Ashford Hospitality Trust Inc · NYSE:AHT
Ashford Hospitality Trust — FBR Conference November 2007
21 slides from Ashford Hospitality Trust's conference presentation, Nov 27, 2007
Slide 1: FBR Conference Presentation November 2007
FBR Conference Presentation November 2007
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 Overview
Ashford Overview
Slide 4: Ashford Snapshot
Ashford Snapshot Portfolio Statistics AHT Total Enterprise Value (1) $4.1 Bil Peer Comparison (2) 3rd largest # of Hotels 114 # of Rooms 26,295 ADR (3) $ 134.89 RevPAR (3) $ 103.81 RevPAR Growth (3) 8.3% Financial Statistics # Shares Outstanding 143.0 M Avg. Daily Trading Volume (3 Month) 1.0 M Net
Slide 5: Portfolio Mix
Portfolio Mix Chain Scale Brand 2% 3%1% 4% 7% 8% 34% 47% 60% 34% MarriottHilton Hyatt LuxuryUpper-Upscale UpscaleMidscale w/o F&BStarwoodIHG Other GeographyManager 1% 1%2% 7% 1% 8% 3% 10% 35% 11% 42% 18% 10% 26% 25% MarriottRemington Hilton S. AtlanticPacificN. CentralS. Central HyattStarwood Inters
Slide 6: High Quality Assets
High Quality Assets Hyatt Anaheim Hilton La Jolla Torrey Pines Hyatt Regency Coral Gables Courtyard SF Downtown Renaissance Tampa JW Marriott San Francisco Hyatt Montreal Marriott Legacy Center Hilton El Conquistador Courtyard Irvine Residence Inn Sea World Hilton Costa Mesa Marriott Seattle Waterfr
Slide 7: Investment Track Record
Investment Track Record Proven market cycle judgment and investment discipline CHR Acquisition 5.0% 16,000 Ashford IPO 14,000 4.0% Rooms 12,000 10,000 3.0% Hotel # of 8,000 Rooms 2.0% 6,000 U.S. Change 4,000 1.0% 2,000 % 0.0% 0 ‘90 ‘91 ‘92 ‘93 ‘94 ‘95 ‘96 ‘97 ‘98 ‘99 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07E
Slide 8: The Ashford Opportunity
The Ashford Opportunity Balance sheet Portfolio mix Internal growth / capex funding Dividend Relative value 9
Slide 9: Balance Sheet
Balance Sheet Balance sheet strategy: – Continue to build upon strong expertise of capital recycling in order to deleverage # of Cumulative Sales Cumulative Year Rooms Rooms Proceeds Proceeds 2005 806 — - $30 M — -2006 1,259 2,065 $113 M $143 M 2007 3,645 5,710 $380 M $523M – Options exist in terms
Slide 10: Cycle Resilient Portfolio Mix
Cycle Resilient Portfolio Mix Diversity to enhance risk/rewards balance Limited service assets have greater resiliency to economic downturns than full service assets Limited Service vs. Full Service EBITDA Volatility 60.0% 50.0% 40.0% 30.0% 20.0% From the peak in 2000 to the trough in 2003, limited-
Slide 11: Internal Growth / Capex Funding
Internal Growth / Capex Funding Focus on value-added capex grows RevPAR and captures market share through higher RevPAR penetration Management will be prudent regarding the timing of future expenditures and the magnitude of ROI projects Capital projects generally less intrusive History of on-budget
Slide 12: Operating Performance
Operating Performance Aggressively refocusing asset management with the recent completion of CHR integration process Consistent focus on both top line & bottom line growth – RevPAR has averaged 9.1% over the past four quarters and 10.7% over the past three years 12.0% 11.1% 10.3% 10.0% 8.3% 9.1% Ave
Slide 13: High Dividend
High Dividend Dividend growth: 250% since 1Q 2004 Strong dividend CAD/AFFO coverage: –2007 YTD – 1.24x CAD coverage –2007 YTD – 1.59x AFFO coverage Highest in peer group with dividend yield of 11.2% (1) $0.25 12.0% 10.0% $0.20 Dividend ) 8.0% $ ( $0.15 Dividend 6.0% $0.10 4.0% Yield % $0.05 2.0% $0.
Slide 14: Relative Valuation
Relative Valuation Ashford’s FFO multiple is 38% lower than the peer average, while its leverage level is 23% greater than the peer average 11.0x 100% Multiple 10.0x Debt 80% 9.0x 72% 8.0x / 63% 62% 60% Gross 54% 7.0x 43% 46% 41% 41% 42% 40% 6.0x Assets 5.0x 2008 FFO 20% 4.0x 10.1x 9.9x9.5x8.6x7.6x
Slide 15: Relative Valuation
Relative Valuation Ashford’s relative value is compelling when compared with what hotel REITS have traded for in the market Current valuation is well below replacement cost Transaction Metrics – $ Price Per Key Ann. Date Target $ / Key April 2007 Highland Hospitality $ 230,000 April 2007 Eagle Hospi
Slide 16: Current Lodging Cycle
Current Lodging Cycle
Slide 17: Lodging REITs vs. Other REITs
Lodging REITs vs. Other REITs Lodging REITs lag other multiples despite having one of the highest dividend yields and the highest projected 2008 FFO growth 20.0x 12.0% 11.0% 10.4% 18.0x 10.0% Dividend 8.6% Multiple 16.0x 8.0% 7.1% 14.0x 5.9% 6.0% 5.2% 5.0% 5.0% 4.0% 4.5% Yield / FFO 12.0x 4.0% Growt
Slide 18: Supply Overview
Supply Overview US supply growth is still below historical average of 2.2% and is projected to remain so for at least two years Estimates have been revised downward consistently over the past few years due to: • High construction costs & land prices • Financial market turmoil • Expanding development
Slide 19: RevPAR / Supply Spread
RevPAR / Supply Spread There is still a very favorable spread between new room supply and RevPAR growth, which is projected to remain for at least two more years according to PWC New supply growth greatly determines lodging cycles Although a recession is not predicted, PKF stated in a recent report
Slide 20: Conclusion
Conclusion Ashford may be using its cash flow and asset sales to fund debt pay downs, mezzanine lending and potentially stock buybacks, along with normalized capex and ROI projects The current diversified portfolio mix, with a sizable portion of limited service assets, should exhibit resilience agai
Slide 21: FBR Conference Presentation November 2007
FBR Conference Presentation November 2007
Ashford Hospitality Trust — FBR Conference November 2007 on 6ix