ASHFORD HOSPITALITY TRUST INC - FORM 8-K - EX-99.1 - POWERPOINT SLIDESHOW PRESENTATION

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8-K - FORM 8-K - ASHFORD HOSPITALITY TRUST INC	d306845d8k.htm

Company Presentation

UBS Conference

February 2012

Exhibit 99.1

Safe Harbor

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

differ

materially

from

those

projected.

When

use

the

words

“will

likely

result,”

“may,”

“anticipate,”

“estimate,”

“should,”

“expect,”

“believe,”

“intend,”

or similar expressions, we intend to

identify forward-looking statements. Such forward-looking statements include, but are not limited to,

our business and investment strategy, our understanding of our competition, current market trends and

opportunities, projected operating results, and projected capital expenditures.

These forward-looking statements are subject to known and unknown risks and uncertainties, which

could

cause

actual

results

differ

materially

from

those

anticipated

including,

without

limitation:

general volatility of the capital markets and the market price of our common stock; changes in our

business or investment strategy; availability, terms and deployment of capital; availability of qualified

personnel; changes in our industry and the market in which we operate, interest rates or the general

economy, and the degree and nature of our competition. These and other risk factors are more fully

discussed in the Company’s filings with the Securities and Exchange Commission.

EBITDA is defined as net income before interest, taxes, depreciation and amortization. EBITDA yield is

defined as trailing twelve month EBITDA divided by the purchase price. EBITDA, FFO, AFFO, CAD and

other terms are non-GAAP measures, reconciliations of which have been provided in prior earnings

releases and filings with the SEC.

This overview is for informational purposes only and is not an offer to sell, or a solicitation of an offer to

buy or sell, any securities of Ashford Hospitality Trust, Inc. and may not be relied upon in connection

with the purchase or sale of any such security.

Agenda

•

Hotel Industry Overview

•

Advantages of REITs

•

Ashford Overview

•

Remington Advantage

•

Asset Management Expertise

•

Most Highly-Aligned Management Team

•

Ashford Outperformance

•

Attractive Dividend

Hotel Industry Overview

•

Hotel demand is generally driven by the overall economy

Source: Smith Travel Research, U.S. Dept. of

Commerce BEA

-8.0

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

8.0

10.0

Hotel Demand

Growth vs

. Real GDP Growth

Real GDP Growth

Hotel Demand Growth

Hotel Industry Overview

•

Supply growth occurs in cycles and growth above the long-term average

is a significant drag on industry fundamentals

•

We are currently experiencing minimal supply growth, and based on

historical cyclical trends and the lack of development financing, very

low supply growth is expected for the next several years

Source: Smith Travel Research & PWC

-1.0

0.0

1.0

2.0

3.0

4.0

5.0

Supply Growth

Long-term avg

supply growth = 2.1

Hotel Industry Overview

Source: Smith Travel Research (non-seasonally

adjusted nominal monthly figures)

•

Revenue per available room (RevPAR) is THE key industry metric,

also calculated as occupancy multiplied by average daily rate (ADR)

•

Real RevPAR is cyclical/mean-reverting, and it appears that it is still

relatively early in the current up-cycle, as Real RevPAR is still below

the long-term average

$52.00

$54.00

$56.00

$58.00

$60.00

$62.00

$64.00

$66.00

$68.00

$70.00

$72.00

$74.00

T-

3 Mo Avg Seasonally-

Adjusted Real RevPAR

Long-term avg real

RevPAR = $65

Hotel Industry Overview

Source: Smith Travel Research

•

Despite some of the volatility in the economy here in the U.S. and

abroad, RevPAR growth has remained consistently strong

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

Week Ended

Trailing 28-

Day U.S. RevPAR % Change

•

Hotels have historically been a good inflation hedge during periods

of high inflation

Hotel Industry Overview

Source: Smith Travel Research, PKF & U.S. Dept. of Labor BLS

During periods of high inflation,

ADR growth has met or exceeded

inflation

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

ADR vs. CPI Growth

CPI Growth

ADR Growth

Advantages of REITs

Benefits

Use of

nonrecourse

debt

High-

quality real

estate

retains

value

Not a

financial

asset

Currently

difficult to

develop

Dividend

paying

Inflation

hedge

Hard asset

Ashford Highlights

Portfolio Statistics*

Total Enterprise Value

$4.1 B

Total Gross Assets

$5.2 B

Peer Comparison

Largest (out of 15)

# of Hotels

124

# of Owned Rooms

26,195

# of Property Managers

$ ADR

$130.12

$ RevPAR

$93.76

RevPAR Growth %

6.0%

Financial Statistics*

Recent Share Price

$8.80 (2/22/12)

# Fully Diluted Shares

84.3 M

Leverage Ratio

58.8%

Debt Wtd. Avg. Maturity

4.1 Years

Debt Wtd. Avg. Cost

3.38%

Quarterly Dividend

$0.11

Dividend Yield

5.0%

2011 AFFO per Share

$1.86

Cash on Hand

$167.6 M

* As of December 31, 2011

Highland Transaction Summary

Transformational 28-hotel, $1.3 billion acquisition with 8,084 rooms,

completed 3/10/11

Primarily upper-upscale and luxury full-service assets

Expands Ashford’s presence in key markets (Washington D.C and

NY/NJ) and into new markets (Boston and Nashville)

Significant growth potential with affiliate manager Remington

taking over management of 19 hotels

2010 EBITDA flows of 18% vs. AHT’s of 104% and NOI 36% below

peak

High-Quality Portfolio

Marriott Bridgewater

Hyatt Regency Coral Gables

Courtyard Seattle Downtown

Capital Hilton

Marriott Seattle Waterfront

Renaissance Tampa

Embassy Suites Portland

Embassy Suites Las Vegas

Embassy Suites Silicon Valley

Renaissance Palm Springs

Marriott DFW Airport

Marriott Plaza San Antonio

Hilton Tampa Westshore

Ritz-Carlton Atlanta

Renaissance Portsmouth

High-Quality Portfolio

Hilton Parsippany

The Melrose –

D.C.

