Ashford Hospitality Trust Inc · NYSE:AHT
Ashford Hospitality Trust — NAREIT June 2013
39 slides from Ashford Hospitality Trust's conference presentation, Jun 5, 2013
Slide 1: Ashford Hospitality Trust – NAREIT June 2013
aza& ASHFORD HOSPITALITY TRUST NAREIT June 2013
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: Total Shareholder Return
Total Shareholder Return 3 5% 49% 24% 16% 28% -21% -41% -27% -6% 30% -50% -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% 60% 1-Yr 2-Yr 3-Yr 4-Yr 5-Yr 6-Yr 7-Yr 8-Yr 9-yr AHT Peer Avg 63% 71% 350% 263% 179% Peer average includes: BEE, CHSP, CLDT, DRH, FCH, HST, HT, INN, LHO, PEB, RLJ, SHO Trailing Total
Slide 4: Total Shareholder Return - Volatility
Total Shareholder Return - Volatility 4 20% 30% 40% 50% 60% 70% 80% 1-Yr 2-Yr 3-Yr 4-Yr 5-Yr 6-Yr 7-Yr 8-Yr 9-yr AHT Peer Avg Peer average includes: BEE, CHSP, CLDT, DRH, FCH, HST, HT, INN, LHO, PEB, RLJ, SHO Trailing Volatility as of 5/29/13 Source: Bloomberg − Ashford's volatility has been lower t
Slide 5: Real RevPAR Growing
Real RevPAR Growing 5 Source: U.S. Dept. of Commerce: BEA & Historical Statistics of the United States: - Cambridge $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 March 2013) Average 3-mo Avg
Slide 6: Hotel Demand Driven by Economy
Hotel Demand Driven by Economy 6 -8.0 -6.0 -4.0 -2.0 0.0 2.0 4.0 6.0 8.0 Real GDP Growth Hotel Demand Growth R-squared = 0.58 Source: Smith Travel Research & U.S. Dept. of Commerce: BEA
Slide 7: Historically Low Supply Growth
Historically Low Supply Growth 7 (1.0) 0.0 1.0 2.0 3.0 4.0 5.0 Supply Growth Supply Growth Y e a r- o v e r- Y e ar % Gr o w th Source: Smith Travel Research & PKF * PKF Forecast
Slide 8: Historical Stock Returns
Historical Stock Returns 8 − Historically, attractive returns from this point in the cycle 0% 50% 100% 150% 200% 250% 300% 350% 0 12 24 36 48 60 72 84 96 108 Months from Peak to Peak 1989-1997 1997-2007 2007-? Index includes AHT, BEE, DRH, FCH, HST, HT, LHO, and SHO. * Companies are included in the
Slide 9: RevPAR Forecast - PKF
7.7% 6.1% -2.0% -16.7% 5.4% 8.2% 6.8% 6.1% 8.4% 7.3% 5.1% 2.6% -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% Historical RevPAR Growth Forecasted RevPAR Growth RevPAR Forecast - PKF 9 5-Year RevPAR Growth CAGR: 5.9% Source: Smith Travel Research & PKF
Slide 10: Potential Industry EBITDA Growth Rates
Potential Industry EBITDA Growth Rates 10 − 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 25%* COMPOUNDED 2-YEAR REVPAR GROWTH RATE COMPOUNDED 2-YEAR REVPAR GROWTH
Slide 11: Company Highlights
Company Highlights A ASHFORD
Slide 12: Company Snapshot
Company Snapshot 12 Portfolio Statistics* Total Enterprise Value $4.4 B Total Gross Assets $4.9 B Peer Comparison 2nd Largest # of Hotels 122 # of Owned Rooms 25,573 # of Property Managers 5 $ ADR $139.94 $ RevPAR $99.24 RevPAR Growth % 4.3% Financial Statistics* Recent Share Price $13.29 (5/29/13)
Slide 13: Portfolio Overview
Portfolio Overview 13 2% 59% 2% 37% Chain Scale* Luxury Upper Upscale Upper Midscale Upscale 30% 4% 5% 53% 4% 4% Brand Family* Hilton Hyatt Starwood Marriott IHG Independent 24% 4% 23% 49% Segmentation** Group Contract Leisure Transient Corporate Transient 74% 16% 10% MSA* Top 25 Top 50 Other *TTM 3
