Attached files
| file | filename |
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| 8-K - 8-K - Braemar Hotels & Resorts Inc. | ahpinvestorpresentation8-k.htm |
January 2018 Key West, Florida
Pier House Property Tour
Property Tour
Agenda
2
Pier House Overview
Location
Financial Highlights
Hurricane Irma Impact
Upcoming Renovations
Property Photography
Property Tour
• 142 Luxury Waterfront Rooms and
Suites, most with Private Balconies
• Private White Sand Beach
• Heated Outdoor Pool with Ocean
View
• Personalized Concierge Services for
Activities, Adventures, and Excursions
• Self-parking for $20 a night and Tesla
car charging stations
• Located just 4 miles from Key West
International Airport
Overview
3
• Only Full-Service Spa in Key
West
• Massage, Body Treatments,
Facials, Manicures and a
Steam Room
• Health Club and Fitness Center
with Sauna and Hot Tubs
• 2,600 sq. ft. Conference Center
with Audiovisual
• Free Wi-Fi
• Event Catering
• Beach Ceremonies and
Receptions
Highlights The Spa At Pier House
Weddings & Events
Property Tour
Location
4
Sunset Celebration at Mallory Square - 2
blocks
Key West Aquarium - 2 blocks
Sloppy Joe's - 2 blocks
Hog's Breath Saloon - 2 blocks
Red Barn Theatre - 3 blocks
Mel Fisher Maritime Museum - 3 blocks
Danger Charters - 3 blocks
Demand Generators Within 2,000ft
Key West Lighthouse - Less than 1 mile
Ernest Hemingway Home and Museum - Less
than 1 mile
Fort Jefferson and Dry Tortugas National Park
Ferry Dock - Less than 1 mile
Fury Water Sports - 1 mile
Waterfront Playhouse - 1 mile
Rick's Bar - 1 mile
Conch Tour Train - 1 mile
Sunset Watersports - 1 mile
Audubon House and Tropical Gardens - 1
mile
Key West Shipwreck Treasure Museum - 1 mile
Ripley's Believe it or Not - 1 mile
Key West Museum of Art & History at the
Custom House-
1 mile
Fort Zachary Taylor Historic State Park - 1 mile
Demand Generators Within 1 Mile
Pier House Resort is located in the famous Duval St area immediately adjacent to many outstanding
restaurants, bars, shops and attractions, while having magnificent water views
Duval St.
Property Tour 5
Acquired in May 2013 at a going-in cap rate of 6.2%, compared to 10.0% TTM cap rate1 as of Q3
2017
2015
2.1% 648 86%
RPI GROWTH
EBITDA MARGIN
INCREASE (BPS)
EBITDA
FLOW-THROUGH
2016
4.0% 405 206%
RPI GROWTH
EBITDA MARGIN
INCREASE (BPS)
EBITDA
FLOW-THROUGH
YTD September 2017
0.1% 91 73%
RPI GROWTH EBITDA MARGIN
INCREASE (BPS)
EBITDA
FLOW-THROUGH
Financial Highlights – Pier House Resort
$2,854 $3,224 $3,385 $3,383
$1,773
$2,104 $2,185 $2,469
$1,116
$1,316 $1,480 $999
$2,020
$2,157
$2,242
7.0%
7.5%
8.0%
8.5%
9.0%
9.5%
10.0%
$0
$2,000
$4,000
$6,000
$8,000
$10,000
2014 2015 2016 2017
Q1 Q2 Q3 Q4 NOI Yield
3
Quarterly NOI and NOI Yield2
Implemented Strategies
Eliminated $1.5mm in expenses through cost cutting
initiatives
Realized synergies with other Remington-managed
Key West assets
Saved $385,000 in insurance expense by adding to
Ashford program
Realized approximately $350,000 in annualized
incremental parking revenue
Remington has demonstrated the ability to
achieve considerable upside especially
when replacing a small, owner/operator
1. Cap rate is based on purchase price
2. NOI yield based on gross book value
3. 2017 represents TTM NOI Yield as of Q3
Property Tour 6
Financial Highlights – Pier House Resort Continued
25.0%
30.0%
35.0%
40.0%
45.0%
2012 2013 2014 2015 2016 2017 Nov
YTD
EBITDA MARGIN
EBITDA Margin Has Increased Since
Acquisition
$250
$275
$300
$325
$350
$375
2012 2013 2014 2015 2016 2017 Nov
YTD
RevPAR
RevPAR Has Increased Since Acquisition
• EBITDA margins have increased from 29.6% to 43.5% (Nov 2017 YTD)
• RevPAR has increased from $275 to $332 (Nov 2017 YTD)
Note: RevPAR was negatively affected by Hurricane Irma in 2017
Property Tour 7
Upcoming Renovations
• Garden building renovation (18 rooms)
• Presidential Suite renovation
• Spa building guestrooms (22 rooms)
8/31/ 2018 – 9/20/2018
8/31/ 2018 – 10/15/2018
8/31/ 2018 – 9/30/2018
Project Description Renovation Timeline
$ 950,000
$ 80,000
$ 772,000
Renovation Budget
Property Tour 8
Property Photography
Property Tour 9
Property Photography
Property Tour 10
Property Photography
Property Tour 11
Property Photography
Property Tour 12
Irma Impact
All Ashford Prime hotels have comprehensive property, casualty,
flood and business interruption insurance.
Approximately 40 rooms impacted by
hurricane Irma, most were quickly
restored
Moderate damage to boardwalk and
beach
Presidential Suite sustained water
damage;
• seized opportunity to redesign &
remodel
• Out of service temporarily to facilitate
and drive RevPAR increase
Hotel never closed and worked closely
with sister property La Concha to house
guests and quickly remediate damage
About $2.0MM – $3.0MM of property
damage
January 2018 Key West, Florida
Pier House Property Tour