Co mpa ny Pre se nta tio n Ja nua ry 2016 Sa fe Ha rb o r I n ke - PowerPoint PPT Presentation

Co mpa ny Pre se nta tio n – Ja nua ry 2016

Sa fe Ha rb o r I n ke e ping with the SE C's "Sa fe Ha rb o r" g uide line s, c e rta in sta te me nts ma de during this pre se nta tio n c o uld b e c o nside re d fo rwa rd-lo o king a nd sub je c t to c e rta in risks a nd unc e rta intie s tha t c o uld c a use re sults to diffe r ma te ria lly fro m tho se pro je c te d. Whe n we use the wo rds "will like ly re sult," "ma y," "a ntic ipa te ," "e stima te ," "sho uld," "e xpe c t," "b e lie ve ," "inte nd," o r simila r e xpre ssio ns, we inte nd to ide ntify fo rwa rd-lo o king sta te me nts. Suc h fo rwa rd-lo o king sta te me nts inc lude , b ut a re no t limite d to , o ur b usine ss a nd inve stme nt stra te g y, o ur unde rsta nding o f o ur c o mpe titio n, c urre nt ma rke t tre nds a nd o ppo rtunitie s, pro je c te d o pe ra ting re sults, a nd pro je c te d c a pita l e xpe nditure s. T he se fo rwa rd-lo o king sta te me nts a re sub je c t to kno wn a nd unkno wn risks a nd unc e rta intie s, whic h c o uld c a use a c tua l re sults to diffe r ma te ria lly fro m tho se a ntic ipa te d inc luding , witho ut limita tio n: g e ne ra l vo la tility o f the c a pita l ma rke ts a nd the ma rke t pric e o f o ur c o mmo n sto c k; c ha ng e s in o ur b usine ss o r inve stme nt stra te g y; a va ila b ility, te rms a nd de plo yme nt o f c a pita l; a va ila b ility o f q ua lifie d pe rso nne l; c ha ng e s in o ur industry a nd the ma rke t in whic h we o pe ra te , inte re st ra te s o r the g e ne ra l e c o no my, a nd the de g re e a nd na ture o f o ur c o mpe titio n. T he se a nd o the r risk fa c to rs a re mo re fully disc usse d in the Co mpa ny's filing s with the Se c uritie s a nd E xc ha ng e Co mmissio n. E BI T DA is de fine d a s ne t inc o me b e fo re inte re st, ta xe s, de pre c ia tio n a nd a mo rtiza tio n. E BI T DA yie ld is de fine d a s tra iling twe lve mo nth E BI T DA divide d b y the purc ha se pric e . A c a pita liza tio n ra te is de te rmine d b y dividing the pro pe rty's ne t o pe ra ting inc o me b y the purc ha se pric e . Ne t o pe ra ting inc o me is the pro pe rty's funds fro m o pe ra tio ns minus a c a pita l e xpe nse re se rve o f e ithe r 4% o r 5% o f g ro ss re ve nue s. Ho te l E BI T DA flo w-thro ug h is the c ha ng e in Ho te l E BI T DA divide d b y the c ha ng e in to ta l re ve nue s. E BI T DA, F F O, AF F O, CAD a nd o the r te rms a re no n-GAAP me a sure s, re c o nc ilia tio ns o f whic h ha ve b e e n pro vide d in prio r e a rning s re le a se s a nd filing s with the SE C. T his o ve rvie w is fo r info rma tio na l purpo se s o nly a nd is no t a n o ffe r to se ll, o r a so lic ita tio n o f a n o ffe r to b uy o r se ll, a ny se c uritie s o f Ashfo rd Ho spita lity T rust, I nc . o r a ny o f its re spe c tive a ffilia te s, a nd ma y no t b e re lie d upo n in c o nne c tio n with the purc ha se o r sa le o f a ny suc h se c urity. 2

