Ashford Hospitality Trust Inc · NYSE:AHT
Ashford Hospitality Trust — Investor Presentation (December 2012)
28 slides from Ashford Hospitality Trust's investor presentation, Dec 4, 2012
Slide 1: Company Presentation December 2012
YN NA Company Presentation December 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: Economic & Industry Overview
& Economic & Industry Overview
Slide 4: Real GDP Growth
-20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% Real GDP Growth % 4 2011 Real GDP Growth: 1.8% Source: U.S. Dept. of Commerce: BEA & Historical Statistics of the United States: - Cambridge
Slide 5: Hotel Demand Driven by Economy
-8.0 -6.0 -4.0 -2.0 0.0 2.0 4.0 6.0 8.0 Real GDP Growth Hotel Demand Growth Hotel Demand Driven by Economy Source: Smith Travel Research & U.S. Dept. of Commerce: BEA Hotel Demand Growth % vs. Real GDP Growth 5 R-squared = 0.59
Slide 6: U.S. Demand Will Outpace Supply
-8.0 -6.0 -4.0 -2.0 0.0 2.0 4.0 6.0 8.0 Yea r- o v e r- Year % G ro wt h Supply Growth Demand Growth U.S. Demand Will Outpace Supply 6 PKF Forecast Source: Smith Travel Research & PKF
Slide 7: Real RevPAR is Cyclical
Real RevPAR is Cyclical Source: Smith Travel Research & U.S. Dept. of Labor: BLS Seasonally-Adjusted Real RevPAR (2012$, Trailing 3-Mo Average) 7 $52 $54 $56 $58 $60 $62 $64 $66 $68 $70 $72 $74
Slide 8: RevPAR Forecast - PKF
7.7% 6.1% -2.0% -16.7% 5.4% 8.2% 6.7% 6.2% 8.8% 6.5% 3.5% -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 2006 2007 2008 2009 2010 2011 2012F 2013F 2014F 2015F 2016F Historical RevPAR Growth Forecasted RevPAR Growth RevPAR Forecast - PKF Source: Smith Travel Research & PKF 8 5-Year RevPAR Growth CA
Slide 9: Potential Industry EBITDA Growth Rates (2-year)
Potential Industry EBITDA Growth Rates 9 − With strong potential RevPAR gains, those companies with reasonable flow-throughs could experience significant EBITDA growth − PKF estimates 2-year cumulative EBITDA growth of about 21%* *Based on PKF RevPAR/ADR/Occupancy projections and EBITDA growth resul
Slide 10: Potential Industry EBITDA Growth Rates (5-year)
Potential Industry EBITDA Growth Rates 10 − With strong potential RevPAR gains, those companies with reasonable flow-throughs could experience significant EBITDA growth − PKF estimates 5-year cumulative EBITDA growth of about 60%* *Based on PKF RevPAR/ADR/Occupancy projections and EBITDA growth resu
Slide 11: Company Highlights
Zs | Company Highlights See Company Highlights f W
Slide 12: Company Snapshot
Company Snapshot 12 Portfolio Statistics Total Enterprise Value $4.0 B Total Gross Assets $4.9 B Peer Comparison 2nd Largest # of Hotels 123 # of Owned Rooms 25,767 # of Property Managers 5 $ ADR $135.74 $ RevPAR $101.51 RevPAR Growth % 5.1% Financial Statistics Recent Share Price $9.12 (11/28/12) #
Slide 13: Portfolio Overview
Portfolio Overview 13 1% 59% 3% 37% Chain Scale* Luxury Upper Upscale Upper Midscale Upscale 31% 3% 5% 53% 4% 3% Brand Family* Hilton Hyatt Starwood Marriott IHG Independent 24% 4% 23% 49% Segmentation Group Contract Leisure Transient Corporate Transient *as a % of 3Q 2012 TTM EBITDA 73% 17% 10% MSA
Slide 14: Asset Management Outperformance
Asset Management Outperformance 14 − Ashford consistently beats peers in hotel EBITDA flow throughs Peers include: BEE, CHSP, DRH, FCH, HST, HT, LHO, PEB, SHO Source: Company Filings 39% 8% 49% 41% 50% 52% 51% 37% 53% 104% 63% 66% 0% 20% 40% 60% 80% 100% 120% 2007 2008 2009 2010 2011 YTD Q3 2012 Pee
Slide 15: Attractive Dividend Yield & Coverage
Attractive Dividend Yield & Coverage 15 − Ashford has both a high dividend yield and strong dividend coverage 5.8% 5.2% 4.8% 4.7% 3.7% 3.4% 2.9% 2.4% 2.2% - - - 1.7x 1.5x 3.6x 1.8x 2.2x 3.2x 2.5x 2.4x 3.9x - 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% CLDT HT AHT CHSP
Slide 16: Compelling Valuation
Compelling Valuation 16 − Ashford is currently trading below the peer average on an EBITDA multiple and price per key basis Source: Company filings, SNL, Street research & First Call (as of 11/28/12) $407 $358 $341 $254 $252 $250 $233 $232 $232 $158 $144 $138 0.0x 2.0x 4.0x 6.0x 8.0x 10.0x 12.0x 14.
