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Company Presentation – April 2017
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 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. A capitalization rate is determined by dividing the
property's net operating income by the purchase price. Net operating income is the property's funds from
operations minus a capital expense reserve of either 4% or 5% of gross revenues. Hotel EBITDA flow-through is the
change in Hotel EBITDA divided by the change in total revenues. 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. or any of its respective affiliates, and may not be relied upon in
connection with the purchase or sale of any such security.
Strategic Overview
3
Opportunistic platform focused
on upper-upscale, full-service
hotels
Superior long-term total
shareholder return performance
Targets moderate debt levels of
55-60% net debt/gross assets
Attractive dividend yield
Targets cash level of 25-35% of
total equity market cap
Highly-aligned management
team & advisory structure
Recent Developments
4
Q4 2016 Earnings Release:
Q4 RevPAR growth for all hotels not under renovation of 3.2%
Q4 Hotel EBITDA margin for all hotels not under renovation increased 46 bps
Q4 Hotel EBITDA flow-through for all hotels not under renovation of 51%
In February 2017, the Company announced a non-binding proposal to acquire
FelCor Lodging Trust Incorporated (NYSE: FCH) ("FelCor") for 1.192 shares of
Ashford Trust and securities in Ashford Inc. in exchange for each share of FelCor
In February 2017, the Company announced the appointment of Douglas A.
Kessler as Chief Executive Officer effective immediately
Announced enhancements to corporate governance policies
117%
-13%
12%
234%
105%
44%
95%
59%
25%
-9%
21%
-7%
202%
82%
191%
1,497%
296%
90%
120%
59%
29%
-8%
33%
-25%
-100%
0%
100%
200%
300%
400%
500%
600%
700%
800%
900%
Inception 10-Yr 9-Yr 8-Yr 7-Yr 6-Yr 5-Yr 4-Yr 3-Yr 2-Yr 1-Yr YTD 2017
Peer Avg AHT
Demonstrated Long-Term Track Record
5
(1) Since IPO on August 26, 2003
Peer average includes: CHSP, CLDT, DRH, FCH, HST, HT, INN, LHO, RLJ, SHO
*1-Yr through Inception Returns as of 12/30/2016; YTD 2017 from 12/30/16 through 3/27/17
Source: SNL
Total Shareholder Return
Long-term
performance
significantly
outperforms peers
1
2,000
19.4%
6.2%
5.7%
3.4% 3.3% 3.3%
2.5% 2.5%
1.9% 1.8%
1.3% 1.1% 0.8%
0.4% 0.3%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
AHT APLE HT RLJ CLDT FCH CHSP REIT
Avg
INN HST PEB DRH SHO LHO XHR
Highest Insider Ownership
6
REIT average includes: APLE, HT, RLJ, CLDT, FCH, CHSP, INN, HST, PEB, DRH, SHO, LHO, XHR
REIT Source: Latest proxy and other company filings.
(1) As of 3/28/2017
(2) Includes direct interests, indirect interests, and interests of related parties
Insider Ownership
Most highly aligned management team among the lodging
REIT sector
1,2
8.2%
6.9%
6.7% 6.6% 6.6%
6.4% 6.3%
6.1% 6.0% 5.9%
5.5% 5.4%
4.6% 4.6%
4.4%
3.6%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
AHT CHSP CLDT XHR PK APLE LHO HT AHP RLJ REIT
Avg
PEB DRH SHO HST INN
Attractive Dividend Yield
7
REIT average includes: APLE, HT, RLJ, CLDT, FCH, CHSP, INN, HST, PEB, DRH, SHO, LHO, XHR
Source: Company filings and market data
(1) Coverage ratio as of December 31, 2016
(2) Annualized based on most recent dividend announcement
Dividend Yield (as of 3/22/17)
Highest dividend yield in the industry and with
attractive coverage ratio of 3.1x1
2 2
8 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
The Churchill
Washington, D.C.
