Document
EXHIBIT 99.1
On June 9, 2026, Ashford Hospitality Trust, Inc. (“Ashford Trust” or the “Company”) completed the sale of the 260-room Sheraton San Diego Mission Valley located in San Diego, California (“Sheraton San Diego”) for total consideration of approximately $45.0 million in cash, net of selling expenses. Additionally, the Company paid approximately $35.9 million to the mortgage lender. The mortgage loan is secured by 15 hotels including Sheraton San Diego.
The following unaudited pro forma financial information of the Company, as of and for the three months ended March 31, 2026, and for the year ended December 31, 2025, has been prepared for informational purposes only and does not purport to be indicative of what would have resulted had the disposition occurred on the date indicated or what may result in the future. The unaudited pro forma consolidated balance sheet assumes the disposition closed on March 31, 2026. The unaudited pro forma consolidated statements of operations for the year ended December 31, 2025, and the three months ended March 31, 2026, assumes the disposition closed on January 1, 2025. The unaudited pro forma financial information of the Company reflects the removal of the assets and liabilities of Sheraton San Diego and its results of operations, which contains a non-recurring gain associated with the disposition of the hotel property. The pro forma gain and the related tax effects resulting from the disposition of Sheraton San Diego are preliminary. Therefore, the actual results may differ from the amounts reflected in the pro forma financial statements. There are no other non-recurring items associated with the transaction.
ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
March 31, 2026
(in thousands, except share and per share amounts)
| Ashford Trust Consolidated Historical (A) | Sheraton San Diego (B) | Adjustments | Ashford Trust Consolidated Pro Forma | ||||||||||||||||||||
| ASSETS | |||||||||||||||||||||||
| Investments in hotel properties, gross ($82,787 attributable to VIEs) | $ | 2,617,922 | $ | 56,864 | $ | — | $ | 2,561,058 | |||||||||||||||
| Accumulated depreciation ($(6,594) attributable to VIEs) | (810,924) | (20,101) | — | (790,823) | |||||||||||||||||||
| Investments in hotel properties, net ($76,193 attributable to VIEs) | 1,806,998 | 36,763 | — | 1,770,235 | |||||||||||||||||||
| Contract asset | 335,979 | — | — | 335,979 | |||||||||||||||||||
| Cash and cash equivalents ($1,011 attributable to VIEs) | 78,042 | 324 | 44,964 | (C) (i) | 81,979 | ||||||||||||||||||
| (4,831) | (C) (i) | ||||||||||||||||||||||
| (35,872) | (C) (ii) | ||||||||||||||||||||||
| Restricted cash ($4,203 attributable to VIEs) | 141,203 | — | — | 141,203 | |||||||||||||||||||
| Accounts receivable ($170 attributable to VIEs), net of allowance of $435 | 43,426 | 694 | — | 42,732 | |||||||||||||||||||
| Inventories ($34 attributable to VIEs) | 3,106 | 53 | — | 3,053 | |||||||||||||||||||
| Notes receivable, net | 12,486 | — | — | 12,486 | |||||||||||||||||||
| Investments in unconsolidated entities | 7,063 | — | — | 7,063 | |||||||||||||||||||
| Deferred costs, net ($79 attributable to VIEs) | 1,210 | — | — | 1,210 | |||||||||||||||||||
| Derivative assets | 1,212 | — | — | 1,212 | |||||||||||||||||||
| Operating lease right-of-use assets | 41,035 | — | — | 41,035 | |||||||||||||||||||
| Prepaid expenses and other assets ($153 attributable to VIEs) | 53,235 | 303 | — | 52,932 | |||||||||||||||||||
| Due from third-party hotel managers | 24,535 | — | — | 24,535 | |||||||||||||||||||
| Assets held for sale | 55,779 | — | — | 55,779 | |||||||||||||||||||
| Total assets | $ | 2,605,309 | $ | 38,137 | $ | 4,261 | $ | 2,571,433 | |||||||||||||||
| LIABILITIES AND EQUITY/DEFICIT | |||||||||||||||||||||||
| Liabilities: | |||||||||||||||||||||||
