Braemar Hotels & Resorts Inc. · NYSE:BHR
Braemar Hotels & Resorts — Ashford Hospitality Prime — Investor Presentation (January 2016)
19 slides from Braemar Hotels & Resorts's investor presentation, Jan 26, 2016
Slide 1: Company Presentation – January 2016
Company Presentation – January 2016
Slide 2: 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 result," "m
Slide 3: Ashford Hospitality Prime Vision
Ashford Hospitality Prime Vision Well defined strategy investing in luxury hotels in gateway and resort markets 3 Bardessono Hotel & Spa Yountville, CA Pier House Resort Key West, FL Chicago Sofitel WaterTower Chicago, IL Grow platform through accretive acquisitions of high quality assets Main
Slide 4: Maximizing Shareholder Value
Maximizing Shareholder Value Consistently committed to maximizing shareholder value including the following initiatives: Doubled common dividend to $0.10 per share in Q2 2015 $65 million convertible preferred equity raise at $18.90 conversion price Accretive acquisition of the luxury Bardess
Slide 5: Strategic Alternatives Update
Strategic Alternatives Update In August, the Company announced a plan to explore a full range of strategic alternatives including a possible sale of the Company Independent directors engaged Deutsche Bank as advisors Board is discussing all possible strategic alternatives to maximize value for
Slide 6: Recent Developments
Recent Developments 6 Acquisition of the Bardessono Hotel & issuance of convertible preferred equity Very high quality asset in high demand market with high barriers to entry Enabled us to grow the portfolio without raising dilutive equity Amendments to Advisory Agreement with Ashford, Inc.
Slide 7: Highest Insider Ownership
Highest Insider Ownership 7 Public Lodging REITs include: CHSP, CLDT, DRH, FCH, HST, HT, INN, LHO, PEB, RLJ, SHO Source: Company filings. * Insider ownership for Ashford Prime includes direct & indirect interests & interests of related parties Insider Ownership 14.0%* 5.0% 4.0% 3.0% 3.0% 2.2% 2.0% 2
Slide 8: Shareholder Alignment
Shareholder Alignment 8 Peers Ashford Prime 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 Hist
Slide 9: Asset Performance
Asset Performance 9 Source: Company filings YTD Q3 2015 RevPAR Growth 7.1% 6.3% 5.9% 5.9% 5.2% 3.9% 2.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% AHP CHSP SHO BEE DRH PEB LHO
Slide 10: High Quality Portfolio
High Quality Portfolio 10 Ashford Prime Hotels Courtyard Seattle Downtown Seattle, WA Marriott Seattle Seattle, WA Hilton Torrey Pines La Jolla, CA Bardessono Hotel & Spa Yountville, CA Pier House Resort Key West, FL Renaissance Tampa Tampa, FL Chicago Sofitel WaterTower Chicago, IL Courtyard Philad
Slide 11: Portfolio Overview
Portfolio Overview 11 (1) As of September 30, 2015 (2) Wells Fargo Securities Research; Lodging: TripAdvisor Rankings (September 4, 2015) Note: Hotel EBITDA in thousands High quality portfolio with total ADR and RevPAR of $226 and $187, respectively for the TTM period High performing portfolio w
Slide 12: Investment Strategy
Investment Strategy 12 Luxury hotels Gateway and resort markets Disciplined capital allocation Lower leverage Investment Strategy Competitive Advantage Material impact of one acquisition to portfolio given size Market knowledge given existing presence across all Ashford companies Oppor
Slide 13: Case Study – Conversion to Remington Managed
Case Study – Conversion to Remington Managed 13 Asset management performance significantly exceeded underwriting Eliminated $1.5mm in expenses through cost cutting initiatives: Right-sized staffing level Implemented improved housekeeping practices Identified additional F&B efficiencies R
Slide 14: Opportunity – The Ritz-Carlton St. Thomas
Opportunity – The Ritz-Carlton St. Thomas 14 The Ritz-Carlton St. Thomas Acquired in December 2015 180 keys, 10,000 sq. ft. of meeting space Acquisition completed at favorable metrics of 7.2x TTM EBITDA and 10% TTM NOI cap rate Located in St. Thomas in the stunning U.S. Virgin Islands with h
Slide 15: Capital Structure and Net Working Capital
Capital Structure and Net Working Capital Conservative leverage in line with platform strategy Targeted Net Debt / EBITDA of 5.0x All debt is non-recourse, property level mortgage debt Targeted cash balance of 25% to 30% of market capitalization Maintain excess cash balance to capitalize o
Slide 16: Debt Maturities and Leverage
$406.3 $8.1 $80.0 $152.0 $196.0 $0.0 $50.0 $100.0 $150.0 $200.0 $250.0 $300.0 $350.0 $400.0 $450.0 2016 2017 2018 2019 2020 Thereafter Fixed-Rate Floating-Rate Debt Maturities and Leverage Target leverage: Net Debt / EBITDA < 5.0x Maintain mix of fixed and floating rate debt Ladder maturities
Slide 17: PKF RevPAR Growth Forecasts
PKF RevPAR Growth Forecasts 17 PKF RevPAR Growth* *Source: PKF 5.4% 8.2% 6.8% 5.4% 8.3% 6.7% 6.1% 5.8% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 2010 2011 2012 2013 2014 2015F 2016F 2017F Historical RevPAR Growth Forecased RevPAR Growth COMPOUNDED 2-YEAR REVPAR GROWTH RATE 24.5% 5.0% 5.5% 6.
Slide 18: Key Takeaways
Key Takeaways 18 High quality portfolio Simple, focused strategy on luxury hotels Focus on increasing shareholder value with review of strategic alternatives Strong industry fundamentals Strong management team with a long track record of creating shareholder value Highly-aligned platform
Slide 19: Company Presentation – January 2016
Company Presentation – January 2016
Ashford Hospitality Prime — Investor Presentation (January 2016) on 6ix