Braemar Hotels & Resorts Inc. · NYSE:BHR
Braemar Hotels & Resorts — Ashford Hospitality Prime — BAML NYC September 2015
19 slides from Braemar Hotels & Resorts's conference presentation, Sep 16, 2015
Slide 1: Company Presentation - September 2015
Company Presentation - September 2015
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: Compelling Opportunity
Compelling Opportunity 3
Slide 4: Well-Defined Strategy
4 ➢ Invest in luxury hotels located in gateway & resort markets ➢ Conservative leverage with target Net Debt / EBITDA of 5.0x or less Well-Defined Strategy
Slide 5: Compelling Opportunity
5 ➢ High quality portfolio predominantly located in gateway & resort markets ➢ Low leverage strategy in line with peers ➢ Highly-aligned management team ➢ Portfolio is in great physical condition after recent renovations ➢ Announced 100% increase in common dividend in May ➢ Attractive industry funda
Slide 6: Ashford Prime Assets
6 Ashford Prime Assets Courtyard San Francisco Downtown Hilton La Jolla Torrey Pines Marriott Seattle Waterfront Courtyard Seattle Downtown Sofitel Chicago Water Tower Marriott Plano Legacy Renaissance Tampa Pier House Resort Key West Capital Hilton Courtyard Philadelphia Downtown Portfolio Hotel Ma
Slide 7: Aligned Management & Strong Performance
Aligned Management & Strong Performance 7
Slide 8: Highly-Aligned Management
8 • With insider ownership* of approximately 14% for AHP, management is highly-aligned with shareholder interests Publicly-Traded Hotel REIT Insider Ownership Public Lodging REITs include: BEE, CHSP, CLDT, DRH, FCH, HST, HT, INN, LHO, PEB, RLJ, SHO Source: Company filings. * Insider ownership for As
Slide 9: Strong RevPAR Growth
9 FY 2014 RevPAR Growth Source: Company filings. • Ashford Prime has delivered strong RevPAR growth versus its peers Q2 2015 RevPAR Growth Strong RevPAR Growth
Slide 10: Conservative Capital Structure
10 Balance Sheet Initiatives Debt Maturities • Target Net Debt /EBITDA < 5.0x • Maintain mix of fixed and floating rate debt – currently 54.5% fixed to 45.5% floating* • Ladder debt maturities • All debt is property-level and non-recourse *As of 6/30/15 Conservative Capital Structure
Slide 11: Significant Liquidity
11 Net Working Capital (1) (2) Enterprise Value • Maintain excess cash balance to capitalize on opportunities • Significant additional value through net working capital balance (1) Ashford Prime's pro rata share (2) As of 6/30/15 (3) Includes investment in AIM REHE LP Significant Liquidity $ in mill
Slide 12: Strong Industry Fundamentals
Strong Industry Fundamentals 12
Slide 13: PKF RevPAR Growth Forecasts
13Source: PKF PKF RevPAR Growth Forecasts
Slide 14: Potential Industry EBITDA Growth Rates
14 Potential Industry EBITDA Growth Rates *Based on PKF RevPAR/ADR/Occupancy projections and EBITDA growth resulting from PKF EBITDA change regression equation. • With strong potential RevPAR gains, those companies with reasonable flow-throughs could experience significant EBITDA growth • PKF estima
Slide 15: Historical Industry Stock Returns
• Historically, attractive returns remain for investors from this point in the lodging cycle 15 Historical Industry Stock Returns
Slide 16: Ashford Prime Recent Developments
16 ➢ In May, the Company announced a 100% increase in its common dividend ➢ Recently closed of the acquisition of the Bardessono Resort in Napa, including the contribution of "key money" from Ashford Inc. ➢ Q2 2015 RevPAR increased 9.0% which was highest of peers ➢ Recently announced the closing of
Slide 17: Bardessono Hotel & Spa Acquisition
17 Property Information: • Location: Yountville, CA (Napa Valley) • Rooms: 62 • Year Built: 2009 • 6,065 sf of meeting space • Leasehold; 7 one- and two-story buildings • Segmentation: 80% transient; 20% group Acquisition Overview: • Purchase Price: $85 million • Purchase Price/Key: $1,370,000 • Rev
Slide 18: Pier House Resort & Spa
18 ➢ Prior ownership was running EBITDA margins at 30% for 2012 and the TTM period prior to acquisition ➢ Originally acquired in May 2013 by Ashford Trust, the Pier House was acquired by Ashford Prime in March of 2014. The Pier House has been under Remington management since acquisition in May 2013
Slide 19: Company Presentation - September 2015
Company Presentation - September 2015