| Indebtedness, net ($15,910 attributable to VIEs) | $ | 2,287,163 | $ | 32,092 | $ | (3,044) | (C) (ii) | $ | 2,252,027 | ||||||||||||||
| Debt associated with hotels in receivership | 252,000 | — | — | 252,000 | |||||||||||||||||||
| Finance lease liability | 17,417 | — | — | 17,417 | |||||||||||||||||||
| Accounts payable and accrued expenses ($15,427 attributable to VIEs) | 140,837 | 5,411 | — | 135,426 | |||||||||||||||||||
| Accrued interest payable ($151 attributable to VIEs) | 31,787 | 125 | — | 31,662 | |||||||||||||||||||
| Accrued interest associated with hotels in receivership | 83,979 | — | — | 83,979 | |||||||||||||||||||
| Dividends and distributions payable | 4,247 | — | — | 4,247 | |||||||||||||||||||
| Due to Ashford Inc., net | 65,638 | — | — | 65,638 | |||||||||||||||||||
| Due to related parties, net ($3,517 attributable to VIEs) | 12,319 | 669 | — | 11,650 | |||||||||||||||||||
| Due to third-party hotel managers | 1,306 | — | — | 1,306 | |||||||||||||||||||
| Operating lease liabilities | 44,042 | — | — | 44,042 | |||||||||||||||||||
| Other liabilities ($28,919 attributable to VIEs) | 36,695 | — | — | 36,695 | |||||||||||||||||||
| Liabilities related to assets held for sale | 66,613 | — | — | 66,613 | |||||||||||||||||||
| Total liabilities | 3,044,043 | 38,297 | (3,044) | 3,002,702 | |||||||||||||||||||
| Commitments and contingencies | |||||||||||||||||||||||
| Redeemable noncontrolling interests in operating partnership | 19,945 | — | — | 19,945 | |||||||||||||||||||
| Series J Redeemable Preferred Stock, $0.01 par value, 7,684,197 shares issued and outstanding at March 31, 2026 | 183,655 | — | — | 183,655 | |||||||||||||||||||
| Series K Redeemable Preferred Stock, $0.01 par value, 731,102 shares issued and outstanding at March 31, 2026 | 18,591 | — | — | 18,591 | |||||||||||||||||||
| Series L Redeemable Preferred Stock, $0.01 par value, 238,191 shares issued and outstanding at March 31, 2026 | 5,547 | — | — | 5,547 | |||||||||||||||||||
| Series M Redeemable Preferred Stock, $0.01 par value, 550,888 shares issued and outstanding at March 31, 2026 | 13,831 | — | — | 13,831 | |||||||||||||||||||
| Equity (deficit): | |||||||||||||||||||||||
| Preferred stock, $0.01 par value, 55,000,000 shares authorized: | |||||||||||||||||||||||
| Series D Cumulative Preferred Stock, 1,111,127 shares issued and outstanding at March 31, 2026 | 11 | — | — | 11 | |||||||||||||||||||
| Series F Cumulative Preferred Stock, 1,037,044 shares issued and outstanding at March 31, 2026 | 10 | — | — | 10 | |||||||||||||||||||
| Series G Cumulative Preferred Stock, 1,470,948 shares issued and outstanding at March 31, 2026 | 15 | — | — | 15 | |||||||||||||||||||
| Series H Cumulative Preferred Stock, 1,037,956 shares issued and outstanding at March 31, 2026 | 10 | — | — | 10 | |||||||||||||||||||
| Series I Cumulative Preferred Stock, 1,034,303 shares issued and outstanding at March 31, 2026 | 11 | — | — | 11 | |||||||||||||||||||
| Common stock, $0.01 par value, 395,000,000 shares authorized, 6,476,491 shares issued and outstanding at March 31, 2026 | 65 | — | — | 65 | |||||||||||||||||||
| Additional paid-in capital | 2,402,044 | (160) | 36,763 | (C) (i) | 2,402,044 | ||||||||||||||||||
| (4,831) | (C) (i) | ||||||||||||||||||||||
| (32,092) | (C) (ii) | ||||||||||||||||||||||
| Accumulated deficit | (3,097,325) | — | 8,201 | (C) (i) | (3,089,860) | ||||||||||||||||||
| (736) | (C) (ii) | ||||||||||||||||||||||
| Total stockholders’ equity (deficit) of the Company | (695,159) | (160) | 7,305 | (687,694) | |||||||||||||||||||
| Noncontrolling interest in consolidated entities | 14,856 | — | — | 14,856 | |||||||||||||||||||
| Total equity (deficit) | (680,303) | (160) | 7,305 | (672,838) | |||||||||||||||||||
| Total liabilities and equity/deficit | $ | 2,605,309 | $ | 38,137 | $ | 4,261 | $ | 2,571,433 | |||||||||||||||
See accompanying notes.
