Ashford Hospitality Trust Inc · NYSE:AHT
Ashford Hospitality Trust — Investor Presentation (March 2016)
27 slides from Ashford Hospitality Trust's investor presentation, Mar 30, 2016
Slide 1: Company Presentation – March 2016
Company Presentation – March 2016
Slide 2: Safe Harbor
Safe Harbor 2 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
Slide 3: Ashford Hospitality Trust Vision
Ashford Hospitality Trust Vision Opportunistic platform focused on full-service hotels 3 Management team more highly-aligned with shareholders than our peers Appropriate use of financial leverage Best in class hotel managers Superior long-term total shareholder return performance Announc
Slide 4: Fourth Quarter 2015 Performance
Fourth Quarter 2015 Performance 4 RevPAR growth for all hotels was 6.8% Adjusted EBITDA increased 31% AFFO per share increased 53% Hotel EBITDA margin increased 112 bps Hotel EBITDA flow-through was 52%
Slide 5: Strategy to Improve Shareholder Value
Strategy to Improve Shareholder Value 5 Current Market Valuation Increase in transparency No more spin-offs Improve portfolio quality through sale of select- service assets Private Market Valuation Simplify strategy and structure Opportunistic stock buybacks
Slide 6: Best In Class Hotel Managers
Best In Class Hotel Managers 89 properties managed by Remington representing 59% of portfolio hotel EBITDA 32 properties managed by Marriott representing 30% of portfolio hotel EBITDA Remaining 11 properties managed by Hilton, Starwood, Hyatt, and Interstate Best in class hotel property mana
Slide 7: Remington Outperformance - Profitability
52% 58% 59% 43% 41% 42% 22% 53% 60% 59% 68% 70% 47% 57% -200% -175% -150% -125% -100% -75% -50% -25% 0% 25% 50% 75% 100% 2008 2009 2010 2011 2012 2013 2014 2015 Non-Remington Remington Remington Outperformance - Profitability Remington has outperformed in EBITDA flow-through 7 out of the last 8 ye
Slide 8: Demonstrated Long-Term Track Record
Demonstrated Long-Term Track Record 8 (1) Since IPO on August 26, 2003 Peer average includes: CHSP, CLDT, DRH, FCH, HST, HT, INN, LHO, RLJ, SHO Returns as of 3/18/16 Source: SNL Total Shareholder Return Long-term performance significantly outperforms peers (1) 88% -11% -28% 8% 452% 52% 40% 55% 26% 4
Slide 9: Asset Performance
Asset Performance 9 Source: Company filings Q4 2015 RevPAR Growth 6.8% 5.5% 5.4% 4.7% 4.2% 4.1% 3.8% 3.6% 3.1% 2.5% -0.2% -1.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% AHT INN FCH CLDT HT SHO CHSP HST DRH RLJ LHO
Slide 10: Highest Insider Ownership
Highest Insider Ownership 10 Public Lodging REITs include: CHSP, CLDT, DRH, FCH, HST, HT, INN, LHO, PEB, RLJ, SHO Source: Company filings. * Insider ownership for Ashford Trust includes direct & indirect interests & interests of related parties Insider Ownership 16.0%* 5.0% 4.0% 3.0% 3.0% 2.2% 2.0%
Slide 11: Shareholder Alignment
11 Shareholder Alignment Peers Ashford Trust Incentivized to grow No sizeable share repurchases Low insider ownership Reluctance to monetize Internal Incentivized to outperform Significant share repurchases High insider ownership Willingness to monetize External or internal His
Slide 12: Attractive Dividend Yield
Attractive Dividend Yield 12 Source: Company filings. Dividend Yield (as of 3/18/16) Highest dividend yield in the industry 7.7% 6.7% 6.1% 6.0% 5.8% 5.7% 5.6% 5.1% 5.1% 4.9% 4.7% 4.4% 3.9% 3.7% 2.3% 1.5% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% AHT LHO APLE XHR RLJ CLDT CHSP HT DRH Peer Avg
Slide 13: Ashford Trust Hotels High Quality, Geographically Diverse Portfolio
13 Ashford Trust Hotels High Quality, Geographically Diverse Portfolio Le Pavillon Hotel New Orleans, LA Lakeway Resort & Spa Austin, TX Hilton Costa Mesa Costa Mesa, CA Marriott Fremont Fremont, CA Le Meridien Minneapolis Minneapolis, MN Chicago Silversmith Chicago, IL Hilton Back Bay Boston, MA Th
Slide 14: Portfolio Overview
Portfolio Overview 14 Hotel EBITDA as of December 31, 2015 for 132 owned hotels as of March 18, 2016 Hotel EBITDA in thousands Hotel EBITDA by Brand Hotel EBITDA by Manager Hotel EBITDA by MSA Hotel EBITDA by Chainscale Top Ten Markets Marriott 50.4% Hilton 27.7% Hyatt 3.7% IHG 4.1% Starwood 7.8% In
Slide 15: Investment Strategy
Investment Strategy 15 Full-service hotels Upper-upscale hotels Focus on all markets Appropriate use of leverage Focus on franchised properties where we can add significant value Investment Strategy Competitive Advantage Increased deal flow Less competition Improves selectivity Mor
Slide 16: Case Study – Conversion to Remington Managed
Case Study – Conversion to Remington Managed 16 Implemented Strategies: Increased club room premium pricing from $30 to $45 Increased corporate group room nights to 25% mid-week to ensure sell-outs and push rate Improved pattern management and business mix to increase higher rated retail contr
Slide 17: Case Study – Marriott Beverly Hills Conversion
Case Study – Marriott Beverly Hills Conversion 17
Slide 18: Case Study – Marriott Beverly Hills Conversion (cont.)
