# EDGAR Filing Document

**Accession Number:** 0001232582
**File Stem:** 0001232582-23-000035
**Filing Date:** 2023-3
**Character Count:** 21605
**Document Hash:** a5dd6bb4b89a860130658b95b234f075
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001232582-23-000035.hdr.sgml**: 20230323

**ACCESSION NUMBER**: 0001232582-23-000035

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 34

**CONFORMED PERIOD OF REPORT**: 20230323

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230323

**DATE AS OF CHANGE**: 20230322

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** ASHFORD HOSPITALITY TRUST INC
- **CENTRAL INDEX KEY:** 0001232582
- **STANDARD INDUSTRIAL CLASSIFICATION:** REAL ESTATE INVESTMENT TRUSTS [6798]
- **IRS NUMBER:** 861062192
- **STATE OF INCORPORATION:** MD
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-31775
- **FILM NUMBER:** 23753901

**BUSINESS ADDRESS:**
- **STREET 1:** 14185 DALLAS PARKWAY SUITE 1100
- **CITY:** DALLAS
- **STATE:** TX
- **ZIP:** 75254
- **BUSINESS PHONE:** 9724909600

**MAIL ADDRESS:**
- **STREET 1:** 14185 DALLAS PARKWAY SUITE 1100
- **CITY:** DALLAS
- **STATE:** TX
- **ZIP:** 75254

?xml version="1.0" ? aht-20230323

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K** 

**CURRENT REPORT**

**PURSUANT TO SECTION 13 OR 15(D) OF THE**

**SECURITIES EXCHANGE ACT OF 1934**

**Date of Report (date of earliest event reported): March 23, 2023** 

**ASHFORD HOSPITALITY TRUST, INC.** 

(Exact name of registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| Maryland | 001-31775 | 86-1062192 |
| (State or other jurisdiction of incorporation or organization) | (Commission<br>File Number) | (IRS employer<br>identification number) |
| 14185 Dallas Parkway, Suite 1200 |  |  |
| Dallas |  |  |
| Texas |  | 75254 |
| (Address of principal executive offices) |  | (Zip code) |

---

Registrant's telephone number, including area code: (972) 490-9600

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company&nbsp;&nbsp;&nbsp;&nbsp;☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
| **Common Stock** | **AHT** | **New York Stock Exchange** |
| **Preferred Stock, Series D** | **AHT-PD** | **New York Stock Exchange** |
| **Preferred Stock, Series F** | **AHT-PF** | **New York Stock Exchange** |
| **Preferred Stock, Series G** | **AHT-PG** | **New York Stock Exchange** |
| **Preferred Stock, Series H** | **AHT-PH** | **New York Stock Exchange** |
| **Preferred Stock, Series I** | **AHT-PI** | **New York Stock Exchange** |

---

------

**ITEM 7.01 &nbsp;&nbsp;&nbsp;&nbsp;REGULATION FD DISCLOSURE** 

On March 23, 2023, Ashford Hospitality Trust, Inc. (the "Company") released an investor presentation, attached hereto as Exhibit 99.1.

The investor presentation is being furnished pursuant to General Instruction B.2 of Form 8-K. The information in this Current Report is not deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), nor is it subject to the liabilities of that section or deemed incorporated by reference in any filing under the Exchange Act unless specifically identified therein as being incorporated therein by reference.

**ITEM 9.01 &nbsp;&nbsp;&nbsp;&nbsp;FINANCIAL STATEMENTS AND EXHIBITS** 

(d)&nbsp;&nbsp;&nbsp;&nbsp;Exhibits

<u>Exhibit Number</u> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Description</u>

99.1&nbsp;&nbsp;&nbsp;&nbsp;<u>[March](ahtmarch2023companyprese.htm)[202](ahtmarch2023companyprese.htm)[3](ahtmarch2023companyprese.htm)[Investor Presentation](ahtmarch2023companyprese.htm)</u>

104&nbsp;&nbsp;&nbsp;&nbsp;Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101)

