How is it calculated?
🏛️ Why is it important?
It reflects a company’s financial flexibility and resilience — enabling investments, buybacks, or buffer in downturns.
🧮 Calculation
🎯 What does this mean for investors?
- A strong cash position means greater room for maneuver and crisis resistance.
- Cash-rich companies can invest, pay down debt, or repurchase shares.
- But excess idle cash might indicate a lack of growth opportunities.
📘 Shares Outstanding
📈 What is it?
Shares outstanding represent the total number of a company’s shares currently held by investors — excluding treasury stock.
🧮 How is it calculated?
🏛️ Why is it important?
It’s the basis for key metrics like Earnings Per Share (EPS), Market Capitalization, or the Price/Earnings ratio (P/E).
🧮 Calculation
🎯 What does this mean for investors?
- Fewer shares in circulation typically increase earnings per share — making each share more valuable.
- Share buybacks reduce the number of shares and boost per-share metrics.
- Issuing new shares does the opposite — diluting shareholder value and lowering per-share figures.
📘 Price-to-Earnings Ratio (P/E)
📈 What is it?
The P/E ratio shows how many times a company's earnings per share are reflected in its current share price — in other words, how "expensive" the stock appears relative to its profits.
🧮 How is it calculated?
🏛️ Why is it important?
The P/E ratio is one of the most widely used valuation metrics. It helps investors assess whether a stock appears cheap or expensive compared to its earnings power.
🧮 Calculation
📊 P/E (TTM) = Based on earnings from the last 12 months (Trailing Twelve Months):🎯 What does this mean for investors?
- A low P/E may indicate undervaluation — or signal underlying issues.
- A high P/E may reflect strong growth expectations — or an overvalued stock.
📘 Price-to-Sales Ratio (P/S)
📈 What is it?
The P/S ratio shows how much investors are paying for $1 of the company’s revenue – regardless of profitability.
🧮 How is it calculated?
🏛️ Why is it important?
P/S is especially useful for evaluating growth companies or businesses not yet profitable. It reflects how the market values the company’s sales.
🧮 Calculation
Market Cap = $18.24m | Revenue (TTM) = $1.07b
Market Cap = $18.24m | Estimated Revenue = $1.11b
🎯 What does this mean for investors?
- A low P/S may indicate undervaluation — or low profitability.
- A high P/S can reflect strong growth expectations — or excessive optimism.
- Especially helpful when evaluating companies where profits are low, volatile, or negative.
📘 Enterprise Value to Sales (EV/Sales)
📈 What is it?
EV/Sales shows how much investors are paying for $1 of revenue — considering not just equity, but also debt and cash. It’s the capital structure–adjusted version of the P/S ratio.
🧮 How is it calculated?
🏛️ Why is it important?
It’s ideal for comparing companies with different levels of debt. It reflects a company's true cost relative to its revenue.
🧮 Calculation
Enterprise Value = $2.14b | Revenue (TTM) = $1.07b
Enterprise Value = $2.14b | Forward Revenue = $1.11b
🎯 What does this mean for investors?
- EV/Sales allows for capital structure–neutral company comparisons.
- A lower ratio may indicate undervaluation; a higher one may signal strong growth expectations or overvaluation.
- Especially helpful when evaluating high-growth companies with low or negative earnings.
📘 Enterprise Value to Free Cash Flow (EV/FCF) | ex SBC
📈 What is it?
EV/FCF compares a company’s enterprise value with its free cash flow. The metric therefore shows the multiple of current free cash flow at which a company is valued. EV/FCF ex SBC additionally accounts for stock-based compensation (SBC). While SBC does not represent a direct cash outflow, issuing shares as compensation can dilute existing shareholders. Therefore, SBC is deducted from free cash flow in this adjusted version.
🧮 How is it calculated?
EV/FCF ex SBC = Enterprise Value ÷ (Free Cash Flow (TTM) − SBC)
🏛️ Why is it important?
EV/FCF provides a valuation based on free cash flow and therefore complements earnings-based valuation metrics such as the P/E ratio. The ex SBC version additionally accounts for the economic impact of stock-based compensation and provides a more conservative view from a shareholder perspective.
🧮 Calculation
🎯 What does this mean for investors?
- A low EV/FCF means that enterprise value is low relative to current free cash flow. The reasons should always be considered in the context of the company and its industry.
- A high EV/FCF means that enterprise value is high relative to current free cash flow. This can, for example, reflect high growth expectations or temporarily weak cash generation.
- When SBC is positive and adjusted free cash flow remains positive, EV/FCF ex SBC is generally higher than the standard EV/FCF.
- The metric is particularly useful for companies with relatively stable and predictable cash flows.
- If free cash flow is negative or very low, EV/FCF has limited usefulness and should not be interpreted like a standard valuation multiple.
📘 Price-to-Book Ratio (P/B)
📈 What is it?
The P/B ratio compares a company’s market value to its book value — showing how much investors are paying for each dollar of net assets.
🧮 How is it calculated?
🏛️ Why is it important?
P/B is commonly used for asset-heavy industries like banks or industrials. It helps assess whether a stock is trading above or below its net asset value.
🧮 Calculation
🎯 What does this mean for investors?
- A P/B below 1 may signal undervaluation — or weak profitability.
- A P/B above 1 implies the market expects future value creation (e.g., brand, IP, growth).
- Best used for companies with tangible assets and strong balance sheets.
📘 Dividend per Share (DPS)
📈 What is it?
Dividend per Share shows how much cash a company pays out to shareholders for each share they own – usually on an annual or quarterly basis.
🧮 How is it calculated?
🏛️ Why is it important?
DPS is the absolute value of the payout per share – crucial for income-focused investors and dividend strategies.
🧮 Calculation
🎯 What does this mean for investors?
- A stable or growing DPS often signals a strong, shareholder-friendly business.
- DPS alone doesn’t tell you how attractive the payout is – the stock price also matters (→ see Dividend Yield).
- Long-term dividend growth is often a hallmark of high-quality companies – like the dividend aristocrats.
📘 Dividend Yield
📈 What is it?
Dividend yield shows how large a company’s dividend is in relation to its current share price.
🧮 How is it calculated?
🏛️ Why is it important?
It allows investors to compare dividend payouts across stocks, regardless of price or payout size.
🧮 Calculation
🎯 What does this mean for investors?
- A stable yield can reflect reliable distributions.
- Comparing 1Y and 5Y yield shows whether dividend growth keeps pace with stock price appreciation.
- A low yield isn’t always negative – it can signal strong past performance or growth focus.
📘 Dividend Growth
📈 What is it?
Dividend growth shows how much a company has increased its dividend per share over time.
🧮 How is it calculated?
5Y: Compound Annual Growth Rate (CAGR)
🏛️ Why is it important?
Consistently rising dividends are often a sign of financial strength and shareholder orientation – especially relevant for long-term investors.
🎯 What does this mean for investors?
- Stable dividend growth is a sign of sustainable earning power.
- High dividend growth can significantly boost your total return:
- If a company pays $1 in dividends and increases it by 15% annually over 5 years, you’ll receive $2 per share in year 5 – twice as much as at the start!
📘 Payout Ratio
📈 What is it?
The payout ratio shows what percentage of a company’s earnings (per share) is distributed to shareholders as dividends.
🧮 How is it calculated?
🏛️ Why is it important?
