Ashford Prime Reports First Quarter 2015 Results

10.8% RevPAR Increase for All Hotels for the First Quarter

3rd Straight Quarter of Double-Digit RevPAR Growth

Hotel EBITDA Margin Increase of 149 basis points for All Hotels

Adjusted EBITDA Increased 30%

Adjusted Funds From Operations per Share Increased 44%

News provided by

May 07, 2015, 08:00 ET

DALLAS, May 7, 2015 /PRNewswire/ -- Ashford Hospitality Prime, Inc. (NYSE: AHP) ("Ashford Prime" or the "Company") today reported the following results and performance measures for the first quarter ended March 31, 2015. The performance measurements for Occupancy, Average Daily Rate (ADR), Revenue Per Available Room (RevPAR), and Hotel Operating Profit (or Hotel EBITDA) are pro forma. Unless otherwise stated, all reported results compare the first quarter ended March 31, 2015, with the first quarter ended March 31, 2014 (see discussion below). The reconciliation of non-GAAP financial measures is included in the financial tables accompanying this press release.

FINANCIAL AND OPERATING HIGHLIGHTS

RevPAR for all Ashford Prime hotels increased 10.8% to $163.35 during the first quarter, driven by a 4.7% increase in ADR and a 5.8% increase in occupancy
Hotel EBITDA increased $3.3 million or 16.4% for all hotels
Hotel EBITDA flow-through was 44% for all hotels
Adjusted EBITDA increased $4.3 million or 30.0%
Net loss attributable to common stockholders for the Company was $0.2 million, or $0.01 per diluted share, compared with net loss attributable to common stockholders of $2.9 million, or $0.13 per diluted share, in the prior-year quarter
Adjusted funds from operations (AFFO) for the Company was $0.26 per diluted share for the quarter compared with $0.18 from the prior-year quarter representing an increase of 44%
On March 9, 2015, the Company announced it had refinanced its mortgage loan on the 142-room Pier House Resort in Key West, Florida, which had an existing outstanding balance of approximately $69 million, with a new $70 million non-recourse mortgage loan
The Company has repurchased 1.9 million shares of common stock and common units under its share repurchase program in the period from November 4, 2014 up to and including May 1, 2015

CAPITAL EXPENDITURES

Capex invested in the quarter was $4.6 million

CAPITAL STRUCTURE
At March 31, 2015, the Company had total assets of $1.2 billion in continuing operations. As of March 31, 2015, the Company had $764 million of mortgage debt in continuing operations of which $49.3 million related to our joint venture partner's share of debt on the Capital Hilton and Hilton La Jolla Torrey Pines. Ashford Prime's total combined debt had a blended average interest rate of 4.77%.

On March 9, 2015, the Company announced it had refinanced its mortgage loan on the 142-room Pier House Resort in Key West, Florida, which had an existing outstanding balance of approximately $69 million. The loan was refinanced with a new $70 million non-recourse mortgage loan that has a two-year initial term and three, one-year extension options, subject to the satisfaction of certain conditions. The new loan is interest only and provides for a floating interest rate of LIBOR + 2.25%. The refinancing resulted in annual interest savings of approximately $1.8 million.

PORTFOLIO REVPAR
As of March 31, 2015, the Ashford Prime Portfolio consisted of direct hotel investments with ten properties classified in continuing operations. During the first quarter of 2015, nine of the Ashford Prime Portfolio hotels included in continuing operations were not under renovation.

Pro forma RevPAR increased 10.8% to $163.35 for all hotels on a 4.7% increase in ADR and a 5.8% increase in occupancy
Pro forma RevPAR increased 10.8% to $167.06 for all hotels not under renovation on a 4.1% increase in ADR and a 6.5% increase in occupancy

HOTEL EBITDA MARGINS AND QUARTERLY SEASONALITY TRENDS
The Company believes year-over-year Hotel EBITDA and Hotel EBITDA Margin comparisons are more meaningful to gauge the performance of the Company's hotels than sequential quarter-over-quarter comparisons. Given the substantial seasonality in the Company's portfolio, to help investors better understand this seasonality, the Company provides quarterly detail on its Hotel EBITDA and Hotel EBITDA Margin for the current and certain prior-year periods based upon the number of hotels in the Ashford Prime Portfolio as of the end of the current period. As the Company's portfolio mix changes from time to time so will the seasonality for Pro forma Hotel EBITDA and Pro forma Hotel EBITDA Margin. The details of the quarterly calculations for the previous four quarters for the ten Ashford Prime Portfolio hotels included in continuing operations are provided in the table attached to this release.

