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

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Exhibit 99.1

Safe Harbor

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 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 to 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.

Economic & Industry

Overview

Stock

Value

discussion

–

disclaimer

regarding

stock

price

projections

under

various

scenarios

–

it’s

all

math,

not

our

opinion of value

U.S. Starting to Deleverage

Source:

U.S.

Federal

Reserve

Historical

Statistics

the

United

States:

Cambridge

50%

100%

150%

200%

250%

300%

350%

400%

450%

Home Mortgage

Other Household Debt

State & Local Government

Federal Government

Total U.S. Debt as a % of GDP

Nonfinancial Business

Consumer Credit

Domestic Financial

Now before we dive into the specifics of our industry or our company, I’d like to discuss briefly the macroeconomic backdrop we’re

dealing with

The U.S. is currently experiencing deleveraging and positive, but sluggish, growth

GDP is a measure of how much we SPEND

Real GDP Growth %

2011 Real GDP Growth: 1.7%

Source:

U.S.

Dept.

Commerce:

BEA&Historical

Statistics

the

United

States:

Cambridge

The U.S. left the gold standard in 1971

Most recessions are induced by the Fed through interest rate increases

Real growth has been in the 3-4% range

GDP is a measure of spending, not prosperity

Shocks, generally, have not caused recessions. These shocks include oil, war, financial, etc.

Hotel Demand Driven by Economy

Source: Smith Travel Research & U.S. Dept. of Commerce: BEA

Hotel Demand Growth % vs. Real GDP Growth

R-squared = 0.61

Demand for more hotel room nights matches growth in GDP fairly closely

I believe that because of our deleveraging, GDP, and therefore room night demand, will grow fairly modestly over the next 5 to 7

years

U.S. Demand Will Outpace Supply

PKF Forecast

Source: Smith Travel Research & PKF

Real RevPAR is Cyclical

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

Seasonally-Adjusted Real RevPAR

(2012$, Trailing 3-Mo Average)

$52

$54

$56

$58

$60

$62

$64

$66

$68

$70

$72

$74

RevPAR Forecast -

PKF

Source: Smith Travel Research & PKF

5-Year RevPAR Growth CAGR: 5.8%

7.9%

6.1%

-2.0%

-16.7%

5.4%

8.2%

5.8%

6.6%

7.8%

5.9%

2.9%

-20.0%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

2006

2007

2008

2009

2010

2011

2012F

2013F

2014F

2015F

2016F

Historical RevPAR Growth

Forecasted RevPAR Growth

PKF’s 5-year RevPAR growth CAGR is about 5%, with PKF forecasting virtually no growth in 2016

Potential Industry EBITDA Growth Rates

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 55%*

*Based

PKF

RevPAR/ADR/Occupancy

projections

and

EBITDA

growth

resulting

from

PKF

EBITDA

change

regression

equation

Given the strong potential 5-year RevPAR CAGRs, significant hotel EBITDA growth is possible

Also note how sensitive these EBITDA numbers are to flow-throughs – those companies that achieve the best flow-throughs will have a

real advantage in EBITDA growth

Note that about 500 bps of increased flow at the same RevPAR growth rate equates to about the same EBITDA growth as 50 bps of

increased RevPAR growth at the same flow %

According to PKF assumptions, hotel EBITDA should grow by approximately 40% over the next five years; this is based on PKF’s EBITDA

change regression equation, which is: EBITDA change = -0.02 + 2.07*ADR change + 1.38*Occupancy change, R^2 = 0.97

If Ashford’s EBITDA grew by 40-80%, its stock price would be $27-$46

Advantages of Lodging REITs

Tax

benefits

High

quality

real estate

retains

value

Hard asset

Not a

financial

asset

Non

recourse

debt

Liquidity

Benefits

Inflation

hedge

Dividend

paying

Include double taxation issue as well as Bush tax cuts

Attractive Dividend Yield & Coverage

Ashford has both a high dividend yield and strong dividend coverage

Source: Company filings, Bloomberg & First Call

Ashford’s dividend yield AND dividend coverage exceed the peer average

Note that this TTM coverage will likely come down a bit due to the burning off of hedges, but coverage will still remain strong

Total Shareholder Return

Peer

average

includes:

BEE,

CHSP,

CLDT,

DRH,

FCH,

HST,

HT,

LHO,

PEB,

SHO

Trailing Total Shareholder Returns as of 9/4/12

Source: Bloomberg

Ashford outperforms the peer index on a trailing basis for the past 2, 3, 4, 5, 6, 7 & 8 years

On an IRR basis, the 3-year Ashford IRR is 27% vs the peer average of 23%, the 5-year Ashford IRR is -2% vs the peer average IRR of -

13%; over 8 years, Ashford’s IRR is 5% vs the peer average of -0.1%

Most Highly-Aligned Management

Insider ownership %

Source: Company Filings

Hersha’s insider ownership would be 4% when shares owned by a real estate company in Argentina, attributed to one of their Board

members, are excluded

EVERY employee at Ashford owns stock, and all the senior executives at REMINGTON, our property manager affiliate, own material

amounts of stock

Upcoming Maturities & Debt Yields

Upcoming maturities through 2014 include:

TTM June 2012 weighted average debt yields on these maturities are

13.6%

Aareal Torrey Pines /

Capital Hilton

$143.7M

Matures Aug 2013

13.5% TTM Debt Yield

Highland Cigna Loans

$101.4M

Matures Jan-Apr 2013

17.2% TTM Debt Yield

UBS Pool 1

$105.8M

Matures Dec 2014

10.5% TTM Debt Yield

GEMSA Manchester

Courtyard

$5.4M

Matures May 2014

9.2% TTM Debt Yield

Through 2014 Ashford has $378 million of debt coming due

With the exception of the Hilton El Conquistador, which has negative NOI, which we are currently trying

to sell, all of this debt is fully refinanceable today based on the TTM debt yields

Prudential, two hotels, $144.7 million, comes due in Aug 2013, TTM debt yield of 12.7%

Cigna, three hotels, $101.9 million (AHT share), comes due in the first quarter of 2013, TTM debt

yield of 16.1%

UBS 1 Pool is a securitized loan with 8 properties, $106.3 million, comes due in Dec 2014, TTM debt

yield of 10.2%

GEMSA, 1 hotel, $5.4 million, comes due in May 2014, TTM debt yield of 9.0%

Through 2014 our debt is clearly refinanceable today and the fundamentals are getting better with

our quarterly property level EBITDA improvement

Available Liquidity

Undrawn

$145m

credit

facility

$139m of

unrestricted

cash at end

of Q2 ‘12

Preferred

equity ATM

facility

Common

equity ATM

facility

Potential

refinancing

proceeds

Excess cash

flow

Available

Liquidity

We have many sources of liquidity should we need or choose to tap into

We currently have zero balance on our $145 million credit facility

We had $150 million in cash available to us at the end of the quarter

We have a preferred at the market facility currently in place. Last quarter we turned this on and raised $9 million

We also have in place a common at the market facility which we have not used, but could turn on at any time

We have potential excess refinancing proceeds for the 2013 and 2014 maturities that I walked you through

And we have excess cash flow. Last year we had $110 million of CAD or Cash Available for Distribution. CAD is essentially our AFFO

minus normal FF&E reserves. And we only spent less than $35 million on dividends. Out of this we spend owner funded capex,

etc….but still have excess cash flow

All sources of available liquidity should we choose to tap into

Safety & Optionality

Portfolio A: Safety

•

Approximately 100-120% of equity value

•

~$2.0 billion of debt

•

Positive cash flow

•

Weighted average maturity of 3.6 years

•

All debt non-recourse

Portfolio B: Optionality & Upside

•

Approximately 0-(20)% of equity value

•

$1.0 to $1.2 billion of debt

•

Positive cash flow

•

Weighted average maturity of 4.5 years

•

All debt non-recourse

We have a very unique value proposition for investors.

You could think of Ashford as two investments.

Portfolio A encompasses the lionshare of our equity value, or approximately 100-120%

This portfolio has about $2.0 billion of our debt.

This portfolio has positive cash flow and a weighted average maturity of 3.6 years.

And all the debt is non-recourse

Relative to the outstanding debt we are in a good position. This portfolio reflects a steady growth opportunity.

Portfolio B accounts for about 0-(20)% of our equity value.

It has about $1.0 -

$1.2 billion of debt and also positive cash flow.

This portfolio has a longer weighted average maturity of 4.5 years

And all this debt is non-recourse as well.

This portfolio provides significant optionality for upside from faster EBITDA growth along with a reasonably long

runway with respect to the debt maturity to see our plans come to fruition.

Highland Hospitality Update

Highland Opportunities

•

Looking for opportunities to create long-term value and operational efficiency

through Remington management

•

Hilton Back Bay, Hyatt Windwatch, Courtyard Savannah & Residence Inn Tampa

•

Right-sizing the cost structure

•

Bringing best practices to operations

•

Rebuilding base business on the books

•

Stabilizing and growing RevPAR share

•

Several

the

properties

had

been

neglected

from

capital

perspective

•

Revenues should benefit from capex

Franchise

properties

Operating

flow

throughs

Revenues

Strategic

Capex

Highland Year One GOP Flows

20%

40%

60%

80%

100%

120%

One Year Pre-Takeover

One Year Post-Takeover

25.20%

102.70%

Highland NOI Exceeds Underwriting

$72

$74

$76

$78

$80

$82

$84

$86

$88

$90

$92

Mar 2011 TTM

Jun 2011 TTM

Sep 2011 TTM

Dec 2011 TTM

Mar 2012 TTM

U/W for Mar 2012

Next Steps for Ashford

Allow portfolio to naturally

delever

Diligently work the capital

markets

Thorough research &

quantitative analysis

Scour market for acquisition

opportunities

Grow cash balance

Intense operational focus to

grow EBITDA

Must be long-term accretive to stock price

Franchised, full-service preferred

Domestic & global opportunities

Proactive refinancings

Push out maturities

Selectively access the capital markets

Highland & MIP portfolio cash flow

$30 million+ of annual debt amortization

Investigate & execute risk management strategies

Expertise in capital allocation

Focus on creating long-term shareholder value

Build cash balance in preparation for next downturn

Focus on growing Highland revenues

Growing EBITDA is best way to create shareholder value

Spend time walking through the types of assets we’re looking at: full-service, franchised properties, both US & Europe

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