It helps assess whether the dividend is sustainable – especially in relation to the company’s profitability.
🧮 Calculation
🎯 What does this mean for investors?
- A low payout ratio means the company retains more earnings for reinvestment – typical for growth companies.
- A moderate payout (e.g. 25–50%) indicates a healthy balance between returns and reinvestment.
- High payout ratios may seem attractive but can carry risk if earnings decline.
📘 Consecutive Dividend Increases
📈 What is it?
This metric shows how many consecutive years a company has raised its dividend per share – without any cuts or pauses.
🧮 How is it calculated?
(Special dividends are not considered.)
🏛️ Why is it important?
A long track record of increases reflects financial strength, consistency, and shareholder commitment.
🎯 What does this mean for investors?
- A long dividend increase streak builds confidence – especially in volatile markets.
- Such companies are seen as reliable and income-friendly investments.
- The longer the streak, the stronger the company’s dividend discipline.
📘 Revenue
📈 What is it?
Revenue shows how much a company earns in total from selling its products and services – the gross income before any costs are deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Revenue is one of the key figures to assess a company’s size, market position, and growth potential.
🧮 Calculation
🎯 What does this mean for investors?
- Growing revenue indicates rising demand and can be an early signal of future earnings growth.
- Comparing actual and expected revenue reveals trends in the market environment and analyst sentiment.
- Note: Strong revenue alone isn’t enough – margins and profitability matter just as much.
📘 EBITDA
📈 What is it?
EBITDA stands for “Earnings Before Interest, Taxes, Depreciation, and Amortization.” It reflects a company’s operating profit before the effects of financing, taxes, and accounting depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
EBITDA is widely used to evaluate a company’s operating performance – especially across capital-intensive sectors or international comparisons.
🧮 Calculation
🎯 What does this mean for investors?
- A high or growing EBITDA indicates strong operational profitability – independent of taxes, interest, or accounting methods.
- It’s especially useful for comparing companies across sectors or geographies.
- Important: EBITDA is not a net income figure – it excludes key costs like depreciation and interest.
📘 EBIT
📈 What is it?
EBIT stands for “Earnings Before Interest and Taxes.” It reflects a company’s operating profit after depreciation, but before interest and tax expenses.
🧮 How is it calculated?
🏛️ Why is it important?
EBIT is a core profitability metric that shows how well the company performs in its main business operations – independent of capital structure and tax environment.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBIT indicates strong profitability from the company’s core business – before financial and tax effects.
- It allows better comparison between companies with different debt levels or tax structures.
- Compared to EBITDA, EBIT already accounts for depreciation and reflects capital intensity more clearly.
📘 Net Income
📈 What is it?
Net income is the company’s total profit – the amount left after all expenses, taxes, interest, and depreciation have been deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Net income is the most comprehensive measure of a company’s profitability – showing how much actual profit remains after all business and financing costs.
🧮 Calculation
🎯 What does this mean for investors?
- Growing net income indicates that the company is managing all of its costs efficiently.
- It directly influences valuation metrics like P/E ratio and the company’s dividend capacity.
- Over time, net income trends reveal how resilient and profitable the business model really is.
📘 Free Cash Flow (FCF) | ex SBC
📈 What is it?
Free cash flow shows how much cash remains after a company has covered its operating and capital expenditures. FCF ex SBC additionally deducts stock-based compensation (SBC) to adjust the cash flow for the effect of non-cash SBC.
🧮 How is it calculated?
Free Cash Flow ex SBC = Operating Cash Flow − SBC − Capital Expenditures (CAPEX)
🏛️ Why is it important?
FCF reflects a company’s actual financial strength – independent of reported accounting earnings. It shows how much flexibility a company has for dividends, share buybacks, or debt reduction. FCF ex SBC also deducts stock-based compensation and shows how much cash generation remains after SBC.
🧮 Calculation
🎯 What does this mean for investors?
- High free cash flow indicates that a company has strong financial strength – independent of reported earnings.
- It is often a solid basis for sustainable dividends and share buybacks.
- Declining FCF can be a warning sign, even if reported earnings remain stable.
📘 Revenue Growth
📈 What is it?
Revenue growth shows how much a company’s sales have changed compared to the previous year – both on a trailing basis (TTM) and based on forward projections.
🧮 How is it calculated?
Forward = (Expected revenue ÷ Revenue in prior year − 1) × 100
Forward growth is based on analyst estimates for the current fiscal year.
🏛️ Why is it important?
Rising revenue signals growing demand, business expansion, and market share gains – especially important for growth-oriented companies.
🧮 Calculation
🎯 What does this mean for investors?
- Growth is the engine of long-term value creation – especially in tech and growth sectors.
- What matters is not just current growth, but its sustainability.
- Forward projections reflect whether analysts expect continued momentum – or a slowdown.
📘 EBITDA Growth
📈 What is it?
EBITDA growth shows how much a company’s operating profit (before interest, taxes, depreciation, and amortization) has increased or decreased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBITDA ÷ EBITDA from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
Growing EBITDA indicates improving operational profitability – regardless of financing or accounting effects.
🧮 Calculation
🎯 What does this mean for investors?
- Strong EBITDA growth signals operational efficiency and scalability – especially during growth phases.
- EBITDA growth can be an early indicator of margin and earnings expansion – but should be assessed alongside revenue and EBIT.
📘 EBIT Growth
📈 What is it?
EBIT growth shows how much a company’s operating profit (after depreciation, but before interest and taxes) has increased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBIT ÷ EBIT from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
EBIT growth is a direct indicator of a company’s business performance – taking into account capital intensity through depreciation.
🧮 Calculation
🎯 What does this mean for investors?
- Rising EBIT signals improving operating profitability – even after accounting for depreciation.
- It’s especially important for evaluating companies with significant capital expenditures.
- Combined with revenue and EBITDA growth, EBIT growth provides a well-rounded view of operational progress.
📘 Net Income Growth
📈 What is it?
Net income growth shows how much a company’s bottom-line profit has increased or decreased compared to the previous year – both on a trailing basis (TTM) and based on analyst projections.
🧮 How is it calculated?
Forward = (Expected net income ÷ Net income from prior year − 1) × 100
The forward estimate reflects analysts’ expectations for the current fiscal year.
🏛️ Why is it important?
Net income is the ultimate measure of profitability. Growing net income signals stronger efficiency, cost control, and sustainable earnings power.
🧮 Calculation
🎯 What does this mean for investors?
- Stronger net income boosts valuation, dividend potential, and investor confidence.
- If profits stall while revenue grows, it may signal margin pressure.
📘 Free Cash Flow Growth
📈 What is it?
Free cash flow (FCF) growth shows how a company’s available cash – after covering operating expenses and capital expenditures – has changed compared to the previous year.
🧮 How is it calculated?
🏛️ Why is it important?
Free cash flow reflects real financial strength. Growing FCF indicates more flexibility for dividends, share buybacks, and reinvestment.
🧮 Calculation
🎯 What does this mean for investors?
- Declining FCF may point to rising investments, increasing costs, or weaker operating performance.
- Especially for dividend investors, FCF growth is critical – since dividends are paid from actual available cash.
- A negative trend isn't always bad, but it deserves closer attention.
📘 Gross Margin
📈 What is it?
Gross margin shows how much of a company’s revenue remains after deducting the direct costs of goods sold (like materials and production). It represents the company’s “raw profit” before fixed costs, taxes, and interest.
