Ashford Hospitality Trust Inc · NYSE:AHT
Ashford Hospitality Trust — Investor Presentation (June 2018)
26 slides from Ashford Hospitality Trust's investor presentation, Jun 5, 2018
Slide 1: June 2018
June 2018
Slide 2: Forward Looking Statements and Non-GAAP Measures
Forward Looking Statements and Non-GAAP Measures 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.
Slide 3: Overview
Overview Opportunistic platform focused on upper upscale, full-service hotels Valuation Disciplined capital Hilton, Embassy Suites, Parsippany, NJ opportunity management Walnut Creek, CA Value added Targets debt levels asset of 55-60% net management debt/gross assets Targets cash level Attractive Le
Slide 4: Management Team
Management Team DOUGLAS A. KESSLER DERIC S. EUBANKS, CFA JEREMY J. WELTER Chief Executive Officer & Chief Financial Officer Chief Operating Officer President . 33 years of real estate & . 18 years of hospitality experience . 13 years of hospitality experience hospitality experience . 15 years with A
Slide 5: Portfolio Overview
Portfolio Overview TOP TEN METRO AREAS(2),(3) TTM Q1 2018 % of 119 24,922 EBITDA Total Washington DC $43,566 9.4% San Fran/Oakland, CA $35,149 7.6% Hotels(1) Rooms(1) Los Angeles, CA $33,899 7.3% New York/New Jersey $31,304 6.7% DFW, TX $26,542 5.7% Boston, MA $25,753 5.5% Atlanta, GA $25,550 5.5% 3
Slide 6: Geographically Diverse
Geographically Diverse Las Vegas – 1.8% Dallas / Ft. Worth – 5.7% Minneapolis – 3.4% Indianapolis – 2.3% Boston – 5.5% New York – 6.7% Portland – 2.0% Philadelphia – 1.7% San Francisco – 7.6% Washington D.C. – 9.4% Los Angeles – 7.3% Nashville – 5.1% Atlanta – 5.5% San Diego – 1.6% Savannah – 2.6% P
Slide 7: High Quality
High Quality W Atlanta Downtown Marriott Beverly Hills Crowne Plaza La Concha Le Pavillon Atlanta, GA Beverly Hills, CA Key West, FL New Orleans, LA One Ocean Le Meridien Minneapolis W Minneapolis The Silversmith Jacksonville, FL Minneapolis, MN Minneapolis, MN Chicago, IL The Churchill Renaissance
Slide 8: Full-Service Rationale
Full-Service Rationale ESTIMATED CAP RATES VALUE-ADD OPPORTUNITIES 6.5% 8.5+% 39% Franchised Upper Upscale Rooms as a % of HIGHER TRANSACTION ACTIVITY(2) Total Upper Upscale Chain Scale Segment(1) Full-Service 2017 HOTEL TRANSACTIONS (Luxury) $ 2.5B 10% Limited-Service $ 10.5B 43% Full-Service (Non-
Slide 9: Financially Calibrated Sales
Financially Calibrated Sales Ashford Trust Hotel Sales 2015 - 2018 PROPERTIES SOLD SALES OF MAINLY SELECT-SERVICE PROPERTIES Hampton Inn Terre Haute Sales Proceeds Courtyard Marriott Village LBV $375 million SpringHill Suites Marriott Village LBV Fairfield Inn Marriott Village LBV REMOVAL OF LOWER R
Slide 10: Disciplined Capital Management
Disciplined Capital Management Track record of increasing shareholder returns by capitalizing upon cyclical changes and advantageous pricing situations COMMON SHARE BUYBACKS $1,400 73.6M 50% $3.28 Of Outstanding Average Financial Crisis Shares $1,200 Shares Buyback $200 RECENT PREFERRED EQUITY ACTIV
Slide 11: Leverage Target
Leverage Target Non-recourse, property level mortgage Leverage policy consistent since IPO debt $6,000 70% 64.9% 61.2% 61.9% 62.3% 65% $5,000 59.6% 58.7% 59.1% 58.5% 58.3% 60% 56.1% 56.4% 55.5% 55.7% 55% $4,000 49.2% 50% $3,000 42.4% 45% (In millions $) millions (In 40% $2,000 35% 30% $1,000 25% $0
Slide 12: Cash Target
Cash Target FINANCIAL CRISIS CURRENT CYCLE Positioned to buy back approximately 50% of Ample flexibility to execute opportunistic growth outstanding common shares for about $240 million and maintain hedge against an economic leading to outsized total shareholder returns downturn FINANCIAL CRISIS CUR
Slide 13: Net Working Capital
Net Working Capital Net Working Capital(1) Cash & Cash Equiv alents $277.6 Restricted Cash 137.2 Investment in Securities 36.0 Accounts Receivable, net 54.6 Prepaid Expenses 29.3 Due from Affiliates, net (10.8) 25-30% 31.9% $3.50 Due from Third Party Hotel Managers 17.4 Market Value of Ashford, Inc.
