Ashford Hospitality Trust Inc · NYSE:AHT
Ashford Hospitality Trust — Investor Presentation (September 2016)
25 slides from Ashford Hospitality Trust's investor presentation, Sep 8, 2016
Slide 1: Company Presentation – September 2016
Company Presentation – September 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 Vision
Ashford Hospitality Trust Vision Opportunistic platform focused on full-service hotels 3 Management team more highly-aligned with shareholders than our peers Appropriate use of financial leverage Best in class hotel managers Superior long-term total shareholder return performance Announc
Slide 4: Recent Developments
Recent Developments 4 Q2 2016 RevPAR growth of 4.9% Q2 2016 AFFO per share growth of 17.6% Q2 2016 Adjusted EBITDA growth of 10.7% In June 2016, completed the planned sale of the 5-hotel select-service portfolio for $142 million with expected net proceeds of approximately $37 million In Au
Slide 5: Best In Class Hotel Managers
Best In Class Hotel Managers 86 properties managed by Remington representing 59% of portfolio hotel EBITDA 29 properties managed by Marriott representing 29% of portfolio hotel EBITDA Remaining 11 properties managed by Hilton, Starwood, Hyatt, and Interstate Best in class hotel property mana
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
90% -19% -24% 25% 129% 59% 124% 47% 26% -9% -3% 154% 66% 70% 249% 420% 75% 107% 72% 20% -24% -7% -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, 2003 Peer a
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 9/1/16) Highest dividend yield in the industry and with attractive coverage ratio of 3.2x 7.1% 6.7% 6.4% 6.3% 6.2% 6.1% 5.9% 5.7% 5.0% 4.9% 4.7% 4.6% 3.5% 3.2% 2.7% 1.5% 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 73.0% Top 50 17.9% Other 9.1% Portfolio Overview 11 TTM Hotel EBITDA as of June 30, 2016 for 126 owned hotels as of September 1, 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 49.6% Hilton 27
Slide 12: Investment Strategy
Investment Strategy 12 Full-service hotels Upper-upscale hotels Focus on all markets Appropriate use of leverage Focus on franchised properties where we can add significant value Investment Strategy Competitive Advantage Increased deal flow Less competition Improves selectivity Mor
Slide 13: Asset management initiatives across hotels
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 14: Case Study – Conversion to Remington Managed
Case Study – Conversion to Remington Managed 14 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 15: Case Study – Marriott Beverly Hills Conversion
Case Study – Marriott Beverly Hills Conversion 15
Slide 16: Case Study – Marriott Beverly Hills Conversion (cont.)
16 Case Study – Marriott Beverly Hills Conversion (cont.) Prior to the conversion, the hotel had a TTM Net Operating Income of $6.3mm Trust invested $21mm, net of key money from Marriott* Ashford expects Net Operating Income to increase by approximately $2.5mm following conversion and stabiliz
Slide 17: Case Study – Marriott Beverly Hills Conversion (cont.)
17 Case Study – Marriott Beverly Hills Conversion (cont.) The Marriott Beverly Hills officially opened on July 1, 2015 and the renovation concluded in August Received an award from Marriott International for renovation excellence Q2 2016 YTD performance has been great: Total revenue growth o
Slide 18: Case Study – Marriott Beverly Hills Conversion (cont.)
18 Case Study – Marriott Beverly Hills Conversion (cont.) Lobby Bar Restaurant Front Desk Lobby
Slide 19: Case Study – Marriott Beverly Hills Conversion (cont.)
19 Case Study – Marriott Beverly Hills Conversion (cont.) Guestroom Boardroom Guestroom Club Lounge
Slide 20: Opportunity – W Atlanta Downtown
Opportunity – W Atlanta Downtown 20 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 Potential to reconcept
Slide 21: 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 $3.75 per share All debt is non-recourse, property level mortgage debt Targeted cash balance of 25% to 30% of market capitaliz
Slide 22: Debt Maturities and Leverage
$394.9 $203.3 $5.5 $97.7 $282.9 $601.4 $710.7 $1,483.1 $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 rate deb
Slide 23: Corporate Governance Enhancements
Corporate Governance Enhancements 23 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 24: Key Takeaways
Key Takeaways 24 Focused on increasing shareholder value through simplifying strategy and improving portfolio quality Attractive industry fundamentals Strong management team with a long track record of creating shareholder value Highest dividend yield in the industry Highly-aligned platfor
Slide 25: Company Presentation – September 2016
Company Presentation – September 2016
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