Braemar Hotels & Resorts Inc. · NYSE:BHR
Braemar Hotels & Resorts — Ashford Hospitality Prime — Proxy Contest (April 2016)
23 slides from Braemar Hotels & Resorts's proxy contest presentation, Apr 28, 2016
Slide 1: Ashford Prime Files Presentation Demonstrating Asset Management Expertise
NEWS RELEASE Contact: Mike Geller Trevor Gibbons Stacy Feit Edelman Edelman Financial Relations Board (212) 729-2163 (212) 704-8166 (213) 486-6549 ASHFORD PRIME FILES PRESENTATION DEMONSTRATING ASSET MANGEMENT EXPERTISE Highlights Superior Revenue, Strong Operational Performance and Track Record of
Slide 2: Best-in-Class Asset Management
Best-in-Class Asset Management Pier House ResortKey West, FL
Slide 3: Certain Disclosures
Certain Disclosures 2 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 ris
Slide 4: Asset Management Overview
Asset Management Overview 3 Strong Operational Performance Ownership Value Add
Slide 5: Strong Operational Performance – Revenue Outperformance vs. Competitive Set
Strong Operational Performance – Revenue Optimization 4 Significant Revenue Outperformance vs. Competitive Set Ashford Prime has significantly outperformed its competitive set in both ADR and occupancy over the past 5 years Comp Set RevPARIndex ADR OCC Ashford significant investment in Revenue Optim
Slide 6: Revenue Outperformance vs. Tract and Scale
Strong Operational Performance – Revenue Optimization 5 Significant Revenue Outperformance vs. Tract Scale Ashford Prime also has significantly outperformed hotels within both its tract and scale in both ADR and occupancy over the past 5 years ADR OCC Source: Smith Travel Research(1) Excludes Ritz C
Slide 7: Superior Revenue Optimization – RevPAR Index
Superior Revenue Optimization 6 Asset Management’s endless pursuit to maximize ADR resulted in a 221% RevPAR index for the highest rated retail transient segment in 2015 Source: TravelClick Demand 360(1) Excludes Bardessono and Pier House due to lack of data (1)
Slide 8: Superior Revenue Optimization – Lowest Cost Booking Channel
Superior Revenue Optimization 7 Significant outperformance in the lowest cost booking channel demonstrates Ashford’s superior focus on profitability versus its competitive set (1) Source: TravelClick Demand 360(1) Excludes Bardessono and Pier House due to lack of data
Slide 9: Strong Operational Performance – EBITDA Flow-Through
Strong Operational Performance 8 Strong Operational Performance Maximize revenue generating opportunities throughout the portfolio with creative pricing strategiesContinuously meet performance expectations even under challenging market conditionsOutperformed peer average by 1,149 bps in EBITDA flow-
Slide 10: Enhanced Profit Margins
Strong Operational Performance 9 Enhanced Profit Margins Since 2010, Ashford Prime has increased profit margins nearly 300 bps(1) in rooms department and over 400 bps(1) in food and beverage department Costs, % Revenue Department(1) Food and Beverage Rooms 417 bps 287 bps (1) Excludes Bardessono for
Slide 11: Enhanced Profitability
Strong Operational Performance 10 Enhanced Profitability Since 2010, Ashford Prime has implemented stringent cost reduction and control strategies to reduce administrative and general expenses, maintenance expenses, and energy expenses by approximately 100 bps(1) while also reducing insurance costs
Slide 12: Exceptional Guest Experience
Strong Operational Performance 11 Exceptional Guest Experience While simultaneously increasing profitability, Ashford Prime has grown and maintained exceptional levels of guest satisfactionAmong 15 peers, Ashford Prime has been either 1st or 2nd in TripAdvisor Ranking for 7 of the past 9 quarters an
