Ashford Hospitality Trust Inc · NYSE:AHT
Ashford Hospitality Trust — Investor Presentation (April 2021)
30 slides from Ashford Hospitality Trust's investor presentation, Apr 8, 2021
Slide 1: Ashford Hospitality Trust April 2021
JW® ASHFORD HOSPITALITY TRUST April 2021
Slide 2: Forward-looking statements safe harbor
2 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 result," "m
Slide 3: Capitalizing on the Recovery
Capitalizing on the Recovery O w n e r o f I n s t i t u t i o n a l Q u a l i t y , G e o g r a p h i c a l l y D i v e r s e L o d g i n g A s s e t s w i t h E x p o s u r e t o E a r l y R e c o v e r y S e g m e n t s 3 La Concha Key West, FL W Atlanta Downtown Atlanta, GA Marriott Beverly Hill
Slide 4: Overview: Clear Path Forward to Capitalize on the Recovery
Overview 4 Clear Path Forward to Capitalize on the Recovery Portfolio Positioned for the Recovery Significant Balance Sheet & Liquidity Enhancements Decisive Actions Taken by Experienced Management Team to Navigate COVID
Slide 5: Experienced Management Team
D e r i c E u b a n k s C h i e f F i n a n c i a l O f f i c e r 21 years of hospitality experience 18 years with Ashford 3 years with ClubCorp CFA Charterholder Southern Methodist University, BBA J . R o b i s o n H a y s C h i e f E x e c u t i v e O f f i c e r & P r e s i d e n t 16
Slide 6: COVID Impact on the US Hotel Industry in 2020 Is Unprecedented
Decisive Actions Taken by Experienced Management Team to Navigate COVID I m p a c t o n t h e U S H o t e l I n d u s t r y i n 2 0 2 0 i s U n p r e c e d e n t e d Source: TTM STR as of Dec 2020 6 -47.0% -50.0% -40.0% -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% US RevPAR Growth YoY % -32.8%-40.0% -30.0%
Slide 7: COVID-19 Crisis Action Items to Protect Cash
Decisive Actions Taken by Experienced Management Team to Navigate COVID C O V I D - 1 9 C r i s i s A c t i o n I t e m s t o P r o t e c t C a s h 7 Q1 ‘20 Q2 ‘20 Q3 ‘20 Q4 ‘20 & Q1 ‘21 Q1 Reduced property level staffing by approximately 90% Q1 Suspended operations at 23 hotels with limited operati
Slide 8: Significant Balance Sheet & Liquidity Enhancements
Significant Balance Sheet & Liquidity Enhancements A H T H a s T a k e n N u m e r o u s S t e p s t o I m p r o v e t h e B a l a n c e S h e e t & L i q u i d i t y P r o f i l e 8 Competitive Capital Raise Process Raised $450 Million of Liquidity Material Reductions in Monthly Cash Burn with Sign
Slide 9: Highly Competitive Process Secured Attractive Long-Term Financing
Broad Reach •75+ potential investors contacted Significant Interest •35 NDAs executed Serious Engagement •9 term sheets received Commitment Letter •Signed in December for up to $450 million of liquidity Rapid Closing •Only 21 days after signing comm. letter Significant Balance Sheet & Liquidity Enha
Slide 10: Monthly Cash Utilization Has Improved Dramatically
$13,000 $11,400 $4,000 $4,000 $20,000 $3,100 $0 $10,000 $20,000 $30,000 $40,000 Approximate Q2 Levels Approximate Q4 Levels Estimated Monthly Cash Utilization ($ in thousands) Interest Expense Corp. G&A Hotel EBITDA Shortfalls $37,000 $18,500 Significant Balance Sheet & Liquidity Enhancements 10 M o
Slide 11: Well-Laddered Maturity Schedule
