Ashford Hospitality Trust Inc · NYSE:AHT
Ashford Hospitality Trust — BAML Conference September 2013
29 slides from Ashford Hospitality Trust's conference presentation, Sep 12, 2013
Slide 1: BAML Conference September 2013
BAML Conference September 2013 1
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 42% 78% 45% 49% 41% 58% 16% 83% 43% 4% -36% -33% -15% 4% -60% -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 AHT Peer Avg 325% 314% 149% Peer average includes: BEE, CHSP, CLDT, DRH, FCH, HST, HT, INN, LHO, PEB, RLJ, SHO Trailing Total Shareh
Slide 4: Total Shareholder Return - Volatility
Total Shareholder Return - Volatility 4 0% 10% 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 9/5/13 Source: Bloomberg − Ashford's volatility has been l
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 June 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 % 50% 100% 150% 200% 250% 300% 350% 0 12 24 36 48 60 72 84 96 108 T o tal S h a re h o ld er R et u rn Months from Peak to Peak 1989-1997 1997-2007 2007-Present Index includes AHT, BEE, DRH, FCH, HST, HT, LHO,
Slide 9: RevPAR Forecast - PKF
7.7% 6.1% -2.0% -16.7% 5.4% 8.2% 6.8% 5.9% 7.2% 8.1% 5.3% 2.7% -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: 5.8% 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 27%* *Based on PKF RevPAR/ADR/Occupancy projections and EBITDA growth resu
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 123 # of Owned Rooms 25,715 # of Property Managers 5 $ ADR $139.27 $ RevPAR $102.36 RevPAR Growth % 4.2% Financial Statistics* Recent Share Price $11.65 (9/5/13)
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
4.7% 4.7% 4.5% 4.5% 4.2% 4.1% 3.6% 3.6% 3.1% 2.5% 2.3% 1.6% - - 1.9x 1.8x 1.8x 1.4x 2.6x 3.6x 2.4x 2.2x 2.5x 2.5x 4.9x 18.8x - 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% INN CHSP CLDT HT LHO AHT RLJ DRH Peer Avg PEB HST SHO BEE FCH A F F O C ove ra g e Divi
Slide 16: Most Highly-Aligned Management
Most Highly-Aligned Management 16 19% 4% 4% 4% 4% 3% 3% 3% 2% 2% 2% 2% 1% 1% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0% 22.0% AHT HT FCH CLDT CHSP INN RLJ Peer Avg HST SHO BEE PEB DRH LHO Insider ownership % Source: Company Filings & SNL
Slide 17: Compelling Valuation
Compelling Valuation 17 − Ashford currently trades at about 12.2x 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 9/5/13 Ashford 11.2x 12.2x Hotel REIT Peer Avg. 11.
Slide 18: Low Risk on Balance Sheet
Low Risk on Balance Sheet 18 Strong liquidity • Excess cash flow • Undrawn $165m credit facility • $275m of unrestricted cash & marketable securities at the end of Q2 Highest leveraged loans have longest time to maturity Upcoming maturities have solid debt yields • No remaining 2013 maturities • 201
Slide 19: Pier House Resort & Spa Acquisition
Pier House Resort & Spa 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 19
Slide 20: Pier House Resort & Spa
Pier House Resort & Spa 20 • 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 21: Executive Bios
Executive Bios A ASHFORD
Slide 22: Management Team: Monty J. Bennett
Management Team 22 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 23: Management Team: Douglas A. Kessler
Management Team 23 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 24: Management Team: David A. Brooks
Management Team 24 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 former licensed CPA and attorney, practiced law with the law firm of Sheinfeld, Maley & Kay in both Houston
Slide 25: Management Team: David Kimichik
Management Team 25 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 26: Management Team: Deric S. Eubanks
Management Team 26 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 27: Management Team: Rob Hays
Management Team 27 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 28: Management Team: Jeremy Welter
Management Team 28 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 29: BAML Conference September 2013
BAML Conference September 2013 29
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