Ashford Hospitality Trust Inc · NYSE:AHT
Ashford Hospitality Trust — Investor Presentation (June 2004)
22 slides from Ashford Hospitality Trust's investor presentation, Jun 8, 2004
Slide 1: The premier capital provider to the hospitality industry
The premier capital provider to the hospitality industryTM
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: Mission Statement
Sale-Leasebacks First Mortgage Loans Hotel Ownership To maximize shareholder returns throughout the peaks and the troughs of all lodging cycles via: Diversified equity and debt investments Portfolio allocation strategy that capitalizes on changing market opportunities MISSION STATEMENT Mezzanine Loa
Slide 4: Accomplishments Since IPO
ACCOMPLISHMENTS SINCE IPO Doubletree Guest Suites Columbus, OH 194 rooms Embassy Suites Phoenix, AZ 229 rooms Residence Inn - Lake Buena Vista Lake Buena Vista, FL 210 rooms Wyndham-Emerald Plaza San Diego, CA 436 rooms
Slide 5: Accomplishments Since IPO
ACCOMPLISHMENTS SINCE IPO 9 Acquired diversified lodging portfolio Achieved returns within the targeted ranges Investment pace on target Invested equity capital first, then accessed debt for growth Paid initial dividend within expected time frame and range Lodging market and economic recovery occurr
Slide 6: Diversified Portfolio
DIVERSIFIED PORTFOLIO HOTEL OWNERSHIP 60-80% allocation Current yield Capital appreciation Undervalued assets Reposition Timing: Trough/Mid- Stage Recovery FIRST MORTGAGE 0-10% allocation Stable returns High volume Counter cyclical Discount to par Timing: Peak/Early Decline MEZZANINE 20-40% allocati
Slide 7: Diversified Portfolio
DIVERSIFIED PORTFOLIO Management making strategic investments as done in prior cycles Yearly Change in U.S. Per Room Value vs. Management** Purchases/Sales Source: HVS International, Remington Hotel Corp. *Debt investments are calculated as total rooms x percent of capital structure ** Includes perf
Slide 8: Diversified Portfolio
DIVERSIFIED PORTFOLIO * Includes announced hotel acquisition Investments are diversified by capital structure and geography
Slide 9: Diversified Portfolio
DIVERSIFIED PORTFOLIO 80% of AHT's rooms* are Hilton, Marriott, or Starwood Brands * Direct hotel investments (includes announced acquisition) Marriott Brands Hilton Brands Starwood Brands Other Brands & Independents
Slide 10: Achieving Target Investment Returns
ACHIEVING TARGET INVESTMENT RETURNS 19
Slide 11: Investments on Pace
INVESTMENTS ON PACE $128 MM Contributed Assets: 4 Embassy Suites 2 Radisson Hotels $60MM Portfolio: 4 Embassy Suites 2 Doubletree Suites $36MM Portfolio Hilton Garden Inn SpringHill Suites Homewood Suites Hampton Inn $10MM Hilton Times Square Mezz Loan $26MM Residence Inn Lake Buena Vista Mezz Loans
Slide 12: Debt Financing
DEBT FINANCING Existing Debt (as of March 31, 2004) Secured Credit Facility $49.8 MM Las Vegas Embassy Suites $16.0 MM Portfolio Financing (FelCor Portfolio) $27.8 MM Hilton Garden Inn - Jacksonville $6.4 MM TOTAL DEBT $100.0 MM Financing Strategy Less than 30% leverage creates borrowing opportunity
Slide 13: Dividend Payment on Target
DIVIDEND PAYMENT ON TARGET 25 Paid first dividend to shareholders of record as of 3/31/2004 Dividend of $0.06 per share on partially invested portfolio Within stated range of 80-85% of cash available for distribution Embassy Suites Las Vegas, NV 220 rooms Embassy Suites Syracuse, NY 215 rooms
Slide 14: Lodging Market / Economy Recovery
Room Demand Room Supply GDP 1988 0.047 0.046 0.042 1989 0.048 0.037 0.035 1990 0.022 0.035 0.018 1991 -0.011 0.017 -0.005 1992 0.021 0.009 0.03 1993 0.019 0.006 0.027 1994 0.032 0.012 0.04 1995 0.021 0.016 0.027 1996 0.021 0.024 0.036 1997 0.025 0.035 0.044 1998 0.027 0.039 0.043 1999 0.03 0.038 0.0
Slide 15: Portfolio is Positioned for RevPAR Growth
LODGING MARKET / ECONOMY RECOVERY Portfolio is Positioned for RevPAR Growth
Slide 16: Management
MANAGEMENT Douglas Kessler COO David Kimichik CFO David Brooks CLO Tax / Accounting Asset Management Underwriting Investment Strategy Investor Relations Capital Markets Legal SEC Transactions Monty Bennett President & CEO High insider ownership of 22% Overhead remains within budget as positions adde
Slide 17: Management
MANAGEMENT Actively asset managing hotels in order to maximize value - Capital improvement programs at hotels - Focused on yield maximizing strategy as demand picks up - Management transitions to generate better flow through - Corporate wide initiatives on insurance, tax, energy - Added to asset man
Slide 18: Key Ashford Highlights
KEY ASHFORD HIGHLIGHTS SpringHill Suites BWI Airport Baltimore, MD 133 rooms Wyndham Hotel Burlington, VT 256 rooms Sea Turtle Inn Jacksonville, FL 193 rooms Radisson Hotel Holtsville, NY 188 rooms
Slide 19: First Quarter Highlights
FIRST QUARTER HIGHLIGHTS Balance Sheet As of March 31, 2004 Oper ating Statistics ‘Three Months Ending March 31, 2004 Assets Investment in Hotel Properties Mortgage 8: Mezzanine Loans Other Assets Cash & Equivalents Total Assets Liabilities Indebtedness 100.0 Other Liabilities 119 Total Liabilities
Slide 20: 2004 & Beyond
2004 & BEYOND Expect to be fully invested within 12 months of IPO $385 million already closed or announced with active pipeline Constantly evaluating investment landscape Maximize shareholder returns through either equity or debt investments Optimize financial leverage Portfolio financing; mezzanine
Slide 21: Key Ashford Highlights
KEY ASHFORD HIGHLIGHTS Accomplishments since IPO Ashford has achieved its goals Improving lodging fundamentals Demand is expected to outpace new supply and economy is recovering Diversified investment strategy Optimize returns throughout all lodging cycles High quality portfolio Quality brand repres
Slide 22: The premier capital provider to the hospitality industry
The premier capital provider to the hospitality industryTM
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