Ashford Hospitality Trust Q2 2025 Earnings: EPS -$6.88 Beats Estimate, Revenue $302 Million

Ashford Hospitality Trust Inc reported Q2 2025 earnings with a net loss of $39.9 million, beating the estimate of -$7.36 per share. Total revenue was $302 million, aligning with estimates. The company faced a 2.2% decline in Comparable RevPAR to $145, driven by a 2.7% decrease in Comparable ADR. Ashford has been actively pursuing its "GRO AHT" initiative to drive $50 million in annual run-rate EBITDA improvement. The company ended the quarter with cash and cash equivalents of $100 million and restricted cash of $153.9 million.

Ashford Hospitality Trust Inc (AHT) reported its second quarter 2025 earnings with a net loss of $39.9 million, which beat the estimate of -$7.36 per share. The company's total revenue for the period stood at $302 million, aligning with analysts' expectations. Despite a 2.2% decline in Comparable RevPAR to $145, driven by a 2.7% decrease in Comparable ADR, the company has been actively pursuing its "GRO AHT" initiative to drive $50 million in annual run-rate EBITDA improvement.

The company's adjusted funds from operations (FFO) per diluted share was $0.78, impacted by default interest. Ashford ended the quarter with cash and cash equivalents of $100 million and restricted cash of $153.9 million. The stock closed at $6.32, reflecting a 1.66% increase post-announcement.

Key Takeaways:
- Net loss: $39.9 million
- Adjusted FFO per share: $0.78
- Revenue: $302 million
- Comparable RevPAR: $145
- Comparable ADR: -2.7%
- Cash and cash equivalents: $100 million
- Restricted cash: $153.9 million
- Stock price increase: 1.66%

Market Reaction:
Ashford's stock rose by 1.66% following the earnings release, closing at $6.32. The stock remains within its 52-week range, with a high of $11.99 and a low of $5.20. InvestingPro analysis indicates the stock is currently trading below its Fair Value, though investors should note its high volatility with a beta of 2.24. The modest increase suggests cautious optimism among investors, likely driven by strategic initiatives and future growth prospects.

Outlook:
Looking ahead, Ashford anticipates easing demand headwinds and potential interest rate cuts. The company remains focused on strategic asset dispositions and improving property-level performance. No common dividend is expected in 2025, as efforts concentrate on capital structure improvements.

Executive Commentary:
CEO Steven Zigray highlighted the company’s strategic decisions, stating, "We’re very pleased with our operating performance." He emphasized the focus on controlling costs and driving performance. Chris Nixon, EVP of Asset Management, noted the importance of ancillary income and cost control in strengthening the company’s foundation.

Risks and Challenges:
Economic uncertainty and interest rate fluctuations could impact financial performance. The decline in government room nights and group revenue presents ongoing challenges. Managing the high debt level remains a priority, given the 8.1% average interest rate.

Ashford Hospitality Trust’s Q2 2025 results reflect both the challenges and strategic adjustments the company is making to navigate a complex market environment. With a focus on operational efficiency and strategic growth initiatives, the company aims to drive future performance improvements.

References:
[1] https://www.investing.com/news/transcripts/earnings-call-transcript-ashford-hospitality-q2-2025-highlights-strategic-shifts-93CH-4164175