Ashford Hospitality Q2 RevPAR Jumps 6.6% as Debt Reduction Accelerates
AHT sits 25% above its 52-week low of $2.5.
Summary
Ashford Hospitality Trust reported Q2 comparable RevPAR up 6.6%, driven by a 5.8% increase in average daily rate and a modest occupancy gain. Adjusted FFO per share rose sharply from the prior-year quarter. The company sold nine hotels during the quarter, using proceeds to pay down debt and improve leverage. However, Q2 rooms revenue of $209.62 million missed the single-analyst consensus of $292.80 million, a significant shortfall. Management indicated that higher interest rates may delay resumption of capital returns to preferred holders. The stock trades at a micro-cap valuation, so the debt reduction and RevPAR growth are material, but the revenue miss and delayed preferred distributions temper the positive tone.
At the time of this announcement, AHT was trading at $3.13 on NYSE in the Real Estate & Construction sector, with a market capitalization of approximately $19.8M. The 52-week trading range was $2.50 to $6.49. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Reuters.