Ashfo rd Ho spita lity T rust Visio n  Announc e d str ate gy r e fine me nts to impr ove shar e holde r value  Manage me nt te am mor e highly- aligne d with shar e holde r s than our pe e r s  Supe r ior long- te r m total shar e holde r r e tur n pe r for manc e  Be st in c lass hote l manage r s  Appr opr iate use of financ ial le ve r age  Oppor tunistic platfor m foc use d on full- se r vic e hote ls 3

Re c e nt De ve lo pme nts  d, Inc . Ame ndme nts to Advisor y Ag r e e me nt with Ashfor  Re c e ive ke y mo ne y ($4 millio n thus fa r)  T e rmina tio n rig ht witho ut fe e upo n Ad viso r Co C  Sho rte n initia l te rm o f a g re e me nt  Re d uc tio n in b a se fe e a mo unt  ime Distr ibution of r e ma ining sha r e s of Ashfor d Pr  Simplify b a la nc e she e t  Crysta lize va lue fo r sha re ho ld e rs  Re spo nsive to inve sto r fe e d b a c k  e s of c ommon stoc k Bloc k tr a de to r e pur c ha se a ppr oxima te ly 5.8 million sha r  Oppo rtunistic  Ac q uire d sig nific a nt a mo unt o f sto c k we ll b e lo w priva te ma rke t va lue  Re spo nsive to inve sto r fe e d b a c k  ific a tion T e r mina tion fe e c la r  vic e a sse ts Sa le of se le c t-se r  Simplify stra te g y  Ma rke ting 24-ho te l po rtfo lio in sma lle r g ro ups a nd ind ivid ua lly  Pursuing the o ppo rtunistic sa le o f re ma ining 39 se le c t-se rvic e ho te ls o ve r time 4

Stra te g y to I mpro ve Sha re ho lde r Va lue Pr ivate Mar ke t Valuation  Oppor tunistic stoc k buybac ks  Impr ove por tfolio quality thr ough sale of se le c t- se r vic e asse ts  No mor e spin- offs  Inc r e ase in tr anspar e nc y  Simplify str ate gy and str uc tur e Cur r e nt Mar ke t Valuation 5

Be st I n Cla ss Ho te l Ma na g e rs  89 pro pe rtie s ma na g e d b y Re ming to n re pre se nting 60% o f po rtfo lio ho te l E BI T DA  32 pro pe rtie s ma na g e d b y Ma rrio tt re pre se nting 30% o f po rtfo lio ho te l E BI T DA  Re ma ining 11 pro pe rtie s ma na g e d b y Hilto n, Sta rwo o d, Hya tt, a nd I nte rsta te  Be st in c la ss ho te l pro pe rty ma na g e rs a nd a sse t ma na g e rs tha t drive stro ng pe rfo rma nc e thro ug h ROI initia tive s, re ve nue o ptimiza tio n, a nd c o st c utting me a sure s Base d o n Ho te l E BI T DA as o f S e pte mb e r 30, 2015 fo r 132 o wne d ho te ls as o f January 25, 2016 6

Re ming to n Outpe rfo rma nc e - Re ve nue Re vPAR Gr owth (Inde xe d to 2009) 160 150 Supe rior re ve nue optimiza tion 140 stra te g ie s 130 120 110 100 2009 2010 2011 2012 2013 2014 T T M 2015  Affilia tio n with Re ming to n is a c o mpe titive a dva nta g e  Re ming to n ma na g e d ho te ls ha ve c o nsiste ntly o utpe rfo rme d No n-Re ming to n ma na g e d ho te ls in Re vPAR g ro wth sinc e 2009  Po te ntia l to drive e ve n g re a te r pe rc e nt o f po rtfo lio E BI T DA to b e Re ming to n ma na g e d 7 NOT E : Re ming to n manag e d ho te ls o wne d b y Ashfo rd T rust and Ashfo rd Prime as c o mpare d to No n-Re ming to n manag e d ho te ls