Hyatt Regency Wind Watch

Boston Back Bay Hilton

Renaissance Nashville

Marriott Sugar Land

Hyatt Regency Savannah

Westin Princeton

The Silversmith -

Chicago

Hilton La Jolla Torrey Pines

Courtyard SF Downtown

Marriott Suites Market Center

Marriott Legacy Center

Hilton Costa Mesa

Courtyard Philadelphia

Focused Portfolio

* %’s based on 2011 EBITDA

Advantages of Remington

Share best

practices

across brands

Aligned with

ownership

Immediate

attention

Keeps project

management

in-house

Operate the

hotels as if

they owned

them

More owner-

friendly cost

structure

Constant

accessibility

Additional

brand

advocate

Less

disruption

during

renovations

Check against

other

managers

Company

“drivers”

are

operationally

focused

Reacts rapidly

to real-time

changes

Asset Management Expertise

39%

52%

51%

37%

104%

63%

20%

40%

60%

80%

100%

120%

2007

2008

2009

2010

2011

HOTEL

EBITDA

FLOWS

(Peers

include:

BEE,

CHSP,

DRH,

FCH,

HST,

HT,

LHO,

PEB

SHO)

Peer Avg

AHT

*Note: 2011 excludes DRH, FCH & HT – financials not yet available

Asset Management Expertise

(106)

(487)

155

114

(58)

(406)

184

(600)

(500)

(400)

(300)

(200)

(100)

100

200

300

2007

2008

2009

2010

2011

Peer Avg

AHT

HOTEL

EBITDA

MARGIN

Y-O-Y

CHANGE

(BPS)

(Peers

include:

BEE,

CHSP,

CLDT,

DRH,

FCH,

HST,

HT,

LHO,

PEB

SHO)

*Note: 2011 excludes DRH, FCH & HT – financials not yet available

Asset

Management

Expertise

–

Highland

Portfolio

GOP

Margin

Change

BPS

GOP Flow

Most Highly-Aligned Management Team

Source: 2011 Proxy Filings

•

Just prior to the downturn, management proactively managed

interest expense through a hedging strategy, which will have

provided about $240m in cash flow at expiration in 2013

•

Because of this significant cash flow cushion, Ashford was able to

buy back about half of the company during the financial crisis

through common share repurchases

•

Common shares were repurchased at an average of $3.26 vs. today’s

price of about $9

Unique Owner’s Mentality

Management’s large ownership stake in the company drives

decisions that maximize shareholder return

Consistent Earnings Growth

•

Ashford strives to achieve consistently growing, stable earnings

$0.41

$0.96

$1.13

$1.28

$1.31

$1.12

$1.50

$1.86

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

$1.60

$1.80

$2.00

2003

2004

2005

2006

2007

2008

2009

2010

2011

Ashford’s

Historical

AFFO

per

Earnings Outperformance

•

Ashford has significantly outperformed REIT peers on an AFFO per

share basis since the previous peak of mid-2007

140%

160%

60%

80%

100%

120%

20%

40%

Ashford

Peer Average

Source: SNL & Company Filings

Peers Include: BEE, DRH, FCH, HST, HT, LHO, SHO

(Q4 actuals used for AHT/HST/LHO/BEE/SHO, consensus used for DRH/FCH/HT)

TTM AFFO Per Share (2007Q2 = 100%)

+48%

-65%

Shareholder Return Outperformance

•

Ashford has also significantly outperformed REIT peers and c-corp

peers on a total shareholder return basis since the previous peak of

mid-2007

Source: Bloomberg

Attractive Dividend Yield & Coverage

Ashford recently announced a 10%

dividend increase for 2012

•

Ashford’s dividend yield AND dividend coverage exceed the

peer average

Note: 2011 consensus AFFO per share used for DRH & HT

7.0

6.0

2.0

5.0

4.0

1.0

3.0

5.7%

5.0%

4.6%

4.5%

3.2%

2.6%

2.2%

1.7%

1.5%

1.3x

1.4x

4.7x

1.7x

2.0x

2.1x

2.9x

3.6x

6.6x

Dividend Yield (as of 2/22/12)

2011 AFFO Per Share Dividend Coverage

CLDT

AHT

CHSP

DRH

Peer Avg

PEB

LHO

HST

BEE

FCH

SHO

Historical Dividend Coverage

•

0.9x

1.4x

1.5x

1.6x

4.7x

0.0x

0.5x

1.0x

1.5x

2.0x

2.5

3.0x

3.5x

4.0x

4.5x

5.0x

2004

2005

2006

2007

2008

2009

2010

2011

N/A

Though Ashford didn’t pay

a dividend in 2009 & 2010,

it could have covered its

peak dividend at 1.3x in

2009 & 1.8x in 2010

Ashford could have paid a covered dividend during the

recession, but chose to use the cash to maximize shareholder

return through share repurchases

AFFO

Per

Dividend

Coverage

Conclusion

•

Best brands / high-quality portfolio

•

Management thinks and acts like owners due to significant

ownership stake

•

Very attractive dividend

Proven operational outperformance due to Ashford asset

management expertise

These factors have led to earnings and shareholder return

outperformance

Company Presentation

UBS Conference

February 2012

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