Ashford Hospitality Trust Inc · NYSE:AHT
Ashford Hospitality Trust — Investor Presentation (June 2015)
30 slides from Ashford Hospitality Trust's investor presentation, Jun 1, 2015
Slide 1: Company Presentation - June 2015
1 Company Presentation - June 2015
Slide 2: Safe Harbor
2 Safe Harbor 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: Compelling Opportunity
Compelling Opportunity 3
Slide 4: Opportunistic Strategy
4 Opportunistic Strategy Opportunistically invest in non-luxury hotel assets in all market locations Highly-aligned management team with proven track record of long-term value creation Leveraged way to invest in hotel cycle Industry leading dividend yield
Slide 5: Compelling Opportunity
5 Compelling Opportunity Attractive industry fundamentals with demand growth exceeding supply growth Currently seeking accretive hotel acquisition opportunities Affiliated property manager results in strong operating results and flow- throughs Upcoming refinancings with potential for signifi
Slide 6: Strong Track Record & Performance
6 Strong Track Record & Performance
Slide 7: Demonstrated Long-Term Track Record
Demonstrated Long-Term Track Record 7 • Disciplined growth, operational expertise, and capital allocation to maximize shareholder returns • Ashford Trust expects to benefit from strong AINC management team capabilities Peer average includes: BEE, CHSP, CLDT, DRH, FCH, HST, HT, INN, LHO, PEB, RLJ, SH
Slide 8: Highly-Aligned Management
Highly-Aligned Management 8 • With insider ownership* of approximately 15% for AHT, management is highly-aligned with shareholder interests Publicly-Traded Hotel REIT Insider Ownership Public Lodging REITs include: BEE, CHSP, CLDT, DRH, FCH, HST, HT, INN, LHO, PEB, RLJ, SHO Source: Company filings.
Slide 9: Portfolio Overview
Portfolio Overview 9 *FY 2014 Hotel EBITDA 50% 30% 4% 5% 5% 5% Ashford Trust Brands by EBITDA Marriott Hilton Hyatt IHG Starwood Independent 33% 57% 6% 3% 1% Ashford Trust Managers by EBITDA Marriott Remington Hilton Hyatt Interstate 73% 17% 10% Ashford Trust MSA by EBITDA Top 25 Top 26-50 Other 35%
Slide 10: Strong Asset Performance
10 2013 2014 Var Q1 2014 Q1 2015 Var RevPAR $95.94 $105.39 9.8% $102.04 $110.69 8.5% Hotel Revenue $1,031,840 $1,117,739 8.3% $305,113 $326,443 7.0% Hotel EBITDA $312,766 $354,513 13.3% $92,757 $104,545 12.7% EBITDA Flow 48.6% 55.3% The above table assumes the properties owned and included in contin
Slide 11: Ashford Trust – Capital Structure
Ashford Trust – Capital Structure 11 » Target Net Debt/Gross Assets of 50-60% » Maintain mix of fixed and floating rate debt » Ladder maturities » Proactively refinance upcoming maturities » Maintain excess cash balance to capitalize on opportunities » Focus on property-level, non-recourse debt Bala
Slide 12: Ashford Trust Recent Developments
12 Ashford Trust Recent Developments Q1 2015 RevPAR up 8.5%, Hotel EBITDA up 12.7% and EBITDA flow-through was 55% In January 2015, the Company refinanced two mortgage loans resulting in excess proceeds of over $100 million after closing costs and reserves Also in February 2015, the Company cl
Slide 13: Marriott Memphis Transaction
13 Marriott Memphis Transaction *TTM through 3/31/15 Strengths/Opportunities: • Excellent physical condition with minimal capex needs –recent renovation prior to conversion to Marriott • No new material competitive supply projected for the submarket and stable corporate demand generators • Opportuni
Slide 14: Lakeway Resort & Spa Transaction
14 Lakeway Resort & Spa Transaction *TTM through 3/31/15 Strengths/Opportunities: • Unique lakefront location in Austin, one of the fastest growing MSAs in the country • Excellent physical condition with minimal capex needs – recent renovation of guestrooms • Opportunity to install Remington as mana
Slide 15: Growth & Acquisition Strategy
Growth & Acquisition Strategy 15
