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Ashford Hospitality Trust (AHT)
NYSE:AHT
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Ashford Hospitality (AHT) AI Stock Analysis

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AHT

Ashford Hospitality

(NYSE:AHT)

Rating:46Neutral
Price Target:
$7.00
▲(4.79%Upside)
The overall stock score is primarily influenced by the company's challenging financial performance, which presents significant risks. While technical analysis and earnings call show some positive developments, these are not sufficient to offset the financial instability.

Ashford Hospitality (AHT) vs. SPDR S&P 500 ETF (SPY)

Ashford Hospitality Business Overview & Revenue Model

Company DescriptionAshford Hospitality Trust, Inc. (AHT) is a real estate investment trust (REIT) focused on investing in the hospitality industry across the United States. The company primarily engages in the acquisition, ownership, and management of upscale, full-service hotels. Ashford Hospitality Trust partners with leading hotel brands to operate its properties, which are located in key markets and gateway cities, catering to both business and leisure travelers.
How the Company Makes MoneyAshford Hospitality Trust generates revenue primarily through the ownership and operation of its hotel properties. The company's key revenue streams include room rentals, food and beverage sales, and other ancillary services provided by its hotels. AHT benefits from its strategic partnerships with major hotel brands, which help attract a steady stream of guests and maintain high occupancy rates. Additionally, Ashford Hospitality Trust leverages its expertise in asset management to optimize hotel performance and maximize profitability. The company also explores opportunities for capital appreciation through property acquisitions and dispositions as part of its portfolio management strategy.

Ashford Hospitality Earnings Call Summary

Earnings Call Date:May 06, 2025
(Q1-2025)
|
% Change Since: 11.71%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Neutral
Ashford Hospitality Trust demonstrated strong growth in key revenue metrics and strategic cost reductions, contributing to significant progress towards financial goals. However, ongoing financial losses and challenges in specific segments, like government travel, highlight areas needing attention. Overall, the positive elements outweigh the negative, but financial losses remain a concern.
Q1-2025 Updates
Positive Updates
Strong Revenue and EBITDA Growth
Ashford Hospitality Trust reported 3.2% comparable RevPAR growth, 3.6% comparable total revenue growth, and an 8.7% increase in comparable hotel EBITDA, demonstrating the effectiveness of strategic decisions.
Successful Hotel Conversions
The conversions of the La Concha Hotel in Key West and the Le Pavillon Hotel in New Orleans to Marriott's collections resulted in significant revenue growth, with La Concha seeing a 27% increase and Le Pavillon achieving a 78% rise in total revenue.
GRO AHT Initiative Progress
The GRO AHT initiative has contributed over $30 million of the $50 million run rate EBITDA improvement goal, with significant cost reductions at both property and corporate levels.
Capital Structure Improvements
The sale of the Courtyard Boston Downtown for $123 million and refinancing efforts have improved the capital structure, leaving Ashford Trust free of corporate debt.
Strategic Cost Reductions
Corporate expenses were reduced, including a 50% reduction in cash compensation for Board members and significant cuts to incentive awards, contributing to financial improvements.
Negative Updates
Net Loss Reported
A net loss attributable to common stockholders of $27.8 million or $4.91 per diluted share was reported for the quarter, highlighting ongoing financial challenges.
Negative AFFO Per Share
AFFO per diluted share was negative $0.98, despite improvements in total AFFO over the prior year quarter.
Government Segment Softness
Continued softness in the government segment and related travel, particularly affecting the D.C. market, posed challenges despite efforts to backfill with other segments.
Debt Structure Concerns
77% of Ashford's debt is effectively floating, which could pose risks in a fluctuating interest rate environment, despite some being fixed through interest rate caps.
Company Guidance
During the Ashford Hospitality Trust First Quarter 2025 Results Conference Call, the company reported a 3.2% increase in comparable RevPAR, a 3.6% rise in total revenue, and an 8.7% improvement in hotel EBITDA compared to the previous year. Key highlights included a 78% revenue growth at Le Pavillon Hotel and a 27% increase at La Concha Hotel following their conversions to Marriott's Tribute and Autograph Collections, respectively. The GRO AHT initiative contributed significantly to a nearly 9% year-over-year growth in hotel EBITDA. The company also achieved a 50% reduction in cash compensation for board members, a refinancing of $123 million in loans, a strategic sale of Courtyard Boston Downtown, and a successful non-traded preferred stock offering raising $212 million. Executives emphasized continued efforts to enhance operational efficiencies, control costs, and improve the capital structure, with a focus on achieving a $50 million run rate EBITDA improvement through the GRO AHT initiative.