🧮 How is it calculated?
Or simply: Gross Margin = Gross Profit ÷ Revenue × 100
🏛️ Why is it important?
Gross margin indicates how efficiently a company can produce or procure what it sells. It is a key measure of product-level profitability and pricing power.
🧮 Calculation
🎯 What does this mean for investors?
- A high gross margin suggests strong pricing power and efficient production.
- Falling margins may signal rising input costs or competitive pressure.
- Compared to peers, gross margin offers insights into the quality of a business model.
📘 EBITDA Margin
📈 What is it?
The EBITDA margin shows how much of a company’s revenue remains as operating profit before interest, taxes, depreciation, and amortization.It reflects operating efficiency without being distorted by financing or accounting factors.
🧮 How is it calculated?
🏛️ Why is it important?
The EBITDA margin reveals how much operating income a company generates per dollar of revenue – independent of capital structure and tax effects.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBITDA margin reflects strong core profitability – before accounting distortions.
- It allows for effective comparisons across companies and sectors.
- A stable or growing margin signals efficient cost control and business scalability.
📘 EBIT Margin
📈 What is it?
The EBIT margin shows what percentage of revenue remains as operating profit after depreciation but before interest and taxes.
🧮 How is it calculated?
🏛️ Why is it important?
The EBIT margin reflects a company’s core profitability while accounting for capital intensity (e.g. machinery, infrastructure). It’s especially useful for comparing businesses with different levels of depreciation.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBIT margin shows that the company remains efficient even after factoring in depreciation.
- It’s especially relevant for capital-intensive industries.
- Stable or rising EBIT margins over time are a strong indicator of pricing power and business quality.
📘 Net Margin
📈 What is it?
Net margin shows how much of a company’s revenue remains as bottom-line profit after deducting all costs, interest, taxes, and depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
Net margin reflects a company’s overall efficiency – across operations, financing, and taxation. It shows how much actual profit is generated from each dollar of revenue.
🧮 Calculation
🎯 What does this mean for investors?
- A high net margin means the company is not only strong operationally but also manages financing and taxes efficiently.
- Peer comparisons reveal business quality and competitiveness.
- Declining margins despite revenue growth can be a red flag for rising costs or inefficiencies.
📘 Free Cash Flow Margin | ex SBC
📈 What is it?
The Free Cash Flow Margin shows how much free cash flow a company generates relative to its revenue. In simplified terms, free cash flow is calculated as operating cash flow minus capital expenditures. The Free Cash Flow Margin ex SBC additionally accounts for stock-based compensation (SBC). While SBC does not represent a direct cash outflow, issuing shares as compensation can dilute existing shareholders. Therefore, SBC is deducted from free cash flow in this adjusted metric.
🧮 How is it calculated?
Free Cash Flow Margin ex SBC = (Free Cash Flow − SBC) ÷ Revenue × 100
🏛️ Why is it important?
The Free Cash Flow Margin shows how efficiently a company converts its revenue into free cash flow. Strong free cash flow can provide financial flexibility for dividends, share buybacks, debt repayment, or further investments. The ex SBC version additionally accounts for the economic impact of stock-based compensation and therefore provides a more conservative view of cash generation from a shareholder perspective.
🧮 Calculation
🎯 What does this mean for investors?
- A high Free Cash Flow Margin shows that a company converts a high proportion of its revenue into free cash flow.
- This can provide greater financial flexibility for dividends, share buybacks, debt repayment, or investments.
- The Free Cash Flow Margin ex SBC additionally accounts for potential shareholder dilution from stock-based compensation.
- The long-term trend is particularly important. Declining margins can, for example, result from higher investments, changes in working capital, or weaker operating performance.
📘 Equity Ratio
📈 What is it?
The equity ratio indicates what portion of a company’s total assets is financed by shareholders’ equity – in other words, how much it relies on its own capital.
🧮 How is it calculated?
🏛️ Why is it important?
A high equity ratio reflects financial strength and stability, especially during downturns. It’s a key indicator of a company’s solvency and long-term risk profile.
🧮 Calculation
🎯 What does this mean for investors?
- Companies with high equity ratios are generally more resilient and less dependent on external debt.
- Low equity ratios can signal higher risk or aggressive financial strategies.
- Important: Always assess the equity ratio in combination with the return on equity (ROE). This shows not just how stable the company is – but also how efficiently it uses shareholder capital.
📘 Return on Equity (ROE)
📈 What is it?
Return on equity (ROE) shows how efficiently a company uses its shareholders’ equity to generate profit. In other words: how much net income is earned per dollar of equity.
🧮 How is it calculated?
🏛️ Why is it important?
ROE is a core profitability metric. It helps investors understand whether a company delivers attractive returns on the capital provided by its shareholders.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROE indicates that the company is using its capital efficiently and profitably.
- It’s especially meaningful for capital-intensive businesses or firms with high equity bases.
- Important: A very high ROE can also result from high debt levels – always interpret it alongside the equity ratio to assess financial health.
📘 Return on Capital Employed (ROCE)
📈 What is it?
ROCE measures how efficiently a company generates profits from its total capital – including both equity and interest-bearing debt.
🧮 How is it calculated?
It evaluates the return on all capital employed, regardless of how it’s financed.
🏛️ Why is it important?
ROCE is ideal for comparing companies with different financing structures. It shows how well management uses capital to create value for both shareholders and creditors.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROCE means the company uses its capital efficiently – regardless of whether it's funded by debt or equity.
- The higher the ROCE compared to peers, the more value the company creates with its invested capital.
- Especially relevant for capital-intensive sectors like industrials, energy, or infrastructure.
📘 Return on Invested Capital (ROIC)
📈 What is it?
ROIC measures how efficiently a company generates returns from the capital invested in its core operations – regardless of whether the capital comes from equity or debt.
🧮 How is it calculated?
- NOPAT = Net Operating Profit After Taxes
- Invested Capital = Operating assets minus non-interest-bearing liabilities
🏛️ Why is it important?
ROIC is one of the most accurate indicators of capital efficiency. Unlike return on equity, it is not distorted by leverage and shows how much value is created for all capital providers.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROIC shows how effectively a company uses the capital that is truly invested in its core operations.
- Unlike ROCE, ROIC focuses only on the capital that is actively used to run the business – and that requires a return (i.e. interest-bearing).
- Especially useful when comparing companies with large amounts of excess cash or non-interest-bearing liabilities – giving a more realistic picture of capital efficiency.
📘 Leverage Ratio (Debt-to-Equity)
📈 What is it?
The leverage ratio indicates how much a company relies on interest-bearing debt (such as loans and bonds) relative to its shareholders’ equity.
🧮 How is it calculated?
🏛️ Why is it important?
This ratio helps assess a company’s financial structure and risk profile. High leverage can enhance returns – but also increases exposure to interest rate changes and financial stress.
🧮 Calculation
🎯 What does this mean for investors?
- A low leverage ratio signals financial strength and independence.
- A higher ratio can improve returns in good times but increases risk during downturns or rising interest rate periods.
- 👉 Always interpret in the context of industry, capital intensity, and interest rate environment.
📘 SBC | in % Revenue
📈 What is it?
SBC (Stock-Based Compensation) refers to equity-based compensation granted by a company to its employees and executives. The percentage shows SBC relative to revenue.