Slide 14: Non-Recourse Debt
Non-Recourse Debt Total Enterprise Value Stock Price(1) $7.28 100% 100% 0% (2) Fully Diluted Shares Outstanding 119.2 PROPERTY LEVEL, NON-RECOURSE DEBT CORPORATE LEVEL DEBT MORTGAGE DEBT Equity Value $868.0 Plus: Preferred Equity (2) 564.7 Plus: Debt (2) 3,737.1 Total Market Capitalization $5,169.8
Slide 15: Value Enhancement through Refinancing
Value Enhancement through Refinancing BOSTON BACK BAY –OCT 2017 17-PACK –OCT 2017 8-HOTEL PORTFOLIO –JAN 2018 4.38% L+2.00% L+5.52% L+3.00% L+4.95% L+2.92% Old Interest Rate New Interest Rate Old Interest Rate New Interest Rate Old Interest Rate New Interest Rate ~$2.8 million in annual debt se
Slide 16: Debt Maturity
Debt Maturity(1),(2) 2018 NO DEBT MATURITIES 5.8% TOTAL PORTFOLIO WEIGHTED AVERAGE INTEREST RATE $2,500 Debt Yield: Debt Yield: Debt Yield: Debt Yield: 13.1% 10.7% 14.9% 11.5% $2,000 $1,500 $1,807.0 $1,000 (In millions $) millions (In $500 $726.7 $533.0 $333.9 $251.9 $0 $5.3 $94.8 2018 2019 2020 202
Slide 17: High Insider Ownership
High Insider Ownership Most highly aligned management team among the #1 lodging REIT sector $153M Total Dollar Value of Insider Ownership(1),(2),(3) 20% 17.7% 18% 16% 14.5% 14% 12% 10% 9.4% 8% 6.3% 6% 4% 3.4% 3.4% 2.6% 2.2% 2.1% 1.9% 1.6% 2% 1.2% 0.9% 0.9% 0.4% 0.4% 0% (1),(2) (1),(2) AHT BHR HT APL
Slide 18: Attractive Dividend Yield
Attractive Dividend Yield Highest dividend yield in the industry(1) 8.5% 7.5% 6.6% 6.5% 6.4% 6.3% 5.9% 5.7% 5.5% 5.5% 5.4% 5.3% 5.1% 5.1% 4.7% 4.4% 4.5% 4.2% 4.0% 3.7% 3.7% 3.5% 2.5% (2)(3) (2) AHT CLDT APLE BHR RLJ PK HT LHO REIT CHSP INN XHR SHO DRH PEB HST Avg Source: Company filings and Bloomber
Slide 19: Value Creation Through Active Asset Management
Value Creation Through Active Asset Management W ATLANTA DOWNTOWN W MINNEAPOLIS FOSHAY LE MERIDIEN MINNEAPOLIS Flow-Thru: 157% EBITDA Flow-Thru: 115% EBITDA Flow-Thru: 84% First full year of ownership(1) First full year of ownership(1) First full year of ownership(1) Ashford management creates val
Slide 20: Case Study – Aggressive Asset Management
Case Study – Aggressive Asset Management Hotel Overview W Atlanta – Atlanta, GA 237 keys, 9,000 sq. ft. of meeting space Close proximity to the downtown and midtown demand generators: Centennial Olympic Park, the Atlanta Aquarium, and Mercedes Benz Stadium Implemented Strategies Replaced unpro
Slide 21: Case Study – Conversion to Remington Managed
Case Study – Conversion to Remington Managed Hotel Overview Marriott Fremont – Fremont, CA 357 keys, 15,000 sq. ft. of meeting space Ideally located off Interstate 880 at the gateway to Silicon Valley. Announced forward cap rate and EBITDA multiple of 8.1% and 10.0x, respectively Current cap
Slide 22: Asset Management Initiatives – Recently Completed
Asset Management Initiatives – Recently Completed Le Meridien Minneapolis: Guestroom renovation completed. Public spaces are underway currently. Courtyard Denver Airport: Guestroom renovation, including shower conversions, completed. Renaissance Palm Springs: Guestroom, restaurant, meeting space and
Slide 23: Asset Management Initiatives – Upcoming
Asset Management Initiatives – Upcoming Renaissance Nashville: Partnered with developer on the adjacent $430 million Fifth & Broadway mixed use development which will provide hotel with upgraded meeting space. Extensive lobby and restaurant renovation is underway to include a signature retail market
Slide 24: Valuation Opportunity
Valuation Opportunity VALUATION OPPORTUNITY 170 2.2x 7.1x Discount to Discount to Discount to average peer average peer average peer trading cap trading EBITDA trading AFFO rate (bps) multiple multiple Opportunity to capture significant valuation upside relative to peers Sheraton Anchorage, AK TEV /
Slide 25: Key Takeaways
Key Takeaways Opportunistic platform focused on upper upscale, full-service hotels Valuation Disciplined capital Hilton, Embassy Suites, Parsippany, NJ opportunity management Walnut Creek, CA Value added Targets debt levels asset of 55-60% net management debt/gross assets Targets cash level Attracti
Slide 26: June 2018
June 2018
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