Trust reports second quarter 2025 results

NEWS RELEASE

DALLAS - July 30, 2025 - Ashford Hospitality Trust, Inc. (NYSE: AHT) ("Ashford Trust" or the "Company") today reported financial results and performance measures for the second quarter ended June 30, 2025. The comparable performance measurements for Occupancy, Average Daily Rate (ADR), Revenue Per Available Room (RevPAR), and Hotel EBITDA assume each of the hotel properties in the Company's hotel portfolio as of June 30, 2025 was owned as of the beginning of each of the periods presented. Unless otherwise stated, all reported results compare the second quarter ended June 30, 2025 with the second quarter ended June 30, 2024 (see discussion below). All data presented in this press release gives effect to the 1-for-10 reverse stock split completed on October 25, 2024 with regard to share counts and per share data. The reconciliation of non-GAAP financial measures is included in the financial tables accompanying this press release.

• Comparable RevPAR for all hotels decreased 2.2% to $145 during the quarter on a 2.7% decrease in Comparable ADR and a 0.5% increase in Comparable Occupancy. Comparable total revenue increased 1.3% over the prior year quarter.

• Net loss attributable to common stockholders was $(39.9) million or $(6.88) per diluted share for the quarter.

• Adjusted EBITDAre was $73.8 million for the quarter.

• Adjusted funds from operations (AFFO) was $0.78 per diluted share for the quarter. During the quarter, the Company accrued approximately $6.8 million of default interest on its $744 million Highland loan secured by 18 hotels. Subsequent to quarter end, the Company entered into an extension agreement on this loan that included eliminating the default interest. Excluding the default interest, the Company's AFFO and AFFO per diluted share for the quarter would have been approximately $11.4 million and $1.93, respectively.

• Comparable Hotel EBITDA was $91.0 million for the quarter, reflecting a growth rate of 2.6% over the prior year quarter.

• The Company ended the quarter with cash and cash equivalents of $100.0 million and restricted cash of $153.9 million. The vast majority of the restricted cash is comprised of lender and manager held reserves. At the end of the quarter, there was also $21.8 million in due from third-party hotel managers, which is primarily the Company's cash held by one of its property managers and is also available to fund hotel operating costs.

• Net working capital at the end of the quarter was $184.2 million.

• Capex invested during the quarter was $19.9 million.

  RECENT OPERATING HIGHLIGHTS

• In mid-December 2024, the Company launched a transformative strategic initiative designed to drive outsized EBITDA growth and substantially improve shareholder value. The initiative, labeled "GRO AHT," centers around three core pillars: G&A Reduction, Revenue Maximization, and Operational Efficiency.

• During the quarter, the Company successfully extended its Morgan Stanley Pool mortgage loan secured by 17 hotels.

• During the quarter, the Company signed a definitive agreement to sell the 242-room Hilton Houston NASA Clear Lake located in Houston, Texas for $27.0 million.

Through the first half of 2025, the Company made several announcements regarding its "GRO AHT" initiative, and reported progress towards its goal of delivering $50 million in annual run-rate EBITDA improvement. The Company expects its current fully-implemented initiatives to contribute more than $30 million per year in incremental EBITDA, with several additional initiatives underway. The "GRO AHT" initiative reflects the firm commitment that Ashford Trust, along with its advisor and property managers, has made to optimizing financial performance while ensuring long-term sustainability.

As of June 30, 2025, the Company had total loans of $2.7 billion with a blended average interest rate of 8.1%, taking into account in-the-money interest rate caps. Based on the current level of SOFR, and the Company's corresponding interest rate caps, approximately 24% of the Company's current consolidated debt is effectively fixed and approximately 76% is effectively floating.

During the quarter, the Company successfully extended its Morgan Stanley Pool mortgage loan secured by 17 hotels. The loan had an original final maturity date in November of 2024. The extension provides for an initial maturity in March of 2026 and two, one-year extension options, subject to the satisfaction of certain conditions, with a final maturity date in March of 2028. The loan has a current balance of $409.8 million and continues to bear interest at a floating rate of SOFR + 3.39%. The extension also provides added flexibility for the Company to release assets upon sale.