🧮 How is it calculated?
SBC as % of Revenue = (SBC ÷ Revenue) × 100
🏛️ Why is it important?
Stock-based compensation is a real cost factor for shareholders. It can increase the number of shares outstanding and therefore dilute existing shareholders. The percentage of revenue shows how heavily a company relies on equity-based compensation and how significant this form of compensation is relative to the size of the business.
🧮 Calculation
🎯 What does this mean for investors?
- A lower figure is generally positive: Stock-based compensation is relatively small compared with the company's revenue.
- A high figure can indicate greater reliance on stock-based compensation and a higher potential risk of dilution. However, it is also important to consider whether the company offsets dilution through share buybacks.
- The trend over time should also be considered. A high but declining percentage presents a different picture from a persistently high or increasing percentage.
- A single-digit SBC-to-revenue ratio is not unusual among many growth-oriented and technology companies.
📘 SBC as % of FCF
📈 What is it?
SBC (Stock-Based Compensation) refers to equity-based compensation granted by a company to its employees and executives. The percentage shows SBC relative to free cash flow (FCF).
🧮 How is it calculated?
SBC as % of FCF = (SBC ÷ Free Cash Flow) × 100
🏛️ Why is it important?
Stock-based compensation is a real cost factor for shareholders. It can increase the number of shares outstanding and therefore dilute existing shareholders. The percentage of free cash flow shows how significant SBC is relative to the cash generated by the company. Since SBC is non-cash compensation, it is typically not deducted as a cash outflow when calculating FCF.
🎯 What does this mean for investors?
- A lower value is generally favorable. Stock-based compensation is relatively small compared with the company's cash generation.
- A high value means that SBC represents a significant portion of the company's reported free cash flow, even though SBC itself is non-cash.
- The higher the value, the more significant SBC can be as an economic cost to shareholders, particularly when it results in share dilution.
📘 SBC Growth 1Y
📈 What is it?
SBC Growth 1Y shows how much a company's stock-based compensation has changed compared to the previous year.
🧮 How is it calculated?
🏛️ Why is it important?
SBC Growth shows whether stock-based compensation is becoming more or less significant for shareholders. If SBC increases significantly, it can lead to greater shareholder dilution over time. At the same time, SBC is a non-cash expense that reduces earnings on the income statement but is added back in the cash flow statement.
🧮 Calculation
🎯 What does this mean for investors?
- A high positive value is generally negative, as rising SBC can increase the burden on shareholders, particularly through potential dilution.
- What matters is whether the development of SBC is sustainable over the long term. Some level of SBC is common among many growth and technology companies.
📘 Share Count Growth 1Y
📈 What is it?
Share Count Growth 1Y shows how much the number of shares outstanding has increased or decreased over a one-year period.
🧮 How is it calculated?
🏛️ Why is it important?
The number of shares determines how many shares the company's earnings and assets are distributed across. If the share count decreases, existing shareholders' relative ownership increases. If it increases, existing shareholders are diluted. The metric therefore makes dilution and share buybacks directly visible.
🧮 Calculation
🎯 What does this mean for investors?
- A negative value is generally positive, as the number of shares outstanding is decreasing.
- A positive value indicates dilution of existing shareholders.
- A declining share count is not automatically positive: It also matters at what price the shares are repurchased and how the buybacks are financed.
📘 Shareholder Yield
📈 What is it?
Shareholder Yield measures how much capital a company returns to shareholders or uses to reduce debt relative to its market capitalization. It goes beyond dividend yield by also including share buybacks and debt reduction.
🧮 How is it calculated?
🏛️ Why is it important?
Dividend yield only tells part of the story. Companies can also return capital through share buybacks, while reducing debt can strengthen the balance sheet. Shareholder Yield combines all three components into one metric, giving investors a broader view of how a company uses its capital.
🧮 Calculation
🎯 What does this mean for investors?
- A higher Shareholder Yield generally indicates more capital being returned to shareholders or used to reduce debt.
- The mix matters: dividends, buybacks, and debt reduction can affect shareholders in different ways.
- Share buybacks are most beneficial when shares are repurchased at attractive valuations.
- Investors should also consider whether dividends, buybacks, and debt reduction are sustainable over time.
📘 Earnings per share (EPS)
📈 What is it?
Earnings per Share (EPS) shows how much profit is attributable to a single share – and is one of the most important metrics for evaluating a company's performance.
🧮 How is it calculated?
The diluted share count reflects potential new shares that could be issued through options, convertible bonds, or other rights.
🏛️ Why is it important?
EPS is the basis for many key valuation metrics like P/E ratio, PEG ratio, or payout ratio. It enables comparisons of profitability across companies, regardless of their size.
🧮 Calculation
🎯 What does this mean for investors?
- EPS captures per-share profitability and is especially useful for comparisons over time or with analyst estimates.
- Rising EPS may signal consistent growth or share buybacks.
- Important: Always use diluted EPS for more realistic valuations – especially in companies with stock-based compensation.
📘 Free cash flow per share (FCF per share)
📈 What is it?
Free Cash Flow per Share shows how much free cash flow a company generates per outstanding share – after investments, but before dividends or debt repayments.
🧮 How is it calculated?
Free cash flow is calculated as operating cash flow minus capital expenditures (CapEx).
🏛️ Why is it important?
FCF per Share reveals how much real cash is available per share – useful for dividends, buybacks, or reducing debt. Unlike net income, free cash flow is harder to manipulate and often seen as a more reliable metric.
🧮 Calculation
🎯 What does this mean for investors?
- High FCF per share signals strong financial flexibility.
- It shows how much capital the company can effectively reinvest or return to shareholders.
- Particularly relevant for dividend payers and capital-efficient businesses.
📘 Short interest
📈 What is it?
Short interest indicates how many shares of a company are currently sold short – that is, borrowed and sold by investors who expect the price to decline.
🧮 How is it calculated?
It reflects the percentage of a company’s shares that are being shorted relative to the total shares available.
🏛️ Why is it important?
Short interest serves as a sentiment indicator: A high value may signal skepticism or bearish expectations – but also increases the potential for a short squeeze if prices rise unexpectedly.
🧮 Calculation
🎯 What does this mean for investors?
- Low short interest usually indicates market confidence in the company.
- High short interest can be a warning sign – or an opportunity if sentiment shifts.
- Especially relevant in volatile markets or ahead of key earnings releases.
📘 Employees
📈 What is it?
The employee count shows how many people a company employs worldwide – offering insights into its size, structure, and business model.
🧮 How is it calculated?
🏛️ Why is it important?
It helps assess operational scale, labor intensity, and cost structure. Combined with revenue and profit, it enables key metrics like revenue per employee or productivity.
🧮 Calculation
🎯 What does this mean for investors?
- A high headcount can signal operational complexity – but also significant growth capacity.
- Revenue per employee is a key indicator of efficiency.
- Especially useful for comparing tech, industrial, or service-heavy companies.
📘 Revenue per employee
📈 What is it?
Revenue per employee indicates how much revenue a company generates on average per employee – a key measure of efficiency and productivity.
🧮 How is it calculated?
The employee count is typically taken from the most recent annual report.
🏛️ Why is it important?
This metric helps compare business models – especially between labor-intensive and technology-driven companies. A high value suggests automation, operational efficiency, or strong value creation per head.
🧮 Calculation
🎯 What does this mean for investors?
