Ashford Hospitality Trust Inc · NYSE:AHT
Ashford Hospitality Trust — Investor Presentation (August 2021)
24 slides from Ashford Hospitality Trust's investor presentation, Aug 18, 2021
Slide 1: Ashford Hospitality Trust August 2021
J® ASHFORD HOSPITALITY TRUST August 2021
Slide 2: Safe Harbor forward-looking statements
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
Slide 5: Executive 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: 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 6 Material Reductions in Monthly Cash Burn Attractive Debt Maturity Schedule Achieved Substantive Corporate Deleveragin
Slide 7: Monthly Cash Utilization Has Improved Dramatically
-$13,000 -$11,400 -$4,000 -$4,000 -$20,000 $15,200 -$50,000 -$40,000 -$30,000 -$20,000 -$10,000 $0 $10,000 $20,000 $30,000 $40,000 Approximate Q2 '20 Levels Approximate Q2 '21 Levels Estimated Monthly Cash Utilization ($ in thousands) Interest Expense Corp. G&A Hotel EBITDA -$37,000 -$200 Significan
Slide 8: 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 8 $92 $100 $135 $500 $2,620 $455 $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 Hilt
Slide 9: Decisive Actions Resulted in Approximately $800M of Deleveraging
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 $ 8 0 0 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 9 $3,729,569 $3,294,947 $564,735 $188,670 $3,000,000 $3,500,000 $4,000,000 $4,500,000 3/31/2020 6/30/2021
Slide 10: 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 10 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 11: 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 11 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 12: Strong Forecast & Beyond Should Drive Values
Portfolio Positioned for the Recovery S t r o n g 2 0 2 1 F o r e c a s t & B e y o n d S h o u l d D r i v e V a l u e s 12 2021 STR Forecast 2022 STR Forecast Supply(1) +1.5% +1.2% Demand +33.4% +14.4% Occupancy +31.5% +13.0% ADR +12.0% +6.0% RevPAR +47.3% +19.7% Source: STR (1) Reflects Total-Roo
Slide 13: 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 13 -100.0% -90.0% -80.0% -70.0% -60.0% -50.0% -40.0% -30.0% -20.0% AHT RevPAR as % of ‘19 (as of July ‘21) Source: AHT internal reporting, Room RevPAR as % of same mont
Slide 14: 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 14Source: STR February 2021 Forecast; 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 20
Slide 15: Significant Assets in Early Recovery Segments and High-Growth Chain Scales
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% 15 FULL-SERVICE 75% SELECT-SERVICE 25% SERVICE TYPE 100 H O T E L S ( 1 ) 28 S T A T E S ( 1 ) 22,286 H O T E L R O O M S ( 1 ) MARRIOTTHI
Slide 16: 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 16 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 17: 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 17 U.S. Forecast Chain Scale Performance Indicators 2021 Year End Outlook Chain Scale Occupancy (% chg) ADR (% chg) RevPAR (% chg) Luxury 84.4%
Slide 18: 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 18 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 19: 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 19 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 20: Positioned to Take Advantage of Demographic Shift
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 20 Inbound or Outbound Migration 2016 – 2020(b) • 25% of business owners are considering moving op
Slide 21: Conclusion
Conclusion 21 Clear Path Forward to Capitalize on the Recovery Portfolio Positioned for the Recovery Significant Balance Sheet & Liquidity Enhancements
Slide 22: Appendix
Appendix
Slide 23: Reconciliation of Net Income to Hotel EBITDA
Reconci l ia t ion of Net Income to Hote l EB I TDA 23 December 31, 2019 TTM Net income (loss) 168,758$ Non-property adjustments 7,341 Interest income (306) Interest expense 19,208 Amortization of loan costs 1,763 Depreciation and amortization 268,896 Income tax expense (benefit) 324 Non-hotel EBITD
Slide 24: Ashford Hospitality Trust August 2021
J® ASHFORD HOSPITALITY TRUST August 2021
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