2
NOTES TO UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
(A)Represents the historical consolidated balance sheet of Ashford Trust as of March 31, 2026, as reported in its Quarterly Report on Form 10-Q, filed on May 14, 2026.
(B)Represents the removal of the historical balance sheet of Sheraton San Diego as of March 31, 2026.
(C)Represents adjustments for Ashford Trust’s disposition of Sheraton San Diego as of March 31, 2026, which includes: (i) an adjustment for the cash consideration received of approximately $45.0 million, net of selling expenses and cash paid for hotel net working capital and (ii) the cash paid to repay the mortgage loan partially secured by Sheraton San Diego.
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ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
Year Ended December 31, 2025
(in thousands, except per share amounts)
| Ashford Trust Consolidated Historical (A) | Sheraton San Diego (B) | Adjustments | Ashford Trust Consolidated Pro Forma | ||||||||||||||||||||||||||||||||||||||
| REVENUE | |||||||||||||||||||||||||||||||||||||||||
| Rooms | $ | 825,623 | $ | 13,096 | $ | — | $ | 812,527 | |||||||||||||||||||||||||||||||||
| Food and beverage | 207,588 | 1,416 | — | 206,172 | |||||||||||||||||||||||||||||||||||||
| Other hotel revenue | 69,643 | 753 | — | 68,890 | |||||||||||||||||||||||||||||||||||||
| Total hotel revenue | 1,102,854 | 15,265 | — | 1,087,589 | |||||||||||||||||||||||||||||||||||||
| Other | 1,534 | — | — | 1,534 | |||||||||||||||||||||||||||||||||||||
| Total revenue | 1,104,388 | 15,265 | — | 1,089,123 | |||||||||||||||||||||||||||||||||||||
| EXPENSES | |||||||||||||||||||||||||||||||||||||||||
| Hotel operating expenses: | |||||||||||||||||||||||||||||||||||||||||
| Rooms | 198,106 | 3,304 | — | 194,802 | |||||||||||||||||||||||||||||||||||||
| Food and beverage | 139,828 | 1,315 | — | 138,513 | |||||||||||||||||||||||||||||||||||||
| Other expenses | 392,070 | 5,604 | — | 386,466 | |||||||||||||||||||||||||||||||||||||
| Management fees | 38,264 | 455 | — | 37,809 | |||||||||||||||||||||||||||||||||||||
| Total hotel expenses | 768,268 | 10,678 | — | 757,590 | |||||||||||||||||||||||||||||||||||||
| Property taxes, insurance and other | 59,793 | 654 | — | 59,139 | |||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 141,295 | 1,667 | — | 139,628 | |||||||||||||||||||||||||||||||||||||
| Impairment charges | 67,648 | — | — | 67,648 | |||||||||||||||||||||||||||||||||||||
| Advisory services fee | 49,039 | — | — | 49,039 | |||||||||||||||||||||||||||||||||||||
| Corporate, general and administrative | 20,783 | — | — | 20,783 | |||||||||||||||||||||||||||||||||||||
| Total operating expenses | 1,106,826 | 12,999 | — | 1,093,827 | |||||||||||||||||||||||||||||||||||||
Gain (loss) on consolidation of VIE and disposition of assets and hotel properties | 79,799 | — | 8,201 | (C) (i) | 88,000 | ||||||||||||||||||||||||||||||||||||
| Gain (loss) on derecognition of assets | 39,054 | — | — | 39,054 | |||||||||||||||||||||||||||||||||||||
| OPERATING INCOME (LOSS) | 116,415 | 2,266 | 8,201 | 122,350 | |||||||||||||||||||||||||||||||||||||
| Equity in earnings (loss) of unconsolidated entities | (325) | — | — | (325) | |||||||||||||||||||||||||||||||||||||
| Interest income | 4,739 | — | — | 4,739 | |||||||||||||||||||||||||||||||||||||
| Interest expense and amortization of discounts and loan costs | (256,229) | (3,405) | — | (252,824) | |||||||||||||||||||||||||||||||||||||
| Interest expense associated with hotels in receivership | (39,038) | — | — | (39,038) | |||||||||||||||||||||||||||||||||||||
| Write-off of premiums, loan costs and exit fees | (8,853) | (182) | (736) | (C) (ii) | (9,407) | ||||||||||||||||||||||||||||||||||||
| Gain (loss) on extinguishment of debt | 335 | — | — | 335 | |||||||||||||||||||||||||||||||||||||
| Realized and unrealized gain (loss) on derivatives | (5,346) | — | — | (5,346) | |||||||||||||||||||||||||||||||||||||