Re ming to n Outpe rfo rma nc e - Pro fita b ility Hote l E BIT DA F low- T hr ough 334% 100% 300% 70% 68% 75% 60% 59% 59% 58% 55% 53% 52% 47% 44% 43% 41% 50% 22% 25% 0% 2008 2009 2010 2011 2012 2013 2014 T T M 2015 - 25% - 50% - 75%  Re mington has outpe r for me d in E BIT DA flow- thr ough 7 out of the last 8 ye ar s - 100% - 125%  Supe r ior manage me nt of downside r isk and c ash flow loss - 150% - 175% - 200% No n-Re ming to n Re ming to n - 800% -808% 8 NOT E : Re ming to n manag e d ho te ls o wne d b y Ashfo rd T rust and Ashfo rd Prime as c o mpare d to No n-Re ming to n manag e d ho te ls

De mo nstra te d L o ng -T e rm T ra c k Re c o rd T otal Shar e holde r Re tur n 900% 829% 800% L ong - te rm pe rforma nc e F oc use d on 700% prove s ma na g e me nt's r e c e nt a bility to c re a te va lue for pe r for manc e 600% sha re holde rs 500% 400% 300% 185% 200% 128% 105% 97% 67% 100% 49% 48% 44% 42% 22% 22% 22% 14% 0% -2% -2% -8% -15% -16% -31% -35% -39% - 100% (1) Inc e ption 10- Yr 9- Yr 8- Yr 7- Yr 6- Yr 5- Yr 4- Yr 3- Yr 2- Yr 1- Yr Pe e r Avg AHT (1) S inc e I PO o n Aug ust 26, 2003 Pe e r ave rag e inc lude s: CHS P, CL DT , DRH, F CH, HS T , HT , I NN, L HO, RL J, SHO 9 Re turns as o f 1/ 11/ 16 S o urc e : S NL

Asse t Pe rfo rma nc e YT D Q3 2015 Re vPAR Gr owth 10.0% 9.0% 9.0% 7.9% 8.0% 7.0% 6.6% 6.3% 6.3% 6.3% 5.9% 6.0% 5.2% 5.0% 4.3% 3.9% 4.0% 3.0% 2.0% 2.0% 1.0% 0.0% F CH INN AHT HT CHSP CL DT SHO DR H R L J HST L HO 10 S o urc e : Co mpany filing s

Hig he st I nside r Owne rship Inside r Owne r ship 18.0% 16.0%* 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 5.0% 4.0% 4.0% 3.0% 3.0% 2.2% 2.0% 2.0% 2.0% 2.0% 1.0% 1.0% 1.0% 0.5% 0.0% AHT HT INN RL J F CH Pe e r Avg CL DT CHSP HST PE B DRH SHO L HO Pub lic L o dg ing RE I T s inc lude : CHS P, CL DT , DRH, F CH, HS T , HT , I NN, L HO, PE B, RL J, S HO S o urc e : Co mpany filing s. 11 * I nside r o wne rship fo r Ashfo rd T rust inc lude s dire c t & indire c t inte re sts & inte re sts o f re late d partie s

Sha re ho lde r Alig nme nt  Histo ry  Re ming to n invo lve me nt Pe e rs Ashford T rust  I  I nc e ntivize d to g ro w nc e ntivize d to o utpe rfo rm  Sig nific a nt sha re re purc ha se s  No size a b le sha re re purc ha se s  Hig h inside r o wne rship  L o w inside r o wne rship  Re luc ta nc e to mo ne tize  Willing ne ss to mo ne tize  I  E nte rna l xte rna l o r inte rna l 12

Attra c tive Divide nd Yie ld Divide nd Yie ld (as of 1/ 11/ 16) 10.0% 8.8% 9.0% 8.0% 7.0% 7.0% 6.4% 6.3% 6.2% 5.9% 5.8% 5.7% 6.0% 5.4% 5.3% 5.2% 5.0% 4.4% 4.2% 4.0% 3.2% 3.0% 2.4% 1.7% 2.0% 1.0% 0.0% AHT L HO RL J XHR APL E CL DT HST HT CHSP DRH Pe e r PE B INN AHP F CH SHO Avg  Hig he st divide nd yie ld in the industry a nd with c o ve ra g e ra tio o f 2.7x S o urc e : Co mpany filing s. 13