Ashford Hospitality Trust Inc · NYSE:AHT
Ashford Hospitality Trust — NAREIT REITWeek 2011
31 slides from Ashford Hospitality Trust's conference presentation, Jun 7, 2011
Slide 1: NAREIT REITWeek Presentation June 2011
NAREIT REITWeek Presentation June 2011
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: Overview
Overview Now is the time to be investing in lodging : Still early in the cyclical recovery Strong RevPAR / EBITDA growth forecasted Ashford is best positioned to take advantage of the up-cycle: Diverse, high-quality portfolio Best-in-class asset management Laddered debt maturities Effective interest
Slide 4: Attractive Supply/Demand Imbalance
Attractive Supply/Demand Imbalance Demand increase is currently expected to outpace supply increase through 2014 4 Source: Smith Travel / PKF Research (forecast)
Slide 5: Attractive Industry Fundamentals
Attractive Industry Fundamentals 5 Source: Smith Travel Research (non- seasonally adjusted nominal monthly figures)
Slide 6: PKF's Nominal US RevPAR Forecast
PKF's Nominal US RevPAR Forecast 6 5-Year RevPAR Growth CAGR: 7.0% Source: Smith Travel Research / PKF Research (forecast)
Slide 7: Ashford Snapshot
Ashford Snapshot 7 Portfolio Statistics Total Enterprise Value $4.5 B Total Gross Assets $5.0 B Peer Comparison 2nd Largest # of Hotels 125 # of Owned Rooms 26,257 # of Property Managers 6 $ ADR $131.94 $ RevPAR $92.20 RevPAR Growth % 7.6% Financial Statistics Recent Share Price $14.01 (6/2/11) # Fu
Slide 8: Broad Geography
Broad Geography Ashford's geographic footprint encompasses 30 states and Washington DC 8 WEST COAST MIDDLE AMERICA TEXAS EAST COAST West Coast includes Alaska EBITDA by Region EAST COAST: 50% WEST COAST: 26% TEXAS: 9% MIDDLE AMERICA: 15%
Slide 9: MSA
MSA The vast majority of Ashford's EBITDA comes from top 25 markets, with 90% coming from top 50 markets 9
Slide 10: Chain Scale
Chain Scale Approximately 60% of Ashford's EBITDA comes from luxury & upper upscale assets 10
Slide 11: Brand Family
Brand Family Nearly 85% of Ashford's EBITDA comes from Marriott and Hilton branded assets 11
Slide 12: Transient vs. Group vs. Contract
Transient vs. Group vs. Contract Our customers are predominantly transient, with a strong emphasis on corporate business 12
Slide 13: Best-in-Class Asset Management - Flows
Best-in-Class Asset Management - Flows Ashford consistently beats its peers in hotel EBITDA flow-throughs, and on average ranks #1 among peers over the past four years Ashford's affiliate manager, Remington, gives it a competitive advantage in managing costs over its peers 13 Source: Company filings
Slide 14: Debt Maturity Schedule
Debt Maturity Schedule $1,200,000 $1,000,000 $Debt (000's) $800,000 $600,000 $400,000 $200,000 $0 AHT Debt Maturity Schedule 2011 2012-2013, -2014 201520162017 Beyond mFixed-Rate _s Floating-Rate
Slide 15: Impact of Interest Rate Hedges in 2011
Impact of Interest Rate Hedges in 2011 15 Principal Interest Expense (est.) Interest Rate (est.) Total Debt $3.3 billion $176 million 5.3% Swap Impact ($31.5 million) Flooridor Impact (if Libor stays below 50 bps in 2011) ($40.5 million) TOTAL $3.3 billion $104 million 3.2% Note: Assumes 30-Day Libo
Slide 16: Significant Industry Dilution
Significant Industry Dilution 16 Source: Bloomberg Peer Stock Price Index # of Common Shares Issued / (Repurchased)
Slide 17: Significant Shareholder Accretion
Significant Shareholder Accretion 17 Source: Bloomberg AHT Stock Price # of Common Shares Issued / (Repurchased)
Slide 18: Significantly Reduced Share Count
Significantly Reduced Share Count 18 Source: SNL, Company Filings & Street Research.
Slide 19: Common Stock Buybacks
Common Stock Buybacks 19 $791M Gain If we were to reissue the 73.6 million shares repurchased, it would be a gain of $791 million
Slide 20: Consistent Earnings Growth
Consistent Earnings Growth 20
Slide 21: AFFO per Share Outperformance
AFFO per Share Outperformance 21 +27% -73%
Slide 22: Accretive Highland Transaction
Accretive Highland Transaction 22 28 hotel portfolio (19 full-service, 9 select- service) with 8,084 rooms Total consideration of $1.3 billion ($158,000 per key) 2010 EBITDA multiple 13.4x Operational upside 2010 EBITDA flows of 18% vs. AHT's of 104% Remington took over management of 17 assets NOI 3
Slide 23: Ashford vs. Highland 2010 EBITDA Concentration
100.0% 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% rtfolio Upgrade Legacy Ashford vs. Highland 2010 EBITDA Concentration 73% 75% 76% sm one 62% 63% | L : Top 25 Markets Luxury /Upper- Full-Service Urban Upscale Legacy Ashford = Highland Soe) Ow F!
Slide 24: Highland Transaction - Price Per Key Comparison
Highland Transaction - Price Per Key Comparison 24 Source: Real Capital Analytics & company filings.
Slide 25: Replacement Cost per Key
Replacement Cost per Key 25 Source: Estimated based on JP Morgan Research Report Highland was purchased for $158,000 per key - a 44% discount to replacement cost
Slide 26: Recently Reinstated Dividend
Recently Reinstated Dividend Ashford reinstated its quarterly common dividend in the 1Q '10 at $0.10 per share, giving it a dividend yield above the peer average 26 Source: Company filings & Bloomberg.
Slide 27: Reinstated Dividend w/ Growth Potential
Reinstated Dividend w/ Growth Potential Given the material reduction in our common share count, Ashford is the best positioned lodging REIT to cover and potentially grow its dividend 27 Though Ashford didn't pay a dividend in 2009 & 2010, it could have covered its peak dividend at 1.3x in 2009 & 1.8
Slide 28: Total Shareholder Return - AHT Outperformance
Total Shareholder Return - AHT Outperformance 28 Source: Bloomberg, assumes dividend reinvestment
Slide 29: Most Highly-Aligned Management Team
Most Highly-Aligned Management Team 29 Source: Company Filings
Slide 30: Conclusion
Conclusion Now is the time to be investing in lodging : Still early in the cyclical recovery Strong RevPAR / EBITDA growth forecasted Ashford is best positioned to take advantage of the up-cycle: Diverse, high-quality portfolio Best-in-class asset management Laddered debt maturities Effective intere
Slide 31: NAREIT REITWeek Presentation June 2011
NAREIT REITWeek Presentation June 2011