Co mpa ny Pre se nta tio n No ve mb e r 2016 Sa fe Ha rb o r I n - PowerPoint PPT Presentation

Co mpa ny Pre se nta tio n – No ve mb e r 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  Highly- aligne d manage me nt te am & advisor y str uc tur e  Attr ac tive divide nd yie ld  Supe r ior long- te r m total shar e holde r r e tur n pe r for manc e  T ar ge ts c ash le ve l of 25- 35% of total e quity mar ke t c ap  T ar ge ts mode r ate de bt le ve ls of 55- 60% ne t de bt/ gr oss asse ts  Oppor tunistic platfor m foc use d on uppe r - upsc ale , full- se r vic e hote ls 3

Re c e nt De ve lo pme nts  Q3 2016 Re vPAR g ro wth o f 3.4% fo r a ll ho te ls (4.4% fo r ho te ls no t unde r re no va tio n)  In Oc to b e r, a nno unc e d the pric ing o f 6.2 millio n sha re s o f 7.375% Se rie s G pre fe rre d sto c k a t $25 pe r sha re  In Oc to b e r, c o mple te d the re fina nc ing o f fo ur lo a n po o ls to ta ling a ppro xima te ly $415 millio n with a ne w flo a ting ra te lo a n o f $450 millio n a t L +4.55% a ddre ssing a lmo st a ll o f the Co mpa ny's 2017 de b t ma turitie s  Co mple te d the sa le o f 9 se le c t-se rvic e no n-c o re a sse ts in 2016 fo r a ppro xima te ly $218 millio n c o ntinuing to e xe c ute o n o ur a nno unc e d stra te g y to se ll no n-c o re se le c t-se rvic e a sse ts a nd e nha nc e po rtfo lio q ua lity  In Aug ust 2016, c o mple te d the re de mptio n o f a ll o utsta nding sha re s o f 9.0% Se rie s E pre fe rre d sto c k funde d b y the re c e ntly-c o mple te d o ffe ring o f 7.375% Se rie s F pre fe rre d sto c k  Anno unc e d e nha nc e me nts to c o rpo ra te g o ve rna nc e po lic ie s 4

Be st I n Cla ss Ho te l Ma na g e rs  84 pro pe rtie s ma na g e d b y Re ming to n re pre se nting 59% o f po rtfo lio ho te l E BI T DA  31 pro pe rtie s ma na g e d b y Ma rrio tt re pre se nting 32% o f po rtfo lio ho te l E BI T DA  Re ma ining 8 pro pe rtie s ma na g e d b y Hilto n, 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 T T M Ho te l E BI T DA as o f S e pte mb e r 30, 2016 fo r 123 o wne d ho te ls as o f No ve mb e r 3, 2016 5

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% 57% 53% 52% 47% 43% 41% 42% 50% 22% 25% 0% 2008 2009 2010 2011 2012 2013 2014 2015 - 25% - 50%  Re mington has outpe r for me d in E BIT DA flow- thr ough 7 out of the - 75% last 8 ye ar s - 100% - 125%  Supe r ior manage me nt of downside r isk and c ash flow loss - 150% - 175% -808% - 800% - 200% Non- Re mington Re mington 6 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 450% L ong - te rm 401% pe rforma nc e 400% sig nific a ntly 350% outpe rforms pe e rs 300% 237% 250% 200% 150% 111% 100% 91% 100% 73% 67% 59% 42% 39% 50% 30% 36% 20% 15% 0% -2% -14% -12% -18% -26% - 50% -29% -28% -37% - 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 7 Re turns as o f 11/ 3/ 16 S o urc e : S NL

Hig he st I nside r Owne rship Inside r Owne r ship 20.0% 18%* 18.0% 16.0% Most highly aligne d manage me nt te am among our pe e r s 14.0% 12.0% 10.0% 8.0% 6% 6.0% 3% 4.0% 3% 3% 2% 2% 2% 2% 2.0% 1% 1% 1% 1% 0.0% AHT HT RL J CL DT F CH Pe e r Avg CHSP INN 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. 8 * 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

Attra c tive Divide nd Yie ld Divide nd Yie ld (as of 11/ 3/ 16) 10.0% Highe st divide nd yie ld in the industr y and with 8.7% 9.0% attr ac tive c ove r age r atio of 3.2x 7.7% 7.7% 8.0% 7.5% 6.9% 6.9% 7.0% 6.6% 6.6% 5.9% 5.8% 6.0% 5.7% 5.4% 5.0% 4.0% 4.0% 3.6% 3.4% 3.0% 2.0% 1.6% 1.0% 0.0% AHT L HO CHSP CL DT APL E RL J XHR HT Pe e r PE B DRH HST INN F CH AHP SHO Avg S o urc e : Co mpany filing s and marke t data 9

Hig h Qua lity, Ge o g ra phic a lly Dive rse Po rtfo lio E mbassy Suite s Por tland Hilton Bac k Bay We stin Pr inc e ton Po r tland, OR Bo sto n, MA Pr inc e to n, NJ L e Me r idie n Minne apolis Minne apo lis, MN Chic ago Silve r smith Mar r iott Gate way Chic ago , IL Ar lingto n, VA Mar r iott F r e mont T he Chur c hill F r e mo nt, CA Washingto n, D.C. Re naissanc e Nashville Mar r iott Be ve r ly Hills Nashville , T N Be ve r ly Hills, CA W Atlanta Downtown Hilton Santa F e Atlanta, GA Santa F e , NM Cr owne Plaza Ke y We st L ake way Re sor t & Spa Ke y We st, F L L e Pavillon Hote l Hilton Costa Me sa Austin, T X Ne w Or le ans, L A Co sta Me sa, CA Mar r iott Sugar L and Sugar L and, T X ust Ho te ls 10 Ashfo r d T r

Po rtfo lio Ove rvie w Hote l E BIT DA by Br and Hote l E BIT DA by Manage r Inte rsta te Inde pe nde nt IHG 1% 6% 5% Hya tt 4% Ma rriott 32% Hilton Ma rriott 28% Re ming ton 57% 59% Hilton 5% Hya tt 3% Hote l E BIT DA by Chainsc ale Hote l E BIT DA by MSA Inde pe nde nt Uppe r- Midsc a le T op T e n Ma r ke ts 4% 3% Othe r T T M Hotel % of 9% EBIT DA T otal L uxury Wa shing to n DC Area $45,637 9.6% 5% Sa n F ra n/ Oa kla nd , C A $33,835 7.1% T op 50 L o s Ang eles Metro Area $31,876 6.7% Upsc a le 18% Atla nta , GA $31,493 6.6% 33% NY/ NJ Metro Area $30,001 6.3% DF W, T X $26,361 5.6% Uppe r- Upsc a le B o sto n, MA $25,342 5.3% T op 25 55% Na shville, T N $24,457 5.2% 73% MN/ St. Pa ul Area $16,773 3.5% Ho usto n, T X $12,773 2.7% T ota l Portfolio $474,599 100.0% T T M Ho te l E BI T DA as o f S e pte mb e r 30, 2016 fo r 123 o wne d ho te ls as o f No ve mb e r 3, 2016 11 Ho te l E BI T DA in tho usands