ASHFORD HOSPITALITY TRUST INCAHT
ASHFORD HOSPITALITY TRUST INC Segments Disclosure
Segment Reporting
We operate in one reportable business segment within the hotel lodging industry: direct hotel investments. Direct hotel investments refer to owning hotel properties through either acquisition or new development. We report operating results of direct hotel investments on an aggregate basis as substantially all of our hotel investments: (i) offer similar products and services to their customers in the form of hotel rooms, food and beverage, and ancillary services; (ii) utilize third-party hotel management companies to deliver its products and services to its customers; (iii) are designed and operated to appeal to similar individuals, groups, leisure and business customers; and (iv) have third-party hotel managers that utilize the same methods (direct hotel sales and various online booking portals) to distribute the Company’s products and services. As of December 31, 2025, 2024 and 2023 all of our hotel properties were in the U.S. and its territories. The Company’s chief operating decision maker (“CODM”) is its President and Chief Executive Officer.
Each hotel property derives revenue primarily from guestroom sales, food and beverage sales and revenues from other lodging services and amenities. The accounting policies of each operating segment are the same as those described in the summary of significant accounting policies in note 2.
The CODM reviews and makes decisions on all aspects of the Company’s business using all available financial and non-financial data for each hotel individually. Capital allocation decisions to acquire, sell, enhance, redevelop or perform renewal and replacement expenditures are determined on a hotel-by-hotel basis. Specifically, the CODM reviews the results of each hotel to assess the hotel’s profitability. The key measure the CODM uses to allocate resources and assess performance is individual hotel net income (loss) before interest expense, income taxes, depreciation and amortization, adjusted to exclude certain items determined by management to not be reflective of its ongoing operating performance or incurred in the normal course of business (“Hotel Adjusted EBITDA”). The adjustments include gains and losses on hotel dispositions, impairment charges, pre-opening costs associated with extensive renovation projects, property-level legal settlements, restructuring, severance, management transition costs and other expenses identified by management as non-recurring. The CODM does not regularly review asset information by segment.
Following Stirling OP’s redemption of its unit holders on September 2, 2025, the Company updated the presentation of its reportable segment for December 31, 2025, 2024 and 2023 to incorporate the results of Stirling OP’s four hotel properties. Prior to September 2, 2025, the CODM did not regularly review the results of Stirling OP. The following tables include revenues, significant hotel operating expenses, and Hotel Adjusted EBITDA for the Company’s hotels, reconciled to the consolidated amounts included in the Company’s consolidated statements of operations (in thousands):
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| REVENUE | |||||||||||||||||
| Rooms | $ | 825,623 | $ | 889,753 | $ | 1,059,155 | |||||||||||
| Food and beverage | 207,588 | 212,581 | 232,829 | ||||||||||||||
| Other hotel revenue | 69,643 | 67,800 | 72,748 | ||||||||||||||
| Total hotel revenue | 1,102,854 | 1,170,134 | 1,364,732 | ||||||||||||||
| EXPENSES | |||||||||||||||||
| Rooms | 198,002 | 209,569 | $ | 249,434 | |||||||||||||
| Food and beverage | 139,324 | 145,304 | 161,300 | ||||||||||||||
| Direct expenses | 9,198 | 9,134 | 11,058 | ||||||||||||||
| Indirect expenses: | |||||||||||||||||
