ASHFORD HOSPITALITY TRUST INC - FORM 8-K - EX-99.1

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8-K - FORM 8-K - ASHFORD HOSPITALITY TRUST INC	d75002e8vk.htm

Exhibit 99.1


		NEWS RELEASE


Contact:	David Kimichik	Tripp Sullivan
	Chief Financial Officer	Corporate Communications, Inc.
	(972) 490-9600	(615) 254-7318

ASHFORD HOSPITALITY TRUST REPORTS SECOND QUARTER RESULTS

DALLAS — (August 4, 2010) — Ashford Hospitality Trust, Inc. (NYSE:AHT) today reported the following results and performance measures for the second quarter ended June 30, 2010. The proforma performance measurements for Occupancy, Average Daily Rate (ADR), revenue per available room (RevPAR), and Hotel Operating Profit (or Hotel EBITDA) include the Company’s 101 hotels owned and included in continuing operations as of June 30, 2010. Unless otherwise stated, all reported results compare the second quarter ended June 30, 2010, with the second quarter ended June 30, 2009 (see discussion below). The reconciliation of non-GAAP financial measures is included in the financial tables accompanying this press release.

FINANCIAL HIGHLIGHTS AND LIQUIDITY

	•		Unrestricted cash at the end of the quarter was $174.9 million

	•		RevPAR increased 4.5% for the quarter for the hotels not under renovation

	•		Operating profit margin increased 195 basis points for all hotels

	•		Net income attributable to common shareholders was $2.0 million, or $0.06 per diluted share, compared with net loss attributable to common shareholders of $165.9 million, or $2.34 per diluted share, in the prior-year quarter

	•		Adjusted funds from operations (AFFO) was $0.46 per diluted share

	•		Fixed charge coverage ratio was 1.76x under the senior credit facility covenant versus a required minimum of 1.25x

CAPITAL ALLOCATION

	•		Repurchased 2.1 million common shares in the quarter for $16.0 million

	•		Capex invested in the quarter was $15.3 million and $33.5 million year to date

CAPITAL STRUCTURE

On April 1, 2010, the Company restructured the $156.2 million loan with Aareal Bank AG that is secured by the Hilton LaJolla Torrey Pines and the Capital Hilton held in a joint venture with Hilton Worldwide. The modification provided a full extension of the loan maturity to August 2013 without tests along with reduced cash management provisions in exchange for a principal payment of $2.5 million at closing and another $2.5 million over the next twelve months. The loan was set to mature in August 2011 and had two one-year extension options.

In April 2010, the Company suspended making mortgage payments on the $5.8 million loan set to mature in January 2011 and secured by the Courtyard Hartford — Manchester in Manchester, Connecticut. The Company intends to restructure the loan with the special servicer.

SUBSEQUENT EVENTS

On July 9, 2010, the Company restructured the $52.5 million loan with Capmark Bank that is secured by the JW Marriott San Francisco. The modification provides a full extension of the loan maturity to March 2013 without tests and maintains the interest rate at 375 basis points over LIBOR (LIBOR floor of 2.5%) in exchange for a principal payment of $5.0 million at closing. The loan was set to mature in March 2011 and had two one-year extension options.

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14185 Dallas Parkway, Suite 1100, Dallas, TX 75254		Phone: (972) 490-9600

AHT Announces Second Quarter Results
Page 2
August 4, 2010

On July 9, 2010, the Company and Prudential Real Estate Investors (“PREI”) participated in a discounted purchase of a partial interest in an existing mezzanine loan tranche associated with JER Partner’s 2007 privatization of the Highland Hospitality portfolio. Ashford contributed $15 million to this investment, which is more senior in the capital stack, and is a strategic complement to the Company’s existing joint venture investment made with Prudential in 2008.

PORTFOLIO REVPAR

As of June 30, 2010, the Company had a portfolio of direct hotel investments consisting of 101 properties classified in continuing operations. During the second quarter, 98 of the hotels included in continuing operations were not under renovation. The Company believes reporting its operating metrics for continuing operations on a proforma total basis (all 101 hotels) and proforma not-under-renovation basis (98 hotels) is a measure that reflects a meaningful and focused comparison of the operating results in its direct hotel portfolio. The Company’s reporting by region and brand includes the results of all 101 hotels in continuing operations. Details of each category are provided in the tables attached to this release.

	•		Proforma RevPAR increased 4.5% for hotels not under renovation on a 3.4% decrease in ADR to $124.25 and a 561 basis point increase in occupancy

	•		Proforma RevPAR increased 3.9% for all hotels on a 3.1% decrease in ADR to $126.80 and a 502 basis point increase in occupancy

HOTEL EBITDA MARGINS AND QUARTERLY SEASONALITY TRENDS

For the 98 hotels as of June 30, 2010, that were not under renovation, Proforma Hotel EBITDA increased 11.5% to $61.8 million. Proforma Hotel EBITDA margin (expressed as a percentage of Total Hotel Revenue) increased 166 basis points to 27.6%. For all 101 hotels included in continuing operations as of June 30, 2010, Proforma Hotel EBITDA increased 12.2% to $68.7 million and Hotel EBITDA margin increased 195 basis points to 28.3%.

Ashford believes year-over-year Hotel EBITDA and Hotel EBITDA margin comparisons are more meaningful to gauge the performance of the Company’s hotels than sequential quarter-over-quarter comparisons. Given the substantial seasonality in the Company’s portfolio and its active capital recycling, to help investors better understand this seasonality, the Company provides quarterly detail on its Proforma Hotel EBITDA and Proforma Hotel EBITDA margin for the current and certain prior-year periods based upon the number of core hotels in the portfolio as of the end of the current period. As Ashford’s portfolio mix changes from time to time so will the seasonality for Proforma Hotel EBITDA and Proforma Hotel EBITDA margin. The details of the quarterly calculations for the previous four quarters for the current portfolio of 101 hotels included in continuing operations are provided in the tables attached to this release.