Slide 14: Asset Management Outperformance
Asset Management Outperformance 14 39% 8% 49% 41% 50% 53% 51% 37% 53% 104% 63% 65% 0% 20% 40% 60% 80% 100% 120% 2007 2008 2009 2010 2011 2012 Peer Avg AHT − Ashford consistently beats peers in hotel EBITDA flow throughs Peers include: BEE, CHSP, DRH, FCH, HST, HT, LHO, PEB, SHO Source: Company Filin
Slide 15: Attractive Dividend Yield & Coverage
4.8% 4.5% 4.2% 4.1% 3.6% 3.5% 3.4% 3.0% 2.7% 2.4% 2.2% - - - 1.9x 1.7x 1.7x 1.4x 3.5x 2.3x 2.2x 2.6x 2.4x 2.4x 4.4x - 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% INN CLDT CHSP HT AHT RLJ DRH LHO Peer Avg PEB HST BEE FCH SHO A F F O C ove ra g e Divid e n d Yiel d
Slide 16: Most Highly-Aligned Management
Most Highly-Aligned Management 16 22% 5% 4% 4% 3% 3% 2% 2% 2% 1% 1% 1% 1% 1% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% AHT CLDT HT FCH RLJ INN HST Peer Avg CHSP SHO DRH PEB BEE LHO Insider ownership % Source: Company Filings & SNL
Slide 17: Compelling Valuation
Compelling Valuation 17 − Ashford currently trades at about 12.1x 2013 Consensus EBITDA − Multiple discount relative to peers has expanded over the past several months Source: Citi Equity Research 2013 Consensus EBITDA Multiple As of 10/26/12 As of 5/29/13 Ashford 11.2x 12.1x Hotel REIT Peer Avg. 11
Slide 18: Compelling Valuation – Private Market Multiple
Compelling Valuation 18 − Ashford currently trades at about 12.1x 2013 Consensus EBITDA − Similar hotels are trading in the private market at around 13.5x forward EBITDA 12.1x 13.5x 11.0x 12.0x 13.0x 14.0x AHT Multiple Private Market Multiple
Slide 19: Low Risk on Balance Sheet
Low Risk on Balance Sheet 19 Strong liquidity • Excess cash flow • Undrawn $165m credit facility • $234m of unrestricted cash & marketable securities at the end of Q1 Highest leveraged loans have longest time to maturity Upcoming maturities have solid debt yields • No remaining 2013 maturities • 201
Slide 20: Debt Maturity Schedule
Debt Maturity Schedule 20 110.0 249.4 280.7 921.3 265.3 173.2 654.2 346.0 206.4 - 200.0 400.0 600.0 800.0 1,000.0 1,200.0 1,400.0 2013 2014 2015 2016 2017 Beyond D e b t ( $ in m il lio n s) Fixed-Rate Floating-Rate
Slide 21: Available Liquidity
Available Liquidity 21 Available Liquidity Undrawn $165m credit facility $234m of cash & marketable securities at end of Q1 Preferred equity ATM facility Common equity ATM facility Potential refinancing proceeds Excess cash flow
Slide 22: Recent Acquisitions & Highland Update
Recent Acquisitions & Highland Update 22
Slide 23: Pier House Resort & Spa Acquisition Highlights
Pier House Resort & Spa 23 Acquisition Highlights: • Purchase Price of $90 million • $634,000/key • 6.2% TTM Cap Rate After Operational Synergies/Remington Mgmt: • Pro forma 8.4% Cap Rate • Pro forma 10.5x EBITDA Multiple
Slide 24: Pier House Resort & Spa
Pier House Resort & Spa 24 • Hotel has been owner-managed • Remington manages 3 other hotels in Key West Operational Synergies • Hotel had $275 RevPAR in 2012 • Recently renovated; very little capex needed High Quality Asset • Key West has 2nd highest RevPAR in US • Very high barriers to entry Great
Slide 25: Highland EBITDA Flows
Highland EBITDA Flows Pe 100% 93.8% 90% 83.0% 80% 70% 60% + 50% 40% 32.7% One Year Pre-Takeover One Year Post-Takeover 2012 ASI FORD
