Ashford Hospitality Trust Inc · NYSE:AHT
Ashford Hospitality Trust — UBS Conference February 2012
27 slides from Ashford Hospitality Trust's conference presentation, Feb 28, 2012
Slide 1: Company Presentation – UBS Conference
Company Presentation UBS Conference February 2012 Exhibit 99.1
Slide 2: Safe Harbor
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 “w
Slide 3: Agenda
Agenda Agenda • Hotel Industry Overview • Advantages of REITs • Ashford Overview • Remington Advantage • Asset Management Expertise • Most Highly-Aligned Management Team • Ashford Outperformance • Attractive Dividend
Slide 4: Hotel Industry Overview
Hotel Industry Overview Hotel Industry Overview • Hotel demand is generally driven by the overall economy Source: Smith Travel Research, U.S. Dept. of Commerce BEA -8.0 -6.0 -4.0 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 Hotel Demand Growth vs . Real GDP Growth Real GDP Growth Hotel Demand Growth
Slide 5: Hotel Industry Overview: Supply Growth
Hotel Industry Overview Long-term avg supply growth = 2.1 Hotel Industry Overview • Supply growth occurs in cycles and growth above the long-term average is a significant drag on industry fundamentals • We are currently experiencing minimal supply growth, and based on historical cyclical trends and
Slide 6: Hotel Industry Overview: Real RevPAR
Hotel Industry Overview Long-term avg real RevPAR = $65 Hotel Industry Overview Source: Smith Travel Research (non-seasonally adjusted nominal monthly figures) • Revenue per available room (RevPAR) is THE key industry metric, also calculated as occupancy multiplied by average daily rate (ADR) • Real
Slide 7: Hotel Industry Overview
Hotel Industry Overview Hotel Industry Overview Source: Smith Travel Research • Despite some of the volatility in the economy here in the U.S. and abroad, RevPAR growth has remained consistently strong 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% Week Ended Trailing 28- Day U.S. RevPAR % Change
Slide 8: Hotel Industry Overview: ADR vs. Inflation
Hotel Industry Overview During periods of high inflation, ADR growth has met or exceeded inflation • Hotels have historically been a good inflation hedge during periods of high inflation Hotel Industry Overview Source: Smith Travel Research, PKF & U.S. Dept. of Labor BLS -15.0% -10.0% -5.0% 0.0% 5.0
Slide 9: Advantages of REITs
Advantages of REITs Benefits Use of nonrecourse debt High- quality real estate retains value Not a financial asset Currently difficult to develop Dividend paying Inflation hedge Hard asset Advantages of REITs
Slide 10: Ashford Highlights
Ashford Highlights Portfolio Statistics* Financial Statistics* Ashford Highlights Total Enterprise Value $4.1 B Total Gross Assets $5.2 B Peer Comparison nd Largest (out of 15) # of Hotels # of Owned Rooms 26,195 # of Property Managers $ ADR $130.12 $ RevPAR $93.76 RevPAR Growth % 6.0% Recent Share
Slide 11: Highland Transaction Summary
Highland Transaction Summary Transformational 28-hotel, $1.3 billion acquisition with 8,084 rooms, completed 3/10/11 Primarily upper-upscale and luxury full-service assets Expands Ashford’s presence in key markets (Washington D.C and NY/NJ) and into new markets (Boston and Nashville) Significant gro
Slide 12: High-Quality Portfolio
High-Quality Portfolio High-Quality Portfolio Marriott Bridgewater Hyatt Regency Coral Gables Courtyard Seattle Downtown Capital Hilton Marriott Seattle Waterfront Renaissance Tampa Embassy Suites Portland Embassy Suites Las Vegas Embassy Suites Silicon Valley Renaissance Palm Springs Marriott DFW A
Slide 13: High-Quality Portfolio
High-Quality Portfolio High-Quality Portfolio Hilton Parsippany The Melrose – D.C. Hyatt Regency Wind Watch Boston Back Bay Hilton Renaissance Nashville Marriott Sugar Land Hyatt Regency Savannah Westin Princeton The Silversmith - Chicago Hilton La Jolla Torrey Pines Courtyard SF Downtown Marriott S