Monty J. Bennett, Chief Executive Officer, commented, “We were able to capitalize on improved hotel industry RevPAR trends to deliver our highest quarterly AFFO per share ever on the strength of a dramatic improvement in hotel operating margins and a highly accretive stock repurchase strategy. With nearly $500 million of new financings, modifications or restructurings completed in the last two years and continued benefits from our interest rate strategy, we are a much stronger company today.”

INVESTOR CONFERENCE CALL AND SIMULCAST

Ashford Hospitality Trust, Inc. will conduct a conference call on Thursday, August 5, 2010, at 12 p.m. ET. The number to call for this interactive teleconference is (212) 231-2901. A replay of the conference call will be available through Thursday, August 12, 2010, by dialing (402) 977-9140 and entering the confirmation number, 21463979.

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AHT Announces Second Quarter Results
Page 3
August 4, 2010

The Company will also provide an online simulcast and rebroadcast of its second quarter 2010 earnings release conference call. The live broadcast of Ashford’s quarterly conference call will be available online at the Company’s website at www.ahtreit.com on Thursday, August 5, 2010, beginning at 12 p.m. ET. The online replay will follow shortly after the call and continue for approximately one year.

Substantially all of our non-current assets consist of real estate investments and debt investments secured by real estate. Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, most industry investors consider supplemental measures of performance, which are not measures of operating performance under GAAP, to assist in evaluating a real estate company’s operations. These supplemental measures include FFO, AFFO, EBITDA, and Hotel Operating Profit. FFO is computed in accordance with our interpretation of standards established by NAREIT, which may not be comparable to FFO reported by other REITs that do not define the term in accordance with the current NAREIT definition or that interpret the NAREIT definition differently than us. Neither FFO, AFFO, EBITDA, nor Hotel Operating Profit represents cash generated from operating activities as determined by GAAP and should not be considered as an alternative to a) GAAP net income (loss) as an indication of our financial performance or b) GAAP cash flows from operating activities as a measure of our liquidity, nor are such measures indicative of funds available to satisfy our cash needs, including our ability to make cash distributions. However, management believes FFO, AFFO, EBITDA, and Hotel Operating Profit to be meaningful measures of a REIT’s performance and should be considered along with, but not as an alternative to, net income and cash flow as a measure of our operating performance.

* * * * *

Ashford Hospitality Trust is a self-administered real estate investment trust focused on investing in the hospitality industry across all segments and at all levels of the capital structure, including direct hotel investments, second mortgages, mezzanine loans and sale-leaseback transactions. Additional information can be found on the Company’s web site at www.ahtreit.com.

Certain statements and assumptions in this press release contain or are based upon “forward-looking” information and are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties. When we use the words “will likely result,” “may,” “anticipate,” “estimate,” “should,” “expect,” “believe,” “intend,” or similar expressions, we intend to identify forward-looking statements. Such forward-looking statements include, but are not limited to, the timing for closing, the impact of the transaction on our business and future financial condition, our business and investment strategy, our understanding of our competition and current market trends and opportunities and projected capital expenditures. Such statements are subject to numerous assumptions and uncertainties, many of which are outside Ashford’s control.

These forward-looking statements are subject to known and unknown risks and uncertainties, which could cause actual results to differ materially from those anticipated, including, without limitation: general volatility of the capital markets and the market price of our common stock; changes in our business or investment strategy; availability, terms and deployment of capital; availability of qualified personnel; changes in our industry and the market in which we operate, interest rates or the general economy; and the degree and nature of our competition. These and other risk factors are more fully discussed in Ashford’s filings with the Securities and Exchange Commission. EBITDA is defined as net income before interest, taxes, depreciation and amortization. EBITDA yield is defined as trailing twelve month EBITDA divided by the purchase price. A capitalization rate is determined by dividing the property’s annual net operating income by the purchase price. Net operating income is the property’s funds from operations minus a capital expense reserve of either 4% or 5% of gross revenues. Funds from operations (“FFO”), as defined by the White Paper on FFO approved by the Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”) in April 2002, represents net income (loss) computed in accordance with generally accepted accounting principles (“GAAP”), excluding gains (or losses) from sales of properties and extraordinary items as defined by GAAP, plus depreciation and amortization of real estate assets, and net of adjustments for the portion of these items related to unconsolidated entities and joint ventures.

The forward-looking statements included in this press release are only made as of the date of this press release. Investors should not place undue reliance on these forward-looking statements. We are not obligated to publicly update or revise any forward-looking statements, whether as a result of new information, future events or circumstances, changes in expectations or otherwise.

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ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)


	June 30,			December 31,
	2010			2009
	(Unaudited)
ASSETS
Investment in hotel properties, net	$	3,323,468		$	3,383,759
Cash and cash equivalents		174,852			165,168
Restricted cash		72,230			77,566
Accounts receivable, net		43,270			31,503
Inventories		2,923			2,975
Notes receivable		35,627			55,655
Investment in unconsolidated joint ventures		21,666			20,736
Assets held for sale		5,100			—
Deferred costs, net		20,259			20,960
Prepaid expenses		16,143			13,234
Interest rate derivatives		124,884			94,645
Other assets		3,034			3,471
Intangible assets, net		2,944			2,988
Due from third-party hotel managers		40,731			41,838

Total assets	$	3,887,131		$	3,914,498


LIABILITIES AND EQUITY
Liabilities
Indebtedness	$	2,769,024		$	2,772,396
Capital leases payable		60			83
Accounts payable and accrued expenses		107,549			91,387
Dividends payable		5,566			5,566
Unfavorable management contract liabilities		17,375			18,504
Due to related parties		1,431			1,009
Due to third-party hotel managers		2,723			1,563
Other liabilities		7,786			7,932

Total liabilities		2,911,514			2,898,440


Series B-1 Cumulative Convertible Redeemable Preferred stock, 7,447,865 issued and outstanding		75,000			75,000
Redeemable noncontrolling interests in operating partnership		102,771			85,167

