Ashford Hospitality Trust Inc · NYSE:AHT
Ashford Hospitality Trust — Investor Presentation (October 2015)
25 slides from Ashford Hospitality Trust's investor presentation, Oct 6, 2015
Slide 1: Company Presentation - October 2015
Company Presentation - October 2015
Slide 2: Safe Harbor
2 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
Slide 3: Compelling Opportunity
Compelling Opportunity 3
Slide 4: Opportunistic Strategy
4 Opportunistic Strategy Predominantly focused on opportunities to invest in upper upscale, full- service hotels in all market locations with the following characteristics: Accretive, value-add opportunities Strong yields and outsized growth prospects Markets with favorable supply/demand dyn
Slide 5: Compelling Opportunity
5 Compelling Opportunity Attractive industry fundamentals with demand growth exceeding supply growth Several attractive acquisitions completed year-to-date Affiliated property manager results in strong operating results and flow- throughs Upcoming refinancings with potential for significant
Slide 6: Recent Announcements
6 Recent Announcements Announced the planned sale of 24 select-service hotels with a total of 4,410 keys, $45.0 million in TTM NOI, and encumbered by approximately $190 million of fixed rate debt and $194 million of maturing or floating rate debt. Other strategic initiatives announced include:
Slide 7: Strong Track Record & Performance
7 Strong Track Record & Performance
Slide 8: Demonstrated Long-Term Track Record
Demonstrated Long-Term Track Record 8 • Disciplined growth, operational expertise, and capital allocation to maximize shareholder returns Peer average includes: CHSP, DRH, FCH, HST, HT, LHO, SHO, RLJ, INN, CLDT Trailing Total Shareholder Returns as of 9/30/15 Source: Bloomberg Total Shareholder Retu
Slide 9: Highly-Aligned Management
Highly-Aligned Management 9 • With insider ownership* of approximately 16% for AHT, management is highly-aligned with shareholder interests Publicly-Traded Hotel REIT Insider Ownership Public Lodging REITs include: BEE, CHSP, CLDT, DRH, FCH, HST, HT, INN, LHO, PEB, RLJ, SHO Source: Company filings.
Slide 10: Attractive Dividend Yield & Coverage
10 Attractive Dividend Yield & Coverage • Ashford has both a high dividend yield and strong dividend coverage. 7.9% 6.7% 5.5% 5.4% 5.3% 5.2% 5.0% 5.0% 4.8% 4.6% 4.1% 4.0% 3.0% 2.9% 2.0% 1.5% 2.5x 1.3x 1.7x 1.8x 2.1x 2.0x 2.0x 1.6x 1.9x 2.6x 2.1x 2.4x 2.0x 3.7x 5.6x 6.4x 0.0x 1.0x 2.0x 3.0x 4.0x 5.0x
Slide 11: Strong RevPAR Growth
11 Strong RevPAR Growth FY 2014 RevPAR Growth Source: Company filings. • Ashford Trust has delivered strong RevPAR growth versus its peers • Seeing benefit from recent revenue initiatives 11.6% 10.9% 10.5% 9.9% 8.8% 8.0% 7.2% 6.8% 6.1% 5.9% 5.7% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% YTD Q2 2015
Slide 12: Attractive Relative Valuation vs. Peers
12 Attractive Relative Valuation vs. Peers Source: Corporate filings and consensus estimates *As of 9/30/2015 • Ashford Trust is trading at an attractive valuation relative to its peers • Taking steps to simplify strategy • Selling lower RevPAR select-service assets TEV/2016 EBITDA 12.1x 12.0x 11.9x
Slide 13: Portfolio Ashford Trust Hotels
13 Portfolio Ashford Trust Hotels
Slide 14: Portfolio Overview
Portfolio Overview 14 52% 30% 4% 3% 5% 6% Ashford Trust Brands by EBITDA Marriott Hilton Hyatt IHG Starwood Independent 31% 60% 5% 3% 1% Ashford Trust Managers by EBITDA Marriott Remington Hilton Hyatt Interstate 71% 20% 9% Ashford Trust MSA by EBITDA Top 25 Top 50 Other 35% 53% 3% 5% 4% Ashford Tru
Slide 15: Capital Structure
Capital Structure 15 • Target Net Debt/Gross Assets of 55-60% • Maintain mix of fixed and floating rate debt – currently 35.4% fixed to 64.6% floating* • Ladder maturities • Proactively refinance upcoming maturities • All debt is property-level and non-recourse Balance Sheet Initiatives Debt Maturit
Slide 16: Significant Liquidity
Significant Liquidity 16 • Maintain excess cash balance to capitalize on opportunities and hedge risk – target cash and cash equivalents of 25-35% of equity market capitalization • YTD Q2 2015 raised over $300 million in excess proceeds from refinancings • Significant additional value through net wo
Slide 17: Attractive Industry Fundamentals
Attractive Industry Fundamentals 17
Slide 18: PKF RevPAR Growth Forecasts
PKF RevPAR Growth Forecasts 18 Source: PKF 7.7% 6.1% -2.0% -16.7% 5.4% 8.2% 6.8% 5.4% 8.3% 7.2% 6.3% 5.5% -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% Historical RevPAR Growth Forecasted RevPAR Growth
Slide 19: Potential Industry EBITDA Growth Rates
19 Potential Industry EBITDA Growth Rates *Based on PKF RevPAR/ADR/Occupancy projections and EBITDA growth resulting from PKF EBITDA change regression equation. • With strong potential RevPAR gains, those companies with reasonable flow-throughs could experience significant EBITDA growth • PKF estima
Slide 20: Acquisition Update
Acquisition Update 20
Slide 21: Recent Developments
21 Recent Developments YTD Announced / Closed Transactions: Total Value Fwd Cap Rate JV Share of Highland $490.3 million 7.4% Hampton Inn & Suites Gainesville $25.3 million 9.1% Le Pavillon, New Orleans $62.5 million 7.8% 9 Hotel Portfolio $224 million 7.5% W Atlanta Downtown $56.8 million 7.2% Le
Slide 22: Marriott Fremont Transaction
22 Marriott Fremont Transaction *TTM through 6/30/15 Strengths/Performance: • Closed on acquisition in August 2014 • Excellent location in strong Silicon Valley hotel market with a diversified customer base • High quality asset with minimal capex needs – recently renovated guestrooms, meeting space
Slide 23: Le Pavillon Transaction
23 Le Pavillon Transaction *TTM through 6/30/15 ** Net of $4 million of key money from Ashford Inc. Strengths/Opportunities: • Excellent location in heart of New Orleans adjacent to historic French Quarter and other major demand generators • New Orleans has a vibrant and growing economy and continue
Slide 24: Responsive to Shareholders
24 Responsive to Shareholders The board of directors continues to review additional enhancements to the Company's corporate governance policies to more firmly align the Company with the interests of its shareholders Recent announcement of planned sale of select-service hotels Strategy refineme
Slide 25: Company Presentation - October 2015
Company Presentation - October 2015
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