Ashford Hospitality Trust Inc · NYSE:AHT
Ashford Hospitality Trust — Investor Presentation (December 2011)
22 slides from Ashford Hospitality Trust's investor presentation, Dec 8, 2011
Slide 1: Company Presentation December 2011
Exhibit 99.1 Stifel Nicolaus had no involvement in the preparation of this presentation and, accordingly, makes no representation or warranty as to the accuracy or completeness of any of the information or data included therein and expressly disclaims any and all liability relating to or resulting f
Slide 2: Safe Harbor
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 “w
Slide 3: Ashford Overview
Ashford Overview Ashford Overview • Ashford Highlights • High-quality, Focused Portfolio • Attractive Industry Fundamentals • Consistent Earnings Growth / Outperformance • Attractive, Well-covered Dividend • Highland Acquisition Highlights • High Insider Ownership
Slide 4: Ashford Highlights
Ashford Highlights Portfolio Statistics* Financial Statistics* Ashford Highlights Total Enterprise Value $4.0 B Total Gross Assets $4.9 B Peer Comparison nd Largest # of Hotels # of Owned Rooms 26,139 # of Property Managers $ ADR $131.02 $ RevPAR $96.10 RevPAR Growth % 6.4% Recent Share Price $8.33
Slide 5: High-Quality Portfolio
High-Quality Portfolio High-Quality Portfolio Marriott Bridgewater Marriott Bridgewater Hyatt Regency Coral Gables Hyatt Regency Coral Gables Courtyard Seattle Downtown Courtyard Seattle Downtown Capital Hilton Capital Hilton Marriott Seattle Waterfront Marriott Seattle Waterfront Renaissance Tampa
Slide 6: High-Quality Portfolio
High-Quality Portfolio High-Quality Portfolio Hilton Parsippany Hilton Parsippany The Melrose – D.C. Hyatt Regency Wind Watch Hyatt Regency Wind Watch Boston Back Bay Hilton Boston Back Bay Hilton Renaissance Nashville Renaissance Nashville Marriott Sugar Land Marriott Sugar Land Hyatt Regency Savan
Slide 7: Focused Portfolio
Focused Portfolio 73% 16% 11% 3% 1% 38% 58% 55% 16% 25% 4% 53% 32% 3% 5% 4% 3% Focused Portfolio * %’s based on TTM Q3 2011 EBITDA Top 25 Top 50 Other MSA* Luxury Upscale Upper Upscale Upper Midscale Transient-Leisure Contract Transient-Corporate Group Marriott Hyatt Intercontinental Hilton Starwood
Slide 8: Attractive Industry Fundamentals
Attractive Industry Fundamentals Attractive Industry Fundamentals Source: Smith Travel Research (non-seasonally adjusted nominal monthly figures) • Real RevPAR is cyclical - it appears that it is relatively early in the up-cycle $52.00 $54.00 $56.00 $58.00 $60.00 $62.00 $64.00 $66.00 $68.00 $70.00 $
Slide 9: Attractive Industry Fundamentals
Attractive Industry Fundamentals • RevPAR growth has been consistently high throughout the year despite economic uncertainties Attractive Industry Fundamentals Source: Smith Travel Research 0.0% 2.0% 4.0% 8.0% 10.0% 12.0% 6.0% Trailing 28-Day U.S. RevPAR % Change
Slide 10: Consistent Earnings Growth
Consistent Earnings Growth Consistent Earnings Growth Ashford's Historical AFFO per Share $- $0.41 $0.96 $1.13 $1.28 $1.31 $1.12 $1.50 $1.86 $- $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40 $1.60 $1.80 $2.00 3Q 2011 TTM
Slide 11: Earnings Outperformance
Earnings Outperformance Earnings Outperformance TTM AFFO Per Share (2007Q2 = 100%) Peers Include: BEE, DRH, FCH, HST, HT, LHO, SHO 0% 20% 40% 60% 80% 100% 120% 140% 160% Ashford Peer Average Source: SNL & Company Filings +48% -68%
Slide 12: Attractive Dividend Yield