Slide 16: Growth & Acquisition Strategy
16 Highly quantitative approach focused on long-term accretion Proven track record of value-creating opportunistic acquisitions Disciplined capital allocation Multiple ways to grow platform: Internal growth from asset performance Portfolio/single asset acquisitions Excess cash from pot
Slide 17: Projected Hotel Room Value Growth
Projected Hotel Room Value Growth 17 Source: JLL/HVS * 2014 US Hotel Transaction Volume is an actual number • U.S. hotel transaction volume is likely to increase over the next several years as private U.S. hotel market values rise $0 $10 $20 $30 $40 $50 $40,000 $50,000 $60,000 $70,000 $80,000 $90,00
Slide 18: Accretive Growth
Accretive Growth 18 - Ashford Trust management is focused on accretive growth - Our definition of accretion: the 5-year Total Shareholder Return (TSR) post-transaction must be greater than the 5-year TSR pre-transaction - Transactions are modeled on a leverage-neutral basis Base Model Transaction (L
Slide 19: Appendix
APPENDIX 4. ASHFORD
Slide 20: Industry Overview
Industry Overview 4. ASHFORD
Slide 21: Attractive Supply/Demand Imbalance
• Demand expected to exceed supply through at least 2015 21 Attractive Supply/Demand Imbalance Source: PKF -8.0 -6.0 -4.0 -2.0 0.0 2.0 4.0 6.0 8.0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015F Supply Growth Demand Growth Yea r- o v e r- Year % Gro w th PKF Forecast
Slide 22: PKF RevPAR Growth Forecasts
22 Source: PKF 7.7% 6.1% -2.0% -16.7% 5.4% 8.2% 6.8% 5.4% 8.3% 7.3% 6.5% -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% Historical RevPAR Growth Forecasted RevPAR Growth PKF RevPAR Growth Forecasts
Slide 23: Potential Industry EBITDA Growth Rates
23 Potential Industry EBITDA Growth Rates *Based on PKF RevPAR/ADR/Occupancy projections and EBITDA growth resulting from PKF EBITDA change regression equation. • With strong potential RevPAR gains, those companies with reasonable flow-throughs could experience significant EBITDA growth • PKF estima
Slide 24: Historical Industry Stock Returns
• Historically, attractive returns remain for investors from this point in the lodging cycle 24 Historical Industry Stock Returns Index includes AHT, BEE, DRH, FCH, HST, HT, LHO, and SHO. Companies are included in the data from the time of their IPO Current data as of April 30, 2015 % 50% 100% 150%
Slide 25: Executive Bios
Executive Bios 4. ASHFORD
Slide 26: Executive Bios
26 Executive Bios Monty J. Bennett Chief Executive Officer & Chairman of the Board Douglas A. Kessler President Mr. Kessler is the President of Ashford (NYSE.MKT:AINC) and serves as the President of both Ashford Hospitality Trust (NYSE: AHT) and Ashford Hospitality Prime (NYSE: AHP). He is currently
Slide 27: Executive Bios
27 Executive Bios David A. Brooks Chief Operating Officer, General Counsel & Secretary Mr. Brooks is the Chief Operating Officer, General Counsel & Secretary of Ashford (NYSE.MKT:AINC) and serves as Chief Operating Officer, General Counsel & Secretary of both Ashford Hospitality Trust (NYSE: AHT) an
Slide 28: Executive Bios
28 Executive Bios J. Robison Hays Chief Strategy Officer Mr. Hays is the Chief Strategy Officer of Ashford (NYSE.MKT:AINC) and serves as the Chief Strategy Officer of both Ashford Hospitality Trust (NYSE: AHT) and Ashford Hospitality Prime (NYSE: AHP). Mr. Hays is responsible for the formation and e
Slide 29: Executive Bios
29 Executive Bios Mark L. Nunneley Chief Accounting Officer Mr. Nunneley is the Chief Accounting Officer of Ashford (NYSE.MKT:AINC) and serves as the Chief Accounting Officer of both Ashford Hospitality Trust (NYSE: AHT) and Ashford Hospitality Prime (NYSE: AHP). He has served as the Chief Accountin
Slide 30: 30 Company Presentation - June 2015
30 Company Presentation - June 2015
Ashford Hospitality Trust — Investor Presentation (June 2015) on 6ix