Ashford Hospitality Trust Inc · NYSE:AHT
Ashford Hospitality Trust — Investor Presentation (September 2017)
23 slides from Ashford Hospitality Trust's investor presentation, Sep 14, 2017
Slide 1: Company Presentation – September 2017
Company Presentation – September 2017
Slide 2: Safe Harbor
Safe Harbor 2 In keeping with the SEC's "Safe Harbor" guidelines, certain statements made during this presentation could be considered forward-looking and subject to certain risks and uncertainties that could cause results to differ materially from those projected. When we use the words "will likely
Slide 3: Strategic Overview
Strategic Overview 3 Opportunistic platform focused on upper upscale, full-service hotels Superior long-term total shareholder return performance Targets moderate debt levels of 55-60% net debt/gross assets Attractive dividend yield Targets cash level of 25-35% of total equity market cap Highest ins
Slide 4: Recent Developments
Recent Developments 4 Performance Q2 2017 Earnings Release: • RevPAR growth for all hotels not under renovation of 1.4% • Hotel EBITDA for all hotels not under renovation increased 1.1% • Hotel EBITDA flow-through for all hotels not under renovation of 52% Value-Add Announced the redevelopme
Slide 5: Demonstrated Long-Term Track Record
117% -13% 12% 234% 105% 44% 95% 59% 25% -9% 21% -3% 202% 82% 191% 1,497% 296% 90% 120% 59% 29% -8% 33% -16% -100% 0% 100% 200% 300% 400% 500% 600% 700% 800% 900% Inception 10-Yr 9-Yr 8-Yr 7-Yr 6-Yr 5-Yr 4-Yr 3-Yr 2-Yr 1-Yr YTD 2017 Peer Avg AHT Demonstrated Long-Term Track Record 5 (1) Since IPO on
Slide 6: Disciplined Capital Management
Disciplined Capital Management 6 Capital Markets Activity $218 $153 $305 $574 $75 $88 $147 $86 $111 $18 $97 $81 $45 $52 $0 $100 $200 $300 $400 $500 $600 $700 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Common Raises Common Buybacks Common Share Buybacks During Global Financ
Slide 7: Highest Insider Ownership
19.1% 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% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0% AHT HT APLE CLDT FCH REIT Avg CHSP RLJ PEB INN HST DRH SHO XHR LHO Highest Insider Ownership 7 REIT average includes: APLE, HT, RLJ, CLDT, FCH, CHSP, INN, HST, PEB
Slide 8: Attractive Dividend Yield
7.6% 6.7% 6.5% 6.5% 6.5% 6.3% 6.3% 6.3% 6.2% 5.8% 5.5% 4.7% 4.5% 4.4% 4.4% 4.3% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% AHT AHP APLE CLDT PK RLJ LHO CHSP HT REIT Avg XHR DRH INN PEB HST SHO Attractive Dividend Yield 8 Source: Company filings and market data (1) As of 9/8/2017 (2) Annualized bas
Slide 9: Current Hotels: High Quality, Geographically Diverse Portfolio
9 Current Hotels High Quality, Geographically Diverse Portfolio Le Pavillon Hotel New Orleans, LA Lakeway Resort & Spa Austin, TX Hilton Costa Mesa Costa Mesa, CA Marriott Fremont Fremont, CA Le Meridien Minneapolis Minneapolis, MN Chicago Silversmith Chicago, IL Hilton Back Bay Boston, MA The Churc
Slide 10: Portfolio Overview
Portfolio Overview 10 TTM Hotel EBITDA as of June 30, 2017 for the 120 owned hotels as of September 8, 2017 Hotel EBITDA in thousands Hotel EBITDA by Brand Hotel EBITDA by Manager Hotel EBITDA by MSA Hotel EBITDA by Chainscale Top Ten Metro Areas Marriott 57% Hilton 28% Hyatt 4% IHG 5% Indep. 6% Mar
Slide 11: Value Creation Through Active Asset Management
11 Value Creation Through Active Asset Management 55.8% 52.0% 40.5% 47.4% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 2016 3-Yr Avg AHT Peer Avg Portfolio Hotel EBITDA Flow-Through *Peers include DRH, HST, INN, LHO, CHSP, HT, SHO, RLJ, FCH Note: Pro forma Hotel EBITDA flow-through information not avail
Slide 12: Competitive Advantage – Affiliated Manager