| INCOME (LOSS) BEFORE INCOME TAXES | (188,302) | (1,321) | 7,465 | (179,516) | |||||||||||||||||||||||||||||||||||||
| Income tax (expense) benefit | 143 | — | — | 143 | |||||||||||||||||||||||||||||||||||||
| NET INCOME (LOSS) | (188,159) | (1,321) | 7,465 | (179,373) | |||||||||||||||||||||||||||||||||||||
| (Income) loss attributable to noncontrolling interest in consolidated entities | 5,058 | — | — | 5,058 | |||||||||||||||||||||||||||||||||||||
| Net (income) loss attributable to redeemable noncontrolling interests in operating partnership | 3,262 | — | (126) | (C) (iv) | 3,136 | ||||||||||||||||||||||||||||||||||||
| NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY | (179,839) | (1,321) | 7,339 | (171,179) | |||||||||||||||||||||||||||||||||||||
| Preferred dividends | (28,216) | — | — | (28,216) | |||||||||||||||||||||||||||||||||||||
| Deemed dividends on redeemable preferred stock | (6,949) | — | — | (6,949) | |||||||||||||||||||||||||||||||||||||
| NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ | (215,004) | $ | (1,321) | $ | 7,339 | $ | (206,344) | |||||||||||||||||||||||||||||||||
| INCOME (LOSS) PER SHARE - BASIC: | |||||||||||||||||||||||||||||||||||||||||
| Net income (loss) attributable to common stockholders | $ | (35.99) | $ | (34.54) | |||||||||||||||||||||||||||||||||||||
| Weighted average common shares outstanding—basic | 5,974 | 5,974 | |||||||||||||||||||||||||||||||||||||||
| INCOME (LOSS) PER SHARE - DILUTED: | |||||||||||||||||||||||||||||||||||||||||
| Net income (loss) attributable to common stockholders | $ | (35.99) | $ | (34.54) | |||||||||||||||||||||||||||||||||||||
| Weighted average common shares outstanding—diluted | 5,974 | 5,974 | |||||||||||||||||||||||||||||||||||||||
See accompanying notes.
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ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
Three Months Ended March 31, 2026
(in thousands, except per share amounts)
| Ashford Trust Consolidated Historical (A) | Sheraton San Diego (B) | Adjustments | Ashford Trust Consolidated Pro Forma | ||||||||||||||||||||||||||
| REVENUE | |||||||||||||||||||||||||||||
| Rooms | $ | 200,025 | $ | 2,977 | $ | — | $ | 197,048 | |||||||||||||||||||||
| Food and beverage | 51,570 | 351 | — | 51,219 | |||||||||||||||||||||||||
| Other hotel revenue | 15,983 | 219 | — | 15,764 | |||||||||||||||||||||||||
| Total hotel revenue | 267,578 | 3,547 | — | 264,031 | |||||||||||||||||||||||||
| Other | 154 | — | — | 154 | |||||||||||||||||||||||||
| Total revenue | 267,732 | 3,547 | — | 264,185 | |||||||||||||||||||||||||
| EXPENSES | |||||||||||||||||||||||||||||
| Hotel operating expenses: | |||||||||||||||||||||||||||||
| Rooms | 46,190 | 732 | — | 45,458 | |||||||||||||||||||||||||
| Food and beverage | 34,383 | 414 | — | 33,969 | |||||||||||||||||||||||||
| Other expenses | 91,273 | 1,364 | — | 89,909 | |||||||||||||||||||||||||
| Management fees | 9,284 | 106 | — | 9,178 | |||||||||||||||||||||||||
| Total hotel expenses | 181,130 | 2,616 | — | 178,514 | |||||||||||||||||||||||||
| Property taxes, insurance and other | 14,894 | 127 | — | 14,767 | |||||||||||||||||||||||||
| Depreciation and amortization | 32,006 | 513 | — | 31,493 | |||||||||||||||||||||||||
| Impairment charges | 112,649 | — | — | 112,649 | |||||||||||||||||||||||||
| Advisory services fee | 20,023 | — | — | 20,023 | |||||||||||||||||||||||||
| Corporate, general and administrative | 1,602 | — | — | 1,602 | |||||||||||||||||||||||||
| Total operating expenses | 362,304 | 3,256 | — | 359,048 | |||||||||||||||||||||||||
| Gain (loss) on disposition of assets and hotel properties | 100,030 | — | — | 100,030 | |||||||||||||||||||||||||
| Gain (loss) on derecognition of assets | 7,790 | — | — | 7,790 | |||||||||||||||||||||||||
| OPERATING INCOME (LOSS) | 13,248 | 291 | — | 12,957 | |||||||||||||||||||||||||
| Equity in earnings (loss) of unconsolidated entities | (202) | — | — | (202) | |||||||||||||||||||||||||
| Interest income | 922 | — | — | 922 | |||||||||||||||||||||||||
