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Ashford Hospitality Trust (AHT)
NYSE:AHT

Ashford Hospitality (AHT) AI Stock Analysis

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Ashford Hospitality

(NYSE:AHT)

Rating:44Neutral
Price Target:
$6.00
▲(0.17%Upside)
Ashford Hospitality's stock score is primarily affected by significant financial challenges, including high leverage and operational inefficiencies. While recent earnings call data shows positive strategic initiatives and revenue growth, ongoing financial losses and a negative valuation outlook dampen the overall score.

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

Ashford Hospitality Business Overview & Revenue Model

Company DescriptionAshford Hospitality Trust is a real estate investment trust (REIT) focused on investing predominantly in upper upscale, full-service hotels.
How the Company Makes MoneyAshford Hospitality Trust generates revenue primarily through the ownership and operation of its hotel properties. Its key revenue streams include room rentals, food and beverage services, and other ancillary hotel services. The company also benefits from asset management fees and potential capital appreciation of its properties. Strategic partnerships with leading hotel brands and management companies enhance its operational efficiency and market reach, contributing to its earnings. Additionally, as a REIT, Ashford Hospitality must distribute at least 90% of its taxable income to shareholders in the form of dividends, aligning its business model with shareholder interests.

Ashford Hospitality Earnings Call Summary

Earnings Call Date:May 06, 2025
(Q1-2025)
|
% Change Since: 0.17%|
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
Ashford Hospitality faces significant financial challenges, including negative net profit margins, high leverage, and operational inefficiencies. Although there are improvements in gross profit margin and free cash flow, these are overshadowed by substantial liabilities and negative operating cash flow.
Income Statement
45
Neutral
The income statement reveals a challenging financial landscape for Ashford Hospitality. Despite the revenue growth from 2021 to 2023, the company experienced a decline in 2024 and TTM (Trailing-Twelve-Months) 2025. Net profit margins are negative, reflecting consistent net losses. However, gross profit margin shows some improvement, indicating cost management effectiveness. The decreasing EBIT and EBITDA margins in TTM 2025 highlight operational challenges.
Balance Sheet
30
Negative
The balance sheet indicates a precarious financial position with negative stockholders' equity and a high debt-to-equity ratio, suggesting significant leverage risks. The equity ratio is negative, reflecting more liabilities than assets, which poses a sustainability concern. The company's substantial liabilities overshadow its assets, indicating potential financial instability.
Cash Flow
40
Negative
Cash flow analysis shows free cash flow improvement in TTM 2025, but the company struggles with negative operating cash flow, indicating cash management issues. The operating cash flow to net income ratio is unfavorable, pointing to inefficiencies in converting earnings into cash. However, free cash flow to net income ratio shows positive trends compared to previous periods, suggesting some progress in cash flow generation.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.15B1.17B1.37B1.24B805.41M508.24M
Gross Profit237.19M234.39M334.04M287.63M108.39M-56.15M
EBITDA228.32M407.71M305.61M294.17M110.00M-66.53M
Net Income-151.83M-60.30M-178.49M-141.06M-271.05M-633.22M
Balance Sheet
Total Assets3.08B3.16B3.46B3.92B4.10B3.73B
Cash, Cash Equivalents and Short-Term Investments85.79M112.91M178.93M417.06M592.11M93.17M
Total Debt3.03B2.69B3.46B3.90B3.93B3.77B
Total Liabilities3.30B3.37B3.69B4.04B4.08B3.99B
Stockholders Equity-250.08M-247.70M-261.14M-148.34M-2.65M-283.62M
Cash Flow
Free Cash Flow62.69M-23.79M13.79M-64.53M-144.28M-149.53M
Operating Cash Flow-2.13M-23.59M14.39M39.22M-144.19M-149.53M
Investing Cash Flow307.59M191.28M-89.75M-70.33M-34.04M-7.60M
Financing Cash Flow-328.89M-258.75M-172.13M-101.51M702.56M-73.76M

Ashford Hospitality Technical Analysis

Technical Analysis Sentiment
Negative
Last Price5.99
Price Trends
50DMA
6.02
Negative
100DMA
6.72
Negative
200DMA
7.30
Negative
Market Momentum
MACD
<0.01
Negative
RSI
49.46
Neutral
STOCH
46.18
Neutral
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 5.99 is above the 20-day moving average (MA) of 5.96, below the 50-day MA of 6.02, and below the 200-day MA of 7.30, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 49.46 is Neutral, neither overbought nor oversold. The STOCH value of 46.18 is Neutral, 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 (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
BHBHR
74
Outperform
$166.95M-0.90%7.69%-2.42%23.64%
70
Neutral
$354.65M125.691.42%5.16%1.75%
63
Neutral
$6.96B19.11-1.16%6.97%4.71%-24.99%
63
Neutral
$38.20M9.72%3.82%18.62%
SVSVC
56
Neutral
$403.26M-33.91%1.67%0.78%-128.16%
IHIHT
49
Neutral
$25.93M-25.86%0.89%-0.89%-702.65%
AHAHT
44
Neutral
$35.11M-25.85%-14.65%-55.62%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AHT
Ashford Hospitality
5.99
-3.73
-38.37%
SVC
Service Properties
2.50
-2.33
-48.24%
CLDT
Chatham Lodging
7.24
-0.82
-10.17%
BHR
Braemar Hotels & Resorts
2.49
0.12
5.06%
SOHO
Sotherly Hotels
0.93
-0.23
-19.83%
IHT
InnSuites Hospitality
2.17
0.35
19.23%

Ashford Hospitality Corporate Events

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.

Private Placements and FinancingBusiness Operations and Strategy
Ashford Hospitality Extends Morgan Stanley Loan to 2026
Positive
Apr 15, 2025

On April 14, 2025, Ashford Hospitality Trust announced the successful extension of its Morgan Stanley Pool mortgage loan, which is secured by 17 hotels. The loan, originally set to mature in November 2024, now has an initial maturity in March 2026 with two additional one-year extension options, potentially extending to March 2028. This extension, with a current balance of $409.8 million and an interest rate of SOFR + 3.39%, provides the company with increased flexibility to release assets upon sale. This strategic move, alongside the refinancing of 16 hotels completed in February, positions approximately 60% of Ashford’s outstanding debt to mature in 2027 and beyond, enhancing the company’s ability to strategically manage its portfolio.

Dividends
Ashford Hospitality Declares Second Quarter Preferred Dividends
Positive
Apr 10, 2025

On April 10, 2025, Ashford Hospitality Trust announced that its Board of Directors declared dividends for various series of its preferred stock for the second quarter ending June 30, 2025. These dividends, which vary by series, are scheduled for payment on July 15, 2025, to stockholders of record as of June 30, 2025. Additionally, monthly cash dividends were declared for the Company’s Series J and Series K Redeemable Preferred Stock, with payments scheduled for May, June, and July 2025. This announcement reflects Ashford’s ongoing commitment to providing returns to its shareholders and may influence investor sentiment and the company’s market positioning.

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: Jun 28, 2025