Significant Balance Sheet & Liquidity Enhancements W e l l - L a d d e r e d M a t u r i t y S c h e d u l e 11 $98 $100 $135 $499 $2,620 $240 $0 $1,000 $2,000 $3,000 2021 2022 2023 2024 2025 2026 Property Mortgage Final Maturity Schedule(a) (in $ millions) Marriott Crystal Gateway Arlington, VA Hil
Slide 12: Approximately $513M of Deleveraging since Q1 2020
Significant Balance Sheet & Liquidity Enhancements D e c i s i v e A c t i o n s H a v e R e s u l t e d i n A p p r o x i m a t e l y $ 5 1 3 M o f D e l e v e r a g i n g s i n c e Q 1 2 0 2 0 12 $3,863,000 $3,636,000 $565,000 $279,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 3/31/2020 Current
Slide 13: Well-Positioned to Capitalize on the Lodging Recovery
Portfolio Positioned for the Recovery W e l l - p o s i t i o n e d t o C a p i t a l i z e o n t h e L o d g i n g R e c o v e r y 13 Lodging Recovery Expected Over Next 4+ Years Best-in-Class Hotel Brands and Management Companies with Remington Driving Outperformance Chain Scale Mix with RevPAR Gr
Slide 14: Potential Return to Pre-COVID RevPAR
Potential Return to Pre-COVID RevPAR 45.0% 55.0% 65.0% 75.0% 85.0% 95.0% 105.0% 2019 2020 2021 2022 2023 2024 Leading RevPAR Forecasts As % of 2019 RevPAR STR Deutsche Bank 14 Portfolio Positioned for the Recovery L e a d i n g F o r e c a s t s E x p e c t F u l l R e c o v e r y b y 2 0 2 3 – 2 0
Slide 15: Strong Forecasted Demand Should Drive Values
Portfolio Positioned for the Recovery S t r o n g F o r e c a s t e d 2 0 2 1 & B e y o n d S h o u l d D r i v e V a l u e s 15 -14% -57% -35% -34% -40% -29% -16% -13% -7% -6% -4% -4% -1% 0% 1% 1% -70% -50% -30% -10% 10% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2020 2021 2022 2023 US Hotel R
Slide 16: RevPAR Has Rebounded Strongly from Depths of the Crisis
Portfolio Positioned for the Recovery R e v P A R h a s R e b o u n d e d S t r o n g l y f r o m D e p t h s o f t h e C r i s i s 16 -100.0% -90.0% -80.0% -70.0% -60.0% -50.0% AHT RevPAR as % of ‘19 (as of Mar ‘21) Source: AHT internal reporting, Room RevPAR as % of same month 2019
Slide 17: Low Forecasted Supply Growth
Portfolio Positioned for the Recovery L o w F o r e c a s t e d S u p p l y G r o w t h 17Source: STR; TRI methodology includes adjustments for temporary hotel closures due to COVID-19 2.0% 2.2% 2.3% 0.9% 1.6% 1.3% 1.0% 1.1% 1.0% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 2017 2018 2019 2020 2021F 2022F 2023F 20
Slide 18: Significant Assets in Early Recovery Segments
Portfolio by Hotel EBITDA (2) CHAIN SCALE UPPER UPSCALE 63% UPSCALE INDEPENDENT 6% LUXURY 4% UPPER MIDSCALE 2% REMINGTON 58% 32% HILTON 6% HYATT 4% INTERSTATE <1% 18 FULL-SERVICE 75% SELECT-SERVICE 25% SERVICE TYPE 100 H O T E L S ( 1 ) 28 S T A T E S ( 1 ) 22,278 H O T E L R O O M S ( 1 ) MARRIOTTH
Slide 19: Remington Management Outperformed the Industry in 2020
Portfolio Positioned for the Recovery R e m i n g t o n M a n a g e m e n t O u t p e r f o r m e d t h e I n d u s t r y i n K e y M e t r i c s i n 2 0 2 0 19 47% 31% 25% 30% 35% 40% 45% 50% Industry Remington 85% 78% 76% 78% 80% 82% 84% 86% 88% Industry Remington 700 bps Outperformance 1600 bps O
Slide 20: Hotel EBITDA in Highest Forecasted Growth Chain Scales
