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Real estate investment trust Ashford Hospitality Trust has announced the full implementation of several revenue-focused initiatives as part of its broader GRO AHT plan.
Unveiled in December 2024, the strategic initiative aims to stimulate $50m in EBITDA growth and enhance shareholder value.
Ashford’s hotel property managers have recently introduced measures to drive ancillary revenue growth and enhance profitability across the portfolio.
These include menu engineering analysis to optimise food and beverage offerings, parking agreement modifications for revenue maximisation, gift shop and corner store refreshes, and the implementation and adjustment of historic preservation fees.
Collectively, these initiatives are expected to yield more than $3m in incremental hotel EBITDA annually.
Ashford Trust president and CEO Stephen Zsigray said: "We are encouraged by early results and are excited to see how these initiatives further materialise in the coming months.
“While RevPAR for the month increased by more than 4% versus the prior year, total revenue growth was nearly double, reflecting the importance and effectiveness of these ancillary revenue initiatives. Combined with the efforts underway to grow market share and reduce expenses across the company, we're excited about the progress that we've made on the execution of our strategic plan and will continue to provide updates."
Ashford Hospitality Trust focuses on investing in upper-upscale, full-service hotels.
In December 2024, the company signed a definitive agreement with an undisclosed buyer to sell its 315-room Courtyard Boston Downtown property for $123m, subject to customary closing conditions.
"Ashford Hospitality Trust announces implementation of revenue-focused initiatives" was originally created and published by Hotel Management Network, a GlobalData owned brand.
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