Ashford Hospitality Trust Inc · NYSE:AHT
Ashford Hospitality Trust — Investor Presentation (March 2015)
29 slides from Ashford Hospitality Trust's investor presentation, Mar 20, 2015
Slide 1: Ashford Hospitality Trust March 2015
ZX. ASHFORD HOSPITALITY TRUST March 2015
Slide 2: Safe Harbor
2 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
Slide 3: Strong Track Record & Performance
3 Strong Track Record & Performance
Slide 4: Demonstrated Long-Term Track Record
Demonstrated Long-Term Track Record 4 • Disciplined growth, operational expertise, and capital allocation to maximize shareholder returns • Ashford Trust expects to benefit from strong AINC management team capabilities Peer average includes: BEE, CHSP, CLDT, DRH, FCH, HST, HT, INN, LHO, PEB, RLJ, SH
Slide 5: Highly-Aligned Management
Highly-Aligned Management 5 • With insider ownership* of approximately 14% for AHT, management is highly-aligned with shareholder interests Publicly-Traded Hotel REIT Insider Ownership Public Lodging REITs include: BEE, CHSP, CLDT, DRH, FCH, HST, HT, INN, LHO, PEB, RLJ, SHO Source: Company filings.
Slide 6: Compelling Opportunity
Compelling Opportunity 6
Slide 7: Compelling Opportunity
7 Compelling Opportunity Proven track record of long-term value creation for shareholders Highly-aligned management team Diversified portfolio with 66% of hotels managed by affiliated property manager Leveraged way to invest in the hotel cycle Attractive dividend yield
Slide 8: Opportunistic Strategy
8 Opportunistic Strategy Opportunistically invest in hotel assets with up to 2x the national average RevPAR in all market locations Opportunistic use of non-recourse debt to maximize shareholder returns
Slide 9: Portfolio Overview
Portfolio Overview 9 *FY 2014 Hotel EBITDA 50% 30% 4% 5% 5% 5% Ashford Trust Brands by EBITDA Marriott Hilton Hyatt IHG Starwood Independent 33% 57% 6% 3% 1% Ashford Trust Managers by EBITDA Marriott Remington Hilton Hyatt Interstate 73% 17% 10% Ashford Trust MSA by EBITDA Top 25 Top 26-50 Other 35%
Slide 10: Strong Asset Performance
10 2013 2014 Var RevPAR $95.94 $105.39 9.8% Hotel Revenue $1,031,840 $1,117,739 8.3% Hotel EBITDA $312,766 $354,513 13.3% EBITDA Flow 48.6% The above table assumes the 115 properties owned and included in continuing operations December 31, 2014 were owned as of the beginning of each of the periods s
Slide 11: Ashford Trust – Capital Structure
Ashford Trust – Capital Structure 11 » Target Net Debt/Gross Assets of 50-60% » Maintain mix of fixed and floating rate debt » Ladder maturities » Proactively refinance upcoming maturities » Maintain excess cash balance to capitalize on opportunities » Focus on property-level, non-recourse debt Bala
Slide 12: Ashford Trust Recent Developments
12 Ashford Trust Recent Developments Q4 2014 RevPAR up 11.3%, EBITDA up 17.6% and EBITDA flow-through was 49% In January 2015, the Company refinanced two mortgage loans resulting in excess proceeds of over $100 million after closing costs and reserves Also in February 2015, the Company closed
Slide 13: Marriott Fremont Transaction
13 Marriott Fremont Transaction *TTM through 12/31/14 Strengths/Opportunities: • Excellent location in strong Silicon Valley hotel market • Diversified customer base • High quality asset with minimal capex needs – recently renovated guestrooms, meeting space and Greatroom- certified lobby • Opportun
Slide 14: Growth & Acquisition Strategy
Growth & Acquisition Strategy 14
Slide 15: Growth & Acquisition Strategy
15 Highly quantitative approach focused on long-term accretion Proven track record of value-creating opportunistic acquisitions Disciplined capital allocation Multiple ways to grow platform: Internal growth from asset performance Portfolio/single asset acquisitions Excess cash from pot
