Ashford Inc. Reports 9.6% Revenue Increase to $818.15 Million for 2024

Ashford Inc., a Nevada-based alternative asset management company, reported total revenues of $818.15 million for the year ended December 31, 2024, a 9.6% increase compared to $746.79 million in 2023. This increase was driven primarily by a 12.4% rise in audio visual revenue to $167.11 million, a 49.5% surge in other revenue to $64.93 million, and a 7.5% increase in cost reimbursement revenue to $458.63 million. However, design and construction fees decreased by 3.5% to $26.78 million, and hotel management fees decreased by 0.6% to $52.22 million.

The company's net loss attributable to common stockholders was $40.52 million for 2024, a slight improvement compared to the $40.82 million loss in 2023. This marginal improvement resulted from a $71.36 million increase in total revenues, partially offset by a $65.06 million increase in total expenses. Significant expense increases were seen in general and administrative expenses (up 30.4% to $60.35 million) and other operating expenses (up 46.1% to $36.93 million).

During 2024, Ashford Inc. completed a transaction involving a reverse and forward stock split, resulting in the delisting of its common stock from the NYSE American and the termination of its reporting obligations under the Exchange Act, effective January 1, 2025. The company paid approximately $6.9 million to stockholders owning fewer than 10,000 shares. Additionally, Ashford Inc. entered into several amendments to its advisory agreements with Ashford Trust and Braemar, primarily concerning waivers related to asset sales and incentive compensation. The company also saw changes in its leadership, with J. Robison Hays III resigning as Senior Managing Director and W. Michael Murphy passing away, leading to board appointments.

As of December 31, 2024, Ashford Inc. had 101 full-time domestic corporate employees and approximately 8,700 employees across its consolidated subsidiaries. The company's key subsidiaries, Remington, Premier, and INSPIRE, managed 112 hotel properties (55 third-party owned), and provided design and construction, and audio visual services, respectively. Other subsidiaries, RED, OpenKey, and Pure Wellness, provided watersports, keyless entry, and hypoallergenic room products and services. Warwick, the company's insurance subsidiary, generated $13.1 million in revenue.

Ashford Inc. identified several risk factors, including dependence on Ashford Trust and Braemar for a substantial portion of its revenue, the competitive nature of its industry, potential conflicts of interest, and the impact of interest rate changes on its variable-rate debt. The company also noted the potential for future international expansion, which could introduce additional risks. The company's outlook is contingent upon various factors, including market conditions, the performance of its clients, and its ability to manage its operational and financial risks.