Ashford Hospitality Trust Inc · NYSE:AHT
Ashford Hospitality Trust — Investor Presentation (January 2011)
16 slides from Ashford Hospitality Trust's investor presentation, Jan 12, 2011
Slide 1: Investor Presentation January 2011
Investor Presentation January 2011
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 Company Snapshot High Quality, Well-Diversified Portfolio Attractive Industry Fundamentals Proactive With Maturities & Covenants Well-Timed Interest Rate Hedges Capital Markets Expertise Strong Operating Performance Shareholder Value Creation High Insider Ownership
Slide 4: Company Snapshot
Company Snapshot Portfolio Statistics AHT Total Gross Assets (1) $4.4 B Peer Comparison (2) 2nd largest # of Hotels 100 # of Rooms 21,392 ADR (3) $126.24 RevPAR (3) $89.92 Q3 '10 AFFO Per Share $0.33 YTD '10 AFFO Per Share $1.09 Financial Statistics # Shares Outstanding(4) 80.4 M Leverage Ratio(5) 5
Slide 5: High Quality, Well-Diversified Portfolio
5 High Quality, Well-Diversified Portfolio Note: Based on 3Q 2010 TTM EBITDA. Chain Scale Brand Geography MSA
Slide 6: Attractive Industry Fundamentals: RevPAR Growth
6 US RevPAR has grown very strongly over the past 6 months Industry forecasters believe that 2011 & 2012 will be strong years for lodging revenue growth Colliers PKF Research is predicting RevPAR growth of 6.2% in 2011 and 10.4% in 2012, with potential RevPAR growth in 2011 of 9.0% due to the recent
Slide 7: Potential Hotel EBITDA Growth
7 Hotels may be able to achieve significant EBITDA growth over the next few years due the improving fundamentals Achieving strong EBITDA flows is crucial in realizing EBITDA growth Ashford has 3Q YTD hotel EBITDA flows of 67%, well above the peer average* of 39% Ashford's shareholders are well posit
Slide 8: Proactive With Maturities & Covenants
Proactive With Maturities & Covenants Property Refinancings & Extensions • Recently restructured JW Marriott San Francisco loan, providing full extension of the maturity to 2013 without tests in exchange for $5.0 million reduction, the loan was set to mature in 2011 with two one-year extension optio
Slide 9: Debt Maturities and Covenant Cushion
Weighted average debt maturity of 4.8 years (fully extended) Cushion in current financial covenants Note: maturity dates without extensions 2010: $203m - extendable to 2011 2011: $5m - no extensions; $35m - extendable to 2012; $167m - extendable to 2012 Q4 '10 Q1 '11 Q2 '11 Q3 '11 Q4 '11 Q1 '12 Q2 '
Slide 10: Well-Timed Interest Rate Hedges
Well-Timed Interest Rate Hedges AHT's Floating-Rate Debt Advantage • LIBOR and hotel RevPAR are highly correlated • Ashford swapped $1.8 billion of fixed rate debt to floating rate just prior to negative RevPAR growth, in order to hedge against declining RevPAR • Ashford recently converted the swap
Slide 11: Capital Markets Expertise: Share Repurchases
Ashford repurchased approximately 50% of the company at trough prices We believe this strategy will continue to produce AFFO per share and shareholder return outperformance $440 million in value created from repurchasing 73.6 million common shares at an average price of $3.26 per share (assuming AHT
Slide 12: Capital Markets Expertise: Preferred Shares
Ashford recently issued 3.3 million preferred shares at $23.178 per share During the downturn, 3.1 million preferred shares were repurchased at an average price of $6.47 per share $52.6 million gain from reissuing repurchased shares Capital Markets Expertise $52.6 Million Gain
Slide 13: Strong Operating Performance
Strong Operating Performance Summary • RevPAR increased 5.1% in Q3 '10 for all hotels, or 6.1% for hotels not under renovation • Hotel EBITDA margin increased 173 bps in Q3 '10 for all hotels, or 192 bps for hotels not under renovation vs peer average of 78 bps • Q3 '10 AFFO per share of $0.33 is th
Slide 14: Shareholder Value Creation
Shareholder Value Creation Ashford has outperformed peer average returns Source: Bloomberg; includes dividend reinvestment, as of 1/10/11. Note: Peers include BEE, CHSP, CLDT, DRH, FCH, HST, HT, LHO, PEB, SHO.
Slide 15: High Insider Ownership
High Insider Ownership Insider Ownership East 0.2 0.8 Insider Ownership East 0.04 0.96 Ashford management interests are closely aligned with shareholders, with 20% insider ownership 5x higher insider ownership than peer average Source: Company Filings
Slide 16: Ashford Overview
Ashford Overview Company Snapshot High Quality, Well-Diversified Portfolio Attractive Industry Fundamentals Proactive With Maturities & Covenants Well-Timed Interest Rate Hedges Capital Markets Expertise Strong Operating Performance Shareholder Value Creation High Insider Ownership
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