Ashford Hospitality Trust Inc · NYSE:AHT
Ashford Hospitality Trust — Investor Presentation (September 2015)
26 slides from Ashford Hospitality Trust's investor presentation, Sep 16, 2015
Slide 1: Company Presentation - September 2015
Company Presentation - September 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: Compelling Opportunity
Compelling Opportunity 3
Slide 4: Opportunistic Strategy
4 Opportunistic Strategy ➢ Predominantly focused on opportunities to invest in upper upscale, full- service hotels in all market locations with the following characteristics: ▪ Accretive, value-add opportunities ▪ Strong yields and outsized growth prospects ▪ Markets with favorable supply/demand dyn
Slide 5: Compelling Opportunity
5 Compelling Opportunity ➢ Attractive industry fundamentals with demand growth exceeding supply growth ➢ Several attractive acquisitions completed year-to-date ➢ Affiliated property manager results in strong operating results and flow- throughs ➢ Upcoming refinancings with potential for significant
Slide 6: Recent Announcements
6 Recent Announcements ➢ In June, the Company announced the planned sale of 23 select-service hotels with a total of 4,308 keys, $44.0 million in TTM NOI, and encumbered by approximately $190 million of fixed rate debt and $187 million of maturing or floating rate debt. ➢ Other strategic initiatives
Slide 7: Strong Track Record & Performance
7 Strong Track Record & Performance
Slide 8: Demonstrated Long-Term Track Record
Demonstrated Long-Term Track Record 8 • Disciplined growth, operational expertise, and capital allocation to maximize shareholder returns Peer average includes: CHSP, DRH, FCH, HST, HT, LHO, SHO, RLJ, INN, CLDT Trailing Total Shareholder Returns as of 9/8/15 Source: Bloomberg Total Shareholder Retur
Slide 9: Highly-Aligned Management
Highly-Aligned Management 9 • With insider ownership* of approximately 16% 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 10: Attractive Dividend Yield & Coverage
10 Attractive Dividend Yield & Coverage • Ashford has both a high dividend yield and strong dividend coverage. Source: Company filings, First Call & Bloomberg * *Adjusted for recent dividend increase to $0.10 per share per quarter
Slide 11: Strong RevPAR Growth
11 Strong RevPAR Growth FY 2014 RevPAR Growth Source: Company filings. • Ashford Trust has delivered strong RevPAR growth versus its peers • Seeing benefit from recent revenue initiatives YTD Q2 2015 RevPAR Growth
Slide 12: Attractive Relative Valuation vs. Peers
12 Attractive Relative Valuation vs. Peers Source: Corporate filings and consensus estimates *As of 9/8/2015 • Ashford Trust is trading at an attractive valuation relative to its peers • Taking steps to simplify strategy • Selling lower RevPAR select-service assets TEV/2016 EBITDA
Slide 13: Portfolio Ashford Trust Hotels
13 Portfolio Ashford Trust Hotels
Slide 14: Portfolio Overview
Portfolio Overview 14*FY 2014 Hotel EBITDA for 129 hotels owned as of September 8, 2015
Slide 15: Capital Structure
Capital Structure 15 • Target Net Debt/Gross Assets of 55-60% • Maintain mix of fixed and floating rate debt – currently 35.4% fixed to 64.6 floating* • Ladder maturities • Proactively refinance upcoming maturities • All debt is property-level and non-recourse Balance Sheet Initiatives Debt Maturiti
Slide 16: Significant Liquidity
Significant Liquidity 16 • Maintain excess cash balance to capitalize on opportunities and hedge risk – target cash and cash equivalents of 25-35% of equity market capitalization • YTD Q2 2015 raised over $300 million in excess proceeds from refinancings • Significant additional value through net wo
Slide 17: Attractive Industry Fundamentals
Attractive Industry Fundamentals 17
Slide 18: PKF RevPAR Growth Forecasts
PKF RevPAR Growth Forecasts 18Source: PKF
Slide 19: Potential Industry EBITDA Growth Rates
19 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 20: Historical Industry Stock Returns
• Historically, attractive returns remain for investors from this point in the lodging cycle 20 Historical Industry Stock Returns
Slide 21: Acquisition Update
Acquisition Update 21
Slide 22: Recent Developments
22 Recent Developments ➢ YTD Announced / Closed Transactions: Total Value Fwd Cap Rate JV Share of Highland $490.3 million 7.4% Hampton Inn & Suites Gainesville $25.3 million 9.1% Le Pavillon, New Orleans $62.5 million 7.8% 9 Hotel Portfolio $224 million 7.5% W Atlanta Downtown $56.8 million 7.2% Le
Slide 23: Marriott Fremont Transaction
23 Marriott Fremont Transaction *TTM through 6/30/15 Strengths/Performance: • Closed on acquisition in August 2014 • Excellent location in strong Silicon Valley hotel market with a diversified customer base • High quality asset with minimal capex needs – recently renovated guestrooms, meeting space
Slide 24: Le Pavillon Transaction
24 Le Pavillon Transaction *TTM through 6/30/15 ** Net of $4 million of key money from Ashford Inc. Strengths/Opportunities: • Excellent location in heart of New Orleans adjacent to historic French Quarter and other major demand generators • New Orleans has a vibrant and growing economy and continue
Slide 25: Responsive to Shareholders
25 Responsive to Shareholders ➢ The board of directors continues to review additional enhancements to the Company's corporate governance policies to more firmly align the Company with the interests of its shareholders ➢ Recent announcement of planned sale of select-service hotels ➢ Strategy refineme
Slide 26: Company Presentation - September 2015
Company Presentation - September 2015
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