------

**SIGNATURE** 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | |
|:---|:---|:---|
| | ASHFORD HOSPITALITY TRUST, INC. | ASHFORD HOSPITALITY TRUST, INC. |
| Dated: March 23, 2023 | By: | /s/ Alex Rose |
|  |  | Alex Rose |
|  |  | Executive Vice President, General Counsel & Secretary |

---

## Exhibit 99.1

![](ahtmarch2023companyprese001.jpg)

March 2023

------

![](ahtmarch2023companyprese002.jpg)

2 In keeping with the SEC's "Safe Harbor" guidelines, certain statements and assumptions in this presentation contain, are based upon or could be considered "forward-looking" and subject to certain risks and uncertainties that could cause results to differ material from those projected. These forward-looking statements and assumptions are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this presentation include, among others, statements about our business and investment strategy, our future plans, our understanding of our competition, current market trends and opportunities, projected operating results and projected capital expenditures. 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 statements are subject to numerous assumptions and uncertainties, many of which are outside of Ashford Trust'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: the Risk Factors discussed in our Annual Report on Form 10-K for the year ended December 31, 2022; rising interest rates and inflation; macroeconomic conditions, such as a prolonged period of weak economic growth and volatility in the capital and financial markets; general and economic business conditions affecting the lodging and travel industry; our ability to meet the NYSE continued listing standards; our ability to maintain S-3 eligibility; our ability to repay, refinance or restructure our debt and the debt of certain of our subsidiaries; anticipated or expected purchases or sales of assets; our projected operating results; completion of any pending transactions; our understanding of our competition; market trends; projected capital expenditures; the impact of technology on our operations and business; general volatility of the capital markets and the market price of our common stock and preferred stock; availability, terms and deployment of capital; availability of qualified personnel; changes in our industry and the markets 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 our filings with the Securities and Exchange Commission. The forward-looking statements included in this presentation are only made as of the date of this presentation. Such forward-looking statements are based on our beliefs, assumptions, and expectations of our future performance taking into account all information currently known to us. These beliefs, assumptions, and expectations can change as a result of many potential events or factors, not all of which are known to us. If a change occurs, our business, financial condition, liquidity, results of operations, plans, and other objectives may vary materially from those expressed in our forward-looking statements. You should carefully consider this risk when you make an investment decision concerning our securities. Investors should not place undue reliance on these forward-looking statements. The Company can give no assurance that these forward-looking statements will be attained or that any deviation will not occur. 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, except to the extent required by law. 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 or debt amount. A capitalization rate is determined by dividing the property's 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. Hotel EBITDA flow-through is the change in Hotel EBITDA divided by the change in total revenues. EBITDA, FFO, AFFO, CAD and other terms are non-GAAP measures, reconciliations of which have been provided in prior earnings releases and filings with the SEC or in the appendix to this presentation. The calculation of implied equity value is derived from an estimated blended capitalization rate ("Cap Rate") for the entire portfolio using the capitalization rate method. The estimated Cap Rate is based on recent Cap Rates of publicly traded peers involving a similar blend of asset types found in the portfolio, which is then applied to Net Operating Income ("NOI") of the company's assets to calculate a Total Enterprise Value ("TEV") of the company. From the TEV, we deduct debt and preferred equ ity and then add back working capital to derive an equity value. The capitalization rate method is one of several valuation methods for estimating asset value and implied equity value. Among the limitations of using the capitalization rate method for determining an implied equity value are that it does not take into account the potential change or variability in future cash flows, potential significant future capital expenditures, the intended hold period of the asset, or a change in the future risk profile of an asset. This presentation is for informational purposes only and is not an offer to sell, or a solicitation of an offer to buy or sell, any securities of Ashford Hospitality Trust, Inc. or any of its respective affiliates, and may not be relied upon in connection with the purchase or sale of any such security. Prior to investing in Ashford Hospitality Trust, Inc. potential investors should carefully review our periodic filings made with the Securities and Exchange Commission, including but not limited to our most current Form 10-K, Form 10-Q and Form 8-K's, including the risk factors therein. F o r wa r d L o o k i n g S t a t e m e n t s a n d N o n - G A A P M e a s u r e s

------

![](ahtmarch2023companyprese003.jpg)

