Ashford Hospitality Trust Inc · NYSE:AHT
Ashford Hospitality Trust — Oppenheimer Conference July 2008
17 slides from Ashford Hospitality Trust's conference presentation, Jul 9, 2008
Slide 1: Oppenheimer Conference July 2008
Oppenheimer Conference July 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 Advantage
Ashford Advantage AHT's diversified platform should perform better in periods of economic uncertainty AHT's risk profile is mitigated by its capital recycling strategies AHT's strategies are designed to further secure the dividend AHT's dividend is covered by the operating business. Its capital recy
Slide 4: Ashford Snapshot
Ashford Snapshot Portfolio Statistics AHT Total Enterprise Value (1) $3.4 Bil Peer Comparison (2) 2nd largest # of Hotels 105 # of Rooms 23,758 ADR (3) $145.53 RevPAR (3) $102.85 Financial Statistics # Shares Outstanding(4) 139.8 M Avg. Daily Trading Volume (3 Month) 1.2 M TTM FFO per Share / Y-o-Y
Slide 5: Despite economic uncertainty, AHT provides attractive risk adjusted returns
Despite economic uncertainty, AHT provides attractive risk adjusted returns: Diversified hotel portfolio yields less volatile income stream Chain scale Brand Geography Investment strategy Flexible capital recycling provides opportunities throughout the entire hotel cycle Mezz Stock buybacks ROI cape
Slide 6: Attractive Dividend
Attractive Dividend Dividend covered by operating business Strong dividend CAD/AFFO coverage: TTM - 1.17x CAD coverage TTM - 1.52x AFFO coverage Consistently paid one of the highest covered dividends of lodging REIT peers Highest in peer group with dividend yield of 18.2%(1) Assumes 6/30/08 stock pr
Slide 7: Capital Strategy
Capital Strategy Because of AHT's flexible capital recycling platform, several accretive opportunities exist in the near-term AHT's capital recycling strategies are currently match funded through asset sales and cash flow above our dividend 2008 Capital Strategy 2008 Capital Strategy Sources of Capi
Slide 8: Potential Asset Sales
Potential Asset Sales Since its IPO, AHT has sold 44 assets, including 3 office buildings, for $744 million Weighted average cap on TTM NOI of 6.8% In 2007, AHT sold 21 assets for $312 million Year to date, AHT has sold or announced 8 assets, including 1 office tower, for $310 million Sold JW Marrio
Slide 9: PREI Joint Venture
PREI Joint Venture AHT has partnered with Prudential Real Estate Investors (PREI) to form a hotel lending joint venture Advantage of JV structure Provides opportunity to achieve outsized yields at same or less risky LTVs Creates access to a greater number of deals, which increases diversity, reduces
Slide 10: Recent Mezzanine Originations
Recent Mezzanine Originations Westin Resort Portfolio Hotel La Jolla Ritz-Carlton Key Biscayne JER Portfolio Properties 2 Westin resorts (Tucson, AZ) (Hilton Head, SC) Hotel La Jolla (La Jolla, CA) Ritz-Carlton Key Biscayne (Miami, FL) 22 full-service 7 select-service Keys 899 108 302 188 Condo Unit
Slide 11: Share Buybacks
Share Buybacks $50m share repurchase program approved by the Board in December 2007 AHT repurchased 700,800 shares of common stock at an average price of $6.54 so far this year Approx. $27 million of share repurchase authorization remains Accretive use of capital given AHT's current stock price and
Slide 12: Debt Swap Strategy
Debt Swap Strategy AHT swapped $1.8 billion of its existing fixed-rate debt for floating-rate debt in March 2008 5-year swap Weighted average interest rate on fixed-rate debt of 5.84% Interest rate on swapped fixed-rate debt of L + 264 25 bps reduction in LIBOR yields annual net interest expense sav
Slide 13: Debt Maturity Schedule
Debt Maturity Schedule 2009 2010 2011 2012 2013 2014 2015 2016 2017 Total 125 75 280 279 0 111 261 396 977 Clear 125 75 280 279 0 111 261 396 977 Debt Maturities ($m) Note: Company estimates as of 2Q '08. Last dollar of debt includes debt attributable to JV partners, mezzanine platform valuation at
Slide 14: Ashford has the broadest diversification of hotel assets
Ashford has the broadest diversification of hotel assets Advantages: Diversifies exposure across economic markets High quality select service assets provide stability 37% of TTM EBITDA High concentration of EBITDA in top 25 markets 78% of TTM EBITDA Less concentrated risk to new supply Mezzanine len
Slide 15: Broad Portfolio Mix
Broad Portfolio Mix Marriott Hilton Hyatt Starwood IHG Other 0.509 0.328 0.06 0.071 0.031 0.001 Marriott Remington Hilton Hyatt Starwood Interstate Hotel Equities 0.446 0.273 0.163 0.06 0.027 0.018 0.013 Brand Manager Note: Proforma based on TTM 3/31/08 owned EBITDA for the 105 hotels currently in c
Slide 16: Ashford Advantage
Ashford Advantage AHT's diversified platform should perform better in periods of economic uncertainty AHT's risk profile is mitigated by its capital recycling strategies AHT's strategies are designed to further secure the dividend AHT's dividend is covered by the operating business. Its capital recy
Slide 17: Oppenheimer Conference July 2008
Oppenheimer Conference July 2008 17
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