COMMON STOCK DIVIDEND
On March 13, 2015, the Company announced that its Board of Directors had declared a quarterly cash dividend of $0.05 per diluted share for the Company's common stock for the first quarter ending March 31, 2015, payable on April 15, 2015, to shareholders of record as of March 31, 2015. At its next meeting in May, the Board will revisit the dividend policy as it appears that at the current level, our dividend will not be enough to satisfy the 90% income distribution requirement.

SHARE REPURCHASE PROGRAM
The Company today provided an update regarding its share repurchase program announced on October 27, 2014. The Company reported it has repurchased 1.9 million shares of common stock and common units in the period from November 4, 2014 up to and including May 1, 2015, for total consideration of $32.0 million. As of May 1, 2015, the Company's fully diluted share count was approximately 32.7 million shares. The Company has slowed down its share repurchase activity. We have concluded that the Company's stock would trade much better with greater liquidity. So while the stock is trading at a great value, repurchasing it could be counterproductive to maximizing shareholder value.

"This marked the third consecutive quarter of double-digit RevPAR growth for Ashford Prime which was driven by the continued success of our revenue optimization strategies as well as the positive market dynamics we are seeing throughout our portfolio," commented Monty J. Bennett, Ashford Prime's Chairman and Chief Executive Officer. "Our outstanding operating results also speak to the superb quality of our assets and our original rationale for creating Ashford Prime. We believe this portfolio is well-positioned to continue to capitalize on positive industry fundamentals and deliver strong results."

INVESTOR CONFERENCE CALL AND SIMULCAST
Ashford Hospitality Prime, Inc. will conduct a conference call on Friday, May 8, 2015, at 11:00 a.m. ET. The number to call for this interactive teleconference is (719) 325-2464. A replay of the conference call will be available through Friday, May 15, 2015, by dialing (719) 457-0820 and entering the confirmation number, 6009183.

The Company will also provide an online simulcast and rebroadcast of its first quarter 2015 earnings release conference call. The live broadcast of Ashford Hospitality Prime's quarterly conference call will be available online at the Company's web site, www.ahpreit.com on Friday, May 8, 2015, beginning at 11:00 a.m. ET. The online replay will follow shortly after the call and continue for approximately one year.

Substantially all of our non-current assets consist of real estate investments secured by real estate. Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, most industry investors consider supplemental measures of performance, which are not measures of operating performance under GAAP, to assist in evaluating a real estate company's operations. These supplemental measures include FFO, AFFO, EBITDA, and Hotel Operating Profit. FFO is computed in accordance with our interpretation of standards established by NAREIT, which may not be comparable to FFO reported by other REITs that do not define the term in accordance with the current NAREIT definition or that interpret the NAREIT definition differently than us. Neither FFO, AFFO, EBITDA, nor Hotel Operating Profit represents cash generated from operating activities as determined by GAAP and should not be considered as an alternative to a) GAAP net income (loss) as an indication of our financial performance or b) GAAP cash flows from operating activities as a measure of our liquidity, nor are such measures indicative of funds available to satisfy our cash needs, including our ability to make cash distributions. However, management believes FFO, AFFO, EBITDA, and Hotel Operating Profit to be meaningful measures of a REIT's performance and should be considered along with, but not as an alternative to, net income and cash flow as a measure of our operating performance.

Ashford Hospitality Prime is a conservatively capitalized real estate investment trust (REIT) focused on investing in high RevPAR full-service and urban select-service hotels and resorts located predominantly in domestic and international gateway markets.

Follow Chairman and CEO Monty Bennett on Twitter at www.twitter.com/MBennettAshford or @MBennettAshford.

Ashford has created an Ashford App for the hospitality REIT investor community. The Ashford App is available for free download at Apple's App Store and the Google Play Store by searching "Ashford."

Certain statements and assumptions in this press release contain or are based upon "forward-looking" information and are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties. When we use the words "will likely result," "may," "anticipate," "estimate," "should," "expect," "believe," "intend," or similar expressions, we intend to identify forward-looking statements. Such statements are subject to numerous assumptions and uncertainties, many of which are outside Ashford Prime's control.

