Investor Presentation Investor Presentation May 2007 May 2007 - PowerPoint PPT Presentation

Investor Presentation Investor Presentation May 2007 May 2007

Ashford Advantages Ashford Advantages � Proactive, disciplined approach Proactive, disciplined approach � � Best in class, diversified portfolio Best in class, diversified portfolio � � Outperforms REIT peers Outperforms REIT peers � � High dividend yield with strong coverage High dividend yield with strong coverage � � Active capital recycler Active capital recycler � � Commitment to internal growth initiatives Commitment to internal growth initiatives � 2 2

Ashford Overview Ashford Overview 3 3

Ashford Overview Ashford Overview AHT AHT Total Enterprise Value (1) $4.5B Total Enterprise Value (1) $4.5B # of Hotels 126 # of Hotels 126 # of Rooms 27,902 # of Rooms 27,902 ADR (2) ADR (2) $135.91 $135.91 RevPAR (2) RevPAR (2) $98.08 $98.08 % Upper Upscale & Luxury (3) (3) 61% % Upper Upscale & Luxury 61% % Hilton & Marriott (3) (3) 82% % Hilton & Marriott 82% % Top 25 MSA (3) 78% % Top 25 MSA (3) 78% % Top 50 MSA (3) 92% % Top 50 MSA (3) 92% Dividend Yield % (1) 7.0% Dividend Yield % (1) 7.0% % Insider Ownership (4) % Insider Ownership (4) 7.4% 7.4% Net Debt / TEV (4) Net Debt / TEV (4) 57% 57% (1) (1) Assumes 5/8/07 share price of $12.02. Assumes 5/8/07 share price of $12.02. (2) (2) All hotels included in continuing operations for the 1Q All hotels included in continuing operations for the 1Q ’ ’07. 07. (3) Represents 2006 EBITDA proforma for CNL transaction. (3) Represents 2006 EBITDA proforma for CNL transaction. 4 4 (4) Proforma for April equity raise. (4) Proforma for April equity raise.

Investment Strategy Investment Strategy � Primary strategy is direct hotel investments, supplemented Primary strategy is direct hotel investments, supplemented � by secondary strategies throughout cycles to enhance returns by secondary strategies throughout cycles to enhance returns Expansion Late Decline Late Decline Recovery Expansion Early Decline Early Decline Recovery SECONDARY STRATEGIES: SECONDARY STRATEGIES: Mezzanine Lending Mezzanine Lending st Mortgages 1 st Mortgages 1 Sale Leasebacks Sale Leasebacks (2% of Gross Assets) (2% of Gross Assets) PRIMARY STRATEGY: PRIMARY STRATEGY: Direct Hotel Ownership Direct Hotel Ownership (98% of Gross Assets) (98% of Gross Assets) 5 5

Investment Track Record Investment Track Record � Proven market cycle judgment and investment discipline Proven market cycle judgment and investment discipline � CHR Acquisition CHR Acquisition 5.0% 16,000 14,000 Ashford IPO Ashford IPO 4.0% % Change U.S. Hotel Rooms % Change U.S. Hotel Rooms 12,000 10,000 3.0% # of Rooms # of Rooms 8,000 2.0% 6,000 4,000 1.0% 2,000 0.0% 0 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07E Acquisitions Dispositions & Listed Assets % U.S. Supply Change % U.S. Supply - Historical Avg. 6 6 Source: Company estimates & Smith Travel Research. Source: Company estimates & Smith Travel Research.

Management Strategies Management Strategies � Portfolio Management and Internal Growth Strategies Portfolio Management and Internal Growth Strategies � – Optimize risk Optimize risk- -adjusted returns via portfolio mix adjusted returns via portfolio mix – – Enhance top and bottom line performance Enhance top and bottom line performance – Portfolio Management Internal Growth Portfolio Management Internal Growth Value Creation Value Creation RevPAR Growth RevPAR Growth Capital Appreciation Capital Appreciation Market Penetration Market Penetration Dividend Growth Dividend Growth Margin Improvement Margin Improvement Investment Allocation Investment Allocation Higher Quality Assets Higher Quality Assets Efficient Capital Structure Efficient Capital Structure Guest Satisfaction/Loyalty Guest Satisfaction/Loyalty Risk/Reward Balance Risk/Reward Balance 7 7

