Ashford Hospitality Trust Inc · NYSE:AHT
Ashford Hospitality Trust — NAREIT Conference June 2005
21 slides from Ashford Hospitality Trust's conference presentation, Jun 8, 2005
Slide 1: Ashford Hospitality Trust - NAREIT Conference June 2005
ASHFORD HOSPITALITY TRUST The premier capital provider to the hospitality industry’ NAREIT Conference June 2005
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: Key Ashford Highlights
KEY ASHFORD HIGHLIGHTS Diversified investment strategy - 77 hotel properties and $98 million of debt investments Management alignment of interests with 17% ownership and a history of value creation $1.4 billion invested or committed since inception Focus on upscale and upper-upscale segments Strong
Slide 4: Mission Statement
Sale-Leaseback First Mortgage Hotel Ownership To maximize shareholder returns throughout the peaks and the troughs of all lodging cycles via: Diversified equity and debt investments Portfolio allocation strategy that capitalizes on changing market opportunities MISSION STATEMENT Mezzanine
Slide 5: Cyclical Asset Allocation Strategy
CYCLICAL ASSET ALLOCATION STRATEGY HOTEL OWNERSHIP 60-90% allocation Current yield Capital appreciation Undervalued assets Reposition Timing: Trough/Mid- Stage Recovery FIRST MORTGAGE 0-10% allocation Stable returns High volume Counter cyclical Discount to par Timing: Peak/Early Decline MEZZANINE 10
Slide 6: Lodging Market / Economic Recovery
Room Demand Room Supply GDP 1988 0.047 0.046 0.042 1989 0.048 0.037 0.035 1990 0.022 0.035 0.018 1991 -0.011 0.017 -0.005 1992 0.021 0.009 0.03 1993 0.019 0.006 0.027 1994 0.032 0.012 0.04 1995 0.021 0.016 0.027 1996 0.021 0.024 0.036 1997 0.025 0.035 0.044 1998 0.027 0.039 0.043 1999 0.03 0.038 0.0
Slide 7: Management Track Record
MANAGEMENT TRACK RECORD Demonstrated expertise in creating value throughout cycles Yearly Change in U.S. Per Room Value vs. Management Purchases/Sales Source: HVS International, Ashford Hospitality Trust Mgmt's Acquisitions / Debt Investments (1) Mgmt's Sales/Loan Payoffs Avg. U.S. Hotel Value Per R
Slide 8: Management Team
MANAGEMENT TEAM Douglas Kessler Chief Operating Officer David Kimichik Chief Financial Officer David Brooks Chief Legal Officer Tax / Accounting Asset Management Underwriting Investment Strategy Investor Relations Capital Markets Legal SEC Transactions Monty Bennett President & CEO High insider owne
Slide 9: Investment Pace
INVESTMENT PACE Total Assets ($ in millions) Demonstrated ability to consistently invest capital with average quarterly investments of over $175 million since IPO 1 Includes capital expenditures and $465 million announced acquisition Direct Hotel Investments (1) Mezzanine Loans
Slide 10: Achieving Target Investment Returns
ACHIEVING TARGET INVESTMENT RETURNS 19
Slide 11: CNL Portfolio Acquisition
CNL PORTFOLIO ACQUISITION 30-Hotel portfolio with 4,328 rooms to be acquired for $465 million Attractive TTM NOI cap rate of 8.5% Portfolio consists of select service Marriott branded and managed hotels in 27 markets across 16 states Increases brand and geographic diversification Favorable 10-yr deb
Slide 12: Regional Distribution
REGIONAL DISTRIBUTION 17.8% 15.5% 9.8% 11.9% 2.8% 6.8% 10.0% 11.2% 8.7% 11.9% 2.7% 6.4% 35.9% 23.5% 8.4% 8.7% 4.0% 4.1% Represents % of Ashford's total portfolio by cost basis Represents % of total U.S. hotel rooms in each region per Smith Travel Research Investments are diversified by geography* *
Slide 13: Quality Brand Representation
QUALITY BRAND REPRESENTATION 71% of rooms are Hilton & Marriott brands* Marriott Brands Hilton Brands Starwood Brands Other Brands & Independents Hyatt Brands * Includes announced $465 million acquisition
Slide 14: Portfolio Growth
PORTFOLIO GROWTH Owned hotel portfolio is well positioned for RevPAR growth
Slide 15: Portfolio Growth: Internal and External Growth Strategy
PORTFOLIO GROWTH Drive RevPAR gains at owned hotels, primarily through rate Benefit from recently completed and current renovations Continue to invest capital and upgrade owned hotel portfolio Dispose of non-core, lower yielding assets and redeploy capital Internal Growth Strategy: External Growth S
Slide 16: Hotel Acquisition - Case Study
HOTEL ACQUISITION - CASE STUDY FGSB Portfolio - $250 million acquisition 21-Hotel portfolio with 4,094 rooms acquired for $250 million Acquired at attractive yields: Total Portfolio Core Portfolio TTM Cap Rate 9.3% 10.5% TTM EBITDA Yield 11.2% 12.4% Price Per Key $61,065 $69,055 Core Portfolio consi
Slide 17: Debt Investment - Case Study
DEBT INVESTMENT - CASE STUDY Hotel Teatro - $5 million mezzanine loan 111-room luxury, boutique hotel in downtown Denver Located across the street from the Denver Center for Performing Arts Initially approached by owners for development financing of proposed hotel across the street; ultimately funde
Slide 18: Debt Maturities
DEBT MATURITIES Approximately 94% of debt is hedged, capped, or fixed Weighted average cost of debt is 5.5% Weighted average debt maturity is 6.9 years 1 Assumes extension options are exercised; includes $370 million financing for announced $465 million acquisition
Slide 19: Growing Dividend
GROWING DIVIDEND Quarterly dividend of $0.16 per share reflects a partially invested portfolio and results in 4th highest yield among Hotel REITs (1) 1 Based on annualized dividend yield as of 5/31/2005
Slide 20: Key Ashford Highlights
KEY ASHFORD HIGHLIGHTS Diversified investment strategy - 77 hotel properties and $98 million of debt investments Management alignment of interests with 17% ownership and a history of value creation $1.4 billion invested or committed since inception Focus on upscale and upper-upscale segments Strong
Slide 21: Ashford Hospitality Trust
ASHFORD HOSPITALITY TRUST The premier capital provider to the hospitality industry’ NAREIT Conference June 2005
Ashford Hospitality Trust — NAREIT Conference June 2005 on 6ix