Braemar Hotels & Resorts Inc. · NYSE:BHR
Braemar Hotels & Resorts — Ashford Hospitality Prime — Investor Presentation (June 2017)
17 slides from Braemar Hotels & Resorts's investor presentation, Jun 21, 2017
Slide 1: Company Presentation – June 2017
Company Presentation – June 2017
Slide 2: Forward-looking statements
Certain statements and assumptions in this presentation contain or are based upon “forward-looking” information and are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties.
Slide 3: Strategic Overview
Strategic Overview 3 Bardessono Hotel & Spa Yountville, CA Pier House Resort Key West, FL The Ritz-Carlton St. Thomas St. Thomas, USVI Focused strategy of investing in luxury hotels and resorts Grow organically through strong revenue and cost control initiatives Grow externally through accretive acq
Slide 4: Recent Developments
Recent Developments 4 Q1 2017 Earnings Release: • RevPAR growth for all hotels not under renovation of 5.8% • RevPAR growth for all hotels of 2.5% • AFFO per share growth of 18% • Hotel EBITDA margin for all hotels not under renovation increased 50 bps In March 2017, completed common equity and c
Slide 5: Focus on Luxury
Focus on Luxury 5 The luxury hotel segment exhibits greater long term RevPAR growth trend than the other chain scale segments The Upper Upscale segment represents the second greatest long term RevPAR growth trend Source: STR 50 100 150 200 250 300 350 Ja n 8 8 Ju l 8 8 Ja n 8 9 Ju l 8 9 Ja n 9 0
Slide 6: Successfully Increasing Portfolio RevPAR
$140.20 $148.64 $171.35 $186.76 $207.30 $216.86 $0.00 $50.00 $100.00 $150.00 $200.00 $250.00 2012 2013 2014 2015 2016 TTM 6 Successfully Increasing Portfolio RevPAR... ACCRETIVE GROWTH OF HOTEL PORTFOLIO The luxury hotel segment exhibits greater long term RevPAR growth rates than the other chain s
Slide 7: Disciplined Capital Strategies While Delivering Strong Financial Results
5.3% 5.0% 4.7% 4.8% 3.9% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% 5.5% 2013 2014 2015 2016 2017 7 Increased quarterly common dividend per share by 220% since spin-off Disciplined Capital Strategies Weighted Average Interest Rate Jun 2015: Raised $72mm in convertible preferred offering at $18.90 conversion pr
Slide 8: AHP's Management Team Is Highly Aligned
15.9% 7.6% 6.1% 3.6% 2.8% 2.5% 2.5% 2.3% 2.0% 1.7% 1.6% 1.1% 0.8% 0.5% 0.4% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% AHP HT APLE CLDT FCH REIT Avg CHSP RLJ PEB INN HST DRH SHO XHR LHO 8 HIGHLY ALIGNED MANAGEMENT TEAM Insider ownership of 15.9%, 6.3x higher than hotel REIT i
Slide 9: High-Quality Hotels in Leading Urban & Resort Markets
High-Quality Hotels in Leading Urban & Resort Markets 9 Current Hotels Marriott Seattle Seattle, WA Hilton Torrey Pines La Jolla, CA Bardessono Hotel & Spa Yountville, CA Pier House Resort Key West, FL Renaissance Tampa Tampa, FL Sofitel Chicago Magnificent Mile Chicago, IL Capital Hilton Washington
Slide 10: Portfolio Overview
Portfolio Overview 10 Pro forma overall portfolio TTM ADR and RevPAR of $264 and $217, respectively Geographically diversified portfolio located in strong markets Opportunistic pruning of non-core assets will further enhance portfolio positioning Pro forma for the acquisition of Hotel Yountv
Slide 11: Capital Structure and Net Working Capital
Capital Structure and Net Working Capital Conservative leverage in line with platform strategy Targeted Net Debt / Gross Assets of 45% All debt is non-recourse, property level mortgage debt Targeted excess cash balance of 10% to 15% of gross debt Maintain excess cash balance for both oppor
Slide 12: Debt Maturities and Leverage
Debt Maturities and Leverage Next hard debt maturity in 2019 Laddered debt maturities Exclusive use of property-level, non-recourse debt Net Debt / Gross Assets of 41.8%(1) FCCR of 1.90x(1) 12 (1) As of March 31, 2017 (2) Assumes extension options are exercised (3) All floating-rate debt h
Slide 13: Peer Comparison
9.1% 7.5% 7.3% 7.1% 6.8% 6.6% 5.0% 5.5% 6.0% 6.5% 7.0% 7.5% 8.0% 8.5% 9.0% 9.5% AHP DRH CHSP LHO SHO PEB 5.5x 12.2x 14.5x 14.7x 15.9x 17.5x 0.0x 2.0x 4.0x 6.0x 8.0x 10.0x 12.0x 14.0x 16.0x 18.0x 20.0x AHP CHSP DRH LHO PEB SHO 11.2x 12.3x 12.9x 12.9x 12.9x 15.6x 10.0x 11.0x 12.0x 13.0x 14.0x 15.0x 16
Slide 14: Compelling Growth Opportunity – Park Hyatt Beaver Creek
Compelling Growth Opportunity – Park Hyatt Beaver Creek 14 Acquired for $145.5 million ($766,000 / key) 190 keys, 20,000 sq. ft. of meeting space Purchase price represents a 5.7% TTM NOI cap rate*; 14.6x TTM EBITDA* Purchase price represents a 6.4% FWD NOI cap rate; 14.0x FWD EBITDA Locate
Slide 15: Compelling Growth Opportunity – Hotel Yountville
Compelling Growth Opportunity – Hotel Yountville 15 Acquired for $96.5 million ($1.2 mn / key) 80 keys, 4,392 sq. ft. of meeting space Purchase price represents a 6.2% TTM NOI cap rate; 14.6x TTM EBITDA* Located in Yountville, CA in Napa Valley Over 450 wineries nearby as well as boutique
Slide 16: Key Takeaways
Key Takeaways 16 High quality portfolio with focused strategy of investing in luxury hotels and resorts Announced recent corporate governance enhancements, appointment of new independent director, and appointment of new CEO Q1 RevPAR growth for all hotels not under renovation of 5.8% & Q1 AFFO per s
Slide 17: Company Presentation – June 2017
Company Presentation – June 2017
Ashford Hospitality Prime — Investor Presentation (June 2017) on 6ix