#USA #Dallas #Ashford Trust #RevPAR growth #hotel performance

Ashford Hospitality Trust Reports Fourth Quarter 2024 Results

On January 13, 2025, Ashford Hospitality Trust, Inc. (NYSE: AHT) announced its preliminary results for the fourth quarter of 2024. The company reported a noteworthy occupancy rate of approximately 66%, representing a significant achievement in an ever-evolving market. The Average Daily Rate (ADR) for this period stood at around $190, culminating in a Revenue Per Available Room (RevPAR) of approximately $126. This RevPAR indicates a commendable increase of 3.0% compared to the same quarter in 2023, showcasing Ashford Trust's resilience and strategic foresight.

Monthly Insights

The performance momentum continued across the months leading up to the year-end. In October 2024, RevPAR demonstrated a robust increase of approximately 4.5% from October 2023, while November saw a slight uptick of around 0.4%. December marked a significant rebound with a RevPAR increase of approximately 3.8% versus the previous year, indicating a successful holiday travel period.

Stephen Zsigray, President and CEO of Ashford Trust, expressed satisfaction with the company's performance during this quarter, citing strong corporate demand and group bookings contributing to their success. Zsigray stated, “With strong corporate and group demand, our high-quality, geographically diverse portfolio continues to deliver exceptional results.” The company’s new initiative, named GRO AHT, aimed at enhancing ancillary revenue streams, has already shown promising results, as total hotel revenue increased by about 4.4% in the fourth quarter, escalating to 6.9% in December alone.

Future Prospects

Moving forward, Ashford Trust is keen to capitalize on its growing business strategies and is enthusiastic about the repayment of its corporate strategic financing, seeing this as an opportunity to further enhance its operational capabilities.

Furthermore, the company also announced that it will conclude its offering for Series J and Series K non-traded preferred stock on March 31, 2025. Since the inception of this offering in 2022, Ashford Trust has managed to raise approximately $185 million in gross proceeds. As of December 31, 2024, the totals include 6,799,638 shares of Series J and 601,175 shares of Series K non-traded preferred stock currently outstanding.

About Ashford Hospitality Trust

Ashford Hospitality Trust is recognized as a real estate investment trust (REIT) that primarily invests in upper upscale and full-service hotels across various locations. The company's capacity to adapt within a dynamic market landscape showcases its commitment to sustained growth and profitability.

Conclusion

In conclusion, the fourth quarter results reveal a strong performance from Ashford Hospitality Trust, setting a promising tone for 2025. As trends in corporate and leisure travel continue to evolve, the proactive strategies implemented by Ashford Trust will be crucial in sustaining this upward trajectory moving forward.