These forward-looking statements are subject to known and unknown risks and uncertainties, which could cause actual results to differ materially from those anticipated, including, without limitation: general volatility of the capital markets and the market price of our common stock; changes in our business or investment strategy; availability, terms and deployment of capital; availability of qualified personnel; changes in our industry and the market in which we operate, interest rates or the general economy; and the degree and nature of our competition. These and other risk factors are more fully discussed in Ashford Prime's filings with the Securities and Exchange Commission. EBITDA is defined as net income before interest, taxes, depreciation and amortization. EBITDA yield is defined as trailing twelve month EBITDA divided by the purchase price. A capitalization rate is determined by dividing the property's annual net operating income by the purchase price. Net operating income is the property's funds from operations minus a capital expense reserve of either 4% or 5% of gross revenues. Hotel EBITDA flow-through is the change in Hotel EBITDA divided by the change in total revenues. Hotel EBITDA Margin is Hotel EBITDA divided by total revenues. Funds from operations ("FFO"), as defined by the White Paper on FFO approved by the Board of Governors of the National Association of Real Estate Investment Trusts ("NAREIT") in April 2002, represents net income (loss) computed in accordance with generally accepted accounting principles ("GAAP"), excluding gains (or losses) from sales of properties and extraordinary items as defined by GAAP, plus depreciation and amortization of real estate assets, and net of adjustments for the portion of these items related to unconsolidated entities and joint ventures.

The forward-looking statements included in this press release are only made as of the date of this press release. Investors should not place undue reliance on these forward-looking statements. We are not obligated to publicly update or revise any forward-looking statements, whether as a result of new information, future events or circumstances, changes in expectations or otherwise.

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
(unaudited)

				March 31,	December 31,
				2015	2014
ASSETS
	Cash and cash equivalents			$ 109,203	$ 171,439
	Marketable securities			61,912	-
		Total cash, cash equivalents and marketable securities		171,115	171,439
	Investments in hotel properties, net			984,953	990,303
	Restricted cash			27,457	29,646
	Accounts receivable, net of allowance of $49 and $47, respectively			13,418	12,382
	Inventories			673	696
	Note receivable			8,098	8,098
	Deferred costs, net			5,028	4,707
	Prepaid expenses			3,782	2,422
	Derivative assets			11	35
	Other assets			1,965	1,193
	Intangible asset, net			2,520	2,542
	Due from related party, net			742	541
	Due from third-party hotel managers			6,070	5,504

		Total assets		$ 1,225,832	$ 1,229,508

LIABILITIES AND EQUITY
Liabilities:
	Indebtedness			$ 764,341	$ 765,230
	Accounts payable and accrued expenses			30,250	29,273
	Dividends payable			1,389	1,425
	Unfavorable management contract liabilities			277	316
	Due to Ashford Trust, net			335	896
	Due to Ashford Inc.			2,819	2,546
	Due to third-party hotel managers			860	954
	Intangible liability, net			3,725	3,739
	Liabilities associated with marketable securities and other			10,450	-
	Other liabilities			1,109	1,131

		Total liabilities		815,555	805,510

Redeemable noncontrolling interests in operating partnership				142,179	149,555

Equity:
		Common stock, $0.01 par value, 200,000,000 shares authorized, 25,393,433 shares issued and 24,054,913 and 24,464,163 shares outstanding at March 31, 2015 and December 31, 2014, respectively		254	254
		Additional paid-in capital		390,610	391,184
		Accumulated deficit		(95,056)	(96,404)
		Treasury stock, at cost, 1,338,520 and 929,270 shares at March 31, 2015 and December 31, 2014, respectively		(23,102)	(16,130)
			Total stockholders' equity of the Company	272,706	278,904
	Noncontrolling interest in consolidated entities			(4,608)	(4,461)

		Total equity		268,098	274,443

			Total liabilities and equity	$ 1,225,832	$ 1,229,508

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)

				Three Months Ended
				March 31,
				2015	2014
REVENUE
	Rooms			$ 54,497	$ 43,971
	Food and beverage			20,230	15,181
	Other			3,022	2,636

		Total hotel revenue		77,749	61,788
	Other			40	18

		Total revenue		77,789	61,806

EXPENSES
	Hotel operating expenses
		Rooms		12,978	10,954
		Food and beverage		13,069	9,684
		Other expenses		20,924	16,624
		Management fees		3,104	2,518

			Total hotel operating expenses	50,075	39,780

	Property taxes, insurance and other			4,595	3,667
	Depreciation and amortization			10,517	8,773
	Advisory services fee:
		Base advisory fee		2,205	1,971
		Advisory services fee – other services		546	223
		Non-cash stock/unit-based compensation		469	-

	Transaction costs			-	1,593
	Corporate, general and administrative:
		Other general and administrative		1,123	1,024

			Total operating expenses	69,530	57,031

OPERATING INCOME				8,259	4,775

	Interest income			4	4
	Other income			139	-
	Interest expense			(8,891)	(8,618)
	Amortization of loan costs			(692)	(371)
	Write-off of loan costs and exit fees			(54)	-
	Unrealized gain on marketable securities			1,323	-
	Unrealized loss on derivatives			(32)	(15)

INCOME (LOSS) BEFORE INCOME TAXES				56	(4,225)
	Income tax expense			(481)	(226)

