Ashford Hospitality Trust Inc · NYSE:AHT
Ashford Hospitality Trust — Investor Presentation (July 2014)
40 slides from Ashford Hospitality Trust's investor presentation, Jul 9, 2014
Slide 1: Ashford Hospitality Trust / Ashford Hospitality Prime July 2014
JX ASHFORD A ASHFORD HOSPITALITY TRUST HOSPITALITY PRIME July 2014
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
Strong Track Record & Performance 3
Slide 4: Demonstrated 10-Year Track Record
4 Demonstrated 10-Year Track Record • Disciplined growth, operational expertise, and capital allocation to maximize shareholder returns • AHT and AHP expect to benefit from strong management capabilities Peer average includes: BEE, CHSP, CLDT, DRH, FCH, HST, HT, INN, LHO, PEB, RLJ, SHO Trailing Tota
Slide 5: Highly-Aligned Management
5 Highly-Aligned Management • With insider ownership* of approximately 17% for AHT and 13% for AHP, management is highly-aligned with shareholder interests Publicly-Traded Hotel REIT Insider Ownership 17%* 13%* 4% 3% 3% 3% 3% 2% 2% 2% 1% 1% 1% 1% 1% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 1
Slide 6: Industry Overview
Industry Overview 6
Slide 7: Attractive Supply/Demand Imbalance
• Demand expected to exceed supply through at least 2015 7 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 2014F 2015F Y ea r- o v e r- Y ea r % Gro w th Supply Growth Demand Growth PKF Forecast
Slide 8: PKF RevPAR Growth Forecasts
8 Source: PKF 7.7% 6.1% -2.0% -16.7% 5.4% 8.2% 6.8% 5.4% 6.7% 7.1% 5.0% -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 9: Potential Industry EBITDA Growth Rates
Potential Industry EBITDA Growth Rates 9 *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 estimat
Slide 10: Historical Industry Stock Returns
• Historically, attractive returns remain for investors from this point in the lodging cycle 10 Historical Industry Stock Returns % 50% 100% 150% 200% 250% 300% 350% 0 12 24 36 48 60 72 84 96 108 T S R Months from Peak to Peak 1989-1997 1997-2007 2007-Current Index includes AHT, BEE, DRH, FCH, HST,
Slide 11: Compelling Opportunity
Compelling Opportunity 11
Slide 12: Ashford Family of Companies
12 Ashford Family of Companies
Slide 13: Estimated Value Per Key
13 Estimated Value Per Key $248,496 $392,676 $173,605 $372,334 $169,599 $328,846 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 Ashford Trust Ashford Prime Replacement Cost Private Market Value Current Trading Value • Ashford Trust and Ashford Prime are currently tra
Slide 14: Ashford Hospitality Trust
Ashford Hospitality Trust 14
Slide 15: Portfolio Overview – Ashford Trust
Portfolio Overview – Ashford Trust 15 *FY 2013 Hotel EBITDA
Slide 16: Asset Performance – Ashford Trust
16 50.1% 42.8% 60.0% 69.4% 55.3% 0% 20% 40% 60% 80% 2009 2010 2011 2012 2013 Hotel EBITDA Flow-Through Annual Hotel EBITDA Flow-Through 2012 2013 Q1 2013 Q1 2014 Var RevPAR $94.65 $97.14 $94.47 $101.55 7.5% Hotel Revenue $1,013,117 $1,034,819 $249,518 $264,325 5.9% Hotel EBITDA $305,719 $317,546 $74
Slide 17: Ashford Trust Debt Maturities
17 Ashford Trust Debt Maturities 106.8 242.7 273.3 492.6 151.8 652.0 346.0 - 100.0 200.0 300.0 400.0 500.0 600.0 700.0 800.0 900.0 1,000.0 2014 2015 2016 2017 2018 D e b t ( $ in m il lio n s) Fixed-Rate Floating-Rate
Slide 18: Highland Investment Update
18 Acquisition • Transformational 28-hotel, $1.3 billion acquisition • Invested in the mezzanine debt in 2008 via joint venture • Completed foreclosure & restructuring in March 2011 with new $150 million investment from Ashford Trust & $50 million investment from JV partner • Ashford Trust owns 72%
Slide 19: Ashford Trust Photo Gallery
Ashford Trust Photo Gallery 19 Renaissance Palm Springs Hilton Santa Fe Ritz-Carlton Atlanta Downtown Marriott San Antonio Plaza Renaissance Portsmouth Hilton Nassau Bay Hilton Boston Back Bay The Churchill
Slide 20: Ashford Hospitality Prime
Ashford Hospitality Prime 20
Slide 21: Portfolio Overview – Ashford Prime
Portfolio Overview – Ashford Prime 21 *FY 2013 Hotel EBITDA
Slide 22: Asset Performance – Ashford Prime
22 Revenue and EBITDA figures displayed in $000's Asset Performance – Ashford Prime 2012 2013 Q1 2013 Q1 2014 Var RevPAR $140.20 $148.64 $140.03 $147.69 5.5% Hotel Revenue $221,188 $233,475 $66,830 $69,179 3.5% Hotel EBITDA $66,993 $71,757 $18,166 $18,823 3.6% EBITDA Flow- Through 38.8% 28.0% 53.7%
Slide 23: Ashford Prime Debt Maturities
23 414.5 8.1 266.4 - 50.0 100.0 150.0 200.0 250.0 300.0 350.0 400.0 450.0 2014 2015 2016 2017 2018 D e b t ( $ in m il lio n s) Fixed-Rate Floating-Rate Ashford Prime Debt Maturities
