Investor Presentation Investor Presentation June 2007 June 2007 - PowerPoint PPT Presentation

Investor Presentation Investor Presentation June 2007 June 2007

Safe Harbor Safe Harbor In keeping with the SEC’ ’s s “ “Safe Harbor Safe Harbor” ” guidelines, certain statements made during this guidelines, certain statements made during this In keeping with the SEC presentation could be considered forward- -looking and subject to certain risks and looking and subject to certain risks and presentation could be considered forward uncertainties that could cause results to differ materially from those projected. When we those projected. When we uncertainties that could cause results to differ materially from use the words “ “will likely result, will likely result,” ” “ “may, may,” ” “ “anticipate, anticipate,” ” “ “estimate, estimate,” ” “ “should, should,” ” “ “expect, expect,” ” use the words “believe, believe,” ” “ “intend, intend,” ” or similar expressions, we intend to identify forward or similar expressions, we intend to identify forward- -looking looking “ statements. Such forward- -looking statements include, but are not limited to, our looking statements include, but are not limited to, our statements. Such forward business and investment strategy, our understanding of our competition, current market tition, current market business and investment strategy, our understanding of our compe trends and opportunities, projected operating results, and projected capital expenditures. cted capital expenditures. trends and opportunities, projected operating results, and proje These forward- -looking statements are subject to known and unknown risks and looking statements are subject to known and unknown risks and These forward uncertainties, which could cause actual results to differ materially from those anticipated ally from those anticipated uncertainties, which could cause actual results to differ materi including, without limitation: general volatility of the capital markets and the market l markets and the market including, without limitation: general volatility of the capita price of our common stock; changes in our business or investment strategy; availability, strategy; availability, price of our common stock; changes in our business or investment terms and deployment of capital; availability of qualified personnel; changes in our nnel; changes in our terms and deployment of capital; availability of qualified perso industry and the market in which we operate, interest rates or the general economy, and he general economy, and industry and the market in which we operate, interest rates or t the degree and nature of our competition. These and other risk factors are more fully factors are more fully the degree and nature of our competition. These and other risk discussed in the Company’ ’s filings with the Securities and Exchange Commission. s filings with the Securities and Exchange Commission. discussed in the Company EBITDA is defined as net income before interest, taxes, depreciation and amortization. tion and amortization. EBITDA is defined as net income before interest, taxes, deprecia EBITDA yield is defined as trailing twelve month EBITDA divided by the purchase by the purchase EBITDA yield is defined as trailing twelve month EBITDA divided price. EBITDA, FFO, AFFO, CAD and other terms are non- -GAAP measures, GAAP measures, price. EBITDA, FFO, AFFO, CAD and other terms are non reconciliations of which have been provided in prior earnings releases and filings with leases and filings with reconciliations of which have been provided in prior earnings re the SEC. the SEC. 2 2

Ashford Advantages Ashford Advantages � Best in class portfolio Best in class portfolio � � Strong performance Strong performance � � Attractive valuation with high dividend Attractive valuation with high dividend � � Commitment to value add strategies Commitment to value add strategies � � Comprehensive capital recycling program Comprehensive capital recycling program � � Positioned to capitalize on lodging cycle Positioned to capitalize on lodging cycle � 3 3

Ashford Overview Ashford Overview 4 4

Ashford Snapshot Ashford Snapshot Portfolio Statistics AHT Portfolio Statistics AHT Total Enterprise Value (1) (1) $4.5 Bil Bil Total Enterprise Value $4.5 nd largest Peer Comparison (2) (2) 2 nd Peer Comparison 2 largest # of Hotels # of Hotels 121 121 # of Rooms # of Rooms 27,443 27,443 (3) ADR (3) ADR $135.91 $135.91 RevPAR (3) (3) $98.08 RevPAR $98.08 % EBITDA Top 50 MSA (3) (3) 92% % EBITDA Top 50 MSA 92% Financial Statistics Financial Statistics # Shares Outstanding 142.5 Mil # Shares Outstanding 142.5 Mil Avg. Daily Trading Volume (3 Month) Avg. Daily Trading Volume (3 Month) 1.0 Mil 1.0 Mil (4) Net Debt / TEV Net Debt / TEV (4) 56% 56% % Debt Fixed % Debt Fixed ~ 80% ~ 80% Debt Weighted Average Maturity Debt Weighted Average Maturity 7.3 years 7.3 years Debt Weighted Average Cost 6.0% Debt Weighted Average Cost 6.0% Dividend Yield % (1) (1) 6.8% Dividend Yield % 6.8% % Insider Ownership (4) (4) 7.4% % Insider Ownership 7.4% (1) (1) Assumes 5/31/07 share price of $12.41. Assumes 5/31/07 share price of $12.41. (2) (2) Ranked by Total Enterprise Value of pure lodging peers. Ranked by Total Enterprise Value of pure lodging peers. (3) (3) All hotels included in continuing operations for the 1Q ’ All hotels included in continuing operations for the 1Q ’07. 07. (4) Proforma for April equity raise. for April equity raise. (4) Proforma 5 5