NET LOSS				(425)	(4,451)
Loss from consolidated entities attributable to noncontrolling interest				147	405
Net loss attributable to redeemable noncontrolling interests in operating partnership				72	1,168

NET LOSS ATTRIBUTABLE TO THE COMPANY				$ (206)	$ (2,878)

LOSS PER SHARE – BASIC AND DILUTED
	Basic:

		Net loss attributable to common stockholders		$ (0.01)	$ (0.13)

		Weighted average common shares outstanding – basic		24,070	22,308

	Diluted:

		Net loss attributable to common stockholders		$ (0.01)	$ (0.13)

		Weighted average common shares outstanding – diluted		24,070	22,308

	Dividends declared per common share:			$ 0.05	$ 0.05

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES
RECONCILIATION OF NET LOSS TO EBITDA AND ADJUSTED EBITDA
(in thousands)
(unaudited)

		Three Months Ended
		March 31,
		2015	2014

Net loss		$ (425)	$ (4,451)
Loss from consolidated entities attributable to noncontrolling interest		147	405
Net loss attributable to redeemable noncontrolling interests in operating partnership		72	1,168
Net loss attributable to the Company		(206)	(2,878)

	Interest income	(4)	(3)
	Interest expense and amortization of loan costs	9,208	8,519
	Depreciation and amortization	9,788	7,973
	Income tax expense	481	226
	Net loss attributable to redeemable noncontrolling interests in operating partnership	(72)	(1,168)

EBITDA		19,195	12,669

	Amortization of unfavorable management contract liabilities	(39)	(39)
	Write-off of loan costs and exit fees	54	-
	Transaction costs	-	1,593
	Unrealized gain on marketable securities	(1,323)	-
	Unrealized loss on derivatives	29	15
	Other income (1)	(139)	-
	Non-cash, non-employee stock/unit-based compensation	469	-
	Dead deal costs	272	-

Adjusted EBITDA		$ 18,518	$ 14,238

(1)

Other income, primarily consisting of net realized gain/loss on marketable securities is excluded from Adjusted EBITDA.

RECONCILIATION OF NET LOSS TO FUNDS FROM OPERATIONS ("FFO") AND ADJUSTED FFO
(in thousands, except per share amounts)
(unaudited)

		Three Months Ended
		March 31,
		2015	2014

Net loss		$ (425)	$ (4,451)
Loss from consolidated entities attributable to noncontrolling interest		147	405
Net loss attributable to redeemable noncontrolling interests in operating partnership		72	1,168

Net loss attributable to common stockholders		(206)	(2,878)

	Depreciation and amortization on real estate	9,788	7,973
	Net loss attributable to redeemable noncontrolling interests in operating partnership	(72)	(1,168)

FFO available to common stockholders		9,510	3,927
	Unrealized gain on marketable securities	(1,323)	-
	Unrealized loss on derivatives	29	15
	Other income (1)	(139)	-
	Transaction costs	-	1,593
	Dead deal costs	272	-
	Write-off of loan costs and exit fees	54	-

Adjusted FFO available to common stockholders		$ 8,403	$ 5,535

Adjusted FFO per diluted share available to common stockholders		$ 0.26	$ 0.18

Weighted average diluted shares		32,622	31,145

(1)

Other income, primarily consisting of net realized gain/loss on marketable securities is excluded from Adjusted FFO.

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES
SUMMARY OF INDEBTEDNESS
MARCH 31, 2015
(dollars in thousands)
(unaudited)

							Proforma	Proforma
			Fixed-Rate	Floating-Rate		Total	TTM Hotel	TTM EBITDA
Indebtedness	Maturity	Interest Rate	Debt	Debt		Debt	EBITDA	Debt Yield

GACC Sofitel - 1 hotel	March 2016	LIBOR + 2.30%	$ -	$ 80,000	(3)	$ 80,000	$ 10,366	13.0%
Senior credit facility - Various	November 2016	LIBOR + 2.25% to 3.75%	-	-	(1)	-	N/A	N/A
Credit Agricole Pier House - 1 hotel	March 2017	LIBOR + 2.25%		70,000	(2)	70,000	9,018	12.9%
Wachovia Philly CY - 1 hotel	April 2017	5.91%	33,736	-		33,736	11,839	35.1%
Wachovia 3 - 2 hotels	April 2017	5.95%	123,661	-		123,661	19,930	16.1%
Wachovia 7 - 3 hotels	April 2017	5.95%	251,640	-		251,640	29,698	11.8%
TIF Philly CY - 1 hotel	June 2018	12.85%	8,098	-		8,098	N/A	N/A
Aareal - 2 hotels	November 2019	LIBOR + 2.65%	-	197,206	(4)	197,206	27,254	13.8%

Total			$ 417,135	$ 347,206		$ 764,341	$ 108,104	14.1%

Percentage			54.6%	45.4%		100.0%

Weighted average interest rate			6.08%	3.19%		4.77%

All indebtedness is non-recourse with the exception of the senior credit facility.

