Ashford Hospitality Trust Inc · NYSE:AHT
Ashford Hospitality Trust — Investor Presentation (November 2016)
25 slides from Ashford Hospitality Trust's investor presentation, Nov 15, 2016
Slide 1: Company Presentation – November 2016
Company Presentation – November 2016
Slide 2: Safe Harbor
Safe Harbor 2 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: Ashford Hospitality Trust
Ashford Hospitality Trust Opportunistic platform focused on upper-upscale, full-service hotels 3 Attractive dividend yield Targets moderate debt levels of 55-60% net debt/gross assets Targets cash level of 25-35% of total equity market cap Superior long-term total shareholder return perfor
Slide 4: Recent Developments
Recent Developments 4 Q3 2016 RevPAR growth of 3.4% for all hotels (4.4% for hotels not under renovation) In October, announced the pricing of 6.2 million shares of 7.375% Series G preferred stock at $25 per share In October, completed the refinancing of four loan pools totaling approximately
Slide 5: Best In Class Hotel Managers
Best In Class Hotel Managers 84 properties managed by Remington representing 59% of portfolio hotel EBITDA 31 properties managed by Marriott representing 32% of portfolio hotel EBITDA Remaining 8 properties managed by Hilton, Hyatt, and Interstate Best in class hotel property managers and as
Slide 6: Remington Outperformance - Profitability
52% 58% 59% 43% 41% 42% 22% 53% 60% 59% 68% 70% 47% 57% -200% -175% -150% -125% -100% -75% -50% -25% 0% 25% 50% 75% 100% 2008 2009 2010 2011 2012 2013 2014 2015 Non-Remington Remington Remington Outperformance - Profitability Remington has outperformed in EBITDA flow-through 7 out of the last 8 ye
Slide 7: Demonstrated Long-Term Track Record
67% -29% -28% 100% 91% 15% 59% 36% -2% -26% -18% 111% 30% 73% 401% 237% 20% 42% 39% -12% -37% -14% -100% -50% 0% 50% 100% 150% 200% 250% 300% 350% 400% 450% Inception 10-Yr 9-Yr 8-Yr 7-Yr 6-Yr 5-Yr 4-Yr 3-Yr 2-Yr 1-Yr Peer Avg AHT Demonstrated Long-Term Track Record 7 (1) Since IPO on August 26, 200
Slide 8: Highest Insider Ownership
Highest Insider Ownership 8 Public Lodging REITs include: CHSP, CLDT, DRH, FCH, HST, HT, INN, LHO, PEB, RLJ, SHO Source: Company filings. * Insider ownership for Ashford Trust includes direct & indirect interests & interests of related parties Insider Ownership Most highly aligned management team am
Slide 9: Attractive Dividend Yield
Attractive Dividend Yield 9 Source: Company filings and market data Dividend Yield (as of 11/3/16) Highest dividend yield in the industry and with attractive coverage ratio of 3.2x 8.7% 7.7% 7.7% 7.5% 6.9% 6.9% 6.6% 6.6% 5.9% 5.8% 5.7% 5.4% 4.0% 3.6% 3.4% 1.6% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0%
Slide 10: Ashford Trust Hotels High Quality, Geographically Diverse Portfolio
10 Ashford Trust Hotels High Quality, Geographically Diverse Portfolio Le Pavillon Hotel New Orleans, LA Lakeway Resort & Spa Austin, TX Hilton Costa Mesa Costa Mesa, CA Marriott Fremont Fremont, CA Le Meridien Minneapolis Minneapolis, MN Chicago Silversmith Chicago, IL Hilton Back Bay Boston, MA Th
Slide 11: Portfolio Overview
Top 25 73% Top 50 18% Other 9% Portfolio Overview 11 TTM Hotel EBITDA as of September 30, 2016 for 123 owned hotels as of November 3, 2016 Hotel EBITDA in thousands Hotel EBITDA by Brand Hotel EBITDA by Manager Hotel EBITDA by MSA Hotel EBITDA by Chainscale Top Ten Markets Marriott 57% Hilton 28% Hy
Slide 12: Asset management initiatives across the portfolio
Renaissance Nashville: Partnering with developer to redevelop Nashville Convention Center, resulting in new, premium meeting space Marriott Crystal Gateway: Spending $30.0mm on major renovations; adding 6 keys by moving fitness center and concierge lounge Hilton Boston Back Bay: Shifted revenue stra
Slide 13: Case Study – Conversion to Remington Managed
Case Study – Conversion to Remington Managed 13 Implemented Strategies: Increased club room premium pricing from $30 to $45 Increased corporate group room nights to 25% mid-week to ensure sell-outs and push rate Improved pattern management and business mix to increase higher rated retail contr
Slide 14: Case Study – Marriott Beverly Hills Conversion
Case Study – Marriott Beverly Hills Conversion 14
Slide 15: Case Study – Marriott Beverly Hills Conversion (cont.)
