Why Ashford Hospitality Trust Stock Rocketed Nearly 50% in May
Shares of Ashford Hospitality Trust (NYSE: AHT) surged 47.8% in May, according to data provided by S&P Global Market Intelligence. Driving up the hotel REIT were its first-quarter results and improving fundamentals in the hotel market.
Ashford Hospitality Trust reported its first-quarter results in early May. While they were down significantly compared to last year's pre-pandemic first quarter, they were much better than expected. Overall, the hotel REIT reported an FFO loss of $0.30 per share, which was $0.43 per share better than the consensus estimate. Meanwhile, adjusted EBITDAre, while a negative $5.2 million in the quarter, marked its best-performing quarter since the pandemic started late in last year's first quarter. Further, the trust's hotel portfolio generated positive EBITDA during the quarter. The company is benefiting from improving hotel demand as vaccines roll out, giving people the confidence to travel once again.
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Source Fool.com