⁽¹⁾This credit facility has two one-year extension options subject to advance notice, certain conditions and a 0.25% extension fee beginning November 2016.

⁽²⁾ On March 7, 2015, we refinanced our $69.0 million mortgage loan due September 2015 with a $70.0 million loan due March 2017 with three one-year extension options. The new loan provides for a floating interest rate of LIBOR + 2.25%.

⁽³⁾This mortgage loan has three one-year extension options beginning March 2016, subject to satisfaction of certain conditions.

⁽⁴⁾This mortgage loan has two one-year extension options beginning November 2019, subject to satisfaction of certain conditions.

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES
INDEBTEDNESS BY MATURITY ASSUMING EXTENSION OPTIONS ARE EXERCISED
MARCH 31, 2015
(in thousands)
(unaudited)

	2015	2016	2017	2018	2019	Thereafter	Total

Senior credit facility - Various	$ -	$ -	$ -	$ -	$ -	$ -	$ -
Wachovia Philly CY - 1 hotel	-	-	32,532	-	-	-	32,532
Wachovia 3 - 2 hotels	-	-	119,245	-	-	-	119,245
Wachovia 7 - 3 hotels	-	-	242,202	-	-	-	242,202
TIF Philly CY - 1 hotel	-	-	-	8,098	-	-	8,098
GACC Sofitel - 1 hotel	-	-	-	-	80,000	-	80,000
Aareal - 2 hotels	-	-	-	-	-	177,486	177,486
Credit Agricole Pier House - 1 hotel	-	-	-	-	-	70,000	70,000

Principal due in future periods	$ -	$ -	$ 393,979	$ 8,098	$ 80,000	$ 247,486	$ 729,563

Scheduled amortization payments remaining	6,320	8,646	7,526	2,939	3,120	6,228	34,778

Total indebtedness	$ 6,320	$ 8,646	$ 401,505	$ 11,037	$ 83,120	$ 253,714	$ 764,341

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES
KEY PERFORMANCE INDICATORS - PRO FORMA
(dollars in thousands)
(unaudited)

		Three Months Ended
		March 31,
		2015	2014	% Variance

ALL HOTELS:
	Room revenues (in thousands)	$ 54,497	$ 49,155	10.87%
	RevPAR	$ 163.35	$ 147.49	10.75%
	Occupancy	78.54%	74.24%	5.79%
	ADR	$ 207.97	$ 198.65	4.69%

NOTES:
	(1)	The above pro forma table assumes the ten hotel properties owned and included in the Company's operations at March 31, 2015 were owned as of the beginning of each of the periods presented.

			Three Months Ended
			March 31,
			2015	2014	% Variance

ALL HOTELS
	NOT UNDER RENOVATION:
		Room revenues (in thousands)	$ 51,976	$ 46,840	10.96%
		RevPAR	$ 167.06	$ 150.72	10.84%
		Occupancy	78.83%	74.04%	6.47%
		ADR	$ 211.92	$ 203.55	4.11%

NOTES:

(1)

The above pro forma table assumes the nine hotel properties included in the Company's operations at March 31, 2015, but not under renovation for the three months ended March 31, 2015 were owned as of the beginning of each of the periods presented.

(2)

Excluded Hotels Under Renovation:

Courtyard Seattle

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES
PRO FORMA HOTEL OPERATING PROFIT MARGIN
(unaudited)

THE FOLLOWING PRO FORMA EBITDA MARGIN TABLE REFLECTS THE TEN HOTELS INCLUDED
IN THE COMPANY'S OPERATIONS AS IF THESE HOTELS WERE OWNED AT THE BEGINNING OF
THE FIRST COMPARATIVE REPORTING PERIOD.


