Ashford Hospitality Trust Inc · NYSE:AHT
Ashford Hospitality Trust — NAREIT Investor Forum June 2008
22 slides from Ashford Hospitality Trust's conference presentation, Jun 2, 2008
Slide 1: NAREIT Investor Forum June 2008
NAREIT Investor Forum June 2008
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 Snapshot
Ashford Snapshot Portfolio Statistics AHT Total Enterprise Value (1) $3.7 Bil Peer Comparison (2) 2nd largest # of Hotels 109 # of Rooms 25,165 ADR (3) $145.53 RevPAR (3) $102.85 Financial Statistics # Shares Outstanding(4) 139.8 M Avg. Daily Trading Volume (3 Month) 1.3 M TTM FFO per Share / Y-o-Y
Slide 4: Industry Snapshot
Industry Snapshot Total U.S. RevPAR growth has slowed to 2.5% YTD through April All of the RevPAR growth has come from ADR growth, which increased 4.7% while occupancy declined 2.1% The outlook for the remainder of the year is uncertain due to a wide range of opinions on the health of the U.S. econo
Slide 5: Ashford Strategies
Ashford Strategies Income Statement - Maximize earnings regardless of economic environment AHT's diversified platform performs better in periods of economic uncertainty Ashford is aggressively clamping down on operating costs via contingency plans Ashford's interest expense is lessened due to floati
Slide 6: Income Statement Strategies
Income Statement Strategies
Slide 7: Diversity Leads to Performance
Ashford has the broadest diversification of hotel assets - Chain scale - Geography - Brand - Investment strategy Mezzanine lending provides attractive yields and is lower in risk than owning hotel properties Advantages: Diversifies exposure across economic markets & different parts of the capital st
Slide 8: Broad Portfolio Mix
Broad Portfolio Mix Marriott Hilton Hyatt Starwood IHG Other 0.493 0.337 0.067 0.071 0.03 0.003 Marriott Remington Hilton Hyatt Starwood Interstate Hotel Equities 0.431 0.268 0.178 0.067 0.026 0.017 0.013 Brand Manager Charts based on TTM 3/31/08 owned EBITDA for the 109 hotels in continuing operati
Slide 9: Cost Control Measures
Cost Control Measures AHT has implemented operating contingency plans Goal is to maintain 50% GOP flow through cost-cutting initiatives Contingency plans include: Labor reduction Wage freezes Leaving vacant positions open indefinitely Aggressive inventory management AHT asset management is proactive
Slide 10: Floating-Rate Interest Expense
Floating-Rate Interest Expense Approximately 89% of Ashford's $2.7 billion of debt is floating-rate In uncertain economic times, short-term interest rates tend to remain low in order to stimulate economic activity There is a demonstrable correlation between changes in RevPAR and changes in short-ter
Slide 11: Attractive Dividend
Attractive Dividend Dividend covered by operating business Strong dividend CAD/AFFO coverage: TTM - 1.2x CAD coverage TTM - 1.5x AFFO coverage Consistently paid one of the highest covered dividends of lodging REIT peers Highest in peer group with dividend yield of 13.7%(1) Assumes 5/28/08 stock pric
Slide 12: Dividend Coverage
Dividend Coverage CAD Coverage CAD Coverage - Peer Avg SHO 1.45 1.19 HST 1.42 1.19 HPT 1.32 1.19 HT 1.29 1.19 LHO 1.17 1.19 AHT 1.17 1.19 DRH 1.15 1.19 BEE 0.86 1.19 FCH 0.84 1.19 Note: Peer CAD/FAD dividend coverage provided by Stifel Nicolaus & debt/gross assets data from FBR Property Week 5-13-08
Slide 13: Balance Sheet Strategies
Balance Sheet Strategies
Slide 14: Favorable Debt Maturity
Favorable Debt Maturity 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Total 73 125 122 241 354 0 111 261 396 980 Clear 73 125 122 241 354 0 111 261 396 980 Debt Maturities ($m) Note: Company estimates as of 1Q '08. Last dollar of debt includes debt attributable to JV partners, mezzanine platform
Slide 15: Capital Recycling
Capital Recycling AHT's capital recycling strategies are currently match funded through asset sales and cash flow above our dividend 2008 Capital Strategy 2008 Capital Strategy Sources of Capital Uses of Capital Cash flow above dividend Asset sales Debt pay down Mezzanine lending Share buybacks Cape
Slide 16: Source of Growth Capital
Source of Growth Capital Since its IPO, AHT has sold 41 assets, including 2 office buildings, for $522 million Weighted average cap on TTM NOI of 6.7% In 2007, AHT sold 22 assets for $380 million Year to date, AHT has sold 3 assets, including 1 office tower, and has announced 2 hotels under contract
Slide 17: Reinvestment Opportunity
Reinvestment Opportunity AHT has partnered with Prudential Real Estate Investors (PREI) to form a hotel lending joint venture Advantage of JV structure Provides opportunity to achieve outsized yields at same or less risky LTVs Creates access to a greater number of deals, which increases diversity, r
Slide 18: Recent Loan Transactions
Recent Loan Transactions Westin Resort Portfolio Hotel La Jolla Ritz-Carlton Key Biscayne JER Portfolio Properties 2 Westin resorts (Tucson, AZ) (Hilton Head, SC) Hotel La Jolla (La Jolla, CA) Ritz-Carlton Key Biscayne (Miami, FL) 22 full-service 7 select-service Keys 899 108 302 188 Condo Units 8,6
Slide 19: Share Buybacks
Share Buybacks $50 million share repurchase program approved by the Board in December 2007 AHT repurchased 700,800 shares of common stock at an average price of $6.54 during the first quarter Approx. $27 million of share repurchase authorization remains Accretive use of capital given AHT's current s
Slide 20: 2008 Capex Plan
2008 Capex Plan $190 million of potential capital expenditure in 2008 $32.6 million spent year to date AHT is contractually obligated or has already initiated $80 million of projects and has the flexibility to defer other projects to 2009 - 2010 $60 million are normal capex projects $50 million are
Slide 21: Conclusion
Conclusion Income Statement - Maximize earnings regardless of economic environment AHT's diversified platform performs better in periods of economic uncertainty Ashford is aggressively clamping down on operating costs via contingency plans Ashford's interest expense is lessened due to floating- rate
Slide 22: NAREIT Investor Forum June 2008
NAREIT Investor Forum June 2008
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