“Best in Class Best in Class” ” Portfolio Portfolio “ Brand Brand Chain Scale Chain Scale 2%1% 1% 1% 6% 4% 8% 35% 51% 60% 31% M arriott Hilton Hyatt Starwood Luxury Upper-Upscale Upscale M idscale w/o F&B R adisson IHG Other Manager Geography Manager Geography 1% 1% 1% 2% 2% 3% 6% 9% 8% 37% 10% 45% 18% 11% 21% 25% M arriott Rem ington H ilton S. A tlantic Pacific N . Central S. Central H yatt Starw ood Interstate M id A tlantic M ountain N . England Canada H otel Equities D unn 6 6 Note: Proforma based on 2006 EBITDA. Note: Proforma based on 2006 EBITDA.

Strong Brands and Markets Strong Brands and Markets Hilton (40) Hyatt (5) Marriott (62) Hilton (40) Hyatt (5) Marriott (62) 7 7 5 5 17 14 14 17 14 14 Starwood (7) Starwood (7) 2 2 12 12 3 1 1 3 6 6 1 1 2 2 1 1 1 1 7 7 1 1 20 20 Other (7) Other (7) 7 7

“Best in Class Best in Class” ” Assets Assets “ Renaissance Tampa Hyatt Anaheim Hilton La Jolla Torrey Pines Hyatt Regency Coral Gables Courtyard SF Downtown JW Marriott San Francisco Residence Inn Fairfax Courtyard Irvine Marriott Legacy Center Residence Inn Salt Lake City Hilton Costa Mesa Marriott Seattle Waterfront Capital Hilton Residence Inn Sea World Westin O’Hare Courtyard Seattle Downtown Residence Inn San Diego Courtyard Philadelphia Marriott Gateway Embassy Suites Portland 8 8

Strong Performance Strong Performance 9 9

Strong Performance Strong Performance � Significant external growth Significant external growth � $5,000 30,000 $4,500 25,000 $4,000 $3,500 TEV (in $ millions) # of Hotel Rooms 20,000 $3,000 $2,500 15,000 $2,000 10,000 $1,500 $1,000 5,000 $500 $0 0 IPO 2003 2004 2005 2006 Current Total Enterprise Value Hotel Rooms 10 10

Strong Performance Strong Performance � Industry Industry- -leading leading RevPAR RevPAR growth growth � 14.0% 12.1% 11.1% 12.0% 10.3% RevPAR Growth % RevPAR Growth % 9.7% 9.5% 9.1% 10.0% 8.7% 8.2% 8.0% 6.0% 4.0% 2.0% 0.0% 2Q 06 3Q 06 4Q 06 1Q 07 AHT RevPAR Growth Hotel REITs RevPAR Growth � Solid EBITDA margin expansion Solid EBITDA margin expansion � 350 286 Margin Growth (bps) Margin Growth (bps) 300 250 206 200 151 150 124 100 50 0 2Q 06 3Q 06 4Q 06 1Q 07 Note: Hotel REITs include: BEE, DRH, EHP, ENN, FCH, HIH, HPT, HS Note: Hotel REITs include: BEE, DRH, EHP, ENN, FCH, HIH, HPT, HST, HT, KPA, LHO, SHO & WXH. T, HT, KPA, LHO, SHO & WXH. 11 11 AHT RevPAR & margin growth numbers are for those hotels not unde AHT RevPAR & margin growth numbers are for those hotels not under renovation. r renovation.

Attractive Valuation & Attractive Valuation & High Dividend High Dividend 12 12

High Dividend High Dividend � Dividend Growth: 250% since 1Q 2004 Dividend Growth: 250% since 1Q 2004 � � Strong Dividend CAD Coverage: Strong Dividend CAD Coverage: � – 1Q 2007 1Q 2007 – – 1.33x 1.33x – – Full Year 2006 – Full Year 2006 – – 1.24x 1.24x (1) (1) � Attractive dividend yield of 6.8% Attractive dividend yield of 6.8% � $0.25 8.0% 7.0% $0.20 6.0% Dividend Yield % Dividend ($) 5.0% $0.15 4.0% $0.10 3.0% 2.0% $0.05 1.0% $0.00 0.0% 1Q 04 2Q 04 3Q 04 4Q 04 1Q 05 2Q 05 3Q 05 4Q 05 1Q 06 2Q 06 3Q 06 4Q 06 1Q 07 Dividend Dividend Yield Dividend Yield - Peer Avg. (1) (1) Assumes 5/31/07 stock price of $12.41. Assumes 5/31/07 stock price of $12.41. 13 13 Note: Peers include BEE, DRH, EHP, ENN, FCH, HIH, HPT, HST, HT, KPA, LHO, SHO & WXH. Note: Peers include BEE, DRH, EHP, ENN, FCH, HIH, HPT, HST, HT, KPA, LHO, SHO & WXH.