			10 Prime
			Properties
HOTEL OPERATING PROFIT (HOTEL EBITDA) MARGIN:

	1st Quarter 2015		30.26%
	1st Quarter 2014		28.77%
		Variance	1.49%

HOTEL OPERATING PROFIT (HOTEL EBITDA) MARGIN VARIANCE BREAKDOWN:

	Rooms		0.42%
	Food & Beverage and Other Departmental		0.55%
	Administrative & General		-0.36%
	Sales & Marketing		0.07%
	Hospitality		0.00%
	Repair & Maintenance		0.48%
	Energy		0.46%
	Franchise Fee		0.00%
	Management Fee		-0.09%
	Incentive Management Fee		-0.32%
	Insurance		0.28%
	Property Taxes		0.03%
	Other Taxes		-0.01%
	Leases/Other		-0.02%
		Total	1.49%

	ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES
	SELECTED PRO FORMA FINANCIAL AND OPERATING INFORMATION BY PROPERTY
	(in thousands, except operating information)
	(unaudited)

	THE FOLLOWING TABLE PRESENTS SELECTED FINANCIAL AND REPORTING INFORMATION BY PROPERTY FOR THE TEN PROPERTIES INCLUDED IN THE ASHFORD PRIME PORTFOLIO.


		Three Months Ended			TTM
		March 31,			March 31,
		2015	2014	% Variance	2015

CAPITAL HILTON WASHINGTON DC
	Selected Financial Information:
	Room Revenue	$ 8,374	$ 7,988	4.83%	$ 37,206
	Total Revenue	$ 13,239	$ 11,988	10.44%	$ 53,377
	EBITDA	$ 3,103	$ 2,717	14.21%	$ 15,568
	EBITDA Margin	23.44%	22.66%	0.77%	29.17%
	Selected Operating Information:
	RevPAR	$ 170.10	$ 163.16	4.25%	$ 186.59
	Occupancy	78.00%	73.14%	6.64%	85.95%
	ADR	$ 218.08	$ 223.08	-2.24%	$ 217.10
LA JOLLA HILTON TORREY PINES
	Selected Financial Information:
	Room Revenue	$ 5,882	$ 5,268	11.66%	$ 22,189
	Total Revenue	$ 10,803	$ 9,413	14.77%	$ 38,577
	EBITDA	$ 3,600	$ 2,857	26.01%	$ 11,685
	EBITDA Margin	33.32%	30.35%	2.97%	30.29%
	Selected Operating Information:
	RevPAR	$ 165.89	$ 148.55	11.67%	$ 154.29
	Occupancy	83.21%	80.96%	2.77%	85.05%
	ADR	$ 199.37	$ 183.48	8.66%	$ 181.41
CHICAGO SOFITEL WATER TOWER
	Selected Financial Information:
	Room Revenue	$ 3,857	$ 3,703	4.16%	$ 27,523
	Total Revenue	$ 5,624	$ 5,908	-4.81%	$ 39,481
	EBITDA	- $ 611	- $ 71	760.56%	$ 10,366
	EBITDA Margin	-10.86%	-1.20%	-9.66%	26.26%
	Selected Operating Information:
	RevPAR	$ 103.26	$ 99.13	4.17%	$ 181.70
	Occupancy	66.24%	65.68%	0.85%	80.59%
	ADR	$ 155.89	$ 150.93	3.29%	$ 225.45
KEY WEST PIER HOUSE RESORT
	Selected Financial Information:
	Room Revenue	$ 5,734	$ 5,412	5.95%	$ 17,615
	Total Revenue	$ 6,954	$ 6,735	3.25%	$ 22,149
	EBITDA	$ 3,502	$ 3,123	12.14%	$ 9,018
	EBITDA Margin	50.36%	46.37%	3.99%	40.72%
	Selected Operating Information:
	RevPAR	$ 448.66	$ 423.51	5.94%	$ 339.86
	Occupancy	93.47%	92.41%	1.15%	86.81%
	ADR	$ 479.98	$ 458.30	4.73%	$ 391.49
PHILADELPHIA COURTYARD DOWNTOWN
	Selected Financial Information:
	Room Revenue	$ 5,312	$ 4,386	21.11%	$ 24,922
	Total Revenue	$ 6,547	$ 5,578	17.37%	$ 30,621
	EBITDA	$ 1,979	$ 1,452	36.29%	$ 11,839
	EBITDA Margin	30.23%	26.03%	4.20%	38.66%
	Selected Operating Information:
	RevPAR	$ 118.27	$ 97.83	20.89%	$ 136.83
	Occupancy	76.82%	65.65%	17.02%	82.15%
	ADR	$ 153.95	$ 149.02	3.31%	$ 166.57
PLANO MARRIOTT LEGACY TOWN CENTER
	Selected Financial Information:
	Room Revenue	$ 5,050	$ 4,538	11.28%	$ 18,734
	Total Revenue	$ 8,206	$ 7,385	11.12%	$ 30,294
	EBITDA	$ 2,933	$ 2,502	17.23%	$ 10,307
	EBITDA Margin	35.74%	33.88%	1.86%	34.02%
	Selected Operating Information:
	RevPAR	$ 138.89	$ 124.80	11.29%	$ 127.05
	Occupancy	70.67%	68.74%	2.81%	69.60%
	ADR	$ 196.53	$ 181.55	8.25%	$ 182.55
SAN FRANCISCO COURTYARD DOWNTOWN
	Selected Financial Information:
	Room Revenue	$ 8,236	$ 7,078	16.36%	$ 35,142
	Total Revenue	$ 9,755	$ 8,251	18.23%	$ 40,890
	EBITDA	$ 3,087	$ 2,469	25.03%	$ 13,685
	EBITDA Margin	31.65%	29.92%	1.72%	33.47%
	Selected Operating Information:
	RevPAR	$ 225.94	$ 194.19	16.35%	$ 237.73
	Occupancy	90.80%	80.94%	12.18%	92.32%
	ADR	$ 248.83	$ 239.91	3.72%	$ 257.50
SEATTLE COURTYARD DOWNTOWN
	Selected Financial Information:
	Room Revenue	$ 2,521	$ 2,315	8.90%	$ 13,399
	Total Revenue	$ 2,892	$ 2,832	2.12%	$ 15,435
	EBITDA	$ 1,163	$ 1,127	3.19%	$ 6,245
	EBITDA Margin	40.21%	39.80%	0.42%	40.46%
	Selected Operating Information:
	RevPAR	$ 112.03	$ 102.90	8.87%	$ 146.84
	Occupancy	74.56%	77.04%	-3.21%	79.74%
	ADR	$ 150.25	$ 133.56	12.49%	$ 184.15
SEATTLE MARRIOTT WATERFRONT
	Selected Financial Information:
	Room Revenue	$ 4,874	$ 4,269	14.17%	$ 25,648
	Total Revenue	$ 6,949	$ 5,889	18.00%	$ 33,562
	EBITDA	$ 2,370	$ 1,852	27.97%	$ 13,533
	EBITDA Margin	34.11%	31.45%	2.66%	40.32%
	Selected Operating Information:
	RevPAR	$ 151.26	$ 132.50	14.16%	$ 196.28
	Occupancy	75.60%	71.39%	5.89%	80.71%
	ADR	$ 200.09	$ 185.59	7.81%	$ 243.20
TAMPA RENAISSANCE
	Selected Financial Information:
	Room Revenue	$ 4,659	$ 4,198	10.98%	$ 14,371
	Total Revenue	$ 6,779	$ 6,298	7.64%	$ 21,699
	EBITDA	$ 2,397	$ 2,188	9.55%	$ 5,857
	EBITDA Margin	35.36%	34.74%	0.62%	26.99%
	Selected Operating Information:
	RevPAR	$ 176.66	$ 159.18	10.98%	$ 134.38
	Occupancy	87.30%	84.62%	3.17%	81.04%
	ADR	$ 202.36	$ 188.12	7.57%	$ 165.82
PRIME PROPERTIES TOTAL (10)
	Selected Financial Information:
	Room Revenue	$ 54,497	$ 49,155	10.87%	$ 236,749
	Total Revenue	$ 77,749	$ 70,275	10.64%	$ 326,087
	EBITDA	$ 23,523	$ 20,217	16.35%	$ 108,104
	EBITDA Margin	30.26%	28.77%	1.49%	33.15%
	Selected Operating Information:
	RevPAR	$ 163.35	$ 147.49	10.75%	$ 175.01
	Occupancy	78.54%	74.24%	5.79%	82.38%
	ADR	$ 207.97	$ 198.65	4.69%	$ 212.45