Ashford Hospitality Financial Statement Overview

Summary
The company is facing significant financial challenges. The income statement shows declining revenue and persistent losses, the balance sheet reveals high leverage and negative equity, and cash flow generation is weak despite some improvement in free cash flow.
Income Statement
45
Neutral
The income statement reveals a challenging financial environment for Ashford Hospitality. The TTM (Trailing-Twelve-Months) shows a gross profit margin of 20.7% and a net profit margin of -13.3%, indicating profitability issues. Revenue has decreased from the previous year, reflecting a negative growth trend. The EBIT margin is low at 5.3%, and the EBITDA margin is 19.9%, showing some operational efficiency but not enough to offset net losses. Overall, the company struggles with profitability and revenue growth.
Balance Sheet
30
Negative
The balance sheet highlights significant financial risk. The debt-to-equity ratio is negative due to negative stockholders' equity, indicating high leverage and financial instability. Return on equity is not meaningful due to negative equity. The equity ratio is also negative, underscoring the company's weak financial position. The high level of debt compared to assets and equity poses a substantial risk.
Cash Flow
40
Negative
Cash flow analysis shows mixed results. The operating cash flow to net income ratio is negative, indicating cash flow issues. However, free cash flow has improved to $62.7 million, suggesting better cash management. The free cash flow to net income ratio is negative, reflecting ongoing profitability challenges. Overall, while there is some improvement in free cash flow, cash flow generation remains weak.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.17B1.37B1.24B805.41M508.24M
Gross Profit234.39M334.04M287.63M108.39M-56.15M
EBITDA407.71M305.61M294.17M110.00M-66.53M
Net Income-60.30M-178.49M-141.06M-271.05M-633.22M
Balance Sheet
Total Assets3.16B3.46B3.92B4.10B3.73B
Cash, Cash Equivalents and Short-Term Investments112.91M178.93M417.06M592.11M93.17M
Total Debt2.69B3.46B3.90B3.93B3.77B
Total Liabilities3.37B3.69B4.04B4.08B3.99B
Stockholders Equity-247.70M-261.14M-148.34M-2.65M-283.62M
Cash Flow
Free Cash Flow-23.79M13.79M-64.53M-144.28M-149.53M
Operating Cash Flow-23.59M14.39M39.22M-144.19M-149.53M
Investing Cash Flow191.28M-89.75M-70.33M-34.04M-7.60M
Financing Cash Flow-258.75M-172.13M-101.51M702.56M-73.76M

Ashford Hospitality Technical Analysis

Technical Analysis Sentiment
Negative
Last Price6.68
Price Trends
50DMA
6.23
Positive
100DMA
6.48
Positive
200DMA
7.19
Negative
Market Momentum
MACD
0.13
Positive
RSI
50.09
Neutral
STOCH
8.84
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AHT, the sentiment is Negative. The current price of 6.68 is above the 20-day moving average (MA) of 6.60, above the 50-day MA of 6.23, and below the 200-day MA of 7.19, indicating a neutral trend. The MACD of 0.13 indicates Positive momentum. The RSI at 50.09 is Neutral, neither overbought nor oversold. The STOCH value of 8.84 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AHT.

Ashford Hospitality Risk Analysis

Ashford Hospitality disclosed 111 risk factors in its most recent earnings report. Ashford Hospitality reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Ashford Hospitality Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
$357.59M126.741.42%4.38%1.75%
68
Neutral
$166.95M-0.90%8.37%-2.42%23.64%
64
Neutral
$6.89B17.45-1.92%7.02%4.59%-24.66%
57
Neutral
$506.57M-33.91%1.32%0.78%-128.16%
54
Neutral
$35.75M9.72%3.82%18.62%
47
Neutral
$25.21M-25.86%0.88%-0.89%-702.65%
46
Neutral
$39.15M-25.85%-14.65%-55.62%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AHT
Ashford Hospitality
6.51
-3.45
-34.64%
SVC
Service Properties
2.89
-2.60
-47.36%
CLDT
Chatham Lodging
7.30
-1.19
-14.02%
BHR
Braemar Hotels & Resorts
2.39
-1.05
-30.52%
SOHO
Sotherly Hotels
0.87
-0.43
-33.08%
IHT
InnSuites Hospitality
2.11
0.50
31.06%