Slide 26: Highland NOI Exceeds Underwriting
Highland NOI Exceeds Underwriting 26 $82 $86 $88 $91 $93 $95 $100 $106 $98 $75 $80 $85 $90 $95 $100 $105 $110 Jun 2011 TTM Sep 2011 TTM Dec 2011 TTM Mar 2012 TTM Jun 2012 TTM Sep 2012 TTM Dec 2012 TTM Mar 2013 TTM U/W for Mar 2013 NO I ($ i n m il li o n s)
Slide 27: Renaissance Nashville Hotel
Renaissance Nashville Hotel 27
Slide 28: Hilton Boston Back Bay
Hilton Boston Back Bay 28
Slide 29: The Melrose – Washington D.C.
The Melrose – Washington D.C. 29 BEFORE AFTER
Slide 30: Acquisition Preferences
Acquisition Preferences 30 Focus on Full Service Hotels Major Market Locations Ability to Franchise Must be Accretive
Slide 31: Executive Bios
Executive Bios A ASHFORD
Slide 32: Management Team – Monty J. Bennett
Management Team 32 Monty J. Bennett Chairman & Chief Executive Officer Mr. Bennett serves as Founder, Chairman, & Chief Executive Officer of Ashford Hospitality Trust, a Real Estate Investment Trust (REIT) formed in August 2003. Ashford focuses exclusively on investing in the hospitality industry ac
Slide 33: Management Team – Douglas A. Kessler
Management Team 33 Douglas A. Kessler President Mr. Kessler is the President of Ashford Hospitality Trust (NYSE: AHT) and a member of the Board of Directors. He had previously served as Chief Operating Officer and Head of Acquisitions for the Company. Mr. Kessler has spearheaded virtually all of Ash
Slide 34: Management Team – David A. Brooks
Management Team 34 David A. Brooks Chief Operating Officer and General Counsel Prior to joining Remington Hotel Corporation and Ashford Financial Corporation in January of 1992, Mr. Brooks, a licensed CPA and attorney, practiced law with the law firm of Sheinfeld, Maley & Kay in both Houston and Dal
Slide 35: Management Team – David Kimichik
Management Team 35 David Kimichik Chief Financial Officer Mr. Kimichik has served as the Chief Financial Officer for Ashford Hospitality Trust, Inc. since May 2003. In addition to his duties as Chief Financial Officer he has held the position of Director of Asset Management where he was responsible
Slide 36: Management Team – Deric S. Eubanks
Management Team 36 Deric S. Eubanks, CFA Senior Vice President of Finance As Senior Vice President of Finance, Mr. Eubanks is responsible for assisting the CEO and CFO with all corporate finance and financial reporting initiatives and capital market activities including equity raises, debt financing
Slide 37: Management Team – Rob Hays
Management Team 37 Rob Hays Senior Vice President - Corporate Finance & Strategy Mr. Hays has served as Senior Vice President of Corporate Finance & Strategy of Ashford Hospitality Trust since 2010 and has been with the Company since April 2005. Mr. Hays is responsible for the formation and executio
Slide 38: Management Team – Jeremy Welter
Management Team 38 Jeremy Welter Executive Vice President of Asset Management Mr. Welter has served as the Executive Vice President of Asset Management for Ashford Hospitality Trust since January 2011. In his current role, Mr. Welter presides over Ashford's lodging portfolio consisting of 122 hotels
Slide 39: Ashford Hospitality Trust – NAREIT June 2013
aza& ASHFORD HOSPITALITY TRUST NAREIT June 2013