Slide 16: Projected Hotel Room Value Growth
Projected Hotel Room Value Growth 16 Source: JLL/HVS * 2014 US Hotel Transaction Volume is an actual number • U.S. hotel transaction volume is likely to increase over the next several years as private U.S. hotel market values rise $0 $10 $20 $30 $40 $50 $40,000 $50,000 $60,000 $70,000 $80,000 $90,00
Slide 17: Accretive Growth
Accretive Growth 17 - Ashford Trust management is focused on accretive growth - Our definition of accretion: the 5-year Total Shareholder Return (TSR) post-transaction must be greater than the 5-year TSR pre-transaction - Transactions are modeled on a leverage-neutral basis Base Model Transaction (L
Slide 18: Appendix
APPENDIX 4. ASHFORD
Slide 19: Industry Overview
Industry Overview 4. ASHFORD
Slide 20: Attractive Supply/Demand Imbalance
• Demand expected to exceed supply through at least 2015 20 Attractive Supply/Demand Imbalance Source: PKF -8.0 -6.0 -4.0 -2.0 0.0 2.0 4.0 6.0 8.0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015F Supply Growth Demand Growth Yea r- o v e r- Year % Gro w th PKF Forecast
Slide 21: PKF RevPAR Growth Forecasts
21 Source: PKF 7.7% 6.1% -2.0% -16.7% 5.4% 8.2% 6.8% 5.4% 8.3% 7.3% 6.5% -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% Historical RevPAR Growth Forecasted RevPAR Growth PKF RevPAR Growth Forecasts
Slide 22: Potential Industry EBITDA Growth Rates
22 Potential Industry EBITDA Growth Rates *Based on PKF RevPAR/ADR/Occupancy projections and EBITDA growth resulting from PKF EBITDA change regression equation. • With strong potential RevPAR gains, those companies with reasonable flow-throughs could experience significant EBITDA growth • PKF estima
Slide 23: Historical Industry Stock Returns
• Historically, attractive returns remain for investors from this point in the lodging cycle 23 Historical Industry Stock Returns Index includes AHT, BEE, DRH, FCH, HST, HT, LHO, and SHO. Companies are included in the data from the time of their IPO Current data as of February 28, 2015 % 50% 100% 15
Slide 24: Executive Bios
Executive Bios 4. ASHFORD
Slide 25: Executive Bios
25 Executive Bios Monty J. Bennett Chief Executive Officer & Chairman of the Board Douglas A. Kessler President Mr. Kessler is the President of Ashford (NYSE.MKT:AINC) and serves as the President of both Ashford Hospitality Trust (NYSE: AHT) and Ashford Hospitality Prime (NYSE: AHP). He is currently
Slide 26: Executive Bios
26 Executive Bios David A. Brooks Chief Operating Officer, General Counsel & Secretary Mr. Brooks is the Chief Operating Officer, General Counsel & Secretary of Ashford (NYSE.MKT:AINC) and serves as Chief Operating Officer, General Counsel & Secretary of both Ashford Hospitality Trust (NYSE: AHT) an
Slide 27: Executive Bios
27 Executive Bios J. Robison Hays Chief Strategy Officer Mr. Hays is the Chief Strategy Officer of Ashford (NYSE.MKT:AINC) and serves as the Chief Strategy Officer of both Ashford Hospitality Trust (NYSE: AHT) and Ashford Hospitality Prime (NYSE: AHP). Mr. Hays is responsible for the formation and e
Slide 28: Executive Bios
28 Executive Bios Mark L. Nunneley Chief Accounting Officer Mr. Nunneley is the Chief Accounting Officer of Ashford (NYSE.MKT:AINC) and serves as the Chief Accounting Officer of both Ashford Hospitality Trust (NYSE: AHT) and Ashford Hospitality Prime (NYSE: AHP). He has served as the Chief Accountin
Slide 29: Ashford Hospitality Trust March 2015
ZX. ASHFORD HOSPITALITY TRUST March 2015
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