Capitalizing on the Recovery O w n e r o f I n s t i t u t i o n a l Q u a l i t y , G e o g r a p h i c a l l y D i v e r s e L o d g i n g A s s e t s w i t h E x p o s u r e t o R e c o v e r y S e g m e n t s 3 La Concha Key West, FL W Atlanta Downtown Atlanta, GA Marriott Beverly Hills Beverly Hills, CA Hilton Back Bay Boston, MA One Ocean Jacksonville, FL La Posada Santa Fe, NM Renaissance Palm Springs Palm Springs, CA Marriott Crystal Gateway Arlington, VA Hyatt Coral Gables Coral Gables, FL The Churchill Washington, D.C. Lakeway Resort and Spa Austin, TX Hyatt Savannah Savannah, GA

------

![](ahtmarch2023companyprese004.jpg)

Overview 4 Clear Path Forward to Capitalize on the Recovery Portfolio Positioned for the Recovery Significant Balance Sheet & Liquidity Enhancements

------

![](ahtmarch2023companyprese005.jpg)

5 D e r i c E u b a n k s C h i e f F i n a n c i a l O f f i c e r ▪ 21 years of hospitality experience ▪ 18 years with Ashford ▪ 3 years with ClubCorp ▪ CFA Charterholder ▪ Southern Methodist University, BBA J . R o b i s o n H a y s C h i e f E x e c u t i v e O f f i c e r & P r e s i d e n t ▪ 17 years of hospitality experience ▪ 17 years with Ashford ▪ 3 years of M&A experience at Dresser Inc. & Merrill Lynch ▪ Princeton University, AB C h r i s t o p h e r N i x o n E V P & H e a d o f A s s e t M a n a g e m e n t ▪ 12 years of hospitality experience ▪ 7 years with Ashford ▪ Prior experience with the CIA and Northrop Grumman ▪ University of Texas, BA ▪ University of Maryland, MBA Executive Management Team P r o v e n E x p e r i e n c e

------

![](ahtmarch2023companyprese006.jpg)

Significant Balance Sheet & Liquidity Enhancements A H T H a s T a k e n N u m e r o u s S t e p s t o I m p r o v e t h e B a l a n c e S h e e t & L i q u i d i t y P r o f i l e 6 Significant Liquidity: Net Working Capital of $519M Attractive Debt Maturity Schedule Achieved Substantive Corporate Deleveraging since mid-2020 1 2 3

------

![](ahtmarch2023companyprese007.jpg)

Net Working Capital 7 A C l o s e r L o o k a t C a s h & L i q u i d i t y P o s i t i o n December 31, 2022 ($ in Thousands) Cash and cash equivalents $417,064 Restricted cash 141,962 Accounts receivable, net 49,809 Prepaid expenses 15,982 Due from third-party hotel managers, net 21,143 Due from affiliates, net 7,042 Total currents assets $653,002 Accounts payable, net & accrued expenses 130,831 Dividends and distributions payable 3,118 Total currents liabilities 133,949 Net Working Capital $519,053 NWC Per Share(1) $14.35 NWC Per Share vs. Stock Price(2) +221% (1) Net working capital (as of 12/31/2022) divided by common shares and units outstanding as of 12/31/2022 (2) Assumes stock price of $4.47, as of 12/31/2022

------

![](ahtmarch2023companyprese008.jpg)

Significant Balance Sheet & Liquidity Enhancements W e l l - L a d d e r e d M a t u r i t y S c h e d u l e 8(1) As of 12/31/2022. Assumes extension options are exercised; totals for each year exclude scheduled amortization payments. $98 492 $2,582 $618 $35 $0 $1,000 $2,000 $3,000 2023 2024 2025 2026 2027 Debt Final Maturity Schedule(1) ($ in Millions)

------

![](ahtmarch2023companyprese009.jpg)