Slide 13: Case Study – Marriott Plano Legacy
Case Study – Marriott Plano Legacy 12 Strong RPI growth despite opening of Hilton Granite Park in Sep. 2014Installed Senior Revenue Manager in Q1 20142014 & 2015 Business Transient Pricing Strategy led to premium increases with key accountsRenovated meeting space in 2014Monthly review with Area & Gr
Slide 14: Case Study – Hilton La Jolla Torrey Pines
Case Study – Hilton La Jolla Torrey Pines 13 Since 2009, EBITDA margins at the property have increased 1,037 bpsDespite a significant $12.2mm rooms renovation, GOP flow-through has been greater than 50% for 6 of the past 7 yearsIn addition to maintaining high operating margins, Asset Management has
Slide 15: Case Study – Marriott Seattle
Case Study – Marriott Seattle 14 Seattle Marriott Waterfront – Seattle, WA Segment Jul-Aug 2012 Jul-Aug 2013 Jul-Aug 2014 Jul-Aug 2015 ADR Premium Retail $ 327.49 $ 354.85 $ 411.14 $ 449.95 Regular Retail $ 281.73 $ 309.96 $ 348.03 $ 371.66 Difference $ 45.76 $ 44.90 $ 63.10 $ 78.29 Premium Rooms Pr
Slide 16: Ownership Value Add
Ownership Value Add 15 Ownership Value Add Exceptional track record of significantly improving revenue and profitability following acquisitionsIdentify opportunities to add keys in destination and high barrier to entry marketsEvaluate portfolio for opportunities to reposition assets to capture highe
Slide 17: Case Study – Conversion to Remington Managed
Case Study – Conversion to Remington Managed 16 Eliminated $1.5mm in expenses through cost cutting initiatives: Right-sized staffing levelImplemented improved housekeeping practicesIdentified additional F&B efficienciesRealized synergies with other Remington-managed Key West assetsSaved $385,000 in
Slide 18: Case Study – Room Additions
Case Study – Room Additions 17 Third highest occupancy hotel in Prime portfolioIconic hotel located in downtown Washington DC and 2 blocks north of the White HouseConverted 1 Ambassador Suite and relocated concierge lounge to 1st floor, gained 6 additional guestrooms Project Overview Fifth highest R
Slide 19: Opportunity – Ritz Carlton St. Thomas
Opportunity – Ritz Carlton St. Thomas 18 Ritz Carlton St. Thomas – St. Thomas, USVI Acquired in December 2015180 keys, 10,000 sq. ft. of meeting spaceLuxury resort on 30-acre oceanfront estate in St. Thomas, USVI2nd highest RevPAR in Prime portfolioReceived extensive $22mm rooms renovation in 2014Me
Slide 20: Ritz Carlton St. Thomas – Profit Improvement Plan
Ritz Carlton St. Thomas – Profit Improvement Plan 19 Initial Profit Improvement Plan implemented in Feb 2016 Department PIP Estimated Savings Rooms $364,278 F&B 201,153 Other 247,396 Total $812,826 Ritz Carlton St. Thomas – St. Thomas, USVI EBITDA margin at the property expected to exceed underwriti
Slide 21: Opportunity – Courtyard San Francisco
Opportunity – Courtyard San Francisco 20 Courtyard San Francisco has historically underperformed compared to the rest of AHP’s select portfolio in ADR indexA one point increase in RevPAR index equals $205k in EBITDARepositioning hotel with $19.7mm extensive guestrooms and lobby renovation starting Q
Slide 22: Opportunity – Bardessono Hotel
Opportunity – Bardessono Hotel 21 Bardessono – Yountville, CA Acquired in July 201562 keys, 1,350 sq. ft. of meeting spaceLocated in Yountville, CA the “Culinary Capital of Napa Valley”High barrier to entry marketAccessible to the major markets of Northern CaliforniaOne of only three LEED Platinum c
Slide 23: Best-in-Class Asset Management
Best-in-Class Asset Management Pier House ResortKey West, FL
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