Equity:
Shareholders’ equity of the Company —
Preferred stock, $0.01 par value, 50,000,000 shares authorized:
Series A Cumulative Preferred Stock, 1,487,900 shares issued and outstanding at June 30, 2010 and December 31, 2009		15			15
Series D Cumulative Preferred Stock, 5,666,797 shares issued and outstanding at June 30, 2010 and December 31, 2009		57			57
Common stock, $0.01 par value, 200,000,000 shares authorized, 123,026,246 shares issued, 51,137,900 shares and 57,596,878 shares outstanding at June 30, 2010 and December 31, 2009		1,230			1,227
Additional paid-in capital		1,439,819			1,436,009
Accumulated other comprehensive loss		(908	)		(897	)
Accumulated deficit		(431,428	)		(412,011	)
Treasury stock, at cost (71,888,346 shares and 65,151,981 shares at June 30, 2010 and December 31, 2009)		(228,296	)		(186,424	)

Total shareholders’ equity of the Company		780,489			837,976
Noncontrolling interests in consolidated joint ventures		17,357			17,915

Total equity		797,846			855,891

Total liabilities and equity	$	3,887,131		$	3,914,498

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ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2010			2009			2010			2009
				(Unaudited)
REVENUE
Rooms		178,685		$	171,551		$	341,007		$	340,915
Food and beverage		47,862			44,188			89,485			89,544
Rental income from operating leases		1,454			1,405			2,542			2,594
Other		10,993			11,360			21,543			22,971

Total hotel revenue		238,994			228,504			454,577			456,024
Interest income from notes receivable		346			2,421			683			8,636
Asset management fees and other		137			205			212			379


Total Revenue		239,477			231,130			455,472			465,039


EXPENSES
Hotel operating expenses
Rooms		40,879			38,953			79,077			76,667
Food and beverage		32,134			30,734			61,907			62,611
Other direct		6,585			6,338			12,302			12,425
Indirect		68,128			67,097			130,965			133,085
Management fees		9,461			9,107			18,289			18,208


Total hotel operating expenses		157,187			152,229			302,540			302,996

Property taxes, insurance, and other		14,079			15,547			28,996			29,331
Depreciation and amortization		36,129			38,169			73,205			78,494
Impairment charges		(1,188	)		129,456			(1,957	)		129,456
Corporate general and administrative:
Stock/unit-based compensation		2,067			1,201			3,239			2,757
Other general and administrative		6,256			5,710			11,742			11,000


Total Operating Expenses		214,530			342,312			417,765			554,034

OPERATING INCOME (LOSS)		24,947			(111,182	)		37,707			(88,995	)
Equity in earnings of unconsolidated joint ventures		664			617			1,322			1,221
Interest income		51			92			112			197
Other income		15,652			11,214			31,171			21,912
Interest expense		(36,569	)		(34,035	)		(72,461	)		(67,975	)
Amortization of loan costs		(1,328	)		(1,972	)		(2,998	)		(4,002	)
Write-off of premiums, loan costs, premiums and exit fees, net					—						930
Unrealized gain (loss) on derivatives		16,534			(37,723	)		30,442			(19,691	)

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		19,951			(172,989	)		25,295			(156,403	)
Income tax expense		(424	)		(91	)		(409	)		(259	)

INCOME (LOSS) FROM CONTINUING OPERATIONS		19,527			(173,080	)		24,886			(156,662	)
Loss from discontinued operations		(12,025	)		(11,131	)		(12,159	)		(14,037	)


NET INCOME (LOSS)		7,502			(184,211	)		12,727			(170,699	)
Loss from consolidated joint ventures attributable to noncontrolling interests		427			450			1,129			153
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership		(1,129	)		22,702			(1,921	)		21,144

NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY		6,800			(161,059	)		11,935			(149,402	)
Preferred dividends		(4,831	)		(4,831	)		(9,661	)		(9,661	)

NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS	$	1,969		$	(165,890	)	$	2,274		$	(159,063	)


INCOME PER SHARE:
Basic —
Income (loss) from continuing operations attributable to common shareholders	$	0.23		$	(2.20	)	$	0.23		$	(1.94	)
Loss from discontinued operations attributable to common shareholders		(0.19	)		(0.14	)		(0.19	)		(0.16	)

Net income (loss) attributable to common shareholders	$	0.04		$	(2.34	)	$	0.04		$	(2.10	)

Diluted —
Income (loss) from continuing operations attributable to common shareholders	$	0.22		$	(2.20	)	$	0.23		$	(1.94	)
Loss from discontinued operations attributable to common shareholders		(0.16	)		(0.14	)		(0.19	)		(0.16	)

Net income (loss) attributable to common shareholders	$	0.06		$	(2.34	)	$	0.04		$	(2.10	)

Weighted average common shares outstanding — basic		50,716			70,882			51,953			75,685

Weighted average common shares outstanding — diluted		72,981			70,882			51,953			75,685


Amounts attributable to common shareholders:
Income (loss) from continuing operations, net of tax	$	16,821		$	(151,304	)	$	22,070		$	(137,067	)
Loss from discontinued operations, net of tax		(10,021	)		(9,755	)		(10,135	)		(12,335	)
Preferred dividends		(4,831	)		(4,831	)		(9,661	)		(9,661	)

Net income (loss) attributable to common shareholders	$	1,969		$	(165,890	)	$	2,274		$	(159,063	)

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ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES
RECONCILIATION OF NET INCOME (LOSS) TO EBITDA
(in thousands)


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2010			2009			2010			2009
	(Unaudited)						(Unaudited)
Net income (loss)	$	7,502		$	(184,211	)	$	12,727		$	(170,699	)
Loss from consolidated joint ventures attributable to noncontrolling interests		427			450			1,129			153
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership		(1,129	)		22,702			(1,921	)		21,144

