Ashford Hospitality Trust Inc · NYSE:AHT
Ashford Hospitality Trust — FBR Conference December 2008
10 slides from Ashford Hospitality Trust's conference presentation, Dec 2, 2008
Slide 1: FBR Conference December 2008
FBR Conference December 2008
Slide 2: Safe Harbor
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 r
Slide 3: Ashford Overview
Ashford Overview Ample liquidity Proactive capital preservation No material short-term debt maturities Attractive floating-rate debt structure Diversification reduces risk Prudent capital allocation
Slide 4: Liquidity & Capital Preservation: Cash, Asset Sales, Refinancings
Liquidity & Capital Preservation Significant Cash on Hand • $225 million of available unrestricted cash on hand • $200 million of it currently invested in US treasuries • Proactively drew down $300 million revolver Asset Sales in 2008 • Sold 10 properties for $437 million • Represents $133,000 per k
Slide 5: Liquidity & Capital Preservation: Margins and Capital Expenditures
Liquidity & Capital Preservation Strong Operating Margins • Hotel EBITDA margins improved despite flat RevPAR in 3Q • Implemented full range of contingency plans • Corporate G&A cuts in process • Property manager affiliate is adept at cutting costs quickly • Currently renegotiating brand standards P
Slide 6: Little Exposure to Near-Term Maturities
Little Exposure to Near-Term Maturities Weighted average debt maturity of 6 years (fully extended) Significant cushion in current financial covenants Note: maturity dates without extensions 2009: $30m - no extensions; $167m - extendable to 2012; $190m - extendable to 2011 2010: $195m - extendable to
Slide 7: Floating-Rate Debt is Advantageous
Floating-Rate Debt is Advantageous AHT's Floating-Rate Debt Advantage • 95% of AHT's $2.8 billion of debt is floating-rate or swapped to floating-rate • Weighted average interest rate after swap of 4.00% assuming current 30-day LIBOR of 1.44% • For every 10 basis points decline in LIBOR, AHT saves $
Slide 8: AHT Diversity Reduces Risk
Select-service assets perform better in recessionary times 32% of AHT's TTM EBITDA is select-service AHT geographic footprint mitigates market downturn risk AHT's portfolio is comprised of the strongest brands 87% of TTM EBITDA is from Hilton / Marriott 97% of TTM EBITDA is from Hilton / Marriott /
Slide 9: Share Buybacks
Share Buybacks Ashford is creating long-term shareholder value by purchasing common & preferred shares at a significant discount to long-term value $50 million share repurchase program approved by the Board in December 2007 and an additional $75 million approved in September 2008 AHT repurchased 27.
Slide 10: Ashford Overview
Ashford Overview Ample liquidity Proactive capital preservation No material short-term debt maturities Attractive floating-rate debt structure Diversification reduces risk Prudent capital allocation
Ashford Hospitality Trust — FBR Conference December 2008 on 6ix