Ashford Hospitality Trust Inc · NYSE:AHT
Ashford Hospitality Trust — UBS Global Real Estate Conference 2007
17 slides from Ashford Hospitality Trust's conference presentation, Nov 28, 2007
Slide 1: UBS Global Real Estate Conference November 2007
UBS Global Real Estate Conference November 2007 Hilton Dallas Lincoln Centre Hotel Exterior
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 Exterior Welcome to the Capital Hilton Hilton Dallas Lincoln Centre Hotel Hilton Miami Airport Hotel Exterior Exterior Hilton La Jolla Torrey Pines Hotel The image “http://www.ispor.org/meetings/future/gatewaymariott.jpg” cannot be displayed, because it contains errors. Embassy Suit
Slide 4: Ashford Snapshot
Ashford Snapshot Portfolio Statistics AHT Total Enterprise Value (1) $4.1 Bil Peer Comparison (2) 3rd largest # of Hotels 114 # of Rooms 26,295 ADR (3) $134.89 RevPAR (3) $103.81 RevPAR Growth (3) 8.3% Financial Statistics # Shares Outstanding 143.0 M Avg. Daily Trading Volume (3 Month) 1.0 M Net De
Slide 5: Investment Strategy
Investment Strategy PRIMARY STRATEGY: Direct Hotel Ownership (98% of Gross Assets) Expansion Early Decline Late Decline Recovery SECONDARY STRATEGIES: Mezzanine Lending 1st Mortgages Sale Leasebacks (2% of Gross Assets) ..Primary strategy is direct hotel investments, supplemented by secondary strate
Slide 6: Investment Track Record
Investment Track Record 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% ‘90’91’92’93’94’95’96’97’98’99’00’01’02’03’04’05’06’07E02,0004,0006,0008,00010,00012,00014,00016,000 AcquisitionsDispositions & Listed Assets% U.S. Supply Change% U.S. Supply — Historical Avg. % Change U.S. Hotel Rooms% Change U.S. Hotel Rooms As
Slide 7: Multi-Asset Class to Reduce Volatility
Multi-Asset Class to Reduce Volatility 47% 34% 8% 3%7% 1% MarriottHiltonHyattStarwoodIHGOther 42% 18% 26% 1% 2% 8% 3% MarriottRemingtonHiltonHyattStarwoodInterstateHotel Equities 2% 60% 34% 4% LuxuryUpper-UpscaleUpscaleMidscale w/o F&B Chain Scale Brand Geography Manager Note: Proforma based on TTM
Slide 8: Cycle Resilient Portfolio Mix
..Diversity to enhance risk/rewards balance ..Limited service assets have greater resiliency to economic downturns than full service assets ..Mezzanine investments offer high yields and NOI cushion Cycle Resilient Portfolio Mix Source: PKF Limited Service vs. Full Service EBITDA Volatility0.0% 10.0%
Slide 9: Strong Operating Performance
Strong Operating Performance — Property-level EBITDA margins have improved by an average of 171 bps over the past four quarters 10.3% 11.1% 6.5% 8.3% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 4Q 061Q 072Q 073Q 07 RevPAR Growth %RevPAR Growth % 206286731200501001502002503003504Q 061Q 072Q 073Q 07 Margin G
Slide 10: Internal Growth / Capex Funding
..Focus on value-added capex grows RevPAR and captures market share through higher RevPAR penetration ..Management will be prudent regarding the timing of future expenditures and the magnitude of ROI projects ..Capital projects generally less intrusive ..History of on-budget and on-time delivery 3.8
Slide 11: High Dividend
High Dividendzx ..Dividend growth: 250% since 1Q 2004 ..Strong dividend CAD/AFFO coverage: — 2007 YTD — 1.24x CAD coverage — 2007 YTD — 1.59x AFFO coverage ..Highest in peer group with dividend yield of 11.2% (1) (1) Assumes 11/23/07 stock price of $7.47. Note: Peers include BEE, DRH, FCH, HPT, HST,
Slide 12: Relative Value
Relative Valuezx ..Ashford’s FFO multiple is 38% lower than the peer average Sources: First Call estimates, FBR Property Week 11/12/07 and company financials. Exterior 10.1x9.9x9.5x8.6x7.6x7.4x7.2x6.7x5.2x63% 43%41%41%42% 72% 54% 46% 62% 3.0x4.0x5.0x6.0x7.0x8.0x9.0x10.0x11.0xBEELHODRHHSTHPTHTSHOFCHA
Slide 13: U.S. Lodging Market
U.S. Lodging Market Exterior Welcome to the Capital Hilton Hilton Dallas Lincoln Centre Hotel Hilton Miami Airport Hotel Exterior Exterior Hilton La Jolla Torrey Pines Hotel The image “http://www.ispor.org/meetings/future/gatewaymariott.jpg” cannot be displayed, because it contains errors. Embassy S
Slide 14: Lodging REITs vs. Other REITs
Lodging REITs vs. Other REITs Source: FBR Property Week — 11/12/07. ..Lodging REITs lag other multiples despite having one of the highest dividend yields and the highest projected 2008 FFO growth 5.0% 5.9% 3.5% 4.5% 5.0% 4.0% 11.0% 5.2% 10.4% 7.1% 8.6% 3.7% 8.0x10.0x12.0x14.0x16.0x18.0x20.0xOfficeAp
Slide 15: Strong Fundamentals
Strong Fundamentals -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% ‘89’90’91’92’93’94’95’96’97’98’99’00’01’02’03’04’05’06’07E’08E’09EGDPSupplyRevPAR ..Favorable spread between new room supply and RevPAR growth ..New supply growth greatly determines lodging cycles ..Supply growth remains low
Slide 16: Conclusion
Conclusionzx ..An attractive “relative”investment value ..Opportunistic, disciplined strategy in all cycles ..Resilient portfolio with strong growth performance ..U.S. lodging cycle is still strong and looks positioned to withstand economic cycle shifts Exterior
Slide 17: UBS Global Real Estate Conference November 2007
UBS Global Real Estate Conference November 2007 Hilton Dallas Lincoln Centre Hotel Exterior
Ashford Hospitality Trust — UBS Global Real Estate Conference 2007 on 6ix