- A high revenue per employee indicates a scalable and margin-strong business model.
- A low figure may reflect labor-intensive operations or lower value-add.
- Especially helpful when comparing tech companies to industrial or service sectors.
Ashford Hospitality Trust Inc Stock Analysis
Analyst Opinions
8 Analysts have issued a Ashford Hospitality Trust Inc forecast:
Analyst Opinions
8 Analysts have issued a Ashford Hospitality Trust Inc forecast:
Ashford Hospitality Trust Inc Events
Upcoming Event
Past Events
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FEB
26
Q4 2025 Earnings Call
8 months ago
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NOV
5
Q3 2025 Earnings Call
12 months ago
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StocksGuide Free
Ashford Hospitality Trust Inc — Q4 2025 Earnings Call
1. Management Discussion
Good morning, ladies and gentlemen, and thank you for standing by. My name is Kelvin, and I will be your conference operator today. At this time, I would like to welcome everyone to the Ashford Hospitality Trust Fourth Quarter 2025 Results Conference Call. [Operator Instructions]
I would now like to turn the call over to Allison Beach, Director of Public Relations. Please go ahead.
Good morning, and welcome to today's conference call to review results for Ashford Hospitality Trust for the fourth quarter and full year 2025 and to update you on recent developments.
On the call today will be Stephen Zsigray, President and Chief Executive Officer; Deric Eubanks, Chief Financial Officer; and Chris Nixon, Executive Vice President and Head of Asset Management.
The results as well as notice of the accessibility of this conference call on a listen-only basis over the Internet were distributed yesterday afternoon in a press release.
At this time, let me remind you that certain statements and assumptions in this conference call contain or are based upon forward-looking information and are being made pursuant to the safe harbor provisions of the federal securities regulations. Such forward-looking statements are subject to numerous assumptions, uncertainties and known or unknown risks, which could cause actual results to differ materially from those anticipated. These factors are more fully discussed in the company's filings with the Securities and Exchange Commission. The forward-looking statements included in this conference call are only made as of the date of this call, and the company is not obligated to publicly update or revise them. Statements made during this call do not constitute an offer to sell or a solicitation of an offer to buy any securities. Securities will be offered only by means of registration statement and prospectus, which can be found at www.sec.gov.
In addition, certain terms used in this call are non-GAAP financial measures, reconciliations of which are provided in the company's earnings release and accompanying tables or schedules, which have been filed on Form 8-K with the SEC on February 25, 2026, and may also be accessed through the company's website at www.ahtreit.com. Each listener is encouraged to review those reconciliations provided in the earnings release together with all other information provided in the release.
Also, unless otherwise stated, all reported results discussed in this call compare the fourth quarter and full year ended December 31, 2025, with the fourth quarter and full year ended December 31, 2024.
I will now turn the call over to Stephen Zsigray. Please go ahead.
Good morning, and thank you for joining us on today's call. Following my introductory comments, Deric will provide a review of our financial results, and Chris will provide an operational update on our portfolio.
Before we begin, I'd like to remind everyone that in early December, we announced that the company has formed a special committee to evaluate strategic alternatives to maximize shareholder value, including a potential transaction. As we highlighted in that press release, we remain frustrated by the discrepancy between the value of our underlying portfolio and the market value of our common stock, and the Board has tasked the special committee with proactively exploring alternatives to bridge that gap.
In the interim, we will continue to execute on our strategy of driving outsized performance while pursuing opportunistic dispositions to deleverage, improve cash flow and maximize shareholder value. Any material updates will be publicly disseminated, but we do not have further details to share at this time. Our fourth quarter and full year financial results reflect the combined impact of 2 competing realities. On one hand, we felt the ongoing pressures across the lodging industry, industry-wide negative RevPAR growth and margin compression, substantial reductions in government spend, elevated interest rates and increased CapEx demands have created a challenging environment for owners. On the other hand, we've made tremendous progress with our GRO AHT initiatives, and our property managers have worked diligently to maximize revenues and minimize expenses.
Despite numerous headwinds in 2025, we are pleased that for the full year, our portfolio delivered positive growth in comparable total revenues while achieving 2.4% growth in comparable hotel EBITDA. Our efforts also extended to corporate G&A, where we achieved more than $13 million in year-over-year improvement. In total, we estimate that the GRO AHT initiatives contributed over $40 million in EBITDA improvement in 2025, and we expect to continue building on these efforts moving forward.
Beyond our focus on driving outsized performance, we continue to execute on strategic dispositions to strengthen our capital structure, improve cash flow and maximize shareholder value. Since paying off our remaining corporate level debt last February, we've now completed the sale of 6 hotels, including the Hilton Houston Clear Lake; The Residence Inn, Evansville; The Residence Inn, Sorrento Mesa; the Le Pavillon Hotel in New Orleans; the Embassy Suites in Houston and the Embassy Suites in Austin.
In total, these sales generated approximately $145 million in sales proceeds, representing a blended 3.9% trailing cap rate while also eliminating nearly $50 million in anticipated capital expenditures. Proceeds were used primarily to pay down mortgage debt, resulting in approximately $5 million in improvement to annualized portfolio cash flow after debt service.
We also recently announced agreements to sell the La Posada de Santa Fe Resort & Spa for $57.5 million and the Hilton St. Petersburg Bayfront for $96 million, both of which we expect to close in the coming weeks. And yesterday, signed an agreement to sell the Embassy Suites Palm Beach Gardens for $41 million. Collectively, these 3 sales represent a blended 6.9% trailing cap rate and are expected to save an additional $45 million in anticipated capital expenditures.
Opportunistic dispositions will remain a core component of our strategy in 2026 as we believe there are several additional assets in the portfolio that can yield similarly positive impact on leverage, cash flow after debt service and future capital expenditures. While we may not ultimately transact on all of them, we are currently marketing or negotiating off-market transactions on 18 additional hotels.
In addition to these sales, we recently announced a maturity default on our JPM8 mortgage loan. This $325 million loan is secured by 8 hotels that generated approximately $20.2 million of net operating income in 2025. While we have engaged with a special servicer and will continue to work towards a favorable resolution, disposition of these assets for the balance of the debt would represent a 6.2% trailing cap rate and would yield many of the same benefits for the portfolio as our ongoing sales efforts in terms of cash flow improvement and future CapEx savings.
Looking ahead, while liquidity will remain constrained as we execute our plan, we expect that our continued focus on performance, combined with strategic low cap rate dispositions will result in a leaner, stronger portfolio and will position the company to pursue accretive growth opportunities in the future.
I will now turn the call over to Deric to review our fourth quarter and full year financial performance.
Thanks, Stephen. For the fourth quarter, we reported a net loss attributable to common stockholders of $78.3 million or $12.33 per diluted share. For the full year, we reported a net loss attributable to common stockholders of $215 million or $35.99 per diluted share. For the quarter, we reported AFFO per diluted share of negative $2.45. And for the full year, we reported AFFO per diluted share of negative $5.66. Adjusted EBITDAre for the quarter was $40.4 million and $221.3 million for the full year.