W Atlanta Downtown
Atlanta, GA
Crowne Plaza Key West
Key West, FL
Marriott Sugar Land
Sugar Land, TX
Hilton Santa Fe
Santa Fe, NM
Renaissance Nashville
Nashville, TN
Westin Princeton
Princeton, NJ
Marriott Beverly Hills
Beverly Hills, CA
Embassy Suites Portland
Portland, OR
Marriott Gateway
Arlington, VA
Top 25
74%
Top 50
18%
Other
8%
Portfolio Overview
9
TTM Hotel EBITDA as of December 31, 2016 for the 121 owned hotels as of March 22, 2017
Hotel EBITDA in thousands
Hotel EBITDA by Brand Hotel EBITDA by Manager
Hotel EBITDA by MSA Hotel EBITDA by Chainscale
Top Ten Markets
Marriott
57%
Hilton
27%
Hyatt
4%
IHG
6%
Independent
6%
Marriott
32%
Hilton
6%
Hyatt
3%
Remington
58%
Interstate
1%
Upscale
34%
Upper-Upscale
54%
Luxury
5%
Upper-Midscale
3%
Independent
4%
TTM Hotel % of
EBITDA Total
Washington DC Area $45,207 9.6%
San Fran/Oakland, CA $34,559 7.3%
Los Angeles Metro Area $33,163 7.0%
Atlanta, GA $32,131 6.8%
NY/NJ Metro Area $29,905 6.3%
DFW, TX $26,180 5.6%
Boston, MA $25,665 5.4%
Nashville, TN $25,527 5.4%
MN/St. Paul Area $16,975 3.6%
Miami Metro Area $11,920 2.5%
Total Portfolio $471,216 100.0%
52%
58% 59%
43% 41% 42%
58%
22%
53%
60% 59%
68% 70%
47%
57%
53%
-200%
-175%
-150%
-125%
-100%
-75%
-50%
-25%
0%
25%
50%
75%
100%
2008 2009 2010 2011 2012 2013 2014 2015 2016
Non-Remington Remington
Remington Outperformance - Profitability
Remington has outperformed in EBITDA flow-through 7 out of the
last 9 years
10 NOTE: Remington managed hotels owned by Ashford Trust and Ashford Prime as compared to Non-Remington managed hotels
Hotel EBITDA Flow-Through
Superior management of downside risk and cash flow loss
-800 -808%
334%
300
Embassy Suites Portland: Secured a new, high quality restaurant tenant, upgrading TV and Wi-Fi to
improve guest experience
Ritz Carlton Atlanta: Completed restaurant renovation, extensive guestroom renovation scheduled for Q4
($21M), expanding Ritz Carlton Club Lounge, expanded/updated gift shop into upscale retail market
Marriott Beverly Hills: 55% 2016 RevPAR growth (first full year since $28M conversion from Crowne Plaza)
Hyatt Regency Savannah: Completed extensive room renovation with shower conversions and Increased
premium rooms inventory by 70 rooms to drive ADR
Marriott Bridgewater: Converted 30 king rooms to double/double rooms to capture more group business;
increase premium room type by 43.5% to capture higher ADR. Recently completed a lobby and
restaurant renovation
W Hotel Atlanta Downtown: Terminated existing BLT Steak outlet management agreement and brought
the operation in-house with a projected annual positive GOP impact of almost $300k
Courtyard Denver Airport: Secured two significant pieces of airline crew business that will drive significant
share growth in 2017
W & LeMeridien Minneapolis: Worked with existing restaurant tenant at LM to extend lease under more
favorable terms. Leased underutilized lobby space at W MPLS to Manny’s for a Private Dining Room
11
Asset Management Initiatives - Recent
Renaissance Nashville: Partnering with developer to redevelop Nashville Convention Center resulting in new,
premium meeting space, extending meeting space lease from 11 years to 99 years with no upfront or ongoing
lease payments
Marriott Crystal Gateway: Spending $30M on major renovations: all guestrooms, lobby & restaurant, addition of
M Club, new and expanded fitness center, adding 6 keys and additional meeting space
Hilton Boston Back Bay: Shifted revenue strategies to increase off-season occupancy to add significant
incremental revenue, spending $11.3M in 2017 on guestroom and lobby renovation
Hyatt Regency Savannah: Extensive food and beverage outlet repositioning and full lobby renovation nearly
