ASHFORD HOSPITALITY TRUST INC Q2 FY26 Results

Our second quarter results provide the clearest evidence yet of Ashford Trust's operational turnaround. Comparable RevPAR increased 6.6% in the quarter and we converted 70% of the incremental revenue into Hotel EBITDA. Growth was rate-led, with Comparable ADR up 5.8%, which, combined with cost discipline from our asset management team and our property managers, produced a 9.6% increase in Comparable Hotel EBITDA and 158 basis points of margin expansion. We’ve been equally active on the balance sheet, completing the sale of eleven hotels—nine during the quarter and two shortly after quarter-end—at cap rates that reinforce our conviction in the underlying value of our assets. We applied the majority of proceeds to retire mortgage debt, which has improved our leverage profile, reduced interest expense, and helped address near-term loan maturities. Subsequent to quarter-end, we successfully addressed our final 2026 maturity with the Highland refinancing. This refinancing preserved a significant portion of total portfolio equity, while also improving our blended spread and releasing 14 hotels from a cash sweep that had been in effect for more than a year. Despite a number of property sales over the past 12 months, Adjusted EBITDAre for the quarter remained strong at $69.4 million and AFFO improved $12.8 million versus the prior year quarter. As we move into the back half of 2026, we remain focused on translating stronger performance into value for shareholders. Our recent sales transactions suggest there is still a disconnect, and we expect strategic asset sales to remain an important lever for closing that gap while further strengthening our balance sheet, enhancing liquidity and improving cash flow. The second quarter delivered acceleration in hotel performance. Combined with the ongoing implementation of our GRO AHT initiatives, Adjusted FFO improved to $17.4 million for the quarter, compared to $4.6 million in the second quarter of 2025. That progression reflects work across cost structure, portfolio composition and property performance. We continue to optimize the portfolio via asset sales, and recently completed the refinancing of our Highland loan pool. That transaction demonstrates the point we have made consistently: deleveraging makes refinancing possible, which ultimately preserves the equity in our portfolio. While preserving portfolio equity benefits our preferred holders, that sequencing carries a near-term cost. We have been required to apply the majority of sale proceeds to retire mortgage debt that is senior to the preferred, which continues to constrain the cash available for preferred redemptions and dividends. While improved operating performance and successful refinancings will enhance conditions for future capital returns, the path of interest rates continues to work against us. Where the market previously anticipated further easing, the forward curve no longer reflects that relief and the probability of interest rate hikes has risen considerably. While we remain unable at this time, we intend to resume capital returns to preferred holders when conditions allow. Dividends on the Company’s preferred stock are cumulative and will continue to accumulate while suspended.