DALLAS—Ashford Inc. has reported its results and performance measures for the fourth quarter and year ended Dec. 31, 2019, with an increase in total revenue up 111% and an increase in adjusted EBITDA up 11.9%.
“We are very pleased with our fourth quarter and year-end results, which reflect the diligent execution of our operating strategy focused on accretively growing our advised platforms and acquiring growth-oriented, hospitality-related businesses,” said Monty J. Bennett, Ashford’s chairman/CEO.
Financial and Operating Highlights:
- Net loss attributable to common stockholders for the fourth quarter of 2019 totaled $15.1 million, or $6.31 per share, compared with net income of $0.3 million, or $0.14 per share, in the prior-year quarter. Adjusted net income for the fourth quarter was $7.2 million, or $1.27 per diluted share, compared with $9.3 million, or $2.20 per diluted share, in the prior-year quarter.
- Total revenue for the fourth quarter of 2019 was $107.6 million, reflecting a growth rate of 111% over the prior-year quarter.
- Adjusted EBITDA for the fourth quarter was $8.9 million, reflecting a growth rate of 11.9% over the prior-year quarter.
- At the end of the fourth quarter of 2019, the company had approximately $8.1 billion of gross assets under management.
- During the quarter, the company repurchased stock from Ashford Trust and Braemar Hotels & Resorts that represented approximately 16% of its common shares outstanding.
- During the quarter, the company completed the acquisition of Remington Holdings’ hotel management business.
- As of Dec. 31, 2019, the company had corporate cash of $32.3 million.
Completes Combination With Remington’s Hotel Management Business
On Nov. 6, 2019, the company completed the previously announced combination with Remington Holdings LP. The acquisition of Remington’s high-margin, low-CapEx hotel management business adds scale, diversification and a competitive position for Ashford. It also expands the breadth of services the company offers to its advised REITs. Additionally, the company believes the transaction represents an opportunity to further diversify its earnings stream and the potential to expand business to other third-party clients. During the quarter, Remington appointed Sloan Dean III as its new president/CEO.
Bennett continued, “Toward this end, our recent combination with Remington rapidly builds operating scale, increases the company’s earnings potential, facilitates additional growth from third-party hotel management business and enhances our competitive position in the hospitality industry. Importantly, by adding hotel property management to our diverse stable of hotel-related businesses, we are extremely well-positioned to continue to successfully execute on our growth strategy.”
“Additionally, the recent formation of Ashford Securities will provide Ashford and its advised platforms an additional source of capital that is not dependent on the traditional publicly traded capital markets,” he added. “We are excited to pursue a fresh source of capital that will help us prudently grow our platforms over the long term for increased shareholder value. Ashford is a growth platform and, looking ahead to 2020, we believe the pieces are in place to significantly grow our business. We remain committed to maximizing value for our shareholders as we look to opportunistically grow our existing REIT platforms, create new platforms as well as grow our service businesses via increased AUM and third-party business.”