Thank you for standing by. My name is Greg, and I will be your conference operator today. At this time, I would like to welcome everyone to today's Ashford Hospitality Trust Second Quarter 2025 Results Conference Call. [Operator Instructions] I would now like to turn the call over to Deric Eubanks, Chief Financial Officer. Deric?

Good morning, and welcome to today's conference call to review results for Ashford Hospitality Trust for the second quarter of 2025 and to update you on recent developments. On the call today will also be Stephen Zsigray, President and Chief Executive Officer; and Chris Nixon, Executive Vice President and Head of Asset Management. The results as well as notice of the accessibility of this conference call on a listen-only basis over the Internet were distributed yesterday afternoon in a press release. At this time, let me remind you that certain statements and assumptions in this conference call contain or based upon forward-looking information and are being made pursuant to the safe harbor provisions of the federal securities regulations. Such forward-looking statements are subject to numerous assumptions, uncertainties and known or unknown risks, which could cause actual results to differ materially from those anticipated. These factors are more fully discussed in the company's filings with the Securities and Exchange Commission. The forward-looking statements included in this conference call are only made as of the date of this call, and the company is not obligated to publicly update or revise them. Statements made during this call do not constitute an offer to sell or a solicitation of an offer to buy any securities. Securities will be offered only by means of a registration statement and prospectus, which can be found at www.sec.gov. 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 July 31, 2025, and may also be accessed through the company's website at www.ahtreit.com. Each listener is encouraged to review those reconciliations provided in the earnings release together with all other information provided in the release. Also, unless otherwise stated, all reported results discussed in this call compare the second quarter ended June 30, 2025, with the second quarter ended June 30, 2024. I will now turn the call over to Stephen Zsigray. Please go ahead.

Good morning, everyone, and thank you for joining today's call. After my introductory comments, Deric will review our second quarter financial results, and then Chris will provide an operational update on our portfolio. Our second quarter performance was highlighted by comparable total revenue growth of 1.3% and comparable hotel EBITDA growth of 2.6%. With macroeconomic headwinds driving RevPAR declines and pressuring margins industry-wide in the quarter, we're very pleased with our operating performance, which reflects the impact of the strategic decisions our team has made over the past several quarters and the strength of our high-quality geographically diverse portfolio. In late 2024, we announced a transformative initiative aimed at driving $50 million in run rate EBITDA improvement that we refer to as Grow AHT. Realizing outsized improvement in property level performance is critical to achieving that goal. With comparable total revenue growth outpacing comparable RevPAR growth in the second quarter by 3.5 percentage points and our 2.6 percentage point increase in comparable hotel EBITDA for the quarter, we're reaping the benefits of the tremendous efforts that our asset management team and property managers have made to drive revenue growth while aggressively managing operating expenses. In addition to strong property level performance, we've also benefited from a number of corporate cost-saving measures that our adviser, Ashford Inc., has implemented for Ashford Trust. Several Grow AHT initiatives remain underway, but we've seen meaningful impact from these efforts through the second quarter. Following a number of asset sales, total reported revenue year-to-date declined more than $41 million versus 2024, yet year-to-date adjusted EBITDAre for the company is down less than $3 million. We have also continued to make improvements to our capital structure. In April, we extended our MS 17 mortgage loan secured by 17 hotels. The extension provides for an initial maturity…

Thanks, Stephen. For the second quarter, we reported a net loss attributable to common stockholders of $39.9 million or $6.88 per diluted share. For the quarter, we reported AFFO per diluted share of $0.78. It's important to note that during the quarter, we accrued approximately $6.8 million of default interest on our $744 million Highland loan. We recently entered into an extension of that loan that eliminated the default interest. If we had not accrued the default interest, our AFFO and AFFO per diluted share for the quarter would have been approximately $11.4 million and $1.93, respectively. Adjusted EBITDAre for the quarter was $73.8 million. At the end of the second quarter, we had $2.7 billion of loans with a blended average interest rate of 8.1%, taking into account in-the-money interest rate caps. Considering the current level of SOFR and the corresponding interest rate caps, approximately 24% of our debt is now effectively fixed and 76% is effectively floating. We ended the quarter with cash and cash equivalents of $100 million and restricted cash of $153.9 million. The vast majority of that restricted cash is comprised of lender and manager held reserve accounts. Our restricted cash increased $15 million from the previous quarter, and the vast majority of that cash is set aside for future capital expenditures. At the end of the quarter, we also had $21.8 million due from third-party hotel managers. This primarily represents cash held by one of our property managers, which is also available to fund hotel operating costs. We ended the quarter with net working capital of approximately $184 million, which was $28 million higher than the previous quarter. As of June 30, 2025, our consolidated portfolio consisted of 72 hotels with 17,329 rooms. Our share count currently stands at approximately 6.2 million fully diluted shares outstanding, which is comprised of 6.1 million shares of common stock and 0.1 million OP units. While we are currently paying our preferred dividends quarterly or monthly, we do not anticipate reinstating a common dividend in 2025. This concludes our financial review, and I would now like to turn it over to Chris to discuss our asset management activities for the quarter.

Thank you, Deric. During the second quarter of 2025, our portfolio demonstrated continued resilience despite a challenging demand environment. During the quarter, comparable hotel RevPAR declined 2.2% compared to the prior year quarter, largely due to reduced demand from group and government-related travel. During the second quarter, government room nights were down approximately 26% compared to the prior year period, representing a significant headwind to RevPAR performance. Despite these challenges, our portfolio delivered strong performance with comparable hotel revenue increasing 1.3% and comparable hotel EBITDA growing 2.6% compared to the prior year period. This performance underscores the impact of our Grow AHT initiative, which has prioritized high-margin revenue strategies and targeted cost reductions across the portfolio, resulting in comparable hotel EBITDA margin expansion of 39 basis points. Our asset management team's focus on driving ancillary income and controlling costs has laid a strong foundation for the remainder of the year, supporting outsized revenue growth even as broader market conditions soften. Reflecting broader industry trends, the second quarter is expected to be the softest period of 2025 for the group segment, impacted by the late timing of Easter and continued headwinds from Doge initiatives affecting government-related travel. Group revenue for the portfolio declined approximately 4% during the second quarter compared to the prior year period. Our resort assets performed particularly well with group revenue up 14% in the second quarter compared to the prior year period. Renaissance Palm Springs was a strong contributor to success, delivering a 36% increase in group revenue during the second quarter compared to the prior year period. The hotel benefited from robust demand associated with festival groups and multiple citywide conventions. Looking ahead in the third quarter of 2025, group demand remains healthy with group revenue currently pacing ahead of the prior year. We're also encouraged…

[Operator Instructions] And it appears there are no questions going once, going twice. All right. No questions today. So I will now turn the call back over to management for closing comments.

Thank you for joining today's call, and we look forward to speaking with you all again next quarter.

Thank you all for joining. You may now disconnect.