complete. New Meeting space created as well. Opening new retail market
Marriott Dallas DFW: Converting from brand to franchise managed (Remington) on May 24th. Comprehensive
ballroom and meeting space renovation in summer 2017
Embassy Suites Santa Clara: Spending $10.4M on 2017 guestrooms and lobby renovation to include larger
market and fitness area
Engaged expense consultant: Charged with examining all contracted services in select hotels and negotiating
improved terms to drive profit at existing operations
Exploring Outdoor Advertising: Working with several consultants to explore outdoor advertising (Wall wraps,
video boards, and free-standing) to monetize underutilized outdoor space
Time/Motion studies: Engaged a consultant to analyze current work habits in several hotels and propose labor
savings initiatives
12
Asset Management Initiatives - Upcoming
13
Value Creation Through Active Asset Management
55.8%
52.0%
40.5%
47.4%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
2016 3-Yr Avg
AHT Peer Avg
Portfolio Hotel EBITDA Flow-Through
*Peers include DRH, HST, INN, LHO, CHSP, HT, SHO, RLJ, FCH
Note: Pro forma Hotel EBITDA flow-through information not available for CLDT
*
Ashford management creates value in
both brand and non-brand managed
assets
Hotel EBITDA flow-through has
outperformed the peer average for the
last three years
Portfolio has produced RevPAR gains
relative to our competitors for three
consecutive years
W Atlanta Downtown W Minneapolis Foshay Le Meridien Minneapolis
FY2016 EBITDA Flow-Thru: 157%
First full year of ownership
FY2016 EBITDA Flow-Thru: 115%
First full year of ownership
FY2016 EBITDA Flow-Thru: 84%
First full year of ownership
Case Study – Conversion to Remington Managed
14
Implemented Strategies:
Increased club room premium pricing from
$30 to $45
Increased corporate group room nights to 25%
mid-week to ensure sell-outs and push rate
Improved pattern management and business
mix to increase higher rated retail contribution
Moved to premium pricing, allowing restriction
of premium rooms and preferred business
management
Aggressively priced preferred rooms rates 25%-
30% YOY
Marriott Fremont – Fremont, CA
*$ in Thousands
(1) As of December 31, 2016
Announced forward cap rate and EBITDA multiple of 8.1% and 10.0x, respectively
Actual cap rate and EBITDA multiple of 10.9% and 7.9x, respectively
Current cap rate and EBITDA multiple of 15.6% and 5.7x, respectively (1)
Acquired for $50 million in Aug 2014; Oct 2016 refi had allocated loan amount of $61 million
TTM
Pre-Takeover
TTM
Post-Takeover
Increase
(%, BPs)
Total Revenue* $19,140 $22,153 15.7%
RevPAR $107.1 $130.5 21.8%
GOP margin 27.0% 38.1% +1,116
EBITDA margin 20.9% 30.0% +916
Marriott Fremont
Case Study – Marriott Beverly Hills Conversion
15
16
Case Study – Marriott Beverly Hills Conversion (cont.)
The Marriott Beverly Hills officially opened on July 1, 2015 and the renovation
concluded in August
Trust invested $21mm, net of key money from Marriott*
Prior to the conversion, the hotel had June 2015 TTM NOI of $5.6mm
FY2016 NOI of $10.3mm
Received an award from Marriott International for renovation excellence
FY2016 performance (first full year since conversion):
Total revenue growth of 52%
Room rate growth of 31%
Hotel EBITDA flow-through of 53%
A gain of 3,760 bps in market share versus the tract scale
* Not all of this capital was incremental. Hotel was in need of a renovation. “Refresh” capital requirements per Crowne
standards were estimated to be $8mm.
17
Case Study – Marriott Beverly Hills Conversion (cont.)
Lobby Bar Restaurant
Front Desk
Lobby
18
Case Study – Marriott Beverly Hills Conversion (cont.)
