Ashford Hospitality Trust Inc · NYSE:AHT
Ashford Hospitality Trust — NAREIT Presentation November 2007
22 slides from Ashford Hospitality Trust's conference presentation, Nov 14, 2007
Slide 1: NAREIT Presentation November 2007
NAREIT Presentation November 2007
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 Overview
Ashford Overview
Slide 4: Ashford Overview
Ashford Overview Ashford Hospitality Trust is a self-administered real estate investment trust focused on investing 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-leaseback tran
Slide 5: Sources / Uses of Capital
Sources / Uses of Capital Fall 2007 Fall 2007 Sources of Capital Uses of Capital Cash flow above dividend Asset sales Common equity Preferred equity Mortgage debt Corporate debt Stock buybacks Mezzanine lending Debt pay down Normalized capex ROI capex Asset purchases Spring 2007 - Post CHR Transacti
Slide 6: Ashford Snapshot
Ashford Snapshot Portfolio Statistics AHT Total Enterprise Value (1) $4.1 Bil Peer Comparison (2) 3rd largest # of Hotels 114 # of Rooms 26,295 ADR (3) $134.89 RevPAR (3) $103.81 RevPAR Growth (3) 8.3% Financial Statistics # Shares Outstanding 143.0 M Avg. Daily Trading Volume (3 Month) 1.0 M Net De
Slide 7: High Quality Assets
High Quality Assets Hyatt Anaheim JW Marriott San Francisco Courtyard SF Downtown Hilton El Conquistador Westin O'Hare Embassy Suites Portland Renaissance Tampa Courtyard Irvine Capital Hilton Courtyard Philadelphia Hyatt Regency Coral Gables Marriott Legacy Center Marriott Seattle Waterfront Reside
Slide 8: The Ashford Opportunity
The Ashford Opportunity Balance sheet Portfolio mix Internal growth / capex funding Dividend Relative value
Slide 9: Balance Sheet
Balance Sheet Successfully opportunistic over time: Went public with floating-rate debt in order to take advantage of post 9/11 short-term rates and provide flexibility for future long-term fixed-rate debt Locked in long-term fixed-rate financing at the right time and created valuable company asset
Slide 10: Balance Sheet
Balance Sheet Balance sheet strategy: Continue to build upon strong expertise of capital recycling in order to deleverage Options exist in terms of hotel capital to recycle: Select-service Full-service with high capex requirements Lower growth Joint ventures Assumability of fixed-rate debt and abili
Slide 11: Cycle Resilient Portfolio Mix
Cycle Resilient Portfolio Mix Marriott Hilton Hyatt Starwood IHG Other 0.474 0.337 0.08 0.073 0.027 0.009 Marriott Remington Hilton Hyatt Starwood Interstate Hotel Equities 0.416 0.26 0.184 0.08 0.027 0.02 0.012 Luxury Upper-Upscale Upscale Midscale w/o F&B 0.021 0.605 0.339 0.035 Chain Scale Brand
Slide 12: Diversity to enhance risk/rewards balance
Diversity to enhance risk/rewards balance Limited service assets have greater resiliency to economic downturns than full service assets Mezzanine investments offer high yields and NOI cushion Cycle Resilient Portfolio Mix Source: PKF From the peak in 2000 to the trough in 2003, limited-service EBITD
Slide 13: Focus on value-added capex grows RevPAR
Focus on value-added capex grows RevPAR and captures market share through higher RevPAR penetration Management will be prudent regarding the timing of future expenditures and the magnitude of ROI projects FF&E Owner Funded Total 2004 3.8 10.4 14.2 2005 11.4 26.9 38.3 2006 18.4 29.6 48 3Q 2007 - YTD
Slide 14: Operating Performance
Operating Performance Property-level EBITDA margins have improved by an average of 171 bps over the past four quarters AHT RevPAR Growth 4Q 06 0.1033 1Q 07 0.111 2Q 07 0.065 3Q 07 0.083 RevPAR Growth % AHT RevPAR Growth 4Q 06 206 1Q 07 286 2Q 07 73 3Q 07 120 Margin Growth (bps) Note: AHT RevPAR & ma
Slide 15: High Dividend
High Dividend Dividend growth: 250% since 1Q 2004 Strong dividend CAD/AFFO coverage: 2007 YTD - 1.24x CAD coverage 2007 YTD - 1.59x AFFO coverage Highest in peer group with dividend yield of 10.7% (1) Assumes 11/9/07 stock price of $7.87. Note: Peers include BEE, DRH, FCH, HPT, HST, HT, LHO, SHO. Di
Slide 16: Relative Valuation
Relative Valuation Transaction Metrics - $ Price Per Key Transaction Metrics - $ Price Per Key Transaction Metrics - $ Price Per Key Transaction Metrics - $ Price Per Key Ann. Date Target $ / Key April 2007 Highland Hospitality $ 230,000 April 2007 Eagle Hospitality $ 190,000 February 2006 MeriStar
Slide 17: Current Lodging Cycle
Current Lodging Cycle
Slide 18: Lodging REITs vs. Other REITs
Lodging REITs vs. Other REITs Source: FBR Property Week - 11/12/07. Lodging REITs lag other multiples despite having one of the highest dividend yields and the highest projected 2008 FFO growth Office Apartment Retail Industrial Healthcare Lodging 2008 FFO Multiple 16.4 15.1 14.4 13.6 13.4 8.9 Divid
Slide 19: Supply Overview
Supply Overview US supply growth is still below historical average of 2.2% and is projected to remain so for at least two years Estimates have been revised downward consistently over the past few years due to: High construction costs & land prices Financial market turmoil Expanding development timel
Slide 20: RevPAR / Supply Spread
RevPAR / Supply Spread '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07E '08E '09E Supply 0.037 0.035 0.018 0.01 0.0007 0.013 0.016 0.024 0.035 0.039 0.038 0.028 0.024 0.016 0.01 0.004 -0.001 0.002 0.013 0.021 0.022 RevPAR 0.052 0.021 -0.025 0.025 0.038 0.056 0.053 0.061 0
Slide 21: Conclusion
Conclusion Ashford may be using its cash flow and asset sales to fund debt pay downs, mezzanine lending and potentially stock buybacks, along with normalized capex and ROI projects The current diversified portfolio mix, with a sizable portion of limited service assets, should exhibit resilience agai
Slide 22: NAREIT Presentation November 2007
NAREIT Presentation November 2007
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