Portfolio Positioned for the Recovery 9 8 % o f A H T ’ s H o t e l E B I T D A I s I n H i g h e s t F o r e c a s t e d G r o w t h C h a i n S c a l e s 20 U.S. Forecast Chain Scale Performance Indicators 2021 Year End Outlook Chain Scale Occupancy (% chg) ADR (% chg) RevPAR (% chg) Luxury 53.1%
Slide 21: High Exposure to Transient Leisure, Low Exposure to Group
Portfolio Positioned for the Recovery H i g h E x p o s u r e t o T r a n s i e n t L e i s u r e , L o w E x p o s u r e t o G r o u p 21 73% 24% 3% AHT 2019 Pro Forma Hotel Revenue Transient Group Other 71% 23% 6% AHT 2019 Pro Forma Transient Hotel Revenue Leisure Business Other Note: Pro forma TT
Slide 22: Geographically Diverse Portfolio Focused on Top 25 Markets
Portfolio Positioned for the Recovery G e o g r a p h i c a l l y D i v e r s e P o r t f o l i o F o c u s e d o n T o p 2 5 M a r k e t s 22 AHT 2019 Hotel EBITDA by MSA TOP 25 76% TOP 26-50 10% OTHER 14% -57.6% -39.7% -60.0% -50.0% -40.0% -30.0% -20.0% -10.0% 0.0% Top 25 Markets All Others 2020 Y
Slide 23: Positioned for Demographic Shift Away from Northeast
Portfolio Positioned for the Recovery P o s i t i o n e d t o T a k e A d v a n t a g e o f D e m o g r a p h i c S h i f t A w a y f r o m t h e N o r t h e a s t , R u s t B e l t & W e s t C o a s t 23 Inbound or Outbound Migration 2016 – 2020(b) • 25% of business owners are considering moving op
Slide 24: Conclusion
Conclusion 24 Clear Path Forward to Capitalize on the Recovery Portfolio Positioned for the Recovery Significant Balance Sheet & Liquidity Enhancements Decisive Actions Taken by Experienced Management Team to Navigate COVID
Slide 25: Appendix
Appendix
Slide 26: Secured Forbearance Agreements on 98% of Loans Outstanding
Appendix S e c u r e d F o r b e a r a n c e A g r e e m e n t s o n 9 8 % o f L o a n s O u t s t a n d i n g 26 Hotel / Pool Principal Amount Interest Rate Final Maturity Date Extension Options Key Forbearance Terms Highland Portfolio $914,281,000 L + 3.20% 9-Apr-25 Five 1-year extension options R
Slide 27: Secured Forbearance Agreements on 98% of Loans Outstanding
Appendix S e c u r e d F o r b e a r a n c e A g r e e m e n t s o n 9 8 % o f L o a n s O u t s t a n d i n g 27 Hotel / Pool Principal Amount Interest Rate Final Maturity Date Extension Options Terms Marriott Crystal Gateway $84,544,000 6.26% fixed 1-Nov-21 None Extension until Nov 2021 Repay FF&E
Slide 28: Strong Corporate Governance Including Two New Independent Observers
Appendix S t r o n g C o r p o r a t e G o v e r n a n c e I n c l u d i n g T w o N e w I n d e p e n d e n t O b s e r v e r s 28 • 6 of 8 directors are independent • 2 new independent directors in the past 3 years • All committees comprised of independent directors • Addition of 2 independent boa
Slide 29: Board Members Bring Experience and Knowledge
Appendix B o a r d M e m b e r s B r i n g E x p e r i e n c e a n d K n o w l e d g e t o a l l P e r t i n e n t A r e a s o f t h e B u s i n e s s 29 Skills/Qualification Gupta (Lead Director) Ansell Jafarnia Kleisner Pantermuehl Tallis Hays Bennett Academia/Education brings knowledge of organiz
Slide 30: Ashford Hospitality Trust April 2021
JW® ASHFORD HOSPITALITY TRUST April 2021
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