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AHT NYSE· Ashford Hospitality Trust Inc.
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AHT NYSE· Ashford Hospitality Trust Inc.
Earnings report Q3 2023

AHT Reports Increase in Rooms Revenue in Latest Quarter

Segments of revenue

In the latest quarter, AHT reported a 3.8% increase in rooms revenue from their hotel properties. The rooms revenue increased by $10.0 million, reaching $270.6 million. This growth can be attributed to the recovery of their hotel properties from the impact of the COVID-19 pandemic. The increase in rooms revenue was primarily driven by higher revenue from comparable hotel properties, which saw a $10.2 million increase. Additionally, there was a contribution of $2.3 million from a Hotel Acquisition. However, this growth was partially offset by a decrease of $2.5 million from Hotel Dispositions.

Strengths

AHT's financial performance in the latest quarter demonstrates their ability to recover from the effects of the COVID-19 pandemic. The increase in rooms revenue indicates a positive trend in the recovery of their hotel properties. Management comments suggest that the recovery is driven by improved occupancy rates and average daily rates (ADR). The RevPAR (revenue per available room) for the quarter increased to $131.44, compared to $126.24 in the same quarter last year. Occupancy also improved to 72.19%, up from 70.98% in the previous year. ADR increased to $182.09, compared to $177.84 in the previous year. These improvements in RevPAR, occupancy, and ADR reflect the company's ability to attract guests and generate higher revenue.

Challenges

Despite the increase in rooms revenue, AHT reported a net loss attributable to the company of $63.6 million in the latest quarter. This represents an increase of $41.5 million compared to the same quarter last year. The net loss can be attributed to various factors that were not specified in the given context. It is important to note that the net loss indicates a financial challenge for the company, which may require further analysis to understand the underlying reasons.

Noteworthy

AHT's performance in the latest quarter shows a positive recovery trend in their hotel properties. The increase in rooms revenue and key performance indicators such as RevPAR, occupancy, and ADR indicate a rebound from the impact of the COVID-19 pandemic. However, the net loss attributable to the company highlights the need for further examination of the factors contributing to the loss.

Summary

AHT's latest quarter performance demonstrates a positive recovery in their hotel properties, with a 3.8% increase in rooms revenue. The company's ability to attract guests and improve occupancy and ADR has contributed to this growth. However, the net loss attributable to the company indicates financial challenges that require further analysis. Overall, AHT's performance reflects a positive trend in the recovery of their hotel properties, but the net loss highlights the need for continued monitoring and strategic management.

Source documents

Form 10-Q  filed on Nov 08, 2023
92 pages scanned

Reference data

Company financials Q3 revenue 319M
Analyst estimates Q3 EPS missed by NaN%
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