Ashford Hospitality Corporate Events

Dividends
Ashford Hospitality Declares Q3 Preferred Stock Dividends
Positive
Jul 11, 2025

On July 11, 2025, Ashford Hospitality Trust announced that its Board of Directors declared dividends for several series of its preferred stocks for the third quarter ending September 30, 2025. These dividends, payable on October 15, 2025, reflect the company’s ongoing commitment to providing returns to its shareholders, impacting its financial operations and signaling stability to investors.

The most recent analyst rating on (AHT) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Ashford Hospitality stock, see the AHT Stock Forecast page.

Executive/Board Changes
Ashford Hospitality Appoints CEO to Board for Continuity
Neutral
May 23, 2025

On May 20, 2025, J. Robison Hays, III resigned from the Board of Directors of Ashford Hospitality Trust, Inc., with no disagreements on company matters. Subsequently, on May 23, 2025, Stephen Zsigray, the CEO and President, was appointed to the Board, with no additional compensation or committee assignments, ensuring continuity in leadership.

The most recent analyst rating on (AHT) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Ashford Hospitality stock, see the AHT Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
Ashford Hospitality to Sell Hilton Houston Hotel
Neutral
May 23, 2025

On May 23, 2025, Ashford Hospitality Trust announced it has signed a definitive agreement to sell the 242-room Hilton Houston NASA Clear Lake for $27.0 million, with the sale expected to close in June 2025, pending normal closing conditions. This transaction is part of Ashford Trust’s strategy to deleverage its Morgan Stanley 17 Pool loan and achieve significant capital expenditure savings, aligning with its ‘GRO AHT’ initiative to transform the company through opportunistic sales.

The most recent analyst rating on (AHT) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Ashford Hospitality stock, see the AHT Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Ashford Hospitality Retains Directors After Annual Meeting
Neutral
May 15, 2025

On May 13, 2025, Ashford Hospitality Trust, Inc. held its Annual Meeting where shareholders voted on several key proposals. Despite not receiving a majority of votes, directors Monty J. Bennett and Frederick J. Kleisner were retained on the board due to their significant leadership and industry experience, as determined by the board. Additionally, the shareholders approved the company’s executive compensation, ratified the appointment of BDO USA, P.C. as independent auditors, and approved an amendment to the company’s Stock Incentive Plan.

The most recent analyst rating on (AHT) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Ashford Hospitality stock, see the AHT Stock Forecast page.

Private Placements and FinancingBusiness Operations and StrategyFinancial Disclosures
Ashford Hospitality Reports Q1 2025 Earnings Growth
Neutral
May 7, 2025

On May 7, 2025, Ashford Hospitality Trust held an earnings conference call to discuss its first-quarter results, highlighting a 3.2% growth in Comparable RevPAR and an 8.7% increase in Comparable Hotel EBITDA. The company emphasized the success of its GRO AHT initiative, which aims to drive $50 million in run-rate EBITDA improvement through property-level performance and corporate expense reductions. Recent strategic moves, including hotel conversions and refinancing, have improved Ashford’s capital structure, while the closure of a non-traded preferred stock offering raised $212 million. Despite a net loss of $27.8 million for the quarter, the company remains focused on further enhancing hotel performance and reducing corporate expenses.

Private Placements and FinancingM&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Ashford Hospitality Completes $580 Million Hotel Refinancing
Positive
May 6, 2025

Ashford Hospitality Trust reported its first quarter 2025 results, highlighting a 3.2% increase in RevPAR and an 8.7% growth in Comparable Hotel EBITDA compared to the previous year. The company completed significant financial maneuvers, including a $580 million refinancing of 16 hotels and the sale of the Courtyard Boston Downtown for $123 million, as part of its ‘GRO AHT’ initiative aimed at driving EBITDA growth and improving shareholder value.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 12, 2025