Braemar Hotels & Resorts Inc. · NYSE:BHR
Braemar Hotels & Resorts — Ashford Hospitality Prime — Investor Presentation (September 2016)
20 slides from Braemar Hotels & Resorts's investor presentation, Sep 8, 2016
Slide 1: Company Presentation – September 2016
Company Presentation – September 2016
Slide 2: Forward-looking statements
Certain statements and assumptions in this presentation contain or are based upon “forward-looking” information and are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties.
Slide 3: Recent Updates
Recent Updates 3 Q2 2016 Adjusted EBITDA increased 13% Q2 2016 Hotel EBITDA flow-through was 125% Q2 2016 Hotel EBITDA margins increased 71 bps Excellent progress on strategic alternatives to enhance shareholder value Announced corporate governance enhancements & appointment of new indepen
Slide 4: Excellent Progress on Strategic Alternatives
Excellent Progress on Strategic Alternatives 4 Engaged search firm Added Ken Fearn as an independent director Since April 8, 2016 we have bought back approximately 2.9 million shares for $39 million Investment has been redeemed Increased dividend 20% to $0.12 Courtyard Seattle sold for $
Slide 5: Ashford Hospitality Prime Vision
Ashford Hospitality Prime Vision Well defined strategy investing in luxury hotels in gateway and resort markets 5 Bardessono Hotel & Spa Yountville, CA Pier House Resort Key West, FL The Ritz-Carlton St. Thomas St. Thomas, USVI Grow platform through accretive acquisitions of high quality assets
Slide 6: AHP Leadership Has Delivered Results in Prudent, Accretive Growth
$140.20 $148.64 $171.35 $199.43 $203.90 $0.00 $50.00 $100.00 $150.00 $200.00 $250.00 2012 2013 2014 2015 TTM 2016 6 AHP Leadership Has Delivered Results in Prudent, Accretive Growth ACCRETIVE GROWTH OF HOTEL PORTFOLIO Acquired the Ritz-Carlton St. Thomas, Bardessono Hotel & Spa, Sofitel Chicago Ma
Slide 7: AHP Leadership Has Delivered Results in Returning Capital to Shareholders
7 $0.05 $0.10 $0.12 $0.00 $0.02 $0.04 $0.06 $0.08 $0.10 $0.12 $0.14 2013 Q2 15 2016 AHP Leadership Has Delivered Results in Returning Capital to Shareholders Increased quarterly common dividend by 140% since spin-off Attractive EBITDA flow-through performance Disciplined Capital Strategies 5.3% 5.0%
Slide 8: AHP's Management Team Is Aligned Like No Other
15%* 5.7% 3.4% 3.3% 3.3% 2.3% 2.2% 1.9% 1.8% 1.3% 1.2% 0.8% 0.5% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% AHP HT RLJ CLDT FCH Peer Avg CHSP INN HST PEB DRH SHO LHO 8 HIGHLY ALIGNED MANAGEMENT TEAM Insider ownership of 15%, 6x more than hotel REIT industry average Insider ownership among
Slide 9: Benefits of the Ashford Structure
Benefits of the Ashford Structure 9 Structural Attractiveness • Publicly traded external advisor increases transparency and provides strong alignment • 8 member Board with 6 independent directors • Base Fee – based on AHP’s total enterprise value rather than book value • Incentive Fee paid only if t
Slide 10: High Quality Portfolio
High Quality Portfolio 10 Ashford Prime Hotels Marriott Seattle Seattle, WA Hilton Torrey Pines La Jolla, CA Bardessono Hotel & Spa Yountville, CA Pier House Resort Key West, FL Renaissance Tampa Tampa, FL Sofitel Chicago Magnificent Mile Chicago, IL Courtyard Philadelphia Philadelphia, PA Capital H
Slide 11: Portfolio Overview
Portfolio Overview 11 (1) As of June 30, 2016 (2) Wells Fargo Securities Research; Lodging: TripAdvisor Rankings (June 21, 2016) Note: Hotel EBITDA in thousands High quality portfolio with total ADR and RevPAR of $249 and $204, respectively for the TTM period Geographically diversified portfolio
Slide 12: Asset Management Initiatives
Asset Management Initiatives 12 Pier House: Complexed GM and sales team resulting in significant labor savings Renaissance Tampa: Recently completed significant guestrooms and lobby renovation Bardessono: Evaluating construction of presidential villa consisting of 3 large-luxurious suites The Ritz-C
Slide 13: Capital Structure and Net Working Capital
Capital Structure and Net Working Capital Conservative leverage in line with platform strategy Targeted Net Debt / EBITDA of 5.0x All debt is non-recourse, property level mortgage debt Targeted cash balance of 25% to 30% of market capitalization Maintain excess cash balance to capitalize o
Slide 14: Debt Maturities and Leverage
$338.3 $8.1 $80.0 $152.0 $194.7 $0.0 $50.0 $100.0 $150.0 $200.0 $250.0 $300.0 $350.0 $400.0 $450.0 2016 2017 2018 2019 2020 Thereafter Fixed-Rate Floating-Rate Debt Maturities and Leverage Target leverage: Net Debt / EBITDA < 5.0x Maintain mix of fixed and floating rate debt Ladder maturities
Slide 15: Asset Management Expertise – Bardessono
Asset Management Expertise – Bardessono 15 Acquired in July 2015 2015 RevPAR of $564 62 keys, 1,350 sq. ft. of meeting space Located in Yountville, CA the “Culinary Capital of Napa Valley” High barrier to entry market One of only three LEED Platinum certified hotels in the U.S., only hot
Slide 16: Asset Management Expertise – Pier House
Asset Management Expertise – Pier House 16 Asset management performance significantly exceeded underwriting Eliminated $1.5mm in expenses through cost cutting initiatives: Right-sized staffing level Implemented improved housekeeping practices Identified additional F&B efficiencies Realiz
Slide 17: Asset Management Expertise – Ritz St. Thomas
Asset Management Expertise – Ritz St. Thomas 17 The Ritz-Carlton St. Thomas Acquired in December 2015 180 keys, 10,000 sq. ft. of meeting space Acquisition completed at favorable metrics of 7.2x TTM EBITDA and 10% TTM NOI cap rate Located in St. Thomas in the U.S. Virgin Islands with high ba
Slide 18: Corporate Governance Enhancements
Corporate Governance Enhancements 18 Adoption of a majority voting standard for uncontested director elections and a plurality voting standard in contested director elections Separate the roles of Chairman and CEO Prohibit share recycling with respect to share forfeitures, stock options and st
Slide 19: Key Takeaways
Key Takeaways 19 Completed sale of the Courtyard Seattle Downtown for $84.5 million Commenced execution of strategic alternatives initiatives to enhance stockholder value Highly-aligned management team Maximizing shareholder value is our #1 objective Increased dividend 20% to $0.12 per quarter Bough
Slide 20: Company Presentation – September 2016
Company Presentation – September 2016
Ashford Hospitality Prime — Investor Presentation (September 2016) on 6ix