Ashford Hospitality Trust

Business model relies on commodity‑like hotel assets in competitive local markets. Brand equity resides with franchisors (Hilton, Marriott, Hyatt, etc.) and management fee structures, not with AHT itself. Switching costs are limited at the portfolio owner level and may even be penalized through termination fees in management agreements.

Network effects are absent. Any cost advantage is modest and can be offset by advisory and management fees. Efficient scale exists only in isolated submarkets and is not durable.

Component scores and weights we applied: Intangibles 30/100 (15 percent weight), Switching costs 20/100 (30 percent), Network effects 0/100 (10 percent), Cost advantage 20/100 (25 percent), Efficient scale 20/100 (20 percent).

Weighted average is roughly 22/100. Disclosures highlight franchisor fee obligations and advisory structures that limit durable moat formation.