Ashford Hospitality Trust Announces Cost-Cutting Measures as Part of Transformative Initiative
DALLAS, March 12, 2025 – Ashford Hospitality Trust, Inc. (NYSE: AHT) (“Ashford Trust” or the “Company”), a leading real estate investment trust (REIT) specializing in the ownership and operation of upscale, full-service hotels, today unveiled plans to reduce corporate administrative and general expenses as part of its strategic initiative, “GRO AHT.” This cost-cutting measure is aimed at enhancing Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) and boosting shareholder value.
Background on Ashford Hospitality Trust
Ashford Hospitality Trust, headquartered in Dallas, Texas, is a publicly-traded REIT that owns and operates a diverse portfolio of approximately 146 hotels with over 28,000 rooms. The Company’s portfolio is primarily composed of upscale, full-service hotels in major US markets. Ashford Hospitality Trust’s mission is to create value for its shareholders through the acquisition, development, and redevelopment of premium hotel properties, as well as the implementation of innovative management strategies.
The “GRO AHT” Initiative
The “GRO AHT” initiative – an acronym for Growth, Revenue, Operational Excellence, and Asset Optimization – is Ashford Hospitality Trust’s multi-faceted strategy to drive $50 million in annual run-rate EBITDA improvement. The Company’s focus on cost reduction is a critical component of this effort. By streamlining corporate administrative and general expenses, Ashford Trust aims to improve its bottom line and increase shareholder value.
Impact on Shareholders
The cost-cutting measures are expected to result in increased earnings for Ashford Hospitality Trust’s shareholders. By reducing expenses and improving EBITDA, the Company will be better positioned to distribute more cash to its investors through dividends and share buybacks. This will not only provide a financial benefit but also demonstrate the Company’s commitment to maximizing value for its shareholders.
Impact on the World
The reductions in corporate administrative and general expenses at Ashford Hospitality Trust are part of a broader trend in the business world. Many companies, particularly those in the hospitality industry, have been grappling with rising costs and increased competition. By focusing on operational efficiencies and cost savings, Ashford Trust is joining other organizations in their efforts to maintain profitability and remain competitive.
Additional Cost-Cutting Measures
Ashford Hospitality Trust’s cost-cutting measures extend beyond corporate administrative expenses. The Company is also exploring opportunities to reduce property-level expenses, such as labor costs, energy consumption, and supply chain expenses. These efforts are expected to contribute significantly to the Company’s overall cost savings and EBITDA improvement goals.
Conclusion
Ashford Hospitality Trust’s announcement of cost-cutting measures as part of its “GRO AHT” initiative underscores the Company’s commitment to enhancing shareholder value and maintaining profitability in a competitive business environment. By reducing corporate administrative and general expenses, as well as exploring opportunities to save on property-level costs, Ashford Trust is poised to drive significant EBITDA improvement and strengthen its position in the hospitality industry.
- Ashford Hospitality Trust, Inc. (AHT) announces cost-cutting measures as part of its “GRO AHT” initiative to enhance EBITDA and increase shareholder value.
- The initiative includes reductions in corporate administrative and general expenses, as well as efforts to save on property-level costs.
- The cost savings are expected to contribute significantly to the Company’s overall financial improvement and competitiveness in the hospitality industry.