Slide 17: Total Shareholder Return
28% -3% 81% 188% -43% -48% -30% -21% 20% 26% 4% 116% 534% 46% -2% 28% 44% 54% -100% 0% 100% 200% 300% 400% 500% 600% 1-Yr 2-Yr 3-Yr 4-Yr 5-Yr 6-Yr 7-Yr 8-Yr 9-yr Peer Avg. AHT Total Shareholder Return 17 Peer average includes: BEE, CHSP, CLDT, DRH, FCH, HST, HT, LHO, PEB, SHO Trailing Total Sharehol
Slide 18: Most Highly-Aligned Management
Most Highly-Aligned Management 18 21% 15% 5% 3% 3% 2% 2% 1% 1% 1% 1% 0% 5% 10% 15% 20% 25% AHT HT CLDT FCH HST CHSP SHO DRH BEE LHO PEB Insider ownership % Source: Company Filings
Slide 19: Upcoming Maturities & Debt Yields
Upcoming Maturities & Debt Yields 19 − Upcoming maturities through 2014 include: − TTM September 2012 weighted average debt yields on these maturities are 14.0% Aareal Torrey Pines / Capital Hilton $143M Matures Aug 2013 14.4% TTM Debt Yield Highland Cigna Loans $101M Matures Jan-Apr 2013 17.5% TTM
Slide 20: Available Liquidity
Available Liquidity 20 Available Liquidity Undrawn $165m credit facility $146m of unrestricted cash at end of Q3 ‘12 Preferred equity ATM facility Common equity ATM facility Potential refinancing proceeds Excess cash flow
Slide 21: Safety & Optionality
Safety & Optionality 21 • Approximately 100-120% of equity value • ~$2.0 billion of debt • Positive cash flow • Weighted average maturity of 3.4 years • All debt non-recourse Portfolio A: Safety • Approximately 0-(20)% of equity value • $1.0 to $1.2 billion of debt • Positive cash flow • Weighted av
Slide 22: Highland Hospitality Update
» Highland Hospitality Update
Slide 23: Highland Opportunities
Highland Opportunities 23 Franchise properties • Looking for opportunities to create long-term value and operational efficiency through Remington management • Hilton Back Bay, Hyatt Windwatch, Courtyard Savannah & Residence Inn Tampa Operating flow throughs • Right-sizing the cost structure • Bringi
Slide 24: Highland EBITDA Flows
Highland EBITDA Flows 24 32.7% 83.0% 95.9% 0% 20% 40% 60% 80% 100% 120% One Year Pre-Takeover One Year Post-Takeover TTM Q3 2012
Slide 25: Highland NOI Exceeds Underwriting
Highland NOI Exceeds Underwriting 25 $79 $82 $86 $88 $91 $93 $95 $93 $70 $75 $80 $85 $90 $95 $100 Mar 2011 TTM Jun 2011 TTM Sep 2011 TTM Dec 2011 TTM Mar 2012 TTM Jun 2012 TTM Sep 2012 TTM U/W for Sep 2012 NO I $ ( in m il li o n s)
Slide 26: Next Steps for Ashford
A Next Steps for Ashford NY
Slide 27: Next Steps for Ashford
• Focus on growing Highland revenues • Growing EBITDA is best way to create shareholder value Intense operational focus to grow EBITDA • Build cash balance in preparation for next downturn Grow cash balance • Must be long-term accretive to stock price • Franchised, full-service preferred • Domestic
Slide 28: YN NA
YN NA Company Presentation December 2012
Ashford Hospitality Trust — Investor Presentation (December 2012) on 6ix