Ashford Hospitality Trust Inc · NYSE:AHT
Ashford Hospitality Trust — ALIS Conference January 2012
21 slides from Ashford Hospitality Trust's conference presentation, Jan 23, 2012
Slide 1: ALIS Conference January 2012
Company Presentation ALIS Conference January 2012
Slide 2: Safe Harbor
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 r
Slide 3: Ashford Overview
Ashford Overview • Ashford Highlights • High-quality, Focused Portfolio • Attractive Industry Fundamentals • Consistent Earnings Growth / Outperformance • Attractive, Well-covered Dividend • Highland Operational Update • High Insider Ownership
Slide 4: Ashford Highlights
Ashford Highlights Portfolio Statistics* Total Enterprise Value $4.0 B Total Gross Assets $4.9 B Peer Comparison 2nd Largest # of Hotels 124 # of Owned Rooms 26,140 # of Property Managers 6 $ ADR $131.02 $ RevPAR $96.10 RevPAR Growth % 6.4% Financial Statistics* Recent Share Price $8.40 (1/18/12) #
Slide 5: High-Quality Portfolio
High –Quality Portfolio Capital Hilton Renaissance Palm Springs Hyatt Regency Coral Gables Marriott DFW Airport Renaissance Tampa Marriott Plaza San Antonio Embassy Suites Las Vegas Hilton Tampa Westshore Embassy Suites Portland Marriott Bridgewater Courtyard Seattle Downtown Ritz-Carlton Atlanta Ma
Slide 6: High-Quality Portfolio
High –Quality Portfolio Hilton Parsippany Hilton La Jolla Torrey Pines The Melrose – D.C. Courtyard SF Downtown Hyatt Regency Wind Watch Marriott Suites Market Center Boston Back Bay Hilton Marriott Legacy Center Renaissance Nashville Marriott Sugar Land Hyatt Regency Savannah Hilton Costa Mesa West
Slide 7: Focused Portfolio
Focused Portfolio MSA* 11% 16% 73% Top 25 Top 50 Other Chain Scale* 3%1% 38% 58% Luxury Upper Upscale Upscale Upper Midscale Brand Family* 30% 5% 4% 3% 32% 53% Marriot Hilton Hyatt Starwood International Independent Demand Mix 4% 25% 16% 55% Transient-Corporate Group Transient-Leisure Contract * %’s
Slide 8: Hotel EBITDA Margin Change Comparison
Hotel EBITDA Margin Change Comparison HOTEL EBITDA MARGIN Y-O-Y CHANGE (BPS) (Peers include: BEE, DRH, FCH, HST, HT, LHO, PEB & SHO) - (100) (200) (300) (400) (500) (600) (106) (58) (487) (406) YTD Q3 2011 Peer Avg AHT
Slide 9: Hotel EBITDA Flows Comparison
Hotel EBITDA Flows Comparison HOTEL EBITDA FLOWS (Peers include: BEE, DRH, FCH, HST, HT, LHO, PEB & SHO) 120% 100% 80% 60$ 40% 20% 0% 39$ 51% 8% 37% 49% 53% 41% 104% 49% 64% YTD Q3 2011 Peer Avg AHT
Slide 10: Attractive Industry Fundamentals
Attractive Industry Fundamentals • Real RevPAR is cyclical—it appears that it is relatively early in the up-cycle Trailing 3-Mo Avg Seasonally-Adjusted Real RevPAR (2011 $’s) $74.00 $72.00 $70.00 $68.00 $66.00 $64.00 $62.00 $60.00 $58.00 $56.00 $54.00 Jan 87 Jan 88 Jan 89 Jan 90 Jan 91 Jan 92 Jan 93
Slide 11: Attractive Industry Fundamentals
Attractive Industry Fundamentals • RevPAR growth has remained consistently high despite economic uncertainties Trainling 28-Day U.S. RevPAR % Change 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 1/1/2011 1/29/2011 2/26/2011 3/26/2011 4/23/2011 5/21/2011 6/18/2011 7/16/2011 8/13/2011 9/10/2011 10/8/2011 11/5/
Slide 12: Consistent Earnings Growth
Consistent Earnings Growth Ashford’s Historical AFFO per Share $2.00 $1.80 $1.60 $1.40 $1.20 $1.00 $0.80 $0.60 $0.40 $0.20 $- $- $0.41 $0.96 $1.13 $1.28 $1.31 $1.12 $1.50 $1.86 3Q 2011 TTM
Slide 13: Earnings Outperformance
Earnings Outperformance TTM AFFO Per Share (2007Q2 = 100%) Peers Include: BEE, DRH, FCH, HST, HT, LHO, SHO 160% 140% 120% 100% 80% 60% 40% 20% 0% +48% -68% 2007Q2 2007Q3 2007Q4 2008Q1 2008Q2 2008Q3 2008Q4 2009Q1 2009Q2 2009Q3 2009Q4 2010Q1 2010Q2 2010Q3 2010Q4 2011Q1 2011Q2 2011Q3 Ashford Peer Avera
Slide 14: Attractive Dividend Yield & Coverage
Attractive Dividend Yield & Coverage • Ashford’s dividend yield AND dividend coverage exceed the peer average Ashford recently announced a 10% dividend increase for 2012 7.0 6.0 5.0 4.0 3.0 2.0 1.0 - 5.9% 1.4x 5.2% 4.7x 4.9% 1.2x 4.6% 1.2x 4.6% 1.5x 3.1% 1.9x 2.4% 2.3x 2.4% 1.6x 1.7% 3.5x 1.3% 5.3x
Slide 15: Recent Balance Sheet Activity
Recent Balance Sheet Activity • Entered into new $105m senior credit facility Replaced credit facility scheduled to mature in April 2012 Three years with a one-year extension option Potential upsize to $150m Similar covenants as previous credit facility L + 275 to 350 bps Currently undrawn • Success
Slide 16: Highland Operational Update
Highland Operational Update GOP Margin Change BPS GOP Flow 1st Quarter 2nd Quarter 3rd Quarter <95> Pre-Ashford 8.8% Pre-Ashford Post-Ashford 94.6% Post-Ashford Post-Ashford 78.6% Post-Ashford
Slide 17: Highland Operational Update
Highland Operational Update • Highland NOI is exceeding expectations, currently at 88% of first 12 months underwriting growth in only six months’ time Highland Portfolio Net Operating Income $88 $86 $84 $82 $80 $78 $76 $74 $79 $82 $86 $87 Mar 2011 TTM Jun 2011 TTM Seq 2011 TTM Underwriting for Mar 2
Slide 18: Highland Operational Update
Highland Operational Update • If Highland’s EBITDA was the same % of its peak level as our legacy portfolio, its EBITDA would be almost $10 million higher • This would equate to about an additional $1.40 in share price at a 12x EBITDA multiple % of Peak EBITDA Comparison 100% 95% 90% 85% 80% 75% 70%
Slide 19: Most Highly-Aligned Management Team
Most Highly-Aligned Management Team Insider Ownership % 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% 19% 16% 6% 4% 3% 3% 2% 2% 1% 1% 1% 1% AHT HT CLDT INN FCH HST PEB CHSP DRH SHO BEE LHO Source: 2011 Proxy Filings
Slide 20: Ashford Overview
Ashford Overview • Ashford Highlights • High-quality, Focused Portfolio • Attractive Industry Fundamentals • Consistent Earnings Growth / Outperformance • Attractive, Well-covered Dividend • Highland Operational Update • High Insider Ownership
Slide 21: ALIS Conference January 2012
Company Presentation ALIS Conference January 2012
Ashford Hospitality Trust — ALIS Conference January 2012 on 6ix