Net income (loss) attributable to the Company		6,800			(161,059	)		11,935			(149,402	)

Interest income		(51	)		(91	)		(111	)		(191	)
Interest expense and amortization of loan costs		37,436			36,090			74,541			72,162
Depreciation and amortization		35,322			37,783			71,640			78,426
Net income (loss) attributable to redeemable noncontrolling interests in operating partnership		1,129			(22,702	)		1,921			(21,144	)
Income tax expense		436			172			421			393

EBITDA		81,072			(109,807	)		160,347			(19,756	)

Amortization of unfavorable management contract liabilities		(564	)		(564	)		(1,129	)		(1,129	)
Write-off of loan costs, premiums and exit fees, net (1)		—			—			—			(930	)
Income from interest rate derivatives (2)		(15,707	)		(11,157	)		(31,241	)		(21,924	)
Impairment charges		10,880			140,327			10,112			140,327
Unrealized (gain) loss on derivatives		(16,534	)		37,723			(30,442	)		19,691

Adjusted EBITDA	$	59,147		$	56,522		$	107,647		$	116,279

RECONCILIATION OF NET INCOME (LOSS) TO FUNDS FROM OPERATIONS (“FFO”)
(in thousands, except per share amounts)


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2010			2009			2010			2009
	(Unaudited)						(Unaudited)
Net income (loss)	$	7,502		$	(184,211	)	$	12,727		$	(170,699	)
Loss from consolidated joint ventures attributable to noncontrolling interests		427			450			1,129			153
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership		(1,129	)		22,702			(1,921	)		21,144
Preferred dividends		(4,831	)		(4,831	)		(9,661	)		(9,661	)

Net income (loss) attributable to common shareholders		1,969			(165,890	)		2,274			(159,063	)

Depreciation and amortization on real estate		35,255			37,713			71,505			78,279
Net income (loss) attributable to redeemable noncontrolling interests in operating partnership		1,129			(22,702	)		1,921			(21,144	)

FFO available to common shareholders		38,353			(150,879	)		75,700			(101,928	)

Dividends on convertible preferred stock		1,043			1,043			2,085			2,085
Write-off of loan costs, premiums and exit fees, net (1)		—			—			—			(930	)
Impairment charges		10,880			140,327			10,112			140,327
Unrealized (gain) loss on derivatives		(16,534	)		37,723			(30,442	)		19,691

Adjusted FFO	$	33,742		$	28,214		$	57,455		$	59,245

Adjusted FFO per diluted share available to common shareholders	$	0.46		$	0.31		$	0.77		$	0.61

Weighted average diluted shares		73,638			92,284			74,773			96,829


(1)		The amounts include write-off of debt premiums of $1,341 for the refinancing of a mortgage loan for the six months ended June 30, 2009

(2)		Income from interest rate derivatives is excluded from the adjusted EBITDA calculations for all periods presented.

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ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES
DEBT SUMMARY
JUNE 30, 2010
(dollars in thousands)
(Unaudited)


				Fixed-Rate			Floating-Rate			Total
Indebtedness	Collateral	Maturity	Interest Rate	Debt			Debt			Debt
Mortgage loan	5 hotels	December 2010	LIBOR + 1.72%	$	—		$	203,400	⁽¹⁾	$	203,400
Mortgage loan	1 hotel	January 2011	8.32%		5,775	⁽²⁾		—			5,775
Senior credit facility	Notes receivable	April 2011	LIBOR + 2.75% to 3.5%		—			250,000	^{(1) (3)}		250,000
Mortgage loan	10 hotels	May 2011	LIBOR + 1.65%		—			167,202	⁽¹⁾		167,202
Mortgage loan	1 hotel	March 2012	LIBOR + 4%		—			60,800	⁽⁴⁾		60,800
Mortgage loan	1 hotel	March 2013	Greater of 6.25% or LIBOR + 3.75%		—			52,500	⁽⁵⁾		52,500
Mortgage loan	2 hotel	August 2013	LIBOR + 2.75%		—			153,100	⁽⁶⁾		153,100
Mortgage loan	1 hotel	December 2014	Greater of 5.5% or LIBOR + 3.5%		—			19,740			19,740
Mortgage loan	8 hotels	December 2014	5.75%		109,925			—			109,925
Mortgage loan	1 hotel	January 2015	7.78%		4,057			—			4,057
Mortgage loan	10 hotels	July 2015	5.22%		160,490			—			160,490
Mortgage loan	8 hotels	December 2015	5.70%		100,576			—			100,576
Mortgage loan	5 hotels	December 2015	12.26%		142,573			—			142,573
Mortgage loan	5 hotels	February 2016	5.53%		115,645			—			115,645
Mortgage loan	5 hotels	February 2016	5.53%		95,905			—			95,905
Mortgage loan	5 hotels	February 2016	5.53%		83,075			—			83,075
Mortgage loan	1 hotel	December 2016	5.81%		101,000	⁽⁷⁾		—			101,000
Mortgage loan	1 hotel	April 2017	5.91%		35,000			—			35,000
Mortgage loan	2 hotels	April 2017	5.95%		128,251			—			128,251
Mortgage loan	3 hotels	April 2017	5.95%		260,980			—			260,980
Mortgage loan	5 hotels	April 2017	5.95%		115,600			—			115,600
Mortgage loan	5 hotels	April 2017	5.95%		103,906			—			103,906
Mortgage loan	5 hotels	April 2017	5.95%		158,105			—			158,105
Mortgage loan	7 hotels	April 2017	5.95%		126,466			—			126,466
TIF loan	1 hotel	June 2018	12.85%		8,098			—			8,098
Mortgage loan	1 hotel	April 2034	Greater of 6% or Prime + 1%		—			6,855			6,855


Total debt				$	1,855,427		$	913,597		$	2,769,024


Percentage					67.0	%		33.0	%		100.0	%


Weighted average interest rate at June 30, 2010					6.31	%		3.07	%		5.24	%


Total debt with the effect of interest rate swap				$	55,427		$	2,713,597		$	2,769,024


Percentage with the effect of interest rate swap					2.0	%		98.0	%		100.0	%


Weighted average interest rate with the effect of interest rate swap					2.92%	⁽⁸⁾		3.07%	⁽⁸⁾		2.97%	⁽⁸⁾


⁽¹⁾		Each of these loans has a one-year extension option as of June 30, 2010.

