- RevPAR increased by 3.2% year-over-year in Q1 2025.
- Consistent monthly RevPAR growth throughout Q1 2025.
- Strong occupancy rate of 68% achieved.
Ashford Hospitality Trust (AHT, Financial), a real estate investment trust focusing on upper-upscale, full-service hotels, has released its preliminary results for the first quarter of 2025. The company reported a notable 3.2% year-over-year increase in Revenue Per Available Room (RevPAR), reaching approximately $133.
Occupancy for the quarter was approximately 68%, with an Average Daily Rate (ADR) of $196. The company attributed its operational success to the ongoing benefits from its GRO AHT initiative, which has positively impacted both top and bottom lines.
Monthly analysis of RevPAR revealed a progressive growth of 3.8% in January, 4.3% in February, but a slowdown to 1.9% in March. Despite this deceleration, Ashford Trust's management remains optimistic about maintaining focus on revenue maximization and expense minimization.
Additionally, Ashford Trust has made strides in extending and refinancing loans, an important strategic move given the current interest rate environment. However, the company has yet to disclose specific financial metrics such as actual revenue, EBITDA, or funds from operations, which are crucial for a leveraged hospitality REIT.
As the company navigates industry uncertainties, these developments suggest a cautious yet forward-thinking approach to sustaining growth in the dynamic upper-upscale segment.