At the end of the fourth quarter, we had $2.6 billion of loans with a blended average interest rate of 7.7%. Approximately 5% of our debt is fixed and 95% is floating. In January 2026, we extended our Highland mortgage loan secured by 18 hotels. As a condition to the extension, the loan was paid down by $10 million to a current balance of $723.6 million or approximately 65% of the appraised value and has a final maturity date of July 9, 2026. We ended the quarter with cash and cash equivalents of $66.8 million and restricted cash of $149.6 million. The vast majority of that restricted cash is comprised of lender and manager held reserve accounts. At the end of the quarter, we also had $25.7 million due from third-party hotel managers. This primarily represents cash held by one of our property managers, which is also available to fund hotel operating costs. We ended the quarter with net working capital of approximately $103.2 million.
As of December 31, 2025, our consolidated portfolio consisted of 68 hotels with 16,500 net rooms. Our share count currently stands at approximately 6.6 million fully diluted shares outstanding, which is comprised of 6.5 million shares of common stock and 0.1 million OP units.
This concludes our financial review, and I would now like to turn it over to Chris to discuss our asset management activities for the quarter.
Thank you, Deric. During the fourth quarter, comparable hotel RevPAR decreased 1.8% compared to the prior year period. This performance was largely driven by the federal government shutdown that began in October, which resulted in declines in government-related demand. Government room nights declined 27.9% during the fourth quarter compared to the prior year period. Given that Washington, D.C. represents over 14% of our total key count, this shutdown had an outsized impact on our portfolio. Excluding Washington, D.C., comparable hotel RevPAR was flat and total revenue increased slightly compared to the prior year period. Additionally, results were impacted by the absence of onetime events that benefited portfolio performance in the prior year, including the 2024 presidential election in Washington, D.C.
Performance was further pressured by ongoing demand disruptions, including the closure of a major convention center in Austin, which constrained group and convention demand for 3 of our properties during the quarter. Despite these headwinds, we are pleased with the portfolio's performance for the full year 2025.
Full year total revenue increased 0.8% compared to the prior year period, driven by growth in other revenue, which improved 12.9% compared to the prior year period. Full year hotel EBITDA increased 2.4% and hotel EBITDA margin expanded by over 40 basis points compared to the prior year period. These results reflect the impact of our focused operational initiatives and positions us well as we move into 2026.
Group revenue declined 1.1% for full year 2025 compared to the prior year period, including a 3.8% decline in the fourth quarter compared to the prior year period. Excluding the Washington, D.C. market, group room revenue increased 1.6% for full year 2025 compared to the prior year period. Our resort assets performed particularly well in 2025 with group room revenue increasing 9% to the prior year period. A standout performer was Renaissance Palm Springs, our second largest group hotel, which delivered a 16.9% increase in group room revenue compared to the prior year period. Proactive prospecting and upselling efforts along with strong partnerships, including Visit Greater Palm Springs, drove a record year for the group segment of the property.
Looking ahead to 2026, group demand across the portfolio is gaining momentum with group room revenue pacing ahead 1% in the first quarter of 2026 and 3.3% in the second quarter of 2026 compared to the prior year period. In addition, full year 2026 group rooms revenue pace has continued to accelerate on a quarter-over-quarter basis. Group ADR is also pacing ahead across all quarters in 2026 compared to the prior year period. We anticipate strong group demand in 2026, supported by a robust pipeline of event-driven opportunities, including the Super Bowl in Santa Clara and the 2026 FIFA World Cup. The 2026 FIFA World Cup is expected to provide a meaningful boost to host city economies next summer and approximately 42% of our portfolio's room count is located within these markets, positioning us well to benefit from the anticipated increase in demand.
Our GRO AHT initiative drove meaningful operational and financial improvements across the portfolio during the full year 2025. As mentioned earlier, full year 2025 hotel EBITDA margin expanded by over 40 basis points compared to the prior year period, supported by disciplined cost controls and strong growth in high-margin ancillary revenue. Close collaboration with our property managers, these initiatives generated approximately $7.7 million of incremental other revenue for the full year compared to the prior year period, with other revenue increasing 11.5% on a per occupied room basis.
GRO AHT is a strategic framework designed to improve hotel EBITDA and overall portfolio profitability through more diversified revenue generation and enhanced operational efficiency. In partnership with our largest property manager, Remington, and our key brand partners, we continue to execute targeted actions across the portfolio, including the rollout of new ancillary revenue streams and improvements in food and beverage profitability. Collectively, these actions help protect performance in a softer demand environment and position the portfolio for continued improvement.
During the fourth quarter, our recent hotel opening delivered strong results in the portfolio, underscoring the value created through disciplined capital investment and strategic brand positioning. Le Meridien Fort Worth Downtown, which opened in August 2024 as a newly redeveloped premium boutique hotel in the heart of Downtown completed its first full quarter with a comparable prior year period in the fourth quarter. The property benefited from a significantly improved group mix, which established a strong base of demand and resulted in group room revenue growth of 201.2% compared to the prior year period. This base layer of demand provided the opportunity to push rate in our direct booking channels.
Additionally, we are seeing increased revenue from its food and beverage outlets, including its signature rooftop lounge, which continues to gain traction as a local destination. Food and beverage revenue grew 59.4% in the fourth quarter compared to the prior year period and contributed to a 48.3% increase in total revenue compared to the prior year period. These results underscore the strong ramp trajectory of the asset as it continues to progress towards stabilization.
Moving on to capital expenditures. In 2025, we completed guest room renovations at Courtyard Bloomington and Embassy Suites West Palm Beach, along with public space enhancements at Hilton Garden Inn, Austin and Hampton Inn, Evansville. We also commenced a public space renovation at Westin Princeton in the fourth quarter to further enhance the property's competitive positioning.
Additionally, I'd like to highlight upcoming brand conversions at 2 properties, Sheraton Mission Valley and Sheraton Anchorage, which are expected to convert to Hyatt Regency Hotels. Across these 2 projects, we expect to invest over $70 million, and both conversions are intended to benefit from Hyatt sales, distribution and loyalty platforms.
In total for the portfolio, we invested approximately $71 million on capital expenditures in 2025. For 2026, we anticipate spending between $90 million and $110 million on capital expenditures. In summary, our GRO AHT initiatives are delivering meaningful hotel EBITDA growth, underscored by a disciplined and targeted capital investment strategy. We remain optimistic about the outlook of this portfolio. This concludes today's call. Thank you for joining.
Ladies and gentlemen, this concludes today's conference call. We thank you for participating. You may now disconnect your lines.
Ashford Hospitality Trust Inc — Q3 2025 Earnings Call
1. Management Discussion
Good morning, and welcome to the Ashford Hospitality Trust Third Quarter 2025 Results Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded.
I would now like to turn the call over to [ Allison Beach ], Director of Public Relations. Thank you. Please go ahead.
Good morning, and welcome to today's conference call to review results for Ashford Hospitality Trust for the third quarter of 2025, and to update you on recent developments. On the call today will be Stephen Zsigray, President and Chief Executive Officer; Deric Eubanks, Chief Financial Officer; and Chris Nixon, Executive Vice President and Head of Asset Management. The results as well as notice of the accessibility of this conference call on a listen-only basis over the Internet were distributed yesterday afternoon in a press release.
At this time, let me remind you that certain statements and assumptions in this conference call contain, or are based upon, forward-looking information and are being made pursuant to the safe harbor provisions of the federal securities regulations. Such forward-looking statements are subject to numerous assumptions, uncertainties and known or unknown risks, which could cause actual results to differ materially from those anticipated. These factors are more fully discussed in the company's filings with the Securities and Exchange Commission. The forward-looking statements included in this conference call are only made as of the date of this call, and the company is not obligated to publicly update or revise them. Statements made during this call do not constitute an offer to sell or a solicitation of an offer to buy any securities. Securities will be offered only by means of registration statement and prospectus, which can be found at www.sec.gov.
