Ashford Hospitality Trust Inc · NYSE:AHT
Ashford Hospitality Trust — Deutsche Bank 2011 Hospitality and Gaming Conference
28 slides from Ashford Hospitality Trust's conference presentation, Nov 10, 2011
Slide 1: Deutsche Bank 2011 Hospitality and Gaming Conference
Deutsche Bank 2011 Hospitality and Gaming Conference November 10, 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: Agenda
Agenda Favorable macro market dynamics Focused portfolio, positioned for growth Proactive debt and equity capital market strategies Outperformance Accretive Highland transaction High insider ownership 3
Slide 4: Attractive Supply/Demand Imbalance
Attractive Supply/Demand Imbalance Demand increase is currently expected to outpace supply increase through 2014 4 Source: Smith Travel / PKF Research (forecast)
Slide 5: Attractive Industry Fundamentals
Attractive Industry Fundamentals 5 Source: Smith Travel Research (non- seasonally adjusted nominal monthly figures)
Slide 6: PKF's Nominal US RevPAR Forecast
PKF's Nominal US RevPAR Forecast 6 5-Year RevPAR Growth CAGR: 6.5% Source: Smith Travel Research / PKF Research (forecast)
Slide 7: Ashford Snapshot
Ashford Snapshot 7 Portfolio Statistics* Total Enterprise Value $4.0 B Total Gross Assets $4.9 B Peer Comparison 2nd Largest # of Hotels 124 # of Owned Rooms 26,139 # of Property Managers 6 $ ADR $131.02 $ RevPAR $96.10 RevPAR Growth % 6.4% Financial Statistics* Recent Share Price $8.60 (11/2/11) #
Slide 8: Broad Geography
Broad Geography Ashford's geographic footprint encompasses 29 states and Washington DC 8 WEST COAST MIDDLE AMERICA TEXAS EAST COAST West Coast includes Alaska EBITDA by Region EAST COAST: 51% WEST COAST: 22% TEXAS: 12% MIDDLE AMERICA: 15%
Slide 9: MSA
MSA The vast majority of Ashford's EBITDA comes from top 25 markets, with nearly 90% coming from top 50 markets 9
Slide 10: Chain Scale
Chain Scale Approximately 96% of Ashford's EBITDA comes from upper upscale and upscale assets 10
Slide 11: Brand Family
Brand Family 85% of Ashford's EBITDA comes from Marriott and Hilton branded assets 11
Slide 12: Transient vs. Group vs. Contract
Transient vs. Group vs. Contract Our customers are predominantly transient, with a strong emphasis on corporate business 12
Slide 13: Hotel EBITDA Margin Change Comparison
Hotel EBITDA Margin Change Comparison 13 * YTD Q3 2011 excludes SHO
Slide 14: Hotel EBITDA Flows Comparison
Hotel EBITDA Flows Comparison 14 * YTD Q3 2011 excludes SHO
Slide 15: Debt Maturity Schedule
Debt Maturity Schedule g AHT Debt Maturity Schedule $1,200,000 $1,000,000 $800,000 $600,000 $400,000 “" Ball a inane waa 2011 2012,-«2013 201420152016 -—-2017_Beyond mFixed-Rate m Floating-Rate $ Debt (000's)
Slide 16: Significant Industry Dilution
Significant Industry Dilution 16 Source: Bloomberg
Slide 17: Significant Shareholder Accretion
Significant Shareholder Accretion 17 Source: Bloomberg
Slide 18: Significantly Reduced Share Count
Significantly Reduced Share Count 18 Source: SNL, Company Filings & Street Research.
Slide 19: Potential Impact of Interest Rate Hedges in 2011
Potential Impact of Interest Rate Hedges in 2011 19 Principal Interest Expense (est.) Interest Rate (est.) Total Debt $3.2 billion $172 million 5.4% Swap Impact ($31.9 million) Flooridor Impact (if Libor stays below 50 bps in 2011) ($39.0 million) TOTAL $3.2 billion $101 million 3.2% Note: Assumes 3
Slide 20: Consistent Earnings Growth
Consistent Earnings Growth 20
Slide 21: AFFO per Share Outperformance
AFFO per Share Outperformance 21 +48% -67% * TTM Q3 2011 excludes SHO
Slide 22: Accretive Highland Transaction
Accretive Highland Transaction 22 28 hotel portfolio (19 full-service, 9 select- service) with 8,084 rooms Total consideration of $1.3 billion ($158,000 per key) 2010 EBITDA multiple 13.4x Operational upside 2010 EBITDA flows of 18% vs. AHT's of 104% Remington took over management of 17 assets NOI 3
Slide 23: Ashford vs. Highland 2010 EBITDA Concentration
100.0% 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% rtfolio Upgrade Legacy Ashford vs. Highland 2010 EBITDA Concentration 73% 75% 76% sm Ga) 62% 63% | L Top 25 Markets Luxury/Upper- Full-Service Urban Upscale m Legacy Ashford = Highland Soe ww
Slide 24: Highland Transaction - Price Per Key Comparison
Highland Transaction - Price Per Key Comparison 24 Source: Real Capital Analytics & company filings.
Slide 25: Replacement Cost per Key
Replacement Cost per Key 25 Source: Estimated based on JP Morgan Research Report Highland was purchased for $158,000 per key - a 44% discount to replacement cost
Slide 26: Reinstated Dividend w/ Growth Potential
Reinstated Dividend w/ Growth Potential Given the material reduction in our common share count, Ashford is well positioned to cover and potentially grow its dividend 26 Though Ashford didn't pay a dividend in 2009 & 2010, it could have covered its peak dividend at 1.3x in 2009 & 1.8x in 2010
Slide 27: Most Highly-Aligned Management Team
Most Highly-Aligned Management Team 27 Source: 2011 Proxy Filings
Slide 28: Deutsche Bank 2011 Hospitality and Gaming Conference
Deutsche Bank 2011 Hospitality and Gaming Conference November 10, 2011
Ashford Hospitality Trust — Deutsche Bank 2011 Hospitality and Gaming Conference on 6ix