Ashford Hospitality Trust Inc · NYSE:AHT
Ashford Hospitality Trust — BAML Conference September 2013
23 slides from Ashford Hospitality Trust's conference presentation, Sep 12, 2013
Slide 1: BAML Conference September 2013
1 BAML Conference September 2013
Slide 2: Safe Harbor
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
Slide 3: Ashford Hospitality Prime Spin-Off
3 Ashford Hospitality Prime Spin-Off • AHT plans to contribute ownership interests in an 8-hotel portfolio to a newly formed company, Ashford Hospitality Prime, Inc. ("Ashford Prime"), which is expected to qualify as a Real Estate Investment Trust and intends to file an application to list its share
Slide 4: Strategic Rationale
4 Strategic Rationale Creation of Two Focused Companies Creates Clarity Potential for Higher Aggregate Market Value for Stockholders Tailored Capital Structure More Efficient More Conservative Capital Structure
Slide 5: Transaction Overview
5 Transaction Overview 123 Hotels 25,715 Rooms TTM RevPAR: $102 TTM Hotel EBITDA: $391.9mm 8 Hotels 3,146 Rooms TTM RevPAR: $145 TTM Hotel EBITDA: $76.6mm 115 Hotels 22,569 Rooms TTM RevPAR: $97 TTM Hotel EBITDA: $315.3mm 20% Ownership of Ashford Prime Taxable Spin-off Contributed Capital Purchase O
Slide 6: Ashford Prime Overview
6 Ashford Prime Overview High Quality Hotel Portfolio • Geographically diversified and concentrated predominantly in top 20 U.S. markets • Premium portfolio RevPAR of $145 • EBITDA per room of over $24,000 • Strong market share as evidenced by RevPAR penetration index of 110.7 • All current hotels b
Slide 7: Ashford Prime Overview
7 Ashford Prime Overview • Institutional Investor Tailored Platform Highly-Aligned Management Structure • Ashford Trust expected to own 20% of Ashford Prime on a pro forma basis • Management and related parties are expected to hold approximately 19% equity interest in Ashford Prime • The highest ins
Slide 8: Differentiated Investment Strategy
8 Differentiated Investment Strategy Ashford Prime Ashford Trust Investment Focus High-quality, High-RevPAR hotels in major markets expected to generate RevPAR of at least 2x the national average All segments of the hospitality industry excluding the High-RevPAR hotels targeted by Ashford Prime Inve
Slide 9: Ashford Prime Properties
9 Ashford Prime Properties San Francisco San Francisco Courtyard 405 Rooms Seattle Marriott Seattle Waterfront 358 Rooms Seattle Courtyard 250 Rooms Philadelphia Philadelphia Courtyard 498 Rooms Dallas Marriott Plano Legacy 404 Rooms San Diego Hilton Torrey Pines 394 Rooms Hotel Market Rooms Ritz-Ca
Slide 10: High RevPAR Focus
10 High RevPAR Focus • With 2012 RevPAR of $140, Ashford Prime compares favorably to the public lodging REIT universe. Through targeted acquisitions, we expect Ashford Prime to increase its comparative RevPAR profile over time $140 $127 $99 $94 $65 $55 $70 $85 $100 $115 $130 $145 Public Lodging REIT
Slide 11: RevPAR Drives Multiple...
11 RevPAR Drives Multiple... • As the chart below shows, there is a very high correlation between RevPAR and EBITDA Multiple for the Hotel REIT universe. Ashford Prime, with its higher RevPAR assets and investment focus, should benefit from this correlation Public Lodging REITs include: AHT, BEE, CH
Slide 12: ...Market Cap Does Not
12 ...Market Cap Does Not • Conversely, there is no correlation between Market Capitalization and EBITDA Multiple for the Hotel REIT universe. This is further evidence that the overall valuation of Ashford Prime should be based more on its RevPAR focus than by its market capitalization Public Lodgin
Slide 13: ...Market Cap Does Not
13 ...Market Cap Does Not • We also looked at the correlation between EBITDA multiple and market capitalization for other REIT property types. Below are the R-squared (correlation significance) values for those sectors: • With a 0.58 R-squared value - the apartment REIT sector was the only sector wi
Slide 14: Highly-Aligned Management
14 Highly-Aligned Management • With insider ownership* of both platforms anticipated to be approximately 19%, management is highly-aligned with shareholder interests Public Lodging REITs include: BEE, CHSP, CLDT, DRH, FCH, HST, HT, INN, LHO, PEB, RLJ, SHO Source: Company filings. * Insider ownership
Slide 15: Executive Bios
Executive Bios A ASHFORD
Slide 16: Management Team: Monty J. Bennett
Management Team 16 Monty J. Bennett Chairman & Chief Executive Officer Mr. Bennett serves as Founder, Chairman, & Chief Executive Officer of Ashford Hospitality Trust, a Real Estate Investment Trust (REIT) formed in August 2003. Ashford focuses exclusively on investing in the hospitality industry ac
Slide 17: Management Team: Douglas A. Kessler
Management Team 17 Douglas A. Kessler President Mr. Kessler is the President of Ashford Hospitality Trust (NYSE: AHT) and a member of the Board of Directors. He had previously served as Chief Operating Officer and Head of Acquisitions for the Company. Mr. Kessler has spearheaded virtually all of Ash
Slide 18: Management Team: David A. Brooks
Management Team 18 David A. Brooks Chief Operating Officer and General Counsel Prior to joining Remington Hotel Corporation and Ashford Financial Corporation in January of 1992, Mr. Brooks, a former licensed CPA and attorney, practiced law with the law firm of Sheinfeld, Maley & Kay in both Houston
Slide 19: Management Team: David Kimichik
Management Team 19 David Kimichik Chief Financial Officer Mr. Kimichik has served as the Chief Financial Officer for Ashford Hospitality Trust, Inc. since May 2003. In addition to his duties as Chief Financial Officer he has held the position of Director of Asset Management where he was responsible
Slide 20: Management Team: Deric S. Eubanks
Management Team 20 Deric S. Eubanks, CFA Senior Vice President of Finance As Senior Vice President of Finance, Mr. Eubanks is responsible for assisting the CEO and CFO with all corporate finance and financial reporting initiatives and capital market activities including equity raises, debt financing
Slide 21: Management Team: Rob Hays
Management Team 21 Rob Hays Senior Vice President - Corporate Finance & Strategy Mr. Hays has served as Senior Vice President of Corporate Finance & Strategy of Ashford Hospitality Trust since 2010 and has been with the Company since April 2005. Mr. Hays is responsible for the formation and executio
Slide 22: Management Team: Jeremy Welter
Management Team 22 Jeremy Welter Executive Vice President of Asset Management Mr. Welter has served as the Executive Vice President of Asset Management for Ashford Hospitality Trust since January 2011. In his current role, Mr. Welter presides over Ashford's lodging portfolio consisting of 122 hotels
Slide 23: BAML Conference September 2013
23 BAML Conference September 2013
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