NOTES:
	(1)	The above pro forma table assumes the ten hotel properties owned and included in the Company's operations at March 31, 2015, were owned as of the beginning of each of the periods presented.

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES
PRO FORMA HOTEL OPERATING PROFIT
(dollars in thousands)
(unaudited)

ALL HOTELS:

			Three Months Ended
			March 31,
			2015	2014	% Variance
REVENUE
	Rooms		$ 54,497	$ 49,155	10.9%
	Food and beverage		20,230	18,006	12.4%
	Other		3,022	3,115	-3.0%
		Total hotel revenue	77,749	70,276	10.6%

EXPENSES
	Rooms		12,978	12,025	7.9%
	Food and beverage		13,069	12,089	8.1%
	Other direct		957	975	-1.8%
	Indirect		18,824	17,470	7.8%
	Management fees, includes base and incentive fees		3,826	3,167	20.8%
		Total hotel operating expenses	49,654	45,726	8.6%
	Property taxes, insurance, and other		4,572	4,333	5.5%
HOTEL OPERATING PROFIT (Hotel EBITDA)			23,523	20,217	16.4%
		Hotel EBITDA Margin	30.26%	28.77%	1.49%

	Minority interest in earnings of consolidated joint venture		1,676	1,394	20.2%
HOTEL OPERATING PROFIT (Hotel EBITDA),
	excluding minority interest in joint ventures		$ 21,847	$ 18,823	16.1%

NOTES:
	(1)	The above pro forma table assumes the ten hotel properties owned and included in the Company's operations at March 31, 2015 were owned as of the beginning of each of the periods presented.