In addition, certain terms in this call are non-GAAP financial measures, reconciliations of which are provided in the company's earnings release, and accompanying [ tables or schedules ], which have been filed on Form 8-K with the SEC on November 4, 2025, and may also be accessed through the company's website at www.ahtreit.com. Each listener is encouraged to review those reconciliations provided in the earnings release, together with all other information provided in the release.
Also, unless otherwise stated, all reported results discussed in this call compare the third quarter ended September 30, 2025, with the third quarter ended September 30, 2024.
I will now turn the call over to Stephen Zsigray. Please go ahead.
Good morning, everyone, and thank you for joining us today. After my introductory comments, Deric will review our third quarter financial results, and then Chris will provide an operational update on our portfolio.
Our third quarter performance was highlighted by comparable hotel EBITDA growth of 2%, with continued economic headwinds driving the RevPAR declines and pressuring margins industry-wide in the quarter, we're very pleased with our resilient operating performance, which reflects the impact of the strategic decisions our team has made over the past several quarters, and the strength of our high-quality, geographically diverse portfolio.
In late 2024, we announced a transformative initiative aimed at driving $50 million in run rate EBITDA improvement that we refer to as [ Grow AHT ]. Realizing outsized improvement in property level performance is critical to achieving that goal. Despite challenging industry conditions, we are continuing to see the benefits of the tremendous efforts that our asset management team and property managers have made to drive total revenue growth while aggressively managing operating expenses.
In addition to solid property level performance, we've also benefited from a number of corporate cost saving measures that our adviser, Ashford Inc., has implemented for Ashford Trust. Several [ Grow AHT ] initiatives remain underway, and we've seen meaningful impact from these efforts through the third quarter. Year-to-date, despite dispositions accounting for a $65.5 million decline in total hotel revenue compared to the prior year, corporate adjusted EBITDAre declined just $10.1 million.
We have also continued to make improvements to our capital structure. In July, we extended our Highland mortgage loan secured by 18 hotels. The extension provides for an initial maturity in January 2026, and an additional 6-month extension options subject to the satisfaction of certain conditions with a final maturity date in July 2026. Following substantial tightening in CMBS spreads over the past several months, we are actively pursuing a longer-term refinancing of this loan and recently completed the refinancing of the Renaissance Nashville that we expect to save the company $2 million to $3 million per year in interest expense.
Lastly, we continued to make progress on strategic dispositions. Reflecting our continued focus on creating shareholder value via multiple avenues, in early August, we completed the previously announced sale of the Hilton Houston NASA Clear Lake for $27 million, and the sale of the Residence in Evansville for $6 million. Separately, during the quarter, we signed a definitive agreement to sell the 150-room residents in San Diego Sorrento Mesa for $42 million, or $280,000 per key. The sale was completed in October. Combined, these 3 sales achieved a very attractive blended cap rate of 5.3% on trailing 12-month net operating income.
With the majority of sales proceeds applied to paying off mortgage debt, we expect these sales to improve annualized cash flow after debt service by approximately $2 million. We also expect to save an additional $36 million in projected capital expenditures that would have been spent on these assets in the coming years.
We have also identified several additional potential asset sales that we believe could have a similarly positive impact on leverage, cash flow after debt service and future capital expenditures. While we may not ultimately transact on all of them, we currently have 8 additional assets being marketed for sale, and have potential buyers conducting diligence on 2 off-market transactions.
Looking ahead to the remainder of 2025 and into early 2026, we expect to benefit significantly from recent and potential future interest rate cuts. With approximately $2.5 billion of floating rate mortgage debt, and none of our interest rate caps currently in the money, each 25 basis point cut in interest rates would save the company over $6 million in annual interest expense, or approximately $1 per fully diluted share. That said, we remain focused on controlling what we can control by driving outsized performance while strengthening our capital structure and exploring opportunistic dispositions to better position the company moving forward.
I will now turn the call over to Deric to review our third quarter financial performance.
Thanks, Stephen. For the third quarter, we reported a net loss attributable to common stockholders of $69 million, or $11.35 per diluted share. For the quarter, we reported AFFO per diluted share of negative $2.85. Adjusted EBITDAre for the quarter was $45.4 million. At the end of the third quarter, we had $2.6 billion of loans with a blended average interest rate of 8%. Approximately 5% of our debt is fixed, and approximately 95% is floating. We ended the quarter with cash and cash equivalents of $81.9 million and restricted cash of $166.9 million. The vast majority of that restricted cash is comprised of lender and manager held reserve accounts. Our restricted cash increased $12 million from the previous quarter, and the vast majority of that cash is set aside for future capital expenditures.
At the end of the quarter, we also had $27.4 million due from third-party hotel managers. This primarily represents cash held by one of our property managers, which is also available to fund hotel operating costs. We ended the quarter with net working capital of approximately $144.3 million. As of September 30, 2025, our consolidated portfolio consisted of 70 hotels, with 16,876 net rooms. Our share count currently stands at approximately 6.3 million fully diluted shares outstanding, which is comprised of 6.2 million shares of common stock, and 0.1 million OP units. While we are currently paying our preferred dividends quarterly or monthly, we do not anticipate reinstating a common dividend in 2025.
This concludes our financial review, and I would now like to turn it over to Chris to discuss our asset management activities for the quarter.
Thank you, Deric. Third quarter comparable hotel RevPAR decreased 1.5%, and comparable total revenue increased 0.2% compared to the prior year period. Additionally, during the third quarter, comparable hotel EBITDA grew 2% compared to the prior year period. We continue to collaborate closely with our property managers on initiatives designed to enhance profitability, driving high-margin ancillary revenue growth and achieving meaningful expense reductions across the portfolio.
These revenue streams grew by approximately $1.7 million during the third quarter compared to the prior year period. Additionally, labor efficiency improved 2.6% on a per occupied room basis compared to the prior year period. These improvements underscore the strong execution of our strategy to drive higher margin, diversified revenue and sustained profitability gains.
Government room nights declined approximately 18.8% during the third quarter compared to the prior year period. The Washington, D.C. market represents just over 14% of our total key count. Excluding the Washington, D.C. market, third quarter comparable hotel RevPAR was down only 0.3%, which outperformed the broader U.S. upper upscale segment. Additionally, several onetime events that benefited our portfolio performance in 2024, further muted performance in 2025, such as the 2024 Democratic National Convention in Chicago, and closure of a major convention center in Austin this year, creating additional headwinds for certain properties this quarter. Despite these headwinds, during the third quarter, our portfolio was successful in expanding hotel EBITDA margin by 46 basis points compared to the prior year period.
Group room revenue is currently pacing ahead 0.5% for the full year 2025 compared to the prior year. During the third quarter, group revenue decreased 0.4% compared to the prior year period. Excluding the Washington, D.C. market, group room revenue increased 1.3% during the third quarter compared to the prior year period, underscoring the strength of demand across the portfolio.