| Other income (expense) | 3,223 | — | — | 3,223 | |||||||||||||||||||||||||
| Interest expense and amortization of discounts and loan costs | (73,554) | (868) | — | (72,686) | |||||||||||||||||||||||||
| Interest expense associated with hotels in receivership | (7,820) | — | — | (7,820) | |||||||||||||||||||||||||
| Write-off of premiums, loan costs and exit fees | (1,254) | — | — | (1,254) | |||||||||||||||||||||||||
| Gain (loss) on extinguishment of debt | (25) | — | — | (25) | |||||||||||||||||||||||||
| Realized and unrealized gain (loss) on derivatives | 757 | — | — | 757 | |||||||||||||||||||||||||
| INCOME (LOSS) BEFORE INCOME TAXES | (64,705) | (577) | — | (64,128) | |||||||||||||||||||||||||
| Income tax (expense) benefit | (752) | — | 26 | (C) (iii) | (726) | ||||||||||||||||||||||||
| NET INCOME (LOSS) | (65,457) | (577) | 26 | (64,854) | |||||||||||||||||||||||||
| (Income) loss attributable to noncontrolling interest in consolidated entities | 655 | — | — | 655 | |||||||||||||||||||||||||
| Net (income) loss attributable to redeemable noncontrolling interests in operating partnership | 1,030 | — | (9) | (C) (iv) | 1,021 | ||||||||||||||||||||||||
| NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY | (63,772) | (577) | 17 | (63,178) | |||||||||||||||||||||||||
| Preferred dividends | (2,714) | — | — | (2,714) | |||||||||||||||||||||||||
| Deemed dividends on redeemable preferred stock | (4,600) | — | — | (4,600) | |||||||||||||||||||||||||
| NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ | (71,086) | $ | (577) | $ | 17 | $ | (70,492) | |||||||||||||||||||||
| INCOME (LOSS) PER SHARE - BASIC: | |||||||||||||||||||||||||||||
| Income (loss) attributable to common stockholders | $ | (11.03) | $ | (10.94) | |||||||||||||||||||||||||
| Weighted average common shares outstanding—basic | 6,442 | 6,442 | |||||||||||||||||||||||||||
| INCOME (LOSS) PER SHARE - DILUTED: | |||||||||||||||||||||||||||||
| Income (loss) attributable to common stockholders | $ | (11.03) | $ | (10.94) | |||||||||||||||||||||||||
| Weighted average common shares outstanding—diluted | 6,442 | 6,442 | |||||||||||||||||||||||||||
See accompanying notes.
5
NOTES TO UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(A)Represents the historical consolidated statement of operations of Ashford Trust for the year ended December 31, 2025, as reported in its Annual Report on Form 10-K for the year ended December 31, 2025, filed on March 23, 2026 and the historical consolidated statement of operations of Ashford Trust for the three months ended March 31, 2026, as reported in its Quarterly Report on Form 10-Q for the three months ended March 31, 2026, filed on May 14, 2026.
(B)Represents the removal of the historical consolidated statements of operations of Sheraton San Diego for the year ended December 31, 2025 and the three months ended March 31, 2026.
(C)Represents adjustments for the Company’s sale of Sheraton San Diego, which includes: (i) the estimated non-recurring gain on the disposition of Sheraton San Diego for the year ended December 31, 2025; (ii) an adjustment for write off of loan costs; (iii) an adjustment for the estimated tax effect of the hotel no longer being part of the consolidated group for the three months ended March 31, 2026; and (iv) the net (income) loss allocated to redeemable noncontrolling interests in operating partnership related to the disposition of Sheraton San Diego, including the estimated non-recurring gain for the year ended December 31, 2025, based on an ownership percentage of 1.43% for the year ended December 31, 2025 and 1.43% for the three months ended March 31, 2026. There was no material estimated tax effect of the hotel no longer being part of the consolidated group for the year ended December 31, 2025. The pro forma gain resulting from the disposition of Sheraton San Diego is preliminary. The actual results may differ from the amounts reflected in the pro forma financial statements.
6