Ashford Hospitality Trust Inc · NYSE:AHT
Ashford Hospitality Trust — Merger or Acquisition (June 2013)
17 slides from Ashford Hospitality Trust's merger presentation, Jun 26, 2013
Slide 1: Ashford Hospitality Prime Spin-Off Overview
NS ASHFORD HOSPITALITY PRIME Spin-Off Overview
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: Ashford Hospitality Prime Spin-Off
3 Ashford Hospitality Prime Spin-Off • AHT plans to transfer ownership interest in an 8-hotel portfolio to a newly formed company, Ashford Hospitality Prime, Inc. ("Ashford Prime"), which is expected to qualify as a Real Estate Investment Trust and intends to file an application to list its shares o
Slide 4: Strategic Rationale
4 Strategic Rationale Creation of Two Focused Companies Creates Clarity Potential for Higher Aggregate Market Value for Stockholders Tailored Capital Structure More Efficient More Conservative Capital Structure
Slide 5: Transaction Overview
5 Transaction Overview 122 Hotels 25,573 Rooms 2012 RevPAR: $99 2012 Hotel EBITDA: $374.5mm 8 hotels 3,146 Rooms 2012 RevPAR: $140 2012 Hotel EBITDA: $73.0mm 114 Hotels 22,427 Room 2012 RevPAR: $94 2012 Hotel EBITDA: $301.4mm Spin-off Contributed Capital Purchase Option on 2 Hotels and ROFO on 12 Ho
Slide 6: Ashford Prime Overview
6 Ashford Prime Overview High Quality Hotel Portfolio • Geographically diversified and concentrated predominantly in top 20 U.S. markets • Premium portfolio RevPAR of $140 • EBITDA per room of over $23,000 • Strong market share as evidenced by RevPAR penetration index of 110.6 • All current hotels b
Slide 7: Ashford Prime Overview
7 Ashford Prime Overview • Institutional Investor Tailored Platform Highly-Aligned Management Structure • Ashford Trust expected to own 20% of Ashford Prime on a pro forma basis • Management and related parties are expected to hold approximately 19% equity interest in Ashford Prime • The highest ins
Slide 8: Differentiated Investment Strategy
8 Differentiated Investment Strategy Ashford Prime Ashford Trust Investment Focus High-quality, High-RevPAR hotels in major markets expected to generate RevPAR of at least 2x the national average All segments of the hospitality industry excluding the High-RevPAR hotels targeted by Ashford Prime Inve
Slide 9: Ashford Prime Properties
9 Ashford Prime Properties San Francisco San Francisco Courtyard 405 Rooms Seattle Marriott Seattle Waterfront 358 Rooms Seattle Courtyard 250 Rooms Philadelphia Philadelphia Courtyard 498 Rooms Dallas Marriott Plano Legacy 404 Rooms San Diego Hilton Torrey Pines 394 Rooms Hotel Market Rooms Ritz-Ca
Slide 10: High RevPAR Focus
10 High RevPAR Focus • With 2012 RevPAR of $140, Ashford Prime compares favorably to the public lodging REIT universe. Through targeted acquisitions, we expect Ashford Prime to increase its comparative RevPAR profile over time $140 $127 $99 $94 $65 $55 $70 $85 $100 $115 $130 $145 Public Lodging REIT
Slide 11: Ashford Prime Property Descriptions
11 Ashford Prime Property Descriptions Hilton Torrey Pines Built in 1989 394 rooms 60,000 SF of meeting space 2 F&B outlets RevPAR of $126 Penetration index: 103.2 EBITDA of $9mm Located on the famous Torrey Pines Golf Course overlooking Pacific Ocean Public spaces renovated in 201
Slide 12: Ashford Prime Property Descriptions
12 Ashford Prime Property Descriptions Philadelphia Courtyard Built in 1999 498 rooms 11,000 SF of meeting space 2 F&B outlets RevPAR of $126 Penetration index: 113.0 EBITDA of $10mm Located in heart of downtown Philadelphia business district proximate to convention center Comprehe
Slide 13: Ashford Prime Property Descriptions
13 Ashford Prime Property Descriptions Note: RevPAR, penetration and EBITDA reflect 2012 figures. Penetration index reflects the quotient of the subject hotel's RevPAR divided by the average RevPAR of the hotels in its competitive set. Marriott Seattle Waterfront Built in 2003 358 rooms 11,300
Slide 14: Option and Right of First Offer Properties
14 Option and Right of First Offer Properties Note: RevPAR, penetration and EBITDA reflect 2012 figures. Penetration index reflects the quotient of the subject hotel's RevPAR divided by the average RevPAR of the hotels in its competitive set. * Subject to joint venture approval. Pier House Resort &
Slide 15: Highly-Aligned Management
15 Highly-Aligned Management • With insider ownership* of both platforms anticipated to be approximately 19%, management is highly-aligned with shareholder interests Public Lodging REITs include: BEE, CHSP, CLDT, DRH, FCH, HST, HT, INN, LHO, PEB, RLJ, SHO Source: Company filings. * Insider ownership
Slide 16: Attractive Corporate Governance and External Advisor Model
16 Attractive Corporate Governance and External Advisor Model • Publicly-traded advisor is not typical of other externally advised REIT structures • Increases transparency • Reduces conflicts of interests • Significant insider ownership of both Ashford Trust and Ashford Prime creates further alignme
Slide 17: Ashford Hospitality Prime Spin-Off Overview
NS ASHFORD HOSPITALITY PRIME Spin-Off Overview
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