⁽²⁾		We are currently working with the loan servicer for an extension or a restructure of the loan.

⁽³⁾		Based on the debt-to-assets ratio defined in the loan agreement, interest rate on this debt was at LIBOR plus 3% as of June 30, 2010.

⁽⁴⁾		This loan has two one-year extension options remaining as of June 30, 2010.

⁽⁵⁾		This loan was modified effective July 7, 2010 to its fully extended maturity of March 2013 in exchange for a principal payment of $5.0 million.

⁽⁶⁾		This loan was modified effective April 1, 2010 to its fully extended maturity of August 2013 without any extension tests.

⁽⁷⁾		We are currently working with the lender for a deed-in-lieu of foreclosure.

⁽⁸⁾		These rates are calculated assuming the LIBOR rate stays at the June 30, 2010 level and with the effect of our interest rate derivatives.

4 of 13

ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES
DEBT BY MATURITY ASSUMING EXTENSION OPTIONS NOT SUBJECT TO COVERAGE/LTV TESTS ARE EXERCISED
JUNE 30, 2010
(in thousands)
(Unaudited)


	2010		2011			2012		2013			2014		Thereafter			Total
Mortgage loan secured by 10 hotel properties, Wachovia Floater	$	—	$	—		$	167,202	$	—		$	—	$	—		$	167,202
Mortgage loan secured by five hotel properties		—		203,400			—		—			—		—			203,400
Mortgage loan secured by Manchester Courtyard		—		5,775	⁽¹⁾		—		—			—		—			5,775
Secured credit facility		—	$	250,000	⁽²⁾		—		—			—		—			250,000
Mortgage loan secured by JW Marriott San Francisco		—		—			—		52,500	⁽³⁾		—		—			52,500
Mortgage loan secured by two hotel properties		—		—			—		153,100			—		—			153,100
Mortgage loan secured by Arlington Marriott		—		—			—		—			60,800		—			60,800
Mortgage loan secured by El Conquistador Hilton		—		—			—		—			19,740		—			19,740
Mortgage loan secured by eight hotel properties, UBS Pool 1		—		—			—		—			109,925		—			109,925
Mortgage loan secured by 10 hotel properties, Merrill Lynch Pool 1		—		—			—		—			—		160,490			160,490
Mortgage loan secured by eight hotel properties, UBS Pool 2		—		—			—		—			—		100,576			100,576
Mortgage loan secured by five hotel properties		—		—			—		—			—		142,573			142,573
Mortgage loan secured by five hotel properties, Merrill Lynch Pool 2		—		—			—		—			—		115,645			115,645
Mortgage loan secured by five hotel properties, Merrill Lynch Pool 3												—		95,905			95,905
Mortgage loan secured by five hotel properties, Merrill Lynch Pool 7												—		83,075			83,075
Mortgage loan secured by Westin O’Hare		—		—			—		—			—		101,000	⁽⁴⁾		101,000
Mortgage loan secured by Philadelphia Courtyard, Wachovia Stand-Alone		—		—			—		—			—		35,000			35,000
Mortgage loan secured by two hotel properties, Wachovia Fixed Rate Pool 3		—		—			—		—			—		128,251			128,251
Mortgage loan secured by three hotel properties, Wachovia Fixed Rate Pool 7		—		—			—		—			—		260,980			260,980
Mortgage loan secured by five hotel properties, Wachovia Fixed Rate Pool 1		—		—			—		—			—		115,600			115,600
Mortgage loan secured by five hotel properties, Wachovia Fixed Rate Pool 5		—		—			—		—			—		103,906			103,906
Mortgage loan secured by five hotel properties, Wachovia Fixed Rate Pool 6		—		—			—		—			—		158,105			158,105
Mortgage loan secured by seven hotel properties, Wachovia Fixed Rate Pool 2		—		—			—		—			—		126,466			126,466
TIF loan secured by Philadelphia Courtyard		—		—			—		—			—		8,098			8,098
Mortgage loan secured by Houston Hampton Inn		—		—			—		—			—		4,057			4,057
Mortgage loan secured by Jacksonville Residence Inn		—		—			—		—			—		6,855			6,855


	$	—	$	459,175		$	167,202	$	205,600		$	190,465	$	1,746,582		$	2,769,024


NOTE:		These maturities assume no event of default would occur.

(1)		We are currently working with the loan servicer for an extension or a restructure of the loan.

(2)		Extensions available but certain coverage tests have to be met.

(3)		This loan was modified effective July 7, 2010 to its fully extended maturity of March 2013 in exchange for a principal payment of $5.0 million.

(4)		We are currently working with the lender for a deed-in-lieu of foreclosure.

