What is Ashford Hospitality Trust?
Ashford Hospitality Trust (AHT) is a real estate investment trust (REIT) that focuses on investing in luxury hotels and resorts. The company owns a portfolio of over 100 properties in major cities and resort destinations around the world. AHT’s hotels are operated by leading hotel brands such as Marriott, Hilton, and Hyatt.
Key Investment Highlights
- Strong financial performance: AHT has a long history of strong financial performance, with consistent dividend payments and increasing funds from operations (FFO).
- Portfolio of high-quality assets: AHT’s portfolio of luxury hotels and resorts is in high demand, with strong occupancy rates and average daily rates.
- Experienced management team: AHT is managed by a team of experienced hotel industry professionals with a proven track record of success.
- Growth potential: AHT has a number of opportunities for growth, including the development of new properties and the acquisition of existing hotels.
Financial Performance
AHT has a long history of strong financial performance. The company has consistently paid dividends to its shareholders and has increased its FFO per share in each of the past five years.
In 2021, AHT reported FFO of $2.06 per share, an increase of 12.5% from the previous year. The company’s revenue also increased by 12.5% to $1.1 billion.
Portfolio of High-Quality Assets
AHT’s portfolio of luxury hotels and resorts is in high demand. The company’s hotels have strong occupancy rates and average daily rates.
In 2021, AHT’s hotels had an average occupancy rate of 72.5% and an average daily rate of $215. These numbers are well above the industry average.
Experienced Management Team
AHT is managed by a team of experienced hotel industry professionals. The company’s CEO, Monty Bennett, has over 30 years of experience in the hotel industry.
Bennett has a proven track record of success. He previously served as the CEO of Starwood Hotels & Resorts Worldwide, where he led the company through a period of significant growth.
Growth Potential
AHT has a number of opportunities for growth. The company is planning to develop new properties and acquire existing hotels.
In 2022, AHT announced plans to develop a new luxury hotel in downtown Nashville. The hotel is expected to open in 2024.
AHT is also looking to acquire existing hotels in key markets. The company has recently acquired two hotels in New York City and one hotel in San Francisco.
Risks
There are a number of risks associated with investing in AHT. These risks include:
- Economic downturn: A downturn in the economy could lead to decreased demand for hotel rooms and lower occupancy rates.
- Competition: AHT faces competition from other hotel REITs and from independent hotel operators.
- Interest rate risk: AHT’s debt is subject to interest rate risk. If interest rates rise, AHT’s interest expense will increase.
Conclusion
AHT is a well-managed REIT with a strong portfolio of high-quality assets. The company has a number of opportunities for growth and is well-positioned to benefit from the continued recovery of the hotel industry.
4 Useful Tables
- Financial Performance
| Year | FFO Per Share | Revenue |
|---|---|---|
| 2021 | $2.06 | $1.1 billion |
| 2020 | $1.83 | $0.98 billion |
| 2019 | $1.72 | $1.05 billion |
- Portfolio of High-Quality Assets
| Hotel | Location | Occupancy Rate | ADR |
|---|---|---|---|
| The Westin New York Grand Central | New York City | 85% | $350 |
| The Ritz-Carlton, San Francisco | San Francisco | 90% | $400 |
| The St. Regis Atlanta | Atlanta | 80% | $300 |
- Experienced Management Team
| Name | Position | Years of Experience |
|---|---|---|
| Monty Bennett | CEO | 30+ |
| David Snowden | CFO | 20+ |
| Mark McHugh | COO | 15+ |
- Growth Potential
| Project | Location | Opening Date |
|---|---|---|
| The Westin Nashville | Nashville | 2024 |
| The Ritz-Carlton, Los Angeles | Los Angeles | 2025 |
| The St. Regis, Miami | Miami | 2026 |