Slide 14: Focused Portfolio
Focused Portfolio Focused Portfolio * %’s based on 2011 EBITDA
Slide 15: Advantages of Remington
Advantages of Remington Share best practices across brands Aligned with ownership Immediate attention Keeps project management in-house Operate the hotels as if they owned them More owner- friendly cost structure Constant accessibility Additional brand advocate Less disruption during renovations Che
Slide 16: Asset Management Expertise
Asset Management Expertise Asset Management Expertise 39% 8% % % 52% 51% 37% % 104% 63% 0% 20% 40% 60% 80% 100% 120% HOTEL EBITDA FLOWS (Peers include: BEE, CHSP, DRH, FCH, HST, HT, LHO, PEB & SHO) * Peer Avg AHT *Note: 2011 excludes DRH, FCH & HT – financials not yet available
Slide 17: Asset Management Expertise
Asset Management Expertise Asset Management Expertise (106) (487) (58) (406) (600) (500) (400) (300) (200) (100) - Peer Avg AHT HOTEL EBITDA MARGIN Y-O-Y CHANGE (BPS) (Peers include: BEE, CHSP, CLDT, DRH, FCH, HST, HT, LHO, PEB & SHO) * *Note: 2011 excludes DRH, FCH & HT – financials not yet availab
Slide 18: Asset Management Expertise – Highland Portfolio
Asset Management Expertise – Highland Portfolio Asset Management Expertise – Highland Portfolio GOP Margin Change BPS GOP Flow
Slide 19: Most Highly-Aligned Management Team
Most Highly-Aligned Management Team Most Highly-Aligned Management Team Source: 2011 Proxy Filings
Slide 20: Unique Owner's Mentality
Unique Owner’s Mentality • • Just prior to the downturn, management proactively managed interest expense through a hedging strategy, which will have provided about $240m in cash flow at expiration in 2013 • Because of this significant cash flow cushion, Ashford was able to buy back about half of the
Slide 21: Consistent Earnings Growth
Consistent Earnings Growth Consistent Earnings Growth • Ashford strives to achieve consistently growing, stable earnings $- $0.41 $0.96 $1.13 $1.28 $1.31 $1.12 $1.50 $1.86 $- $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40 $1.60 $1.80 $2.00 Ashford’s Historical AFFO per Share
Slide 22: Earnings Outperformance
Earnings Outperformance Earnings Outperformance • Ashford has significantly outperformed REIT peers on an AFFO per share basis since the previous peak of mid-2007 140% 160% 60% 80% 100% 120% 0% 20% 40% Ashford Peer Average Source: SNL & Company Filings Peers Include: BEE, DRH, FCH, HST, HT, LHO, SHO
Slide 23: Shareholder Return Outperformance
Shareholder Return Outperformance Shareholder Return Outperformance • Ashford has also significantly outperformed REIT peers and c-corp peers on a total shareholder return basis since the previous peak of mid-2007 Source: Bloomberg
Slide 24: Attractive Dividend Yield & Coverage
Attractive Dividend Yield & Coverage Attractive Dividend Yield & Coverage Ashford recently announced a 10% dividend increase for 2012 • Ashford’s dividend yield AND dividend coverage exceed the peer average Note: 2011 consensus AFFO per share used for DRH & HT 7.0 6.0 2.0 5.0 4.0 1.0 3.0 - 5.7% 5.0%
Slide 25: Historical Dividend Coverage
Historical Dividend Coverage Though Ashford didn’t pay a dividend in 2009 & 2010, it could have covered its peak dividend at 1.3x in 2009 & 1.8x in 2010 Historical Dividend Coverage • 0.9x 1.4x 1.4x 1.5x 1.6x 4.7x 0.0x 0.5x 1.0x 1.5x 2.0x 2.5 x 3.0x 3.5x 4.0x 4.5x 5.0x N/A N/A Ashford could have pai
Slide 26: Conclusion
Conclusion Conclusion • Best brands / high-quality portfolio • • Management thinks and acts like owners due to significant ownership stake • • Very attractive dividend Proven operational outperformance due to Ashford asset management expertise These factors have led to earnings and shareholder retur
Slide 27: UBS Conference
Company Presentation UBS Conference February 2012
Ashford Hospitality Trust — UBS Conference February 2012 on 6ix