ALL HOTELS
	NOT UNDER RENOVATION:

			Three Months Ended
			March 31,
			2015	2014	% Variance
REVENUE
	Rooms		$ 51,976	$ 46,840	11.0%
	Food and beverage		20,037	17,689	13.3%
	Other		2,844	2,915	-2.4%
		Total hotel revenue	74,857	67,444	11.0%

EXPENSES
	Rooms		12,499	11,532	8.4%
	Food and beverage		12,871	11,878	8.4%
	Other direct		943	958	-1.6%
	Indirect		18,166	16,826	8.0%
	Management fees, includes base and incentive fees		3,601	2,970	21.2%
		Total hotel operating expenses	48,080	44,164	8.9%
	Property taxes, insurance, and other		4,417	4,190	5.4%
HOTEL OPERATING PROFIT (Hotel EBITDA)			22,360	19,090	17.1%
		Hotel EBITDA Margin	29.87%	28.30%	1.57%

	Minority interest in earnings of consolidated joint venture		1,676	1,394	20.2%
HOTEL OPERATING PROFIT (Hotel EBITDA),
	excluding minority interest in joint ventures		$ 20,684	$ 17,696	16.9%

NOTES:
	(1)	The above pro forma table assumes the nine hotel properties owned and included in the Company's operations at March 31, 2015, but not under renovation for the three months ended March 31, 2015, were owned as of the beginning of each of the periods presented.

	(2)	Excluded Hotels Under Renovation:
		Courtyard Seattle

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES
PRO FORMA HOTEL REVENUE & EBITDA FOR TRAILING TWELVE MONTHS
(dollars in thousands)
(unaudited)

THE FOLLOWING PRO FORMA SEASONALITY TABLE REFLECTS THE TEN HOTELS INCLUDED IN THE
COMPANY'S OPERATIONS AS IF THESE HOTELS WERE OWNED AT THE BEGINNING OF THE FIRST COMPARATIVE REPORTING PERIOD.

	2015	2014	2014	2014
	1st Quarter	4th Quarter	3rd Quarter	2nd Quarter	TTM

Total Hotel Revenue	$ 77,749	$ 77,816	$ 85,576	$ 84,944	$ 326,085
Hotel EBITDA	$ 23,523	$ 24,527	$ 29,368	$ 30,686	$ 108,104
Hotel EBITDA Margin	30.26%	31.52%	34.32%	36.13%	33.15%

EBITDA % of Total TTM	21.8%	22.7%	27.2%	28.4%	100.0%

JV Interests in EBITDA	$ 1,676	$ 1,427	$ 1,643	$ 2,067	$ 6,813

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES
TOTAL ENTERPRISE VALUE
MARCH 31, 2015
(in thousands, except share price)
(unaudited)


	March 31,
	2015
End of quarter common shares outstanding	24,055
Partnership units outstanding (common stock equivalents)	8,338
Combined common shares and partnership units outstanding	32,393
Common stock price at quarter end	$ 16.77
Market capitalization at quarter end	$ 543,227
Debt on balance sheet date	$ 764,341
Joint venture partners' share of consolidated debt	$ (49,302)
Net working capital (see below)	$ (175,231)
Total enterprise value (TEV)	$ 1,083,035


Cash & cash equivalents	$ 106,850
Marketable securities, net	51,462
Restricted cash	25,771
Accounts receivable, net	12,362
Prepaid expenses	3,401
Due from affiliates, net	(1,884)
Due from third-party hotel managers, net	5,423
Total current assets	$ 203,384

Accounts payable, net & accrued expenses	$ 26,764
Dividends payable	1,389
Total current liabilities	$ 28,153

Net working capital*	$ 175,231

* Calculation only includes the Company's portion of the Hilton joint venture.

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES
ANTICIPATED CAPITAL EXPENDITURES CALENDAR (a)


		2015
	Rooms	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter
		Actual	Estimated	Estimated	Estimated
Courtyard Seattle	250	x
Renaissance Tampa	293			x	x
Hilton LaJolla Torrey Pines	394			x

(a) Only hotels which have had or are expected to have significant capital expenditures that could result in displacement in 2015 are included in this table.

SOURCE Ashford Hospitality Prime, Inc.