Ashford Hospitality Prime, Inc. (AHP) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $0.40 million, or $ 0.03 a share in the quarter, against a net loss of $6.39 million, or $0.26 a share in the last year period.
Revenue during the quarter grew 6.60 percent to $93.98 million from $88.16 million in the previous year period.
Cost of revenue rose 10.47 percent or $6.45 million during the quarter to $68.07 million. Gross margin for the quarter contracted 254 basis points over the previous year period to 27.57 percent.
Total expenses were $80.05 million for the quarter, down 3.29 percent or $2.72 million from year-ago period. Operating margin for the quarter expanded 871 basis points over the previous year period to 14.82 percent.
Operating income for the quarter was $13.93 million, compared with $5.39 million in the previous year period. However, the adjusted EBITDA for the quarter stood at $21.55 million compared with $16.51 million in the prior year period. At the same time, adjusted EBITDA margin improved 420 basis points in the quarter to 22.93 percent from 18.73 percent in the last year period.
Occupancy revenue was $65.07 million for the quarter, up 3.98 percent or $2.49 million. Food and beverage revenue was $23.60 million during the quarter, up 9.62 percent or $2.07 million from year-ago period. Revenue from other hotel operating activities was $5.29 million for the quarter, up 31.49 percent or $1.27 million from year-ago period.
Other income during the quarter was $0.02 million, down 30.56 percent or $0.01 million from year-ago period.
"We are pleased with our strong fourth quarter performance, highlighted by solid RevPAR, EBITDA and AFFO growth," said Richard J. Stockton, Ashford Prime's chief executive officer. "We enter 2017 well-positioned to execute on our refined strategy to align our portfolio with the luxury chain scale segment. We believe our core portfolio will be positioned to realize above average RevPAR growth over the long-term and will differentiate us relative to our REIT peers."
Real estate inventory went up marginally by 1.93 percent or $0.03 million to $1.48 million on Dec. 31, 2016. Net receivables were at $37 million as on Dec. 31, 2016, up 13.64 percent or $4.44 million from year-ago.
Investments stood at $1.15 million as on Dec. 31, 2016, up 52.59 percent or $0.40 million from year-ago.
Total assets declined 7.08 percent or $95.75 million to $1,257 million on Dec. 31, 2016. On the other hand, total liabilities were at $828.06 million as on Dec. 31, 2016, down 7.55 percent or $67.62 million from year-ago.
Return on assets moved up 57 basis points to 0.79 percent in the quarter. Return on equity for the quarter stood at negative 0.19 percent as compared to a negative 2.19 percent for the previous year period.
Debt comes down
Total debt was at $764.62 million as on Dec. 31, 2016, down 8.49 percent or $70.98 million from year-ago. Shareholders equity stood at $303.43 million as on Dec. 31, 2016, down 8.89 percent or $29.61 million from year-ago. As a result, debt to equity ratio went up 1 basis points to 2.52 percent in the quarter.
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