Braemar Hotels & Resorts Inc. · NYSE:BHR
Braemar Hotels & Resorts — Ashford Hospitality Prime — ALIS Conference 2014
34 slides from Braemar Hotels & Resorts's conference presentation, Jan 27, 2014
Slide 1: ALIS Conference – January 2014
1 ALIS Conference – January 2014
Slide 2: Safe Harbor
2 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
Slide 3: Strong Track Record & Performance
Strong Track Record & Performance 3
Slide 4: Demonstrated 10-Year Track Record
4 Demonstrated 10-Year Track Record 20% 66% 52% 50% 80% 27% 55% 22% 62% 10% -25% -2% 8% 53% -40% -20% 0% 20% 40% 60% 80% 100% 1-Yr 2-Yr 3-Yr 4-Yr 5-Yr 6-Yr 7-Yr 8-Yr 9-yr 10-yr Total Shareholder Return AHT Peer Avg 197% • Disciplined growth, operational expertise, and capital allocation to maximize
Slide 5: Highly-Aligned Management
19% 14% 4% 4% 4% 4% 3% 3% 2% 2% 2% 2% 1% 1% 0% 5% 10% 15% 20% 25% O w n ersh ip P erce n ta g e 5 Highly-Aligned Management • With insider ownership* of approximately 19% for AHT and 14% for AHP, management is highly-aligned with shareholder interests Public Lodging REITs include: BEE, CHSP, CLDT, D
Slide 6: Experienced Management Team
6 Experienced Management Team Demonstrated Capital Markets Expertise and Timing Proven Acquisition, Disposition and Financing Capabilities Extensive Network for Transaction Sourcing Strong Asset Management Track Record Branding Expertise and Relationships Affiliated Hotel Property Manager Adds Value
Slide 7: Industry Overview
“= Industry Overview aT. ~ ty A. ASHFOR ZA ASHFORD ® ASHFORD S Ri]
Slide 8: Historical Industry Stock Returns
• Historically, attractive returns remain for investors from this point in the lodging cycle 8 Historical Industry Stock Returns % 50% 100% 150% 200% 250% 300% 350% 0 12 24 36 48 60 72 84 96 108 T S R Months from Peak to Peak 1989-1997 1997-2007 2007-Current Index includes AHT, BEE, DRH, FCH, HST, H
Slide 9: Attractive Supply/Demand Imbalance
• Demand expected to exceed supply through at least 2015 9 Attractive Supply/Demand Imbalance -8.0 -6.0 -4.0 -2.0 0.0 2.0 4.0 6.0 8.0 2005 2006 2007 2008 2009 2010 2011 2012 2013F 2014F 2015F Y ea r- o v e r- Y ea r % Gro w th Supply vs. Demand Supply Growth Demand Growth PKF Forecast Source: PKF
Slide 10: Real RevPAR
• Real RevPAR remains well below the previous peak and each recent new peak has exceeded prior cycles 10 Real RevPAR Source: Smith Travel Research $54.00 $56.00 $58.00 $60.00 $62.00 $64.00 $66.00 $68.00 $70.00 $72.00 $74.00 $76.00 Seasonally-Adjusted Real RevPAR (as of November 2013) Average 3-mo Av
Slide 11: 5-Year RevPAR Growth
7.7% 6.1% -2.0% -16.7% 5.4% 8.2% 6.8% 6.1% 7.7% 8.5% 5.3% 2.3% -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% Historical RevPAR Growth Forecasted RevPAR Growth RevPAR Forecast - PKF 11 5-Year RevPAR Growth CAGR: 6.0% Source: Smith Travel Research & PKF
Slide 12: Potential Industry EBITDA Growth Rates
Potential Industry EBITDA Growth Rates 12 • With strong potential RevPAR gains, those companies with reasonable flow-throughs could experience significant EBITDA growth • PKF estimates 2-year cumulative EBITDA growth of about 33%* *Based on PKF RevPAR/ADR/Occupancy projections and EBITDA growth resu
Slide 13: Projected Hotel Room Value Growth
13 Projected Hotel Room Value Growth Source: JLL/HVS $0 $10 $20 $30 $40 $50 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 $100,000 $110,000 $120,000 $130,000 $140,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 U .S . H o te l T ra n sa ct io n V o lume in $B il
Slide 14: Compelling Opportunity
Compelling Opportunity “ZA ASHFO ASHFORD ©
Slide 15: Differentiated Investment Strategy
15 Differentiated Investment Strategy Ashford Prime Ashford Trust Investment Focus Full-service and select-service hotels anticipated to generate RevPAR at least twice the national average All segments of the hospitality industry, with RevPAR criteria outside the Ashford Prime investment focus Inves
Slide 16: Ashford Hospitality Trust
Ashford Hospitality Trust 16
Slide 17: Portfolio Overview – Ashford Trust
Portfolio Overview – Ashford Trust 17 5% 55% 3% 37% Chain Scale* Luxury Upper Upscale Upper Midscale Upscale 29% 4% 6% 50% 5% 6% Brand Family* Hilton Hyatt Starwood Marriott IHG Independent 67% 18% 15% MSA* Top 25 Top 50 Other *TTM 9/30/13 EBITDA
Slide 18: Low Risk on Balance Sheet