Significant Balance Sheet & Liquidity Enhancements D e c i s i v e A c t i o n s H a v e R e s u l t e d i n A p p r o x i m a t e l y $9 9 0 M o f D e l e v e r a g i n g s i n c e Q 2 2 0 2 0 9 Steps to Long-Term Deleveraging: • Asset Sales • Buy Assets Unleveraged or With Lower Leverage • Refinance Assets at Lower Leverage Levels • Debt Pay Downs • Reduction in Preferred Equity Via Exchanges, Redemptions & Tenders • Raising Common Equity Opportunistically • Hand Back Uneconomic Assets to Lenders Note: 6/30/20 data from Q2'20 earnings release for net indebtedness, cash and cash equivalents, restricted cash, due from third-party hotel managers, and perpetual preferred; 12/31/22 data from Q4 '22 earnings release indebtedness, cash and cash equivalents, restricted cash, due from third-party hotel managers, perpetual preferred outstanding, and redeemable preferred face value $3,842,167 $3,254,234 $564,735 $162,970 $3,000,000 $3,500,000 $4,000,000 $4,500,000 6/30/2020 12/31/2022 Net Debt + Preferred Equity (in $ thousands) Net Debt Perpetual Preferred Face Value Redeemable Preferred Face Value $4,406,902 $3,419,427 (~$990M) $2,223

------

![](ahtmarch2023companyprese010.jpg)

Lodging Recovery Expected Over Next 4+ Years Best-in-Class Hotel Brands and Management Companies with Remington Driving Outperformance Chain Scale Mix with RevPAR Growth Expected Portfolio Positioned to Capture Leisure & Transient Demand with Low Historical Reliance Upon Group Business Well Diversified Asset Base Across Top 25 Markets May Outperform and Mitigate Market Concentration Risk Significant Portfolio Exposure to Domestic Migration Trends Portfolio Positioned for the Recovery W e l l - p o s i t i o n e d t o C a p i t a l i z e o n t h e L o d g i n g R e c o v e r y 10 1 2 3 4 5 6

------

![](ahtmarch2023companyprese011.jpg)

Industry RevPAR and ADR exceeded 2019 in 2022 U . S . K P I s , I n d e x e d t o 2 0 1 9 11 Source: STR 88.0 97.8 100.5 104.8 107.4 0 20 40 60 80 100 120 140 2021 2022 2023 2024 2025 Demand Index 83.2 107.9 111.6 119.8 124.9 0 20 40 60 80 100 120 140 2021 2022 2023 2024 2025 RevPAR Index 95.3 113.4 115.3 120.3 124.6 0 20 40 60 80 100 120 140 2021 2022 2023 2024 2025 ADR Index

------

![](ahtmarch2023companyprese012.jpg)

Portfolio Positioned for the Recovery R e v P A R h a s R e b o u n d e d S t r o n g l y f r o m D e p t h s o f t h e C r i s i s 12Source: AHT internal reporting, Room RevPAR as % of same month 2019 -100.0% -90.0% -80.0% -70.0% -60.0% -50.0% -40.0% -30.0% -20.0% -10.0% 0.0% 10.0% AHT RevPAR as a % of '19 (as of December 2022)

------

![](ahtmarch2023companyprese013.jpg)

13 100 H O T E L S (1) 26 S T A T E S (1) 22,316 H O T E L R O O M S (1) Portfolio Positioned for the Recovery S i g n i f i c a n t A s s e t s i n E a r l y R e c o v e r y S e g m e n t s a n d H i g h - G r o w t h C h a i n S c a l e s w i t h B e s t - i n - C l a s s B r a n d s & M a n a g e r s (1) As of December 31, 2022; excludes WorldQuest (2) Comparable YTD Rooms Revenue as of December 32, 2022, excluding assets disposed of or acquired in 2022 and WorldQuest (3) Comparable YTD Hotel EBITDA as of December 31, 2022 excluding assets disposed of or acquired in 2022 and WorldQuest Note: YTD Q4 2022 comparable Rooms Revenue is $972,233 (in thousands), excluding WorldQuest; YTD Q4 2022 comparable Hotel EBITDA is $349,199 (in thousands); see appendix for a reconciliation of TTM hotel net income (loss) to hotel TTM EBITDA Hotel EBITDA(3)Rooms Revenue(2) Portfolio By: TRANSIENT 74% HILTON 29% MARRIOTT 54% MARRIOTT 33% REMINGTON 56% FULL SERVICE 78% UPPER UPSCALE 64% INDEPENDENT 7% HYATT 7% IHG 3% GROUP 24% OTHER 2% HYATT 6% HILTON 4% INTERSTATE 1% SELECT SERVICE 22% UPSCALE 23% LUXURY 4% UPPER MIDSCALE 2% DEMAND TYPE HOTEL BRAND PROPERTY MANAGER SERVICE TYPE CHAIN SCALE Independent 7%

