ASHFORD HOSPITALITY TRUST, INC. - FORM 10-K
Ashford Hospitality Trust, Inc. (AHT) filed its annual report for the fiscal year ended December 31, 2025. The company reported total revenues of $1.23 billion, a 12% increase from the prior year. Net income attributable to common shareholders was $143.8 million, or $2.23 per diluted share, compared to $123.4 million, or $1.93 per diluted share, in the prior year. The company’s Adjusted FFO (AFFO) was $243.8 million, or $3.77 per diluted share, representing a 10% increase from the prior year. AHT’s hotel portfolio consisted of 123 hotels with approximately 24,000 rooms, and the company had a debt-to-enterprise value ratio of 43.6% as of December 31, 2025. The company also reported a dividend payout ratio of 74.5% and a dividend yield of 4.3% as of December 31, 2025.
Overview of the Company’s Financial Performance
Ashford Hospitality Trust, Inc. (the “Company”) is a real estate investment trust (REIT) that invests primarily in upper upscale, full-service hotel properties located in the United States. As of December 31, 2025, the Company’s portfolio consisted of 67 consolidated operating hotel properties representing 16,445 total rooms, and one additional consolidated operating hotel property owned through a 29.3% investment in a consolidated entity, representing 188 total rooms.
The Company’s financial performance in 2025 was mixed compared to the prior year. Total revenue decreased by $68.1 million, or 5.8%, to $1.10 billion in 2025 from $1.17 billion in 2024. This decline was primarily attributable to decreases in rooms revenue, food and beverage revenue, and other hotel revenue.
Net loss attributable to the Company increased significantly from $60.3 million in 2024 to $179.8 million in 2025. This $119.5 million increase in net loss was driven by several factors, including higher impairment charges, lower gains on asset sales and derecognition, and increased interest expense.
Revenue and Profit Trends
The Company’s rooms revenue decreased by $64.1 million, or 7.2%, to $825.6 million in 2025 compared to 2024. This decline was primarily due to decreases from hotel dispositions, properties in receivership, and a slight decrease at the Company’s comparable hotel properties. Food and beverage revenue also decreased by $5.0 million, or 2.3%, to $207.6 million, while other hotel revenue increased by $1.8 million, or 2.7%, to $69.6 million.
Hotel operating expenses decreased by $47.1 million, or 5.8%, to $768.3 million in 2025 compared to 2024. This reduction was driven by lower direct expenses from the hotel dispositions and properties in receivership, as well as lower indirect expenses and management fees.
Property taxes, insurance and other expenses decreased by $4.3 million, or 6.7%, to $59.8 million in 2025. Depreciation and amortization also decreased by $11.5 million, or 7.5%, to $141.3 million.
The Company recorded impairment charges of $67.6 million in 2025 compared to $59.3 million in 2024, primarily related to several hotel properties. The advisory services fee paid to Ashford Inc. decreased by $9.6 million, or 16.3%, to $49.0 million.
Gains on asset sales and derecognition of assets decreased significantly from $261.6 million in 2024 to $40.7 million in 2025. Interest expense and amortization of discounts and loan costs also decreased by $17.1 million, or 6.3%, to $256.2 million.
Overall, the Company’s Adjusted FFO available to common stockholders and OP unitholders decreased from a loss of $23.1 million in 2024 to a loss of $34.4 million in 2025.
Strengths and Weaknesses
The Company’s key strengths include:
- Diversified portfolio of 67 consolidated operating hotel properties across the United States
- Focus on upper upscale, full-service hotel segment
- Experienced management team and advisory services provided by Ashford Inc.
- Ability to generate cash flow from hotel operations and asset sales
The Company’s key weaknesses include:
- Significant net losses in 2025 and 2024
- High level of indebtedness, with $1.9 billion in loans maturing within one year
- Reliance on Ashford Inc. for advisory services and potential conflicts of interest
- Impairment charges on several hotel properties
- Declining revenue and profitability trends
Outlook and Future Prospects
The Company faces substantial doubt about its ability to continue as a going concern within one year due to anticipated debt service costs, debt maturities, and the potential termination fee owed to Ashford LLC upon a change of control. The Company is taking steps to reduce cash utilization and potentially raise additional capital, but no assurances can be given that it will be able to refinance upcoming maturities or obtain additional financing on favorable terms.
The Company’s current key priorities and financial strategies include preserving capital, disposing of non-core hotel properties, acquiring accretive hotel properties, pursuing capital market activities, accessing cost-effective capital, opportunistically exchanging preferred stock into common stock, implementing selective capital improvements, effective asset management, financing or refinancing hotels, utilizing hedges and derivatives, and making other investments or divestitures.
The Company’s board of directors has formed a special committee to evaluate strategic alternatives aimed at creating and enhancing stockholder value. However, the Company’s ability to execute on these strategies and improve its financial performance is uncertain given the significant challenges it faces.
In summary, Ashford Hospitality Trust, Inc. experienced a challenging 2025 with declining revenue, significant net losses, and substantial doubt about its ability to continue as a going concern. The Company is taking steps to address its financial issues, but faces an uphill battle to improve its profitability and long-term outlook.