18 Case Study – Marriott Beverly Hills Conversion (cont.) Prior to the conversion, the hotel had a TTM Net Operating Income of $6.3mm Trust invested $21mm, net of key money from Marriott* Ashford expects Net Operating Income to increase by approximately $2.5mm following conversion and stabiliz
Slide 19: Case Study – Marriott Beverly Hills Conversion (cont.)
19 Case Study – Marriott Beverly Hills Conversion (cont.) Lobby Bar Restaurant Front Desk Lobby
Slide 20: Case Study – Marriott Beverly Hills Conversion (cont.)
20 Case Study – Marriott Beverly Hills Conversion (cont.) Guestroom Boardroom Guestroom Club Lounge
Slide 21: Opportunity – W Atlanta Downtown
Opportunity – W Atlanta Downtown 21 Acquired in July 2015 237 keys, 9,000 sq. ft. of meeting space Located in the heart of Downtown Atlanta Close proximity to the downtown and midtown demand generators: Centennial Olympic Park, the Atlanta Aquarium, and Georgia Dome Potential to reconcept
Slide 22: Opportunity – Le Pavillon
Opportunity – Le Pavillon 22 Le Pavillon – New Orleans, LA Le Pavillon – New Orleans, LA Acquired in June 2015 226 keys, 11,235 sq. ft. of meeting space Located in the heart of New Orleans Surrounded by corporate, group, and leisure demand generators Close proximity to The Mercedes-Benz Su
Slide 23: Capital Structure and Net Working Capital
Capital Structure and Net Working Capital Appropriate use of leverage to more cost effectively invest in the hotel cycle Current net working capital of approximately $3.20 per share All debt is non-recourse, property level mortgage debt Targeted cash balance of 25% to 30% of market capitaliz
Slide 24: Debt Maturities and Leverage
$497.0 $205.1 $98.4 $284.2 $606.9 $731.9 $1,445.6 $189.5 $202.6 $116.7 $130.6 $254.5 $0.0 $500.0 $1,000.0 $1,500.0 $2,000.0 $2,500.0 2016 2017 2018 2019 2020 Thereafter Fixed-Rate Floating-Rate Hypothetical Excess Proceeds Debt Maturities and Leverage Target Net Debt/Gross Assets of 50-60% Maint
Slide 25: PKF RevPAR Growth Forecasts
PKF RevPAR Growth Forecasts 25 PKF RevPAR Growth* *Source: PKF COMPOUNDED 2-YEAR REVPAR GROWTH RATE COMPOUNDED 2-YEAR REVPAR GROWTH RATE 24.5% 5.0% 5.5% 6.0% 6.5% 7.0% 20.0% 8.2% 9.0% 9.9% 10.7% 11.6% 25.0% 10.3% 11.3% 12.4% 13.4% 14.5% 30.0% 12.3% 13.6% 14.8% 16.1% 17.4% 35.0% 14.4% 15.8% 17.3% 18.
Slide 26: Key Takeaways
Key Takeaways 26 Focused on increasing shareholder value through simplifying strategy and improving portfolio quality Attractive industry fundamentals Strong management team with a long track record of creating shareholder value Highest dividend yield in the industry Highly-aligned platfor
Slide 27: Company Presentation – March 2016
Company Presentation – March 2016
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