Ashford Hospitality Trust Inc · NYSE:AHT
Ashford Hospitality Trust — Investor Presentation (September 2018)
29 slides from Ashford Hospitality Trust's investor presentation, Sep 12, 2018
Slide 1: September 2018
September 2018
Slide 2: Forward Looking Statements and Non-GAAP Measures
Forward Looking Statements and Non-GAAP Measures Certain statements made during this presentation could be considered forward-looking within the meaning of the SEC’s rules and regulations. When we use the words "will likely result," "may," "anticipate," "estimate," "should," "expect," "believe," "in
Slide 3: Overview
Overview Opportunistic platform focused on upper upscale, full-service hotels Valuation Disciplined capital Hilton, Embassy Suites, Parsippany, NJ opportunity management Walnut Creek, CA Value added Targets debt levels asset of 55-60% net management debt/gross assets Targets cash level Attractive Le
Slide 4: Management Team
Management Team DOUGLAS A. KESSLER DERIC S. EUBANKS, CFA JEREMY J. WELTER Chief Executive Officer & Chief Financial Officer Chief Operating Officer President . 33 years of real estate & . 18 years of hospitality experience . 13 years of hospitality experience . hospitality experience . 15 years with
Slide 5: Recent Developments: ERFP agreement with Advisor
Recent Developments Recently Announced ERFP agreement with Advisor • Potential to enhance five year IRRs by 700 to 1,200 basis points(1) for AHT $50M ERFP Allocation(2) hotel acquisitions • Targeting 33% reductions in required $100M AHT Equity equity capital for each new AHT asset acquisition $350M
Slide 6: Recent Developments: Acquisition of Hilton Alexandria Old Town
Recent Developments Recently Announced Acquisition of Hilton Alexandria Old Town utilizing ERFP • Fee simple ownership of 252-room hotel with 12,967 square feet of meeting space • T12 operating stats through May 2018: Occupancy 85% / ADR $190 / RevPAR $161 • No near-term owner funded capital needs -
Slide 7: Portfolio Overview
Portfolio Overview TOP TEN METRO AREAS(2),(3) TTM Q2 2018 118 24,930 Top 10 Markets EBITDA % of Total Washington DC $51,818 11.0% San Fran/Oakland, CA $35,568 7.6% Hotels(1) Rooms(1) Los Angeles, CA $33,790 7.2% New York/New Jersey $31,254 6.6% DFW, TX $27,063 5.7% Atlanta, GA $25,019 5.3% Boston, M
Slide 8: Geographically Diverse
Geographically Diverse Las Vegas – 1.8% Dallas / Ft. Worth – 5.7% Minneapolis – 3.2% Indianapolis – 2.3% Boston – 5.2% New York – 6.6% Portland – 2.0% Philadelphia – 1.7% Baltimore – 1.3% San Francisco – 7.5% Washington D.C. – 11.0% Los Angeles – 7.2% Nashville – 5.0% Atlanta – 5.3% San Diego – 1.5%
Slide 9: High Quality
High Quality W Atlanta Downtown Marriott Beverly Hills Crowne Plaza La Concha Le Pavillon Atlanta, GA Beverly Hills, CA Key West, FL New Orleans, LA One Ocean Le Meridien Minneapolis W Minneapolis The Silversmith Jacksonville, FL Minneapolis, MN Minneapolis, MN Chicago, IL Hyatt Coral Gables The Chu
Slide 10: Full-Service Rationale
Full-Service Rationale ESTIMATED CAP RATES VALUE-ADD OPPORTUNITIES 6.5% 8.5+% 39% Franchised Upper Upscale Rooms as a % of HIGHER TRANSACTION ACTIVITY(2) Total Upper Upscale Chain Scale Segment(1) Full-Service 2017 HOTEL TRANSACTIONS (Luxury) $ 2.5B 10% Limited-Service $ 10.5B 43% Full-Service (Non-
Slide 11: Financially Calibrated Sales
Financially Calibrated Sales Ashford Trust Hotel Sales 2015 - 2018 PROPERTIES SOLD SALES OF MAINLY SELECT-SERVICE PROPERTIES Hampton Inn Terre Haute Sales Proceeds Courtyard Marriott Village LBV $375 million SpringHill Suites Marriott Village LBV Fairfield Inn Marriott Village LBV REMOVAL OF LOWER R
Slide 12: Disciplined Capital Management
Disciplined Capital Management Track record of increasing shareholder returns by capitalizing upon cyclical changes and advantageous pricing of our securities COMMON SHARE BUYBACKS $1,400 73.6M 50% $3.28 Of Outstanding Average Financial Crisis Shares $1,200 Shares Buyback $200 RECENT PREFERRED EQUIT
Slide 13: Leverage Target
Leverage Target Non-recourse, property level mortgage Leverage policy consistent since IPO debt $6,000 70.0% 64.9% 63.8% 65.0% 61.2% 61.9% 59.6% $5,000 58.7% 59.1% 58.5% 58.3% 60.0% 56.1% 56.4% 55.5% 55.7% 55.0% $4,000 49.2% 50.0% $3,000 42.4% 45.0% Millions 40.0% $2,000 35.0% 30.0% $1,000 (1) (1) 2
Slide 14: Cash Target
Cash Target FINANCIAL CRISIS CURRENT CYCLE Positioned to buy back approximately 50% of Flexibility to execute opportunistic growth and outstanding common shares for about $240 million maintain hedge against an economic downturn leading to outsized total shareholder returns FINANCIAL CRISIS CURRENT C
Slide 15: Net Working Capital