------

![](ahtmarch2023companyprese014.jpg)

Portfolio Positioned for the Recovery G e o g r a p h i c a l l y D i v e r s e P o r t f o l i o F o c u s e d o n U p p e r U p s c a l e A s s e t s 14 (1) Comparable 2022 Portfolio Hotel EBITDA as of December 31, 2022 excluding assets disposed of or acquired in 2022; excludes WorldQuest Note: see appendix for a reconciliation of TTM hotel net income (loss) to hotel TTM EBITDA Source: PwC Forecasted 2023 Growth by Chain Scale P o rt fo li o Ex p o su re (1) N/A 0% 0% 2% 7% 23% 64% 4% 0% 2% 4% 6% 8% 10% 12% 14% 16% Total US Economy Midscale Upper Midscale Independent Upscale Upper Upscale Luxury

------

![](ahtmarch2023companyprese015.jpg)

Portfolio Positioned for the Recovery G e o g r a p h i c a l l y D i v e r s e P o r t f o l i o F o c u s e d o n T o p 2 5 (" T 2 5 ") M a r k e t s 15 0% 2% 4% 6% 8% 10% 12% 14% Top 25 Markets Central Business Districts All Other Markets Forecasted Growth by Market of Hotel EBITDA(1) is Exposed to Top-25 Markets71% of Hotel EBITDA(1) is Exposed to Central Business Districts29% (1) Comparable TTM Hotel EBITDA as of December 31, 2022, excluding assets disposed of or acquired in 2022; excludes WorldQuest Note: see appendix for a reconciliation of TTM hotel net income (loss) to hotel TTM EBITDA Source: STR 2023 2024Key:

------

![](ahtmarch2023companyprese016.jpg)

Portfolio Positioned for the Recovery P o s i t i o n e d t o T a k e A d v a n t a g e o f D e m o g r a p h i c S h i f t A w a y f r o m t h e N o r t h e a s t , R u s t B e l t & W e s t C o a s t 16 Inbound or Outbound Migration 2016 – 2021(2) • 25% of business owners are considering moving operations to a more business friendly state(1) • 8 of AHT's top 15 markets located in inbound migration states Red State - Outbound Migration States 2016-2021 Green State – Inbound Migration States 2016-2021 1) Source: West Monroe Partners Q1 2020 Executive Poll 2) Source: North American Moving Services 3) Comparable 2022 Hotel EBITDA excluding assets disposed of or acquired in 2022; excludes WorldQuest Note: see appendix for a reconciliation of TTM hotel net income (loss) to hotel TTM EBITDA AHT Top Markets (by 2022 Hotel EBITDA)(3) % Total Washington, D.C. / Northern Virginia 11.5% Nashville, TN 8.8% Atlanta, GA 7.2% Los Angeles, CA 7.0% Dallas Fort-Worth, TX 6.4% Boston, MA 5.7% San Francisco/Oakland, CA 4.8% New York, NY 4.0% Miami, FL 3.0% Tampa, FL 2.9% Orlando, FL 2.3% Houston, TX 2.2% San Diego, CA 1.8% Philadelphia, PA 1.4% Minneapolis, MN 0.4%

------

![](ahtmarch2023companyprese017.jpg)

Conclusion 17 Clear Path Forward to Capitalize on the Recovery Portfolio Positioned for the Recovery Significant Balance Sheet & Liquidity Enhancements

------

![](ahtmarch2023companyprese018.jpg)

Appendix

------

![](ahtmarch2023companyprese019.jpg)

Reconci l ia t ion of Net Income to Hote l EB I TDA 18.8%

------

![](ahtmarch2023companyprese020.jpg)

March 2023

------