Ashford Hospitality Trust Inc · NYSE:AHT
Ashford Hospitality Trust — Investor Presentation (March 2012)
24 slides from Ashford Hospitality Trust's investor presentation, Mar 28, 2012
Slide 1: Company Presentation March 2012
Exhibit 99.1 Company Presentation March 2012
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: Agenda
Agenda Agenda • Hotel Industry Overview • Ashford Overview • Remington Advantage • Asset Management Expertise • Most Highly-Aligned Management Team • Ashford Outperformance • Attractive Dividend
Slide 4: Hotel Industry Overview: Demand Growth vs. Real GDP Growth
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 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) • Real RevPAR is cyclical/mean-reverting, and it appears that it is still relatively early in the current up-cycle, as Real RevPAR is still
Slide 7: Hotel Industry Overview: Trailing 28-Day RevPAR Change
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 Trailing 28-Day U.S. RevPAR % Change Week Ended 0.0% 2.0% 4.0% 6.0% 10.0% 12.0% 8.0%
Slide 8: Hotel Industry Overview: ADR Growth 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 ADR vs. CPI Growth ADR Growt
Slide 9: Ashford Highlights: Portfolio and Financial Statistics
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 10: Highland Transaction Summary
Highland Transaction Summary Transformational 28-hotel, $1.3 billion acquisition with 8,084 rooms ($158k per room), 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
Slide 11: High-Quality Portfolio
High-Quality Portfolio High-Quality Portfolio Capital Hilton Renaissance Palm Springs Hyatt Regency Coral Gables Marriott DFW Airport Renaissance Tampa Marriott Plaza San Antonio Embassy Suites Las Vegas Hilton Tampa Westshore Embassy Suites Portland Marriott Bridgewater Courtyard Seattle Downtown R
Slide 12: High-Quality Portfolio
High-Quality Portfolio Hilton Parsippany Hilton La Jolla Torrey Pines The Melrose – D.C. Courtyard SF Downtown Hyatt Regency Wind Watch Marriott Suites Market Center Boston Back Bay Hilton Marriott Legacy Center Renaissance Nashville Marriott Sugar Land Hyatt Regency Savannah Hilton Costa Mesa Westi
Slide 13: Focused Portfolio
73% 16% 11% 58% 38% 3% 53% 32% 3% 5% 4% 3% 49% 23% 24% 4% Focused Portfolio 1 % MSA* Top 25 Top 50 Other Chain Scale* Luxury Upper Upscale Upscale Upper Midscale Marriott Hilton Hyatt Starwood Intercontinental Independent Brand Family* Demand Mix Transient - Corporate Transient - Leisure Group Contr
Slide 14: Advantages of Remington
Advantages of Remington Less disruption during renovations Aligned with ownership Immediate attention Company “drivers” are operationally focused Check against other managers More owner- friendly cost structure Additional brand advocate Constant accessibility Reacts rapidly to real-time changes Oper
Slide 15: Asset Management Expertise
Asset Management Expertise 53% % HOTEL EBITDA FLOWS (Peers include: BEE, CHSP, DRH, FCH, HST, HT, LHO, PEB & SHO) 39% 8% 49% 41% 50% 51% 37% 63% 0% 20% 40% 60% 80% 100% 120% Peer Avg AHT
Slide 16: Asset Management Expertise – Highland Portfolio
Asset Management Expertise – Highland Portfolio 8.8% Pre-Ashford <95> Pre-Ashford 94.9% Post-Ashford 231 Post-Ashford 78.6% Post-Ashford 288 Post-Ashford 149.6% Post-Ashford 186 Post-Ashford GOP Margin Change BPS GOP Flow
Slide 17: Most Highly-Aligned Management Team
Most Highly-Aligned Management Team Source: 2011 Proxy Filings 19% 16% 6% 4% 3% 3% 2% 2% 1% 1% 1% 1% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% AHT HT CLDT INN FCH HST PEB CHSP DRH SHO BEE LHO Insider Ownership %
Slide 18: Unique Owner's Mentality
Unique Owner’s Mentality • Management’s large ownership stake in the company drives decisions that maximize shareholder return • 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
Slide 19: Consistent Earnings Growth
Consistent Earnings Growth Consistent Earnings Growth • Ashford strives to achieve consistently growing, stable earnings $- $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40 $1.60 $1 $2.00 $- $0.41 $0. $1.13 $1.28 $1. $1.12 $1. $1 .86 Ashford's Historical AFFO per Share
Slide 20: 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 0% 20% 40% 60% 80% 100% 120% 140% 160% +48 % 65% Trailing Twelve Months AFFO Per Share (2007Q 2 = 100%) Peers Include: BEE, DRH, FCH, HST
Slide 21: 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 Total Shareholder Return Since Q2 (as of 3/ 22/ 12)
Slide 22: Attractive Dividend Yield & Coverage
Attractive Dividend Yield & Coverage Ashford recently announced a 10% dividend increase for 2012 Attractive Dividend Yield & Coverage • Ashford’s dividend yield AND dividend coverage exceed the peer average 5.3% 4.7% 4.5% 4.7% 3.3% 2.5% 2.1% 2.1x 1.5% 1.5% 1.3x 4.7x 1.4x 1.7x 1.9x 2.9x 3.6x 6.6x - 1
Slide 23: Conclusion
Conclusion Conclusion • Best brands / high-quality portfolio • Proven operational outperformance due to Ashford asset management expertise • Management thinks and acts like owners due to significant ownership stake • These factors have led to earnings and shareholder return outperformance • Very att
Slide 24: Company Presentation
Company Presentation March 2012
Ashford Hospitality Trust — Investor Presentation (March 2012) on 6ix