Net Working Capital Net Working Capital(1) Cash & Cash Equivalents $417.3 Restricted Cash 135.2 Investment in Securities 24.1 Accounts Receivable, net 57.8 Prepaid Expenses 23.0 Due from Affiliates, net 0.0 25-30% 54% $4.55 Due from Third Party Hotel Managers 18.4 Market Value of Ashford, Inc. Inves
Slide 16: Non-Recourse Debt
Non-Recourse Debt Total Enterprise Value 100% 100% 0% Stock Price(1) $6.45 Fully Diluted Shares Outstanding(2) 119.2 PROPERTY LEVEL, NON-RECOURSE DEBT CORPORATE LEVEL DEBT MORTGAGE DEBT Equity Value $769.1 Plus: Preferred Equity(2) 564.7 Plus: Debt, net of JV Interest(2) 3,998.9 Total Market Capital
Slide 17: Value Enhancement through Refinancing
Value Enhancement through Refinancing 17-PACK – OCT 2017 8-HOTEL PORTFOLIO – JAN 2018 22-HOTEL PORTFOLIO – APR 2018 L+5.52% L+3.00% L+4.95% L+2.92% L+4.39% L+3.20% Old Interest Rate New Interest Rate Old Interest Rate New Interest Rate Old Interest Rate New Interest Rate ~$9.8 million in annual
Slide 18: Debt Maturity
Debt Maturity(1) 2018 NO DEBT MATURITIES 5.5% TOTAL PORTFOLIO WEIGHTED AVERAGE INTEREST RATE Debt Yield: Debt Yield: Debt Yield: Debt Yield: Debt Yield: Debt Yield: 21.4% 10.1% 14.9% 12.3% 12.4% 11.4% $3,000 $2,500 $2,000 $1,500 Millions $2,627.8 $1,000 $500 $0.0 $427.0 $191.2 $53.3 $5.3 $287.3 $71.
Slide 19: High Insider Ownership
High Insider Ownership One of the most highly aligned management team among the lodging REIT sector $136M Total Dollar Value of Insider Ownership(1),(2),(3) 20% 17.7% 18% 16% 14.3% 14% 12% 10% 9.4% 8% 6.3% 6% 4% 3.4% 3.4% 2.6% 2.2% 2.1% 1.9% 2% 1.6% 1.2% 0.9% 0.9% 0.4% 0.4% 0% (1),(2) (1),(2) (1),(2
Slide 20: Attractive Dividend Yield
Attractive Dividend Yield Highest dividend yield in the industry(1) 8.5% 7.4% 7.5% 6.9% 6.5% 6.3% 6.1% 6.0% 5.4% 5.3% 5.5% 5.2% 5.0% 5.0% 4.6% 4.6% 4.5% 4.3% 4.2% 4.0% 3.5% 2.6% 2.5% 1.5% (2) AHT APLE CLDT RLJ BHR PK INN HT REIT CHSP XHR SHO DRH HST PEB LHO (3) Avg Source: Company filings and Bloomb
Slide 21: Value Creation Through Active Asset Management
Value Creation Through Active Asset Management W ATLANTA DOWNTOWN W MINNEAPOLIS FOSHAY LE MERIDIEN MINNEAPOLIS Flow-Thru: 157% EBITDA Flow-Thru: 115% EBITDA Flow-Thru: 84% First full year of ownership(1) First full year of ownership(1) First full year of ownership(1) Ashford management creates val
Slide 22: Case Study – Aggressive Asset Management
Case Study – Aggressive Asset Management Hotel Overview W Atlanta – Atlanta, GA 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 Implemented Strategies Replaced unpro
Slide 23: Case Study – Conversion to Remington Managed
Case Study – Conversion to Remington Managed Hotel Overview Marriott Fremont – Fremont, CA 357 keys, 15,000 sq. ft. of meeting space Ideally located off Interstate 880 at the gateway to Silicon Valley. Announced forward cap rate and EBITDA multiple of 8.1% and 10.0x, respectively Current cap
Slide 24: Asset Management Initiatives – Recently Completed
Asset Management Initiatives – Recently Completed Renaissance Palm Springs: Guestroom, restaurant, meeting space and public area renovations completed Courtyard Crystal City: Guestroom renovations and public area carpet completed. Embassy Suites Santa Clara: Guestroom renovation and fitness center c
Slide 25: Asset Management Initiatives – Upcoming
Asset Management Initiatives – Upcoming Renaissance Nashville: First Phase of NCC meeting space completed April 2018 including the grand and junior ballrooms. Extensive first floor public space renovation now underway. Project completion scheduled Q1 2019. Hotel Indigo Atlanta Midtown: Guestroom ren
Slide 26: Asset Management Initiatives – Upcoming
Asset Management Initiatives – Upcoming Marriott Omaha: Refurbishment of lobby and restaurant expected to be completed Q4 2018 La Pavillion New Orleans: Public areas and restaurant refurbishment expected to be completed Q4 2018 Embassy Suites Crystal City: Full room refurbishment scheduled expected
Slide 27: Valuation
Valuation VALUATION 160 1.5x 6.6x Discount to Discount to Discount to average peer average peer average peer trading cap trading EBITDA trading AFFO rate (bps) multiple multiple Sheraton Anchorage, AK TEV / 2018E EBITDA MULTIPLE(1),(2) PRICE / 2018E AFFO / SHARE MULTIPLE(1),(2) TTM CAP RATE(1) 17.0x
Slide 28: Key Takeaways
Key Takeaways Opportunistic platform focused on upper upscale, full-service hotels Valuation Disciplined capital Hilton, Embassy Suites, Parsippany, NJ opportunity management Walnut Creek, CA Value added Targets debt levels asset of 55-60% net management debt/gross assets Targets cash level Attracti
Slide 29: September 2018
September 2018
Ashford Hospitality Trust — Investor Presentation (September 2018) on 6ix