During the quarter, the Company signed a definitive agreement to sell the 242-room Hilton Houston NASA Clear Lake located in Houston, Texas for $27.0 million. When adjusted for the Company's anticipated capital expenditures, the sale price represents a 3.2% capitalization rate on net operating income or 23.6x Hotel EBITDA for the twelve months ended April 30, 2025. Excluding the anticipated capital spend, the sale price represents a 5.0% capitalization rate on net operating income or 15.2x Hotel EBITDA for the twelve months ended April 30, 2025.

The Company did not pay a dividend on its common stock and common units for the second quarter ended June 30, 2025. The Board of Directors will continue to monitor the situation and assess future quarterly common dividend declarations. The Company is current on the dividends on its outstanding preferred stock and plans to pay dividends on its outstanding preferred stock on a current basis going forward.

"Despite headwinds that drove industry-wide RevPAR declines during the second quarter, I'm pleased to report that Ashford Trust delivered comparable total revenue growth of 1.3% and 2.6% growth in comparable Hotel EBITDA, reflecting the early positive impact of our initiatives to grow ancillary revenue streams and the impact of the strategic decisions our team has made over the past several quarters," commented Stephen Zsigray, President and Chief Executive Officer of Ashford Trust. "We continue to see the benefits of "GRO AHT," our transformative initiative aimed at driving $50 million improvement in

EBITDA run rate." Mr. Zsigray added, "We also announced the planned sale of the Hilton Houston NASA Clear Lake at a very attractive cap rate. Combined with our "GRO AHT" initiative, we see meaningful potential for additional opportunistic sales that will further transform the company." Mr. Zsigray concluded, "We remain focused on executing our GRO AHT strategy to drive outsized EBITDA growth and believe our assets are well-positioned to deliver meaningful outperformance in the quarters ahead as we advance the next chapter for Ashford Trust."

Ashford Hospitality Trust, Inc. will conduct a conference call on Thursday, July 31, 2025, at 11:00 a.m. ET. The number to call for this interactive teleconference is (646) 307-1963. A replay of the conference call will be available through Thursday, August 7, 2025, by dialing (609) 800-9909 and entering the confirmation number, 9727869.

The Company will also provide an online simulcast and rebroadcast of its second quarter 2025 earnings release conference call. The live broadcast of Ashford Hospitality Trust's quarterly conference call will be available online at the Company's website, https://www.ahtreit.com, on Thursday, July 31, 2025, beginning at 11:00 a.m. ET. The online replay will follow shortly after the call and continue for approximately one year.

We use certain non-GAAP measures, in addition to the required GAAP presentations, as we believe these measures improve the understanding of our operational results and make comparisons of operating results among peer real estate investment trusts more meaningful. Non-GAAP financial measures, which should not be relied upon as a substitute for GAAP measures, used in this press release are FFO, AFFO, EBITDA, EBITDAre, Adjusted EBITDAre, and Hotel EBITDA. Please refer to our most recently filed Annual Report on Form 10-K for a more detailed description of how these non-GAAP measures are calculated. The reconciliations of non-GAAP measures to the closest GAAP measures are provided below and provide further details of our results for the period being reported.

This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities. Securities will be offered only by means of a registration statement and prospectus which can be found at https://www.sec.gov.

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Ashford Hospitality Trust is a real estate investment trust (REIT) focused on investing predominantly in upper upscale, full-service hotels.

Certain statements and assumptions in this press release contain or are based upon "forward-looking" information and are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this press release include, among others, statements about the Company's strategy and future plans. These forward-looking statements are subject to risks and uncertainties. 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 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: 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 Ashford Trust's filings with the Securities and Exchange Commission.

The forward-looking statements included in this press release are only made as of the date of this press release. 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 these risks 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.

Total assets $ 3,059,352 $ 3,160,985

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