Attractive Dividend Yield Attractive Dividend Yield 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% CLDT HT CHSP AHT DRH Peer Avg PEB LHO HST BEE FCH SHO 6.4% 5.2% 5.1% 4.8% 3.5% 2.6% 2.6% 1.9% 1.1% 0.0% 0.0% 0.0% Dividend Yield (12/5/11)
Slide 13: Well-Covered Dividend
Well-Covered Dividend Well-Covered Dividend 5.3x 4.7x 3.5x 2.3x 1.9x 1.6x 1.5x 1.4x 1.2x 0.0x 1.0x 2.0x 3.0x 4.0x 5.0x 6.0x HST AHT LHO Peer Avg DRH PEB HT CLDT CHSP TTM Q3 AFFO Per Share Dividend Coverage
Slide 14: Highland Transaction Summary
Highland Transaction Summary Transformational 28-hotel, $1.3 billion acquisition with 8,084 rooms Primarily upper-upscale and luxury full-service assets Expands Ashford’s presence in key markets (Washington D.C and NY/NJ) and into new markets (Boston and Nashville) Significant growth potential with
Slide 15: Price Per Key Comparison
Price Per Key Comparison $269 $158 $244 $158 41% discount to recent peer acquisitions 35% discount to 2007 Highland purchase Price Per Key Comparison Source: Real Capital Analytics & company filings. $- $50 $100 $150 $200 $250 $300 Peer Purchase Avg. - 2009 to Current AHT Highland Purchase 2007 High
Slide 16: Replacement Cost per Key
Replacement Cost per Key Highland was purchased for $158,000 per key - a 44% discount to replacement cost Replacement Cost per Key Source: Estimated based Source: Estimated based on JP Morgan Research on JP Morgan Research Report Report $218,000 $281,000 $233,000 $- $50,000 $100,000 $150,000 $200,00
Slide 17: Highland Portfolio Year Over Year Comparisons
<95> Pre-Ashford 218 Post-Ashford 280 Post-Ashford 8.8% Pre-Ashford 94.6% Post-Ashford 78.6% Post-Ashford Highland Portfolio - Year Over Year Comparisons GOP GOP Margin Margin Change Change BPS BPS GOP Flow GOP Flow <95> 8.8% 94.6% 78.6% Highland Portfolio - Year Over Year Comparisons
Slide 18: Highland Portfolio NOI
Highland Portfolio NOI Highland Portfolio NOI • Highland NOI is exceeding expectations, currently at 88% of first 12 months underwriting growth in only six months’ time $79 $82 $86 $87 $74 $76 $78 $80 $82 $84 $86 $88 Mar 2011 TTM Jun 2011 TTM Sep 2011 TTM Underwriting for Mar 2012 TTM Highland Portf
Slide 19: Significant Operational Upside
Significant Operational Upside Significant Operational Upside • If Highland’s EBITDA was the same % of its peak level as our legacy portfolio, its EBITDA would be almost $10 million higher • This would equate to about an additional $1.40 in share price at a 12x EBITDA multiple 60% 65% 70% 75% 80% 85
Slide 20: Most Highly-Aligned Management Team
Most Highly-Aligned Management Team Most Highly-Aligned Management Team Source: 2011 Proxy Filings 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 19% 16% 6% 4% 3% 3% 2% 2% 1% 1% 1% 1% AHT HT CLDT INN FCH HST PEB CHSP DRH SHO BEE LHO Insider Ownership %
Slide 21: Ashford Overview
Ashford Overview Ashford Overview • Ashford Highlights • High-quality, Focused Portfolio • Attractive Industry Fundamentals • Consistent Earnings Growth / Outperformance • Attractive, Well-covered Dividend • Highland Acquisition Highlights • High Insider Ownership
Slide 22: Stifel Nicolaus had no involvement in the preparation of this presentation
Company Presentation December 2011 Stifel Nicolaus had no involvement in the preparation of this presentation and, accordingly, makes no representation or warranty as to the accuracy or completeness of any of the information or data included therein and expressly disclaims any and all liability rela
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