5 of 13

ASHFORD HOSPITALITY TRUST, INC.
KEY PERFORMANCE INDICATORS — PRO FORMA
(Unaudited)


	Three Months Ended									Six Months Ended
	June 30,									June 30,
	2010			2009			% Variance			2010			2009			% Variance
ALL HOTELS INCLUDED IN CONTINUING OPERATIONS:
Room revenues (in thousands)	$	183,561		$	176,661			3.91	%	$	349,602		$	349,924			-0.09	%
RevPAR	$	93.77		$	90.24			3.91	%	$	89.58		$	89.66			-0.09	%
Occupancy		73.95	%		68.93	%		5.02	%		70.53	%		66.18	%		4.35	%
ADR	$	126.80		$	130.91			-3.14	%	$	127.02		$	135.47			-6.24	%


	Three Months Ended									Six Months Ended
	June 30,									June 30,
	2010			2009			% Variance			2010			2009			% Variance
ALL HOTELS NOT UNDER RENOVATION INCLUDED IN CONTINUING OPERATIONS:
Room revenues (in thousands)	$	170,364		$	163,059			4.48	%	$	326,694		$	323,425			1.01	%
RevPAR	$	92.01		$	88.07			4.47	%	$	88.49		$	87.61			1.00	%
Occupancy		74.06	%		68.45	%		5.61	%		70.82	%		65.68	%		5.14	%
ADR	$	124.25		$	128.66			-3.43	%	$	124.96		$	133.38			-6.31	%


NOTES:

(1)		The above pro forma table assumes the 98 hotel properties owned and included in continuing operations at June 30, 2010, but not under renovation for the three and six months ended June 30, 2010, were owned as of the beginning of the periods presented.

(2)		Excluded Hotels Under Renovation: Hilton Nassau Bay, Capital Hilton, and Sheraton Indianapolis

(3)		As the Company’s Courtyard by Marriott hotel in Philadelphia, Pennsylvania, is leased to a third-party tenant on a triple-net lease basis, the Company only records rental income related to this operating lease for GAAP purposes. However, in the above pro forma tables, all room revenues related to this hotel are reflected, which is consistent with the Company’s other hotels.

6 of 13

ASHFORD HOSPITALITY TRUST, INC.
PRO FORMA HOTEL OPERATING PROFIT
(dollars in thousands)
(Unaudited)

ALL HOTELS INCLUDED IN CONTINUING OPERATIONS:


	Three Months Ended									Six Months Ended
	June 30,									June 30,
	2010			2009			% Variance			2010			2009			% Variance
REVENUE
Rooms	$	183,561		$	176,661			3.9	%	$	349,602		$	349,924			-0.1	%
Food and beverage		48,800			45,019			8.4	%		91,024			91,048			0.0	%
Other		10,848			11,186			-3.0	%		21,301			22,669			-6.0	%

Total hotel revenue		243,209			232,866			4.4	%		461,927			463,641			-0.4	%


EXPENSES
Rooms		41,900			40,037			4.7	%		81,047			78,679			3.0	%
Food and beverage		32,679			31,279			4.5	%		62,918			63,663			-1.2	%
Other direct		6,605			6,394			3.3	%		12,342			12,544			-1.6	%
Indirect		66,453			66,477			0.0	%		130,685			133,846			-2.4	%
Management fees, includes base and incentive fees		12,546			11,665			7.6	%		21,565			20,771			3.8	%

Total hotel operating expenses		160,183			155,852			2.8	%		308,557			309,503			-0.3	%
Property taxes, insurance, and other		14,285			15,746			-9.3	%		29,357			29,761			-1.4	%

HOTEL OPERATING PROFIT (Hotel EBITDA)		68,741			61,268			12.2	%		124,013			124,377			-0.3	%
Hotel EBITDA Margin		28.26	%		26.31	%		1.95	%		26.85	%		26.82	%		0.03	%

Minority interest in earnings of consolidated joint ventures		1,974			1,839			7.3	%		3,131			3,409			-8.2	%

HOTEL OPERATING PROFIT (Hotel EBITDA), excluding minority interest in joint ventures	$	66,767		$	59,429			12.3	%	$	120,882		$	120,968			-0.1	%

NOTE:

The above pro forma table assumes the 101 hotel properties owned and included in continuing operations at June 30, 2010 were owned as of the beginning of the periods presented.

ALL HOTELS NOT UNDER RENOVATION INCLUDED IN CONTINUING OPERATIONS:


	Three Months Ended									Six Months Ended
	June 30,									June 30,
	2010			2009			% Variance			2010			2009			% Variance
REVENUE
Rooms	$	170,364		$	163,059			4.5	%	$	326,694		$	323,425			1.0	%
Food and beverage		43,529			40,126			8.5	%		81,702			81,277			0.5	%
Other		9,959			10,348			-3.8	%		19,596			20,901			-6.2	%

Total hotel revenue		223,852			213,533			4.8	%		427,992			425,603			0.6	%


EXPENSES
Rooms		38,919			37,034			5.1	%		75,460			72,818			3.6	%
Food and beverage		29,400			28,110			4.6	%		56,648			56,984			-0.6	%
Other direct		6,254			5,974			4.7	%		11,643			11,680			-0.3	%
Indirect		62,179			61,962			0.4	%		122,326			124,624			-1.8	%
Management fees, includes base and incentive fees		11,968			10,965			9.1	%		20,552			19,512			5.3	%

Total hotel operating expenses		148,720			144,045			3.2	%		286,629			285,618			0.4	%
Property taxes, insurance, and other		13,312			14,052			-5.3	%		27,244			27,104			0.5	%

HOTEL OPERATING PROFIT (Hotel EBITDA)		61,820			55,436			11.5	%		114,119			112,881			1.1	%
Hotel EBITDA Margin		27.62	%		25.96	%		1.66	%		26.66	%		26.52	%		0.14	%

Minority interest in earnings of consolidated joint ventures		1,974			1,839			7.3	%		3,131			3,409			-8.2	%

HOTEL OPERATING PROFIT (Hotel EBITDA), excluding minority interest in joint ventures	$	59,846		$	53,597			11.7	%	$	110,988		$	109,472			1.4	%


NOTES:

(1)		The above pro forma table assumes the 98 hotel properties owned and included in continuing operations at June 30, 2010, but not under renovation during three and six months ended June 30, 2010 were owned as of the beginning of the periods presented.

(2)		Excluded Hotels Under Renovation: Hilton Nassau Bay, Capital Hilton, and Sheraton Indianapolis

(3)		As the Company’s Courtyard by Marriott hotel in Philadelphia, Pennsylvania, is leased to a third-party tenant on a triple-net lease basis, the Company only records rental income related to this operating lease for GAAP purposes. However, in the above pro forma tables, all room revenues related to this hotel are reflected, which is consistent with the Company’s other hotels.