Guestroom
Boardroom Guestroom
Club Lounge
Aggressive Asset Management – W Atlanta Downtown
19
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
Replaced unprofitable restaurant
manager and re-positioned restaurant
New management of the on-premise
digital billboard
Renegotiated valet parking agreement
Eliminated operational loss at Bliss Spa
through restructuring
Full year 2016 (first full year of
ownership) EBITDA flow-thru of 157%,
and EBITDA growth of 27%
W Atlanta – Atlanta, GA
W Atlanta – Atlanta, GA
Hotel Overview:
Investment Highlights
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 $4.65 per share
All debt is non-recourse, property level mortgage debt
Targeted cash balance of 25% to 30% of market capitalization
Hedge unfavorable economic shocks
20
(1) As of December 31, 2016
(2) Adjusted for sale of the Renaissance Portsmouth and Embassy Suites Syracuse
(3) At market value as of March 22, 2017
Enterprise Value (1) Net Working Capital (1)
Figures in millions except per share values
Stock Price (As of March 22, 2017) $5.85
Fully Diluted Shares Outstanding 115.1
Equity Value $673.5
Plus: Preferred Equity 553.1
Plus: Debt (2) 3,735.9
Total Market Capitalization $4,962.5
Less: Net Working Capital (535.4)
Total Enterprise Value $4,427.2
Cash & Cash Equivalents $348.0
Restricted Cash 144.2
Investment in Securities Fund 104.1
Accounts Receivable, net 44.9
Prepaid Expenses 17.9
Due From Affiliates, net (17.3)
Due from Third Party Hotel Managers 10.6
M rket Value of Ashford, Inc. Investment (3) 35.9
Total Current Assets $688.4
Accounts Payable, net & Accrued Expenses $128.2
Dividends Payable 24.8
Total Current Liabilities $153.0
Net Working Capital $535.4
Debt Maturities and Leverage
Target Net Debt/Gross Assets of 50-60%
Maintain mix of fixed and floating rate debt (Currently 85% floating & 15% fixed)
Ladder maturities
Exclusive use of property-level, non-recourse debt
21
As of December 31, 2016
(1) Assumes extension options are exercised
(2) Adjusted for sale of the Renaissance Portsmouth and Embassy Suites Syracuse
Note: All debt yield statistics are based on EBITDA to principal.
Debt Maturity Schedule (mm)(1) (2)
Debt Yield:
14.2%
Debt Yield:
12.6%
Debt Yield:
21.9%
Debt Yield:
14.1%
Debt Yield:
11.3%
Debt Yield:
11.1%
$15.7 $201.2
$5.4
$96.9
$257.1
$533.9
$710.7
$1,467.0
$450.0
$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
Corporate Governance Enhancements
22
Modification of the Company’s Equity Incentive Plan:
Requires stock ownership by directors and officers
Requires minimum vesting periods on stock options and stock
appreciation rights issued
Modification of the Company’s By-Laws: Reduces the threshold from
35% to 30% of outstanding shares to call a special meeting of
shareholders
Modification of the Company’s Stock Ownership Guidelines:
Increases the required share ownership for director’s from 3x the
director’s annual board retainer fee to 4x
Investor Feedback: Shared with Board at quarterly board meetings
Separation of Chairman and CEO roles: Effective February 2017
Board of Directors Diversity Matrix
Professional Experience Geography Independence
Real Estate /
Hospitality
C-Suite
Executive
Entrepreneurship Legal Southwest
West
Coast
Northeast Southeast Independent
Monty J.
Bennett
Benjamin J.
Ansell, M.D.
Fred Kleisner
Amish Gupta
Kamal Jafarnia
Philip S. Payne
Alan L. Tallis
23
Board of Directors Diversity Matrix (cont.)
Age Ethnicity
25-40 41-55 56-70 White / Caucasian
Middle Eastern /
South Asia
Monty J. Bennett
Benjamin J. Ansell, M.D.
Fred Kleisner
Amish Gupta
Kamal Jafarnia
Philip S. Payne
Alan L. Tallis
24
Key Takeaways
25
Focused on increasing shareholder value through
simplifying strategy and improving portfolio quality
Strong management team with a long track record of
creating shareholder value
Highest dividend yield in the industry
Highly-aligned platform through management structure
and high insider ownership
Company Presentation – April 2017