DALLAS-Most of Ashford Hospitality Trust Inc.'s Q3 2012 earnings trended upward, with the REIT reporting a RevPAR increase of 4.3% for its prime portfolio hotels and a RevPAR increase of 1.5% for hotels in its trust portfolio. Adjusted EBITDA increased $5.5 million, or 7% quarter-over-quarter, while flow-through was 51% for the trust portfolio hotels.
Net loss attributable to common shareholders was $24.8 million versus a net los of $23.6 million, year-over-year. Meanwhile, capex invested in the quarter for the Ashford Prime Portfolio was $3.1 million, while capex invested in the quarter for the Ashford Trust Portfolio was $40.2 million
In anticipation of its anticipated spinoff of Ashford Prime, the REIT said it would change its reporting of pro-rata share of the Highland Hospitality Portfolio's pro forma operating statistics. Previous, the company reported its legacy and Highland Hospitality portfolios separately. Beginning this quarter, the REIT is reporting pro forma hotel operating statistics for the Ashford Trust and Ashford Prime portfolios, with the former including the pro rata share of the Highland Hospitality Portfolio, but excluding the Ashford Prime hotels.
Ashford Prime was approved early in 2013, and is a plan involving the spin-off of an 80% interest in eight-hotel high RevPAR portfolio consisting of 2,912 rooms. Ashford Prime will focus on higher-end hotels, and Monty Bennett, Ashford Hospitality's chairman and CEO said, during the Q3 earnings call, that the REIT is in the standard review and commentary period with the Securities and Exchange Commission regarding Ashford Prime's Form-10 registration statement. The company is also awaiting SEC approval for listing on the New York Stock Exchange. Once approval is received, he said, the record date will be approximately 10 days after, with trading anticipated to begin two days prior to the record date.
"Once the separation is completed Ashford Prime will have a focused investment strategy targeting high RevPAR hotels and resorts located mainly in domestic and international gateway markets," he said, during the call. "Ashford Trust, on the other hand, will continue to focus opportunistically on all segments of the hospitality industry with RevPAR criteria outside the Ashford Prime investment focus and all levels of the capital structure."
Bennett acknowledged he couldn't provide a definite spin-off date at this time, as the matter is in the hands of the SEC.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
