Ashford Hospitality Trust Inc · NYSE:AHT
Ashford Hospitality Trust — Investor Presentation (November 2005)
20 slides from Ashford Hospitality Trust's investor presentation, Nov 28, 2005
Slide 1: Ashford Hospitality Trust: The premier capital provider to the hospitality industry
JS ASHEORD NY HOSPITALCIE YY 7 aU Se The premier capital provider to the hospitality industry™
Slide 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 result," "may
Slide 3: Discussion Topics
Overview Internal Growth Valuation DISCUSSION TOPICS
Slide 4: Overview - Investment Strategy
Total Investments: $1.44B %Direct Hotel Investments: 92% % Debt Investments: 8% Exclusively invests in the hospitality industry across all segments and at all levels of the capital structure, including: direct hotel investments, first mortgages, mezzanine loans, and sale-leasebacks OVERVIEW - Invest
Slide 5: Overview - Asset Allocation
OVERVIEW - Asset Allocation HOTEL OWNERSHIP Current yield Capital appreciation Undervalued assets Reposition Timing: Trough/ Mid- Stage Recovery FIRST MORTGAGE Stable returns High volume Counter cyclical Timing: Peak/Early Decline MEZZANINE Wide index spreads Inefficient market Foreclosure options T
Slide 6: Overview - Track Record
OVERVIEW - Track Record Demonstrated expertise in creating value throughout cycles Source: HVS International, Ashford Hospitality Trust, AHT 2005 hotel value per room estimate Management Acquisitions Management Sales and Listings Spot Price - U.S. Hotel Value Per Room '90 33000 '91 24000 '92 6700 24
Slide 7: Key Financial Measures 3Q '05
TEV $1,450.3M Net Debt to TEV 50% EBITDA / Interest Expense 2.61x Blended Interest Cost 5.64% % Fixed 77% Shares Outstanding 62.3M Dividends $0.18/share EBITDA $29.9M AFFO / Share $0.25/share CAD / Share $0.23/share Net Income $0.08/share EBITDA Margin 26.9% Key Financial Measures 3Q '05 Income Stat
Slide 8: Methods of Internal Growth
INTERNAL GROWTH - Methods Capital Recycling Renovation/Repositioning RevPAR/Margin Growth Capital Structure
Slide 9: Capital Recycling
Acquired 21 hotel portfolio for $250M at attractive yields Core Portfolio TTM Cap Rate 11% TTM EBITDA Yield 13% Price Per Key $68,601 Sold or under contract to sell 8 non core assets for approximately $37.5M equating to 1.1% trailing cap rate Reinvested sales proceeds into higher yielding assets dur
Slide 10: Direct Hotel Investments Yields
Direct Hotel Investments Yields (TTM EBITDA at Acquisition) INTERNAL GROWTH - Capital Recycling
Slide 11: Mezzanine Loan Yields at Origination
Mezzanine Loan Yields at Origination INTERNAL GROWTH - Capital Recycling
Slide 12: Renovation: Sheraton Bucks County
187 room Sheraton Bucks County and adjacent office building acquired for $16.7M $5.7M spent during renovation equating to $32,000 per key Renovation included exterior, guest rooms, meeting rooms, restaurant, and common areas Sold adjacent office building to buyer that is funding office improvements
Slide 13: Renovation drives RevPAR and EBITDA margin growth
INTERNAL GROWTH - Renovation Capital improvement drives RevPAR and EBITDA margin growth (1) The above proforma table includes the only the 62 hotel properties included in income from continuing operations
Slide 14: RevPAR/Margin Growth: Sea Turtle Inn
INTERNAL GROWTH - RevPAR/Margin Growth 193 room Sea Turtle Inn acquired for $23.4M located on the beach in Jacksonville, FL TTM room revenue increased $348,876 since the acquisition while TTM NOI increased $870,000 Ashford has cut costs by $521,000 TTM Pre-Acquisition 9/30/05 TTM Occupancy % 75.2% 7
Slide 15: Capital Structure
Post 3Q'05 financing activity improved capital structure Weighted average maturity extended to 9.1 years from 6.5 years Weighted average cost of debt reduced from 5.8% to 5.6% Approximately 87% of debt is fixed Recent refinancing unencumbered 13 hotels from debt as a result of value creation (1) Ass
Slide 16: Valuation - Lodging Fundamentals
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 17: Valuation - Growing Dividend
Source: Yield Calculated using 11/21/05 closing price Increased the dividend every quarter for the past 7 quarters and the current quarterly dividend of $0.18 per share is the 4th highest yield among Hotel REITs VALUATION - Growing Dividend Dividend Yield
Slide 18: Valuation - Value Per Key
Demonstrated ability to acquire assets at attractive per key values VALUATION - Value Per Key (1) (1) Calculated by taking the average mid-point of Citibank and Legg Mason analyst estimates of brand values across chain scales
Slide 19: Summary: Ashford Highlights
SUMMARY ASHFORD HIGHLIGHTS Diversified investment strategy unique among peers Significant growth potential Capital Recycling Renovation / Repositioning RevPAR / Margin Growth Capital Structure Positioned to outperform Attractive portfolio value Above average dividend yield Management alignment with
Slide 20: Ashford Hospitality Trust
JS ASHEORD NY HOSPITALCIE YY 7 aU Se The premier capital provider to the hospitality industry™
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