7 of 13

ASHFORD HOSPITALITY TRUST, INC.
PRO FORMA HOTEL REVPAR BY REGION
(Unaudited)


			Three Months Ended										Six Months Ended
	Number of			Number of		June 30,							June 30,
Region	Hotels			Rooms		2010		2009		% Change			2010		2009		% Change
Pacific (1)		21			5,205	$	97.62	$	91.09		7.2	%	$	92.58	$	88.32		4.8	%
Mountain (2)		8			1,704		81.16		70.05		15.9	%		82.86		82.81		0.1	%
West North Central (3)		3			690		77.22		72.00		7.3	%		72.94		67.53		8.0	%
West South Central (4)		10			2,086		88.19		86.07		2.5	%		87.79		89.34		-1.7	%
East North Central (5)		8			1,628		78.21		70.88		10.3	%		67.27		64.14		4.9	%
East South Central (6)		2			236		91.41		82.58		10.7	%		84.77		80.61		5.2	%
Middle Atlantic (7)		9			2,481		94.57		90.79		4.2	%		86.37		84.09		2.7	%
South Atlantic (8)		38			7,728		100.42		101.49		-1.1	%		97.08		102.26		-5.1	%
New England (9)		2			159		79.97		72.06		11.0	%		74.64		65.94		13.2	%


Total Portfolio		101			21,917	$	93.77	$	90.24		3.9	%	$	89.58	$	89.66		-0.1	%


(1)		Includes Alaska, California, Oregon, and Washington

(2)		Includes Nevada, Arizona, New Mexico, and Utah

(3)		Includes Minnesota and Kansas

(4)		Includes Texas

(5)		Includes Ohio, Michigan, Illinois, and Indiana

(6)		Includes Kentucky and Alabama

(7)		Includes New York, New Jersey, and Pennsylvania

(8)		Includes Virginia, Florida, Georgia, Maryland, District of Columbia, and North Carolina

(9)		Includes Massachusetts and Connecticut

NOTES:

(1)		The above pro forma table assumes the 98 hotel properties owned and included in continuing operations at June 30, 2010, but not under renovation during three and six months ended June 30, 2010 were owned as of the beginning of the periods presented.

(2)		As the Company’s Courtyard by Marriott hotel in Philadelphia, Pennsylvania, is leased to a third-party tenant on a triple-net lease basis, the Company only records rental income related to this operating lease for GAAP purposes. However, in the above pro forma table, all room revenues related to this hotel are reflected, which is consistent with the Company’s other hotels.

8 of 13

ASHFORD HOSPITALITY TRUST, INC.
PRO FORMA HOTEL REVPAR BY BRAND
(Unaudited)


					Three Months Ended							Six Months Ended
	Number of		Number of		June 30,							June 30,
Brand	Hotels		Rooms		2010		2009		% Change			2010		2009		% Change
Hilton		33		7,289	$	100.01	$	95.25		5.0	%	$	95.44	$	96.35		-0.9	%
Hyatt		1		242		102.94		105.53		-2.5	%		129.99		124.50		4.4	%
InterContinental		2		420		127.84		124.80		2.4	%		139.39		130.66		6.7	%
Independent		2		317		98.96		80.74		22.6	%		82.74		71.71		15.4	%
Marriott		57		11,714		90.63		89.21		1.6	%		87.17		88.29		-1.3	%
Starwood		6		1,935		78.04		68.75		13.5	%		65.75		61.07		7.7	%


Total Portfolio		101		21,917	$	93.77	$	90.24		3.9	%	$	89.58	$	89.66		-0.1	%


NOTES:

(1)		The above pro forma table assumes the 98 hotel properties owned and included in continuing operations at June 30, 2010, but not under renovation during three and six months ended June 30, 2010 were owned as of the beginning of the periods presented.

(2)		As the Company’s Courtyard by Marriott hotel in Philadelphia, Pennsylvania, is leased to a third-party tenant on a triple-net lease basis, the Company only records rental income related to this operating lease for GAAP purposes. However, in the above pro forma table, all room revenues related to this hotel are reflected, which is consistent with the Company’s other hotels.

9 of 13

ASHFORD HOSPITALITY TRUST, INC.
PRO FORMA HOTEL OPERATING PROFIT BY REGION
(dollars in thousands)
(Unaudited)


					Three Months Ended													Six Months Ended
	Number of		Number of		June 30,													June 30,
Region	Hotels		Rooms		2010		% Total			2009		% Total			% Change			2010		% Total			2009		% Total			% Change
Pacific (1)		21		5,205	$	15,564		22.7	%	$	13,547		22.1	%		14.9	%	$	28,423		22.9	%	$	26,441		21.3	%		7.5	%
Mountain (2)		8		1,704		3,249		4.7	%		2,169		3.6	%		49.8	%		8,006		6.5	%		9,131		7.3	%		-12.3	%
West North Central (3)		3		690		2,022		2.9	%		1,771		2.9	%		14.2	%		3,449		2.8	%		2,881		2.3	%		19.7	%
West South Central (4)		10		2,086		6,684		9.7	%		6,140		10.0	%		8.9	%		12,895		10.4	%		13,268		10.7	%		-2.8	%
East North Central (5)		8		1,628		4,740		6.9	%		2,885		4.7	%		64.3	%		6,000		4.8	%		4,506		3.6	%		33.2	%
East South Central (6)		2		236		825		1.2	%		730		1.2	%		13.0	%		1,534		1.2	%		1,424		1.1	%		7.7	%
Middle Atlantic (7)		9		2,481		7,791		11.3	%		6,828		11.1	%		14.1	%		11,241		9.1	%		10,153		8.2	%		10.7	%
South Atlantic (8)		38		7,728		27,461		40.0	%		26,904		43.9	%		2.1	%		51,783		41.8	%		56,155		45.2	%		-7.8	%
New England (9)		2		159		405		0.6	%		292		0.5	%		38.7	%		682		0.5	%		418		0.3	%		63.2	%