RevPAR Growth Outperformance RevPAR Growth Outperformance � RevPAR growth outperformed REIT peer average 11 RevPAR growth outperformed REIT peer average 11 � consecutive quarters consecutive quarters 14.0% 12.7% 12.6% 12.5% 12.0% 12.3% 12.1% 11.9% 12.0% 11.1% 10.4% 10.3% 10.3% 9.7% RevPAR Growth % RevPAR Growth % 10.0% 9.5% 9.1% 8.9% 8.7% 8.5% 8.4% 8.2% 7.8% 8.0% 6.7% 6.9% 6.6% 6.0% 6.0% 4.5% 4.0% 2.2% 2.0% 1.3% 2.0% 0.0% 4Q 03 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 AHT RevPAR Growth Hotel REITs RevPAR Growth 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. AHT RevPAR T, HT, KPA, LHO, SHO & WXH. AHT RevPAR growth numbers are for those hotels not under renovation. Compa growth numbers are for those hotels not under renovation. Comparable numbers used for peers when available. rable numbers used for peers when available. 8 8

Value- -Added Capex Added Capex Value � Focus on value Focus on value- -added capex grows RevPAR and captures added capex grows RevPAR and captures � market share through higher RevPAR penetration market share through higher RevPAR penetration 240 bps of RevPAR 240 bps of RevPAR Penetration in 2006 Penetration in 2006 $300 $56.0 $56.0 239 bps of RevPAR 239 bps of RevPAR AHT AHT Penetration in 2005 Penetration in 2005 $250 CHR CHR Capex ($ millions) Capex ($ millions) $200 AHT AHT $150 $224.0 $224.0 $100 $9.6 $9.6 $2.8 $7.7 $2.8 $7.7 $50 CHR CHR $11.4 $11.4 $38.4 $30.6 $38.4 $30.6 $0 2004 2005 2006 2007-2008E Maintenance Capital Expenditures Maintenance Capital Expenditures Value Value- -Added Capital Expenditures Added Capital Expenditures 9 9 Source: Company estimates. Source: Company estimates.

Asset Management Opportunities Asset Management Opportunities � There are numerous value There are numerous value- -add asset management add asset management � opportunities across the CHR & AHT portfolio: opportunities across the CHR & AHT portfolio: Embassy Suites Renaissance Tampa Hilton Orange County Embassy Suites Renaissance Tampa Hilton Orange County Portland, OR Tampa, FL Costa Mesa, CA Portland, OR Tampa, FL Costa Mesa, CA Marriott Legacy CHR Portfolio Hilton Lincoln Centre Marriott Legacy CHR Portfolio Hilton Lincoln Centre Plano, TX Dallas, TX Plano, TX Dallas, TX Capital Hilton Hilton El Conquistador Marriott Seattle Waterfront Capital Hilton Hilton El Conquistador Marriott Seattle Waterfront Washington DC Tucson, AZ Seattle, WA Washington DC Tucson, AZ Seattle, WA Opportunities Opportunities Rebrand / Reposition Lease space Rebrand / Reposition Lease space Room / Public Area Refresh Retail conversions Room / Public Area Refresh Retail conversions Restaurant reconcepts Excess land Restaurant reconcepts Excess land Residential components Additional rooms Residential components Additional rooms Expand meeting space Spa additions Expand meeting space Spa additions Hyatt Dulles Sea Turtle Inn Hyatt Dulles Sea Turtle Inn Radisson Radisson Herndon, VA Jacksonville, FL Herndon, VA Jacksonville, FL Indianapolis, IN Indianapolis, IN AHT Portfolio AHT Portfolio Crowne Plaza Hilton Santa Fe JW Marriott Crowne Plaza Hilton Santa Fe JW Marriott Key West, FL Santa Fe, NM Key West, FL Santa Fe, NM San Francisco, CA San Francisco, CA 10 10

Strong Dividend Strong 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 7.0% Attractive dividend yield of 7.0% � $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 5/8/07 stock price of $12.02. Assumes 5/8/07 stock price of $12.02. 11 11 Note: Peers include BEE, DRH, EHP, ENN, FCH, HIH, HPT, HST, HT, Note: Peers include BEE, DRH, EHP, ENN, FCH, HIH, HPT, HST, HT, KPA, LHO, SHO & WXH. KPA, LHO, SHO & WXH.