52% 58% 59% 42% 46% 47% 63% 44% 22% 53% 60% 59% 68% 70% 47% 56% 44% 73% -200% -175% -150% -125% -100% -75% -50% -25% 0% 25% 50% 75% 100% 2008 2009 2010 2011 2012 2013 2014 2015 2016 YTD Q2 2017 Non-Remington Remington Competitive Advantage – Affiliated Manager Affiliated property manager benefits
Slide 13: Case Study - Aggressive Asset Management
Case Study - Aggressive Asset Management 13 Acquired the W Atlanta Downtown in July 2015 237 keys, 9,000 sq. ft. of meeting space Close proximity to the downtown and midtown demand generators: Centennial Olympic Park, the Atlanta Aquarium, and Mercedes Benz Stadium Replaced unprofitable rest
Slide 14: Case Study – Conversion to Remington Managed
Case Study – Conversion to Remington Managed 14 Acquired the Marriott Fremont in August 2014 357 keys, 15,000 sq. ft. of meeting space Ideally located off Interstate 880 at the gateway to Silicon Valley. Home to over 1,200 technology companies. Announced forward cap rate and EBITDA multiple
Slide 15: Case Study – Brand Conversion
Case Study – Brand Conversion 15 The Marriott Beverly Hills officially opened on July 1, 2015 Invested $21mm, net of key money from Marriott* Prior to the conversion, the hotel had June 2015 TTM NOI of $5.6mm FY2016 NOI of $10.3mm Received an award from Marriott International for renovatio
Slide 16: Asset Management Initiatives – Recently Completed
16 Asset Management Initiatives – Recently Completed Hyatt Regency Savannah: Completed guestroom renovation with shower conversions and increased premium rooms inventory by 70 rooms. Also included F&B outlet repositioning, meeting space and lobby. Marriott Bridgewater: Converted 30 king rooms to dou
Slide 17: Asset Management Initiatives – Upcoming
17 Asset Management Initiatives – Upcoming Renaissance Nashville: Partnering with developer on the adjacent $430 million Fifth & Broadway mixed use development which will provide hotel with upgraded meeting space and eventual fee ownership. Marriott Crystal Gateway: Major renovations: all guestrooms
Slide 18: Debt Maturities and Leverage
Debt Maturities and Leverage Target Net Debt/Gross Assets of 55-60% Maintain mix of fixed and floating rate debt (Currently 88% floating & 12% fixed) Ladder maturities Exclusive use of property-level, non-recourse debt All floating rate debt has interest rate caps 18 As of June 30, 2017 (1
Slide 19: Capital Structure and Net Working Capital
Capital Structure and Net Working Capital Appropriate use of leverage Current net working capital of approximately $4.40 per share(1) All debt is non-recourse, property level mortgage debt Targeted cash balance of 25% to 30% of equity market capitalization Provides flexibility for opportun
Slide 20: Corporate Governance Enhancements
Corporate Governance Enhancements 20 Modification of the Company’s Equity Incentive Plan: Requires stock ownership by directors and officers Requires minimum vesting periods Modification of the Company’s By-Laws: Reduced to 30% of outstanding shares to call a special meeting Modification
Slide 21: Board of Directors Diversity Matrix
Board of Directors Diversity Matrix Professional Experience Geography Independence Age Ethnicity Tenure Real Estate / Hospitality C-Suite Executive Entrepreneurship Legal South- West West Coast North- East South- East Independent 25-40 41-55 56-70 White / Caucasian Middle Eastern/ South Asia Years M
Slide 22: Key Takeaways
Key Takeaways 22 Opportunistic platform focused on upper upscale, full- service hotels Aligned management team with a long track record of creating shareholder value Highest dividend yield in the industry
Slide 23: Company Presentation – September 2017
Company Presentation – September 2017
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