18 Low Risk on Balance Sheet $0 $500 $1,000 $1,500 2013 2014 2015 2016 2017 2018+ De b t M a tu ri ti e s (mm 's ) Ashford Trust All debt is non-recourse Strong liquidity • Excess cash flow • Undrawn $165m credit facility • Approximately $195m of unrestricted cash & marketable securities post AHP sp
Slide 19: Ashford Trust Photo Gallery
Ashford Trust Photo Gallery 19 Renaissance Palm Springs Hilton Santa Fe Ritz-Carlton Atlanta Downtown Marriott San Antonio Plaza Renaissance Portsmouth Hilton Nassau Bay Hilton Boston Back Bay The Churchill
Slide 20: Ashford Hospitality Prime
Ashford Hospitality Prime 20
Slide 21: Portfolio Overview – Ashford Prime
Portfolio Overview – Ashford Prime 21 37% 63% Chain Scale* Upscale Upper Upscale 29% 71% Brand Family* Hilton Marriott 100% MSA* Top 25 *TTM 9/30/13 EBITDA
Slide 22: Ashford Prime Overview
22 Ashford Prime Overview High Quality Hotel Portfolio •Geographically diversified and concentrated predominantly in top 20 U.S. markets •Initial portfolio of 8 hotels has premium portfolio RevPAR of $154* •Strong market share as evidenced by RevPAR penetration index of 111.0* •6.9% portfolio RevPAR
Slide 23: Ashford Prime Properties
23 Ashford Prime Properties San Francisco San Francisco Courtyard 405 Rooms Seattle Marriott Seattle Waterfront 358 Rooms Seattle Courtyard 250 Rooms Philadelphia Philadelphia Courtyard 498 Rooms Dallas Marriott Plano Legacy 404 Rooms San Diego Hilton Torrey Pines 394 Rooms Hotel Market Rooms Ritz-C
Slide 24: Sofitel Chicago – Deal Overview
Property Information: • Location: Downtown Chicago (Gold Coast submarket) • Rooms: 415 (including 32 suites) • Year Built: 2002 • 10,000 sf of meeting space • Fee simple; 32 story tower • Segmentation: 70% transient; 30% group 24 Sofitel Chicago– Deal Overview Acquisition Overview: • Purchase Price:
Slide 25: Pier House Resort – Deal Overview
Property Information: • Location: Key West, FL • Rooms: 142 (including 21 suites) • Year Built: 1968 • 2,600 sf of meeting space • Fee simple • Segmentation: 93% transient; 7% group 25 Pier House Resort – Deal Overview Acquisition Overview: • Purchase Price: $92.7 million • Purchase Price/Key: $653,
Slide 26: Ashford Prime Debt & Liquidity
26 Ashford Prime Debt & Liquidity $0 $500 $1,000 $1,500 2014 2015 2016 2017 2018+ De b t M a tu ri ti e s (mm 's ) Debt balances reflect the Company’s pro rata share as of 9/30/13. Assumes debt of $80 million on Chicago Sofitel. All debt is non-recourse Strong liquidity • Excess cash flow • Undrawn
Slide 27: Ashford Prime Photo Gallery
Ashford Prime Photo Gallery 27 Tampa Renaissance Marriott Seattle Waterfront Hilton La Jolla Torrey Pines Courtyard Seattle Downtown Capital Hilton Marriott Plano Legacy Philadelphia Courtyard San Francisco Courtyard
Slide 28: Well Positioned For Growth
28 Well Positioned For Growth • Unique built in pipeline of option hotels and right of first offer hotels • Targeted acquisitions consistent with investment guidelines • Internal growth from asset performance • Opportunistic, value add transactions • Internal growth from asset performance • Excess c
Slide 29: Appendix
Appendix ZA ASHFORD A ASHFORD D 48
Slide 30: Executive Bios
Mr. Kessler has served as our President and as a member of our board of directors since April 2013. Mr. Kessler is also the President of Ashford Advisor, a position he has held since November 19, 2013 and has served as President of Ashford Trust since January 2009. He served on the board of director
Slide 31: Executive Bios
31 Executive Bios David A. Brooks Chief Operating Officer, General Counsel & Secretary David J. Kimichik Chief Financial Officer Mr. Brooks has served as our Chief Operating Officer, General Counsel and Secretary since April 2013. He has served in that capacity for Ashford Advisor since November 19,
Slide 32: Executive Bios
32 Executive Bios Deric S. Eubanks Senior Vice President, Finance J. Robison Hays Senior Vice President, Corporate Strategy & Finance Mr. Eubanks has served as our Senior Vice President-Finance since April 2013. Mr. Eubanks has also served as Senior Vice President-Finance for Ashford Advisor since N
Slide 33: Executive Bios
33 Executive Bios Jeremy J. Welter Executive Vice President of Asset Management Mark L. Nunneley Chief Accounting Officer Mr. Welter has served as our Executive Vice President, Asset Management since April 2013. Mr. Welter has also served in that capacity for Ashford Advisor since November 19, 2013.
Slide 34: ALIS Conference – January 2014
34 ALIS Conference – January 2014