Ashford Hospitality Trust Inc · NYSE:AHT
Ashford Hospitality Trust — Investor Presentation (November 2010)
16 slides from Ashford Hospitality Trust's investor presentation, Nov 30, 2010
Slide 1: Investor Presentation November 2010
Investor Presentation November 2010
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 Company Snapshot Broad Geographic Footprint Focus On Liquidity & Capital Proactive With Maturities & Covenants Well-Timed Interest Rate Hedges Capital Markets Expertise Proven Strategy Success High Insider Ownership
Slide 4: Company Snapshot
Company Snapshot Portfolio Statistics AHT Total Gross Assets (1) $4.4 B Peer Comparison (2) 2nd largest # of Hotels 100 # of Rooms 21,392 ADR (3) $126.24 RevPAR (3) $89.92 Q3 '10 AFFO Per Share $0.33 YTD '10 AFFO Per Share $1.09 Financial Statistics # Shares Outstanding(4) 73.0 M Leverage Ratio(5) 5
Slide 5: Broad Geographic Footprint
Ashford's broad geographic footprint encompasses 24 states and the District of Columbia(1) Ashford's portfolio is comprised of the strongest brands 89% of rooms are Hilton / Marriott(1) 97% of rooms are Hilton / Marriott / Starwood / Hyatt(1) Broad Geographic Footprint As of 9/30/10
Slide 6: Focus On Liquidity & Capital
Focus On Liquidity & Capital Available Liquidity • $35 million remaining credit facility balance, $215 million available borrowing capacity Strong Operating Performance • RevPAR increased 5.1% in Q3 '10 for all hotels, or 6.1% for hotels not under renovation • Hotel EBITDA margin increased 173 bps i
Slide 7: Proactive With Maturities & Covenants
Proactive With Maturities & Covenants Property Refinancings & Extensions • Recently restructured JW Marriott San Francisco loan, providing full extension of the maturity to 2013 without tests in exchange for $5.0 million reduction, the loan was set to mature in 2011 with two one-year extension optio
Slide 8: Proactive With Maturities & Covenants
Weighted average debt maturity of 4.8 years (fully extended) Cushion in current financial covenants Note: maturity dates without extensions 2010: $203m - extendable to 2011 2011: $5m - no extensions; $35m - extendable to 2012; $167m - extendable to 2012 Q4 '10 Q1 '11 Q2 '11 Q3 '11 Q4 '11 Q1 '12 Q2 '
Slide 9: Well-Timed Interest Rate Hedges
Well-Timed Interest Rate Hedges AHT's Floating-Rate Debt Advantage • LIBOR and hotel RevPAR are highly correlated • Ashford swapped $1.8 billion of fixed rate debt to floating rate just prior to negative RevPAR growth, in order to hedge against declining RevPAR • Ashford recently converted the swap
Slide 10: Capital Markets Expertise: Peers Diluted Shareholders
Hotel REIT peers diluted shareholders by raising large amounts of equity at historically low prices Capital Markets Expertise Source: Bloomberg & Company Filings
Slide 11: Capital Markets Expertise: Share Repurchases at Trough Prices
Ashford raised equity at peak prices and repurchased approximately 50% of the company at trough prices We believe this strategy will continue to produce AFFO per share and shareholder return outperformance $496 million in value created from repurchasing 73.6 million common shares at an average price
Slide 12: Capital Markets Expertise: Preferred Share Gain
Ashford recently issued 3.3 million preferred shares at $23.178 per share During the downturn, 3.1 million preferred shares were repurchased at an average price of $6.47 per share $52.6 million gain from reissuing repurchased shares Capital Markets Expertise $52.6 Million Gain
Slide 13: Proven Strategy Success: AFFO per Share
Proven Strategy Success Ashford has significantly outperformed peers on an AFFO per share basis Maintained relatively stable AFFO per share throughout the downturn Ashford Q3 '10 TTM AFFO per share is the highest since inception, while it may take peers many years to return to previous peak levels S
Slide 14: Proven Strategy Success: Outperformed Peer Returns
Proven Strategy Success Ashford has significantly outperformed peer average returns Source: Bloomberg; includes dividend reinvestment, as of 11/9/10
Slide 15: High Insider Ownership
High Insider Ownership Insider Ownership East 0.2 0.8 Insider Ownership East 0.04 0.96 Ashford management interests are closely aligned with shareholders, with 20% insider ownership 5x higher insider ownership than peer average Source: Company Filings
Slide 16: Ashford Overview
Ashford Overview Company Snapshot Broad Geographic Footprint Focus On Liquidity & Capital Proactive With Maturities & Covenants Well-Timed Interest Rate Hedges Capital Markets Expertise Proven Strategy Success High Insider Ownership
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