Ashford Hospitality Trust, Inc. (NYSE:AHT) Q4 2022 Earnings Call Transcript

Bryan Maher: Okay. And then just last for me and maybe for Deric. Is there any way to quantify what caps or hedges might cost as for this year? I know that you guys did some stuff last year that kind of spills over benefit you this year. But is it $10 million? Is it $20 million? Is it $100 million? Can you quantify what we should be thinking about there?

Deric Eubanks: Yes, it’s really difficult to quantify because there’s a lot of factors that go into that pricing. A, it’s a strike price or whatever the cap — the strike of the cap needs to be, it’s what’s the market’s forward expectation for where rates are going and then it’s the duration of how long that cap needs to be in place for. So, it is very difficult to ballpark for you. And like I said, we try to get ahead of it by pre-purchasing of a good chunk of those last year. And my hope is that — well, look, I guess the real help is that those expire worthless, so we didn’t need them and the rates have come down, but if rates stay high, then we would hope that those pre-purchased caps offset the value of any new cap that we would divide. So, from our perspective, we wouldn’t really be having to come out of pocket much. So, that’s really all I can say in terms of giving any sort of guidance in terms of what those costs will be going forward.

Bryan Maher: Yes, thank you.

Operator: Thank you. There are no further questions at this time. I’d like to turn the floor back over to management for any closing comments.

Rob Hays: Thank you for joining us for the fourth quarter call and we look forward to speaking to you on our next call.

Operator: This concludes today’s conference. You may disconnect your lines at this time. Thank you for your participation.