Total Portfolio		101		21,917	$	68,741		100.0	%	$	61,266		100.0	%		12.2	%	$	124,013		100.0	%	$	124,377		100.0	%		-0.3	%


(1)		Includes Alaska, California, Oregon, and Washington

(2)		Includes Nevada, Arizona, New Mexico, and Utah

(3)		Includes Minnesota and Kansas

(4)		Includes Texas

(5)		Includes Ohio, Michigan, Illinois, and Indiana

(6)		Includes Kentucky and Alabama

(7)		Includes New York, New Jersey, and Pennsylvania

(8)		Includes Virginia, Florida, Georgia, Maryland, District of Columbia, and North Carolina

(9)		Includes Massachusetts and Connecticut

NOTES:

(1)		The above pro forma table assumes the 98 hotel properties owned and included in continuing operations at June 30, 2010, but not under renovation during the three and six months ended June 30, 2010 were owned as of the beginning of the periods presented.

(2)		As the Company’s Courtyard by Marriott hotel in Philadelphia, Pennsylvania, is leased to a third-party tenant on a triple-net lease basis, the Company only records rental income related to this operating lease for GAAP purposes. However, in the above pro forma table, all room revenues related to this hotel are reflected, which is consistent with the Company’s other hotels.

10 of 13

ASHFORD HOSPITALITY TRUST, INC.
PRO FORMA HOTEL OPERATING PROFIT MARGIN
(Unaudited)

101 HOTELS INCLUDED IN CONTINUING OPERATIONS AT JUNE 30, 2010 AS IF SUCH
HOTELS WERE OWNED AS OF THE BEGINNING OF THE PERIODS PRESENTED:

HOTEL OPERATING PROFIT (HOTEL EBITDA) MARGIN:


2nd Quarter 2010	28.26	%
2nd Quarter 2009	26.31	%

Variance	1.95	%

HOTEL OPERATING PROFIT (HOTEL EBITDA) MARGIN VARIANCE BREAKDOWN:


Rooms	-0.02	%
Food & Beverage and Other Departmental	0.03	%
Administrative & General	0.33	%
Sales & Marketing	-0.04	%
Hospitality	-0.02	%
Repair & Maintenance	0.12	%
Energy	0.23	%
Franchise Fee	0.03	%
Management Fee	0.02	%
Incentive Management Fee	-0.17	%
Insurance	0.18	%
Property Taxes	0.60	%
Other Taxes	0.10	%
Leases/Other	0.56	%

Total	1.95	%

NOTE:

As the Company’s Courtyard by Marriott hotel in Philadelphia, Pennsylvania, is leased to a third-party tenant on a triple-net lease basis, the Company only records rental income related to this operating lease for GAAP purposes. However, in the above pro forma table, all operating results related to this hotel are reflected, which is consistent with the Company’s other hotels.

11 of 13

ASHFORD HOSPITALITY TRUST, INC.
PRO FORMA SEASONALITY TABLE
(dollars in thousands)
(Unaudited)

ALL 101 HOTELS OWNED AND INCLUDED IN CONTINUING OPERATIONS AS OF JUNE 30, 2010:


	2010			2010			2009			2009
	2nd Quarter			1st Quarter			4th Quarter			3rd Quarter			TTM
Total Hotel Revenue	$	243,209		$	218,718		$	238,535		$	215,293		$	915,755
Hotel EBITDA	$	68,741		$	55,271		$	55,798		$	49,976		$	229,786
Hotel EBITDA Margin		28.3	%		25.3	%		23.4	%		23.2	%		25.1	%
EBITDA % of Total TTM		29.9	%		24.1	%		24.3	%		21.7	%		100.0	%
JV Interests in EBITDA	$	1,974		$	1,157		$	1,483		$	1,139		$	5,753


NOTES:

(1)		The above pro forma table assumes the 101 hotel properties owned and included in continuing operations at June 30, 2010 were owned as of the beginning of the periods presented.

(2)		As the Company’s Courtyard by Marriott hotel in Philadelphia, Pennsylvania, is leased to a third-party tenant on a triple-net lease basis, the Company only records rental income related to this operating lease for GAAP purposes. However, in the above pro forma table, all room revenues related to this hotel are reflected, which is consistent with the Company’s other hotels.

12 of 13

ASHFORD HOSPITALITY TRUST, INC.
Capital Expenditures Calendar
101 Core Hotels Included in Continuing Operations (a)

2009

2010

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

Rooms

Actual

Estimated

Sheraton Anchorage

370

Marriott Legacy Center

404

Hilton Rye Town

446

Hilton Nassau Bay — Clear Lake

243

Courtyard Edison

146

Residence Inn Orlando Sea World

350

Embassy Suites Orlando Airport

174

Embassy Suites Portland — Downtown

276

Hilton La Jolla Torrey Pines

296

Marriott Bridgewater

347

Capital Hilton

408

Sheraton City Center — Indianapolis

371

Embassy Suites Philadelphia Airport

263

Embassy Suites Las Vegas Airport

220

Embassy Suites Santa Clara — Silicon Valley

257

Embassy Suites Austin Arboretum

150

Hilton Costa Mesa

486

Sheraton Minneapolis West

222

Crowne Plaza Beverly Hills

260

Embassy Suites Crystal City — Reagan Airport

267

Hilton Minneapolis Airport

300

Marriott Seattle Waterfront

358

Renaissance Tampa

293

Fairfield Inn and Suites Kennesaw

Courtyard Louisville Airport

150

Courtyard Crystal City Reagan Airport

272

Courtyard Philadelphia Downtown

498


(a)		Only hotels which have had or are expected to have significant capital expenditures that could result in displacement during 2009 and 2010 are included in this table.

13 of 13

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