Ashford Hospitality Trust Inc · NYSE:AHT
Ashford Hospitality Trust — Investor Presentation (April 2013)
39 slides from Ashford Hospitality Trust's investor presentation, Apr 3, 2013
Slide 1: Ashford Hospitality Trust April 2013
aza& ASHFORD HOSPITALITY TRUST April 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 37% 27% 34% 41% 21% 12% 26% -16% -43% -28% -5% 25% -50% -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% 1-Yr 2-Yr 3-Yr 4-Yr 5-Yr 6-Yr 7-Yr 8-Yr 9-yr AHT Peer Avg 350% 658% 354% 700% Peer average includes: BEE, CHSP, CLDT, DRH, FCH, HST, HT, INN, LHO, PEB, RLJ, SHO Trailing Tota
Slide 4: Economic & Industry Overview
Economic & Industry Overview 4
Slide 5: Real GDP Growth
Real GDP Growth % 5 -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 2012 Real GDP Growth: 2.2% Source: U.S. Dept. of Commerce: BEA & Historical Statistics of the United States: - Cambridge
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: U.S. Demand Will Outpace Supply
-8.0 -6.0 -4.0 -2.0 0.0 2.0 4.0 6.0 8.0 Yea r- o v e r- Year % G ro wt h Supply Growth Demand Growth U.S. Demand Will Outpace Supply 7 PKF Forecast Source: Smith Travel Research & PKF
Slide 8: 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 8 5-Year RevPAR Growth CAGR: 5.9% Source: Smith Travel Research & PKF
Slide 9: Potential Industry EBITDA Growth Rates (2-year)
Potential Industry EBITDA Growth Rates 9 − 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 R
Slide 10: Potential Industry EBITDA Growth Rates (5-year)
Potential Industry EBITDA Growth Rates 10 − With strong potential RevPAR gains, those companies with reasonable flow-throughs could experience significant EBITDA growth − PKF estimates 5-year cumulative EBITDA growth of about 60%* COMPOUNDED 5-YEAR REVPAR GROWTH RATE COMPOUNDED 5-YEAR REVPAR GROWTH
Slide 11: Real Corporate Profits Growth Leads Real RevPAR Growth
Real Corporate Profits Growth Leads Real RevPAR Growth 11 -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% -60.0% -40.0% -20.0% 0.0% 20.0% 40.0% 60.0% RevP A R Growt h C o rp o ra te Pr o fi ts Gr o w th Real Corporate Profits TTM Avg Y-o-Y % Change Real RevPAR TTM Avg Y-o-Y % Change R-squared
Slide 12: Company Highlights
Company Highlights A ASHFORD
Slide 13: Company Snapshot
Company Snapshot 13 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 $135.24 $ RevPAR $99.19 RevPAR Growth % 5.1% Financial Statistics* Recent Share Price $12.25 (3/26/13)
Slide 14: Portfolio Overview
Portfolio Overview 14 2% 58% 3% 37% Chain Scale* Luxury Upper Upscale Upper Midscale Upscale 31% 3% 5% 53% 4% 3% Brand Family* Hilton Hyatt Starwood Marriott IHG Independent 24% 4% 23% 49% Segmentation Group Contract Leisure Transient Corporate Transient 73% 17% 10% MSA* Top 25 Top 50 Other *2012 EB
Slide 15: Low Supply Growth in Ashford Markets
Low Supply Growth in Ashford Markets 15 2013 SUPPLY GROWTH PKF NATIONAL ESTIMATE ASHFORD MARKETS* 0.8% 0.7% Source: PKF forecast *Weighted average supply growth based on % of total EBITDA in respective markets, net of average room exits
Slide 16: Capital Hilton – Washington D.C.
Capital Hilton – Washington D.C. 16
Slide 17: Crowne Plaza Key West
Crowne Plaza Key West 17
Slide 18: Hyatt Regency Coral Gables
Hyatt Regency Coral Gables 18
Slide 19: Renaissance Nashville Hotel
Renaissance Nashville Hotel 19
Slide 20: Hilton Boston Back Bay
Hilton Boston Back Bay 20
Slide 21: Asset Management Outperformance
Asset Management Outperformance 21 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 22: Attractive Dividend Yield & Coverage
4.8% 4.4% 4.2% 4.1% 3.9% 3.7% 3.7% 3.2% 2.8% 2.3% 1.9% - - - 1.7x 1.8x 1.8x 1.6x 3.4x 2.5x 2.4x 2.9x 2.4x 3.4x 2.4x - 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% CLDT INN CHSP HT AHT RLJ DRH LHO Peer Avg HST PEB BEE FCH SHO A F F O C ove ra g e Divid e n d Yiel d Dividend
Slide 23: Compelling Valuation
Compelling Valuation 23 − Ashford currently trades at about 12.0x 2013 Consensus EBITDA − Similar hotels are trading in the private market at around 13.5x forward EBITDA 12.0x 13.5x 11.0x 12.0x 13.0x 14.0x AHT Multiple (3/26/13) Private Market Multiple
Slide 24: Most Highly-Aligned Management
Most Highly-Aligned Management 24 21% 4% 4% 3% 3% 3% 3% 2% 1% 1% 1% 1% 1% 1% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% AHT HT* CLDT RLJ FCH HST INN Peer Avg SHO DRH CHSP BEE PEB LHO Insider ownership % Source: Company Filings & SNL *Only includes shares directly owned by Director Daniel Elsztain
Slide 25: Low Risk on Balance Sheet
Low Risk on Balance Sheet 25 Strong liquidity • Excess cash flow • Undrawn $165m credit facility • $186m of unrestricted cash at the end of 2012 Highest leveraged loans have longest time to maturity Upcoming maturities have solid debt yields • No remaining 2013 maturities • 2012 weighted average EBI
Slide 26: Highland Hospitality Update
Highland Hospitality Update 26
Slide 27: Highland EBITDA Flows
Highland EBITDA Flows 27 32.7% 83.0% 93.8% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% One Year Pre-Takeover One Year Post-Takeover 2012
Slide 28: Highland NOI Exceeds Underwriting
$79 $82 $86 $88 $91 $93 $95 $100 $96 $70 $75 $80 $85 $90 $95 $100 $105 Mar 2011 TTM Jun 2011 TTM Sep 2011 TTM Dec 2011 TTM Mar 2012 TTM Jun 2012 TTM Sep 2012 TTM Dec 2012 TTM U/W for Dec 2012 NO I $ ( in m il li o n s) Highland NOI Exceeds Underwriting 28
Slide 29: The Melrose – Washington D.C. Before/After
The Melrose – Washington D.C. 29 BEFORE AFTER
Slide 30: The Churchill – Washington D.C. Before/After
The Churchill – Washington D.C. 30 BEFORE AFTER
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 April 2013
aza& ASHFORD HOSPITALITY TRUST April 2013
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