Ashford Hospitality Trust, Inc. reported its financial results for the quarter ended September 30, 2024, revealing significant changes in revenue and profitability compared to the previous fiscal period. Total revenue for Q3 2024 was $276.6 million, a decrease of 19.4% from $343.0 million in Q3 2023. For the nine months ended September 30, 2024, total revenue was $897.0 million, down from $1,047.6 million in the same period last year. The decline in revenue was attributed to reduced hotel operating revenues, which fell by 21.3% to $213.0 million in Q3 2024, primarily due to hotel dispositions and properties in receivership.

Despite the revenue decline, Ashford Hospitality Trust reported an operating income of $20.2 million for Q3 2024, down from $37.2 million in Q3 2023. However, for the nine months ended September 30, 2024, operating income increased significantly to $308.2 million, compared to $113.8 million in the prior year. The net loss for Q3 2024 was $59.1 million, an improvement from a loss of $64.5 million in Q3 2023. For the nine-month period, the company achieved a net income of $64.1 million, a substantial turnaround from a net loss of $150.9 million in the same period of 2023.

The company’s total assets decreased to $3.27 billion as of September 30, 2024, from $3.46 billion at the end of 2023. Investments in hotel properties also declined, with gross investments falling to $3.60 billion from $4.25 billion. Total liabilities decreased to $3.36 billion, down from $3.69 billion, while net indebtedness was reduced to $2.73 billion from $3.04 billion.

Strategically, Ashford Hospitality Trust has been active in property dispositions, selling several hotel properties throughout 2023 and 2024, including the Hilton Boston Back Bay for $171 million and the Residence Inn Salt Lake City for $19.2 million. The company recognized significant gains from these transactions, including a $133.9 million gain from the derecognition of assets related to the KEYS Pool A and B loans.

In terms of capital structure, the company issued Series J and K preferred stock, raising net proceeds of approximately $145.8 million and $14.6 million, respectively. A reverse stock split was approved to address compliance issues with the NYSE, reducing outstanding shares from approximately 55.2 million to 5.5 million.

Overall, Ashford Hospitality Trust's financial performance reflects a complex landscape of revenue challenges, strategic asset management, and efforts to stabilize its capital structure amidst ongoing market fluctuations.