DALLAS, Feb. 27,
2025 /PRNewswire/ -- Ashford Hospitality Trust, Inc.
(NYSE: AHT) ("Ashford Trust" or the "Company") announced today that
the Board of Directors has approved significant reductions to board
and management compensation as part of its broader "GRO AHT"
initiative. As announced in December
2024, "GRO AHT" is a transformative strategic initiative
designed to drive $50 million in
annual run-rate EBITDA improvement and significantly improve
shareholder value.
Compensation for board members was reduced by 50%, and the Board
of Directors has currently been reduced from nine members down to
seven. Additionally, incentive awards granted to executive
management and other associates have been reduced by more than 50%
in aggregate relative to recent years. Ashford Trust expects that
these changes will result in more than $11
million in incremental EBITDA, reinforcing the company's
commitment to financial discipline and operational efficiency.
Together with the previously announced implementation of
ancillary revenue initiatives, the Company expects to realize more
than $14 million in incremental
EBITDA towards its $50 million
goal.
These changes align with Ashford Trust's strategic vision to
optimize performance, improve financial results, and create
long-term value for shareholders. The Company continues to partner
with its property managers and its advisor, Ashford Inc., on a
number of initiatives as part of the "GRO AHT" strategy and will
provide additional updates as the plan is further executed.
Ashford Hospitality Trust is a real estate investment trust
(REIT) focused on investing predominantly in upper-upscale,
full-service hotels.
Forward-Looking Statements
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 federal
securities regulations. Forward-looking statements are generally
identifiable by use of forward-looking terminology such as "may,"
"will," "should," "potential," "intend," "expect," "anticipate,"
"estimate," "approximately," "believe," "could," "project,"
"predict," or other similar words or expressions. Additionally,
statements regarding the following subjects are forward-looking by
their nature: Implementation of our "GRO AHT" plan; expected EBITDA
growth from our "GRO AHT" plan; our business and investment
strategy; anticipated or expected purchases, sales or dispositions
of assets; our projected operating results; completion of any
pending transactions; our plan to pay off strategic financing; our
ability to restructure existing property-level indebtedness; our
ability to secure additional financing to enable us to operate our
business; our understanding of our competition; projected capital
expenditures; and the impact of technology on our operations and
business. 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. These and other risk factors
are more fully discussed in the Company's filings with the
SEC.
The forward-looking statements included in this press release
are only made as of the date of this press release. Investors
should not place undue reliance on these forward-looking
statements. We will not 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.
Non-GAAP Financial Measures
The Company prepares its public financial statements in
conformity with accounting principles generally accepted in
the United States of America
("GAAP"). The Company also uses certain non-GAAP measures to help
our investors evaluate our operating performance. The Company uses
EBITDA, which is defined as net income (loss) before interest
expense and amortization of 3 discounts and loan costs, net, income
taxes, depreciation and amortization, as adjusted. EBITDA is a
non-GAAP measure and we are unable to provide a reconciliation of
forward-looking non-GAAP financial measures to their most directly
comparable GAAP financial measures because we are unable to
provide, without unreasonable effort, a meaningful or accurate
calculation or estimation of amounts that would be necessary for
the reconciliation due to the complexity and inherent difficulty in
forecasting and quantifying future amounts or when they may occur.
Such unavailable information could be significant to future
results.
View original
content:https://www.prnewswire.com/news-releases/ashford-hospitality-trust-announces-approved-reduction-in-board-and-management-compensation-302388065.html
SOURCE Ashford Hospitality Trust, Inc.