Our resort assets performed particularly well during the third quarter with group room revenue having increased 11% compared to the prior year period. A standout performer was the Renaissance Palm Springs, our highest group volume resort property, which achieved a 34.5% increase in group room revenue during the third quarter compared to the prior year period. Proactive prospecting and strong partnerships with visit, Greater Palm Springs led to key group wins.
Looking ahead to the fourth quarter of 2025, the portfolio's group demand remained strong, with group room revenue pacing ahead 4.4% in the prior year period. Additionally, our sales pipeline is strengthened with group leads increasing compared to the prior year quarter. We expect strong group demand across the portfolio in 2026, supported by a robust pipeline of event-driven opportunities, most notably the 2026 FIFA World Cup. This global event is anticipated to deliver a significant boost to host city economies next summer, and approximately 42% of our portfolio's room count are located within these markets, positioning us well to capture the anticipated surge in demand.
Our [ Grow AHT ] initiative has driven meaningful operational and financial improvements across the portfolio. As mentioned earlier, third quarter hotel EBITDA margin expanded by approximately 46 basis points compared to the prior year period. Additionally, other revenue increased 9% on a per occupied room basis, reflecting continued success in our efforts to capture ancillary revenue opportunities. Grow AHT initiative is a strategic framework aimed at improving hotel EBITDA and portfolio profitability through stronger cost controls and more diverse revenue generation.
In collaboration with our largest property manager, Remington, and our key brand partners, we have continued to execute a focused strategy aimed at expanding high-margin revenue streams and driving greater operational efficiency throughout the portfolio. These efforts include new ancillary revenue streams, improved food and beverage margin performance plans and cuts to contracted services and centralized overhead that's allocated to the company. These targeted initiatives have been instrumental in mitigating the efforts -- mitigating the effects of softer market conditions and preserving overall portfolio performance.
I would like to highlight a few additional third quarter success stories from across our portfolio. Both the Atlanta and Dallas Fort Worth markets delivered solid performance during the third quarter, reflecting healthy demand and disciplined operational execution. In the Atlanta market, during the third quarter, total revenue increased 3.7%, and hotel EBITDA improved 7.9%, underscoring the effectiveness of our asset management team and their continued focus on cost control and margin expansion.
The [ Ritz-Carlton ] Atlanta located in the heart of Downtown Atlanta was a standout performer, achieving a 13% increase in hotel EBITDA during the third quarter compared to the prior year period. Recent changes in commercial leadership have driven improved operational focus and strategic execution. The team has concentrated on transient and retail growth initiatives, and revenues for these segments have increased 10.9% and 42.6%, respectively, compared to the prior year period, helping to offset softness in group demand.
Property also continues to strengthen its positioning as the only true luxury destination in the heart of Downtown Atlanta, reinforcing the [ Ritz-Carlton ] brands presence in this key urban market. Similarly, the Dallas Fort Worth market delivered steady gains with transient growth across all retail, corporate and leisure segments. Our hotels in the market reported a 19.9% increase in hotel EBITDA. The Embassy Suites Dallas Galleria, which completed a comprehensive guest room renovation in late 2024, delivered a standout performance during the third quarter, achieving RevPAR growth of 22.5%, and hotel EBITDA growth of 638.7% compared to the prior year period. We are encouraged by the continued growth trajectory of this asset and the strong early returns on the capital we've invested following the renovation.
Moving to capital expenditures. During the third quarter of 2025, we completed the renovation of the restaurant meeting space at the Hilton Garden and Austin, aimed at modernizing the property and fully leveraging its premier downtown location. Model rooms were also completed at both Sheraton Anchorage and Sheraton Mission Valley, supporting our planned strategic conversion of these assets to the Hyatt Regency brand. Additionally, we began a guest room renovation at the Hilton Garden Inn, Virginia Beach to elevate guest experience and support the brand franchise agreement renewal.
Later this year, we plan to start the public space renovation at Sheraton Anchorage to support the strategic brand conversion into a Hyatt Regency Hotel, along with public space enhancements at Westin Princeton and Courtyard Bloomington, an alignment with brand franchise agreement renewals. These initiatives reflect our disciplined capital deployment strategy and continue to focus on long-term value creation through portfolio quality and brand alignment. For 2025, we anticipate spending between $70 million and $80 million on capital expenditures.
In summary, our Grow AHT initiatives continued to deliver meaningful hotel EBITDA growth supported by a disciplined capital investment strategy that aligns with our long-term value creation goals. As we look ahead, we remain focused on driving sustained performance and enhancing the long-term value of our portfolio for shareholders.
That concludes our prepared remarks, and we will now open up the call for Q&A.
[Operator Instructions] And we have no questions. I would like to turn the call back over to management for closing remarks.
Thank you for joining today's call, and we look forward to speaking with you all again next quarter.
This concludes today's conference call. Thank you for your participation. You may now disconnect.
Financial data from Ashford Hospitality Trust Inc
Revenue
Revenue is the sum of all sales generated by a company, e.g. for its products or services.
Revenue (TTM) metric explainedDirect Costs
Direct costs are the costs incurred directly in connection with the manufacture of the product or service.
Gross Profit
Gross Profit indicates how much of the revenue remains in the company after deducting direct production costs. If the percentage share of sales is calculated, this is referred to as the gross margin.
Gross Profit metric explainedSelling and Administrative Expenses
Selling, general and administrative expenses (SG&A) include all expenses for marketing and sales as well as the general administration of the company.
Research and Development Expense
Research and development costs (R&D) provide information on how much the company invests in the research and development of its products. The costs are particularly interesting as a percentage of revenue and in comparison to direct competitors.
EBITDA
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is the company's earnings before interest, taxes, depreciation and amortization. The EBITDA margin is calculated as a percentage of sales.
Depreciation and Amortization
Depreciation represents reductions in the value of the company's assets (e.g. due to wear and tear on machinery).
EBIT (Operating Income)
EBIT (Earnings Before Interest and Taxes) is the company's profit before interest and taxes, also known as the operating income. The EBIT Margin is calculated as a percentage of sales at
.
Net Profit
Net Profit represents the profit or loss after deduction of all costs.
Net Profit metric explainedStocksGuide Premium
| Jun '26 |
+/-
%
|
||
| Revenue | 1,066 1,066 |
6%
6%
100%
|
|
| - Direct Costs | 794 794 |
6%
6%
74%
|
|
| Gross Profit | 272 272 |
5%
5%
26%
|
|
| - Selling and Administrative Expenses | 47 47 |
13%
13%
4%
|
|
| - Research and Development Expense | - - |
-
-
|
|
| EBITDA | 198 198 |
6%
6%
19%
|
|
| - Depreciation and Amortization | 129 129 |
12%
12%
12%
|
|
| EBIT (Operating Income) EBIT | 69 69 |
10%
10%
6%
|
|
| Net Profit | -98 -98 |
63%
63%
-9%
|
|
In millions USD.
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Ashford Hospitality Trust Inc Stock News
Company Profile
Ashford Hospitality Trust, Inc. is a real estate investment trust, which invests in the hospitality industry. The firm’s investments include direct hotel investments, mezzanine financing through origination or acquisition, first mortgage financing through origination or acquisition, sale-leaseback transactions and other hospitality transactions. The company was founded by Montgomery Jack Bennett in May 2003 and is headquartered in Dallas, TX.
StocksGuide Premium
| Head office | United States |
| CEO | Mr. Zsigray |
| Employees | 83 |
| Founded | 2003 |
| Website | www.ahtreit.com |
