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Ashford's CEO Discusses Q2 2012 Results - Earnings Call Transcript

In addition, certain terms used in this call are non-GAAP financial measures, reconciliations of which are provided in the company’s earnings release and accompanying tables or schedules, which have been filed on Form 8-K with the SEC on August 1, 2012, and may also be accessed through the company’s website at Each listener is encouraged to review those reconciliations provided in the earnings release together with all other information provided in the release.

I will now turn the call over to Monty Bennett. Please go ahead, sir.

Monty Bennett

Thank you and good morning. We are pleased to report a solid recovery in our RevPAR for the second quarter with growth, 7.3% for hotels not under renovations in our legacy portfolio, and RevPAR growth of 7.6% for hotels not under renovation in our Highland portfolio.

Additionally, our adjusted EBITDA of 98.4 million reflect a 10% growth over the prior year. On a capital market side of our business, we continue to be conservative with our conditioning and utilization. Our capital strategies include optimistically utilizing our preferred equity aftermarket offering, refinancings and asset sales.

With respect to transactions, finding accretive hotel investments is currently challenging for us. Although we are actively underwriting opportunities, the acquisition market is very competitive for high quality hotels.

At our current share price, we find it unattractive to pursue most investment in the United States or in Europe. Our share price will need to materially increase before potential acquisitions become attractive, especially those in Europe.

With among the high percentage of insider ownership of 20%, I can assure you that we remain [inaudible] focused on strategies to increase total shareholder returns.

Overall, lodging fundamentals remain strong, DS hotel market is performing exceptionally well despite the choppy global backdrop of a sluggish U.S. economy and the overhang of the dark clouds in Europe on many economic, social and political matters. All the data we’ve gathered supports our expectation of a prolonged, upward trend in lodging fundamentals that we believe is conducive for substantial long-term growth and appreciation.

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