15 Case Study – Marriott Beverly Hills Conversion (cont.) The Marriott Beverly Hills officially opened on July 1, 2015 and the renovation concluded in August Trust invested $21mm, net of key money from Marriott* Prior to the conversion, the hotel had a TTM NOI of $6.3mm Current TTM NOI of $1
Slide 16: Case Study – Marriott Beverly Hills Conversion (cont.)
16 Case Study – Marriott Beverly Hills Conversion (cont.) Lobby Bar Restaurant Front Desk Lobby
Slide 17: Case Study – Marriott Beverly Hills Conversion (cont.)
17 Case Study – Marriott Beverly Hills Conversion (cont.) Guestroom Boardroom Guestroom Club Lounge
Slide 18: Aggressive Asset Management – W Atlanta Downtown
Aggressive Asset Management – W Atlanta Downtown 18 Acquired in July 2015 237 keys, 9,000 sq. ft. of meeting space Located in the heart of Downtown Atlanta Close proximity to the downtown and midtown demand generators: Centennial Olympic Park, the Atlanta Aquarium, and Georgia Dome Potenti
Slide 19: Capital Structure and Net Working Capital
Capital Structure and Net Working Capital Appropriate use of leverage to more cost effectively invest in the hotel cycle Current net working capital of approximately $3.55 per share All debt is non-recourse, property level mortgage debt Targeted cash balance of 25% to 30% of market capitaliz
Slide 20: Debt Maturities and Leverage
$15.8 $202.2 $5.5 $97.3 $258.0 $553.5 $710.7 $1,483.1 $450.0 $0.0 $200.0 $400.0 $600.0 $800.0 $1,000.0 $1,200.0 $1,400.0 $1,600.0 2017 2018 2019 2020 2021 Thereafter Fixed-Rate Floating-Rate Debt Maturities and Leverage Target Net Debt/Gross Assets of 50-60% Maintain mix of fixed and floating ra
Slide 21: Corporate Governance Enhancements
Corporate Governance Enhancements 21 Modification of the Company’s Equity Incentive Plan to require stock ownership by directors and officers to match the stock ownership guidelines outlined in the current Corporate Governance Guidelines Modification of the Company’s Equity Incentive Plan to req
Slide 22: Board of Directors Diversity Matrix
Board of Directors Diversity Matrix Professional Experience Geography Independence Real Estate / Hospitality C-Suite Executive Entrepreneurship Legal Southwest West Coast Northeast Southeast Independent Monty J. Bennett Benjamin J. Ansell, M.D. Fred Kleisner Amish Gupta
Slide 23: Board of Directors Diversity Matrix (cont.)
Board of Directors Diversity Matrix (cont.) Age Ethnicity 25-40 41-55 56-70 White / Caucasian Middle Eastern / South Asia Monty J. Bennett Benjamin J. Ansell, M.D. Fred Kleisner Amish Gupta Kamal Jafarnia Philip S. Payne Alan L. Tallis 23
Slide 24: Key Takeaways
Key Takeaways 24 Focused on increasing shareholder value through simplifying strategy and improving portfolio quality Strong management team with a long track record of creating shareholder value Highest dividend yield in the industry Highly-aligned platform through management structure and
Slide 25: Company Presentation – November 2016
Company Presentation – November 2016
Ashford Hospitality Trust — Investor Presentation (November 2016) on 6ix