Slide 24: Chicago Sofitel Transaction
24 Property Information: • Location: Downtown Chicago (Gold Coast submarket) • Rooms: 415 (including 32 suites) • Year Built: 2002 • 10,000 sf of meeting space • Fee simple; 32 story tower • Segmentation: 70% transient; 30% group Acquisition Overview: • Purchase Price: $153 million • Purchase Price/
Slide 25: Pier House Resort Transaction
25 Pier House Resort Transaction Property Information: • Location: Key West, FL • Rooms: 142 (including 21 suites) • Year Built: 1968 • 2,600 sf of meeting space • Fee simple • Segmentation: 93% transient; 7% group Acquisition Overview: • Purchase Price: $92.7 million • Purchase Price/Key: $653,000
Slide 26: Ashford Prime Photo Gallery
Ashford Prime Photo Gallery 26 Tampa Renaissance Marriott Seattle Waterfront Hilton La Jolla Torrey Pines Courtyard Seattle Downtown Capital Hilton Marriott Plano Legacy Philadelphia Courtyard San Francisco Courtyard
Slide 27: Growth & Acquisition Strategy
Growth & Acquisition Strategy 27
Slide 28: Acquisition & Growth Strategy
28 Highly quantitative approach focused on long-term accretion for each platform Proven track record of value-creating acquisitions Disciplined capital allocation Multiple ways to grow each platform: Single asset acquisitions Portfolio acquisitions Incubation of new platforms Acquisiti
Slide 29: Differentiated Investment Strategy
29 Differentiated Investment Strategy Ashford Prime Ashford Trust Investment Focus Full-service and select-service hotels anticipated to generate RevPAR at least twice the national average All segments of the hospitality industry, with RevPAR criteria outside the Ashford Prime investment focus Inves
Slide 30: Accretive Growth
30 Accretive Growth - Ashford 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 (Leverag
Slide 31: Well Positioned For Growth
31 Well Positioned For Growth • Unique built in pipeline of option hotels and right of first offer hotels • Targeted acquisitions consistent with investment guidelines • Internal growth from asset performance • Opportunistic, value add transactions • Internal growth from asset performance • Excess c
Slide 32: Projected Hotel Room Value Growth
32 Projected Hotel Room Value Growth Source: JLL/HVS • 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 $90,000 $100,000 $110,000 $120,000 $130,000 $140,000 2000 200
Slide 33: Marriott Gateway & ROFO Hotels
33 Marriott Gateway & ROFO Hotels Hotel Market Rooms Ritz-Carlton Atlanta, GA 444 Rooms Hilton Back Bay Boston, MA 390 Rooms Courtyard Downtown Boston, MA 315 Rooms Embassy Suites Portland, OR 276 Rooms Embassy Suites Crystal City Washington, D.C. 267 Rooms Crowne Plaza Beverly Hills Los Angeles, CA
Slide 34: Ashford Inc. Growth Opportunities
34 Real Estate Hedged Equity Strategy Ashford Inc. Pro Forma Structure To be spun-off as a publicly traded entity (ticker "AINC") Asset management platform Fee structure based on 70bps of total enterprise value plus incentive fees based on total shareholder returns vs. peer set Potential Fut
Slide 35: Appendix
Appendix as we ith 4, ASHFORD 4. ASHFORD
Slide 36: Executive Bios
36 Executive Bios Monty J. Bennett Chief Executive Officer & Chairman of the Board Douglas A. Kessler President Mr. Kessler is the President of Ashford Hospitality Advisors and serves as the President of both Ashford Hospitality Trust (NYSE: AHT) and Ashford Hospitality Prime (NYSE: AHP). He is curr
Slide 37: Executive Bios
37 Executive Bios David A. Brooks Chief Operating Officer, General Counsel & Secretary Mr. Brooks is the chief Operating Officer, General Counsel & Secretary of Ashford Hospitality Advisors and serves as Chief Operating Officer, General Counsel & Secretary of both Ashford Hospitality Trust (NYSE: AH
Slide 38: Executive Bios
38 Executive Bios J. Robison Hays Senior Vice President, Corporate Strategy & Finance Mr. Hays is the Senior Vice President of Corporate Strategy & Finance of Ashford Hospitality Advisors and serves as the Senior Vice President of Corporate Strategy & Finance of both Ashford Hospitality Trust (NYSE:
Slide 39: Executive Bios
39 Executive Bios Mark L. Nunneley Chief Accounting Officer Mr. Nunneley is the Chief Accounting Officer of Ashford Hospitality Advisors 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 Acco
Slide 40: Ashford Hospitality Trust / Ashford Hospitality Prime July 2014
JX ASHFORD A ASHFORD HOSPITALITY TRUST HOSPITALITY PRIME July 2014
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