Property, general and administration | 99,688 | 118,598 | 137,160 | ||||||||||||||
| Sales and marketing | 118,204 | 123,275 | 141,425 | ||||||||||||||
| Information and telecommunications systems | 17,202 | 19,031 | 21,707 | ||||||||||||||
| Repairs and maintenance | 53,704 | 56,118 | 61,892 | ||||||||||||||
| Energy | 43,269 | 43,442 | 51,516 | ||||||||||||||
| Lease expense | 4,374 | 4,177 | 4,344 | ||||||||||||||
| Ownership expenses | 1,955 | 2,456 | 3,075 | ||||||||||||||
| Incentive management fee | 15,562 | 18,110 | 19,457 | ||||||||||||||
| Management fees | 37,743 | 41,543 | 50,120 | ||||||||||||||
| Property taxes | 40,790 | 41,050 | 46,590 | ||||||||||||||
Other taxes (refunds) | 165 | (766) | 634 | ||||||||||||||
| Insurance | 21,049 | 24,401 | 21,746 | ||||||||||||||
Total expenses | 800,229 | 855,442 | 981,458 | ||||||||||||||
| Hotel adjusted EBITDA | $ | 302,625 | $ | 314,692 | $ | 383,274 | |||||||||||
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Reconciliation of hotel operating income (loss) to net income (loss) | |||||||||||||||||
| Hotel adjusted EBITDA | $ | 302,625 | $ | 314,692 | $ | 383,274 | |||||||||||
| Other revenue | 1,534 | 2,325 | 2,801 | ||||||||||||||
| Ownership expenses included in rooms expense | (104) | — | — | ||||||||||||||
| Ownership expenses included in food and beverage expense | (504) | — | — | ||||||||||||||
| Ownership expenses included in other hotel expenses | (28,915) | (24,127) | (12,457) | ||||||||||||||
| Ownership expenses included in property taxes, insurance and other | 2,211 | 973 | (1,257) | ||||||||||||||
| Management fees | (520) | (863) | (491) | ||||||||||||||
| Depreciation and amortization | (141,295) | (152,776) | (187,807) | ||||||||||||||
Impairment charges | (67,648) | (59,331) | — | ||||||||||||||
Advisory services fee | (49,039) | (58,606) | (48,927) | ||||||||||||||
Corporate, general, and administrative | (20,783) | (24,662) | (16,181) | ||||||||||||||
Gain (loss) on disposition of assets and hotel properties | 79,799 | 94,406 | 11,488 | ||||||||||||||
Gain (loss) on derecognition of assets | 39,054 | 167,177 | — | ||||||||||||||
Equity in earnings (loss) of unconsolidated entities | (325) | (2,370) | (1,134) | ||||||||||||||
| Interest income | 4,739 | 6,942 | 8,978 | ||||||||||||||
| Other income (expense), net | — | 108 | 310 | ||||||||||||||
Interest expense and amortization of discounts and loan costs | (256,229) | (273,359) | (326,970) | ||||||||||||||
| Interest expense associated with hotels in receivership | (39,038) | (45,592) | (39,178) | ||||||||||||||
| Write-off of premiums, loan costs and exit fees | (8,853) | (5,245) | (3,469) | ||||||||||||||
| Gain (loss) on extinguishment of debt | 335 | 2,774 | 53,386 | ||||||||||||||
| Realized and unrealized gain (loss) on derivatives | (5,346) | (6,480) | (2,200) | ||||||||||||||
| Income tax (expense) benefit | 143 | (997) | (900) | ||||||||||||||
| Net income (loss) | $ | (188,159) | $ | (65,011) | $ | (180,734) | |||||||||||
The following table reconciles segment total revenue to total consolidated revenue:
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
Consolidated total hotel revenue | $ | 1,102,854 | $ | 1,170,134 | $ | 1,364,732 | |||||||||||
Other revenue | 1,534 | 2,325 | 2,801 | ||||||||||||||
Total consolidated revenue | $ | 1,104,388 | $ | 1,172,459 | $ | 1,367,533 | |||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 23, 2026 | Showing above |
| 2024 | Mar 21, 2025 | |
| 2023 | Mar 14, 2024 | |
| 2022 | Mar 10, 2023 | |
| 2021 | Feb 28, 2022 | |
| 2020 | Mar 16, 2021 | |
| 2019 | Mar 12, 2020 | |
| 2018 | Mar 1, 2019 | |
| 2017 | Mar 14, 2018 | |
| 2016 | Mar 16, 2017 | |
| 2015 | Feb 29, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.