- Ashford Hospitality Trust, Inc. is an externally-advised REIT with a portfolio of hotels.
- The reopening play is a reality. The average daily rate is expected to increase by 8.2% in 2022.
- The investment in property hotels is $3.364 billion. As of March 31, 2021, the company had loans of $3.9 billion.
- If, today, the management tries to sell all its hotels, debtholders would most likely get all the money collected.
- Shareholders may not profit much from the expected increase in profitability because the company holds significant debt and preferred stock. The net debt/2023 EBITDA is equal to 11x-12x.
For further details see:
Ashford Hospitality: Reopening Play With Too Many Downside Risks