No ve mb e r 2017 F o rwa rd L o o king Sta te me nts a nd No - PowerPoint PPT Presentation

No ve mb e r 2017

F o rwa rd L o o king Sta te me nts a nd No n-GAAP Me a sure s In 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 c o mpa ny's filing s with the Se c uritie s a nd E xc ha ng e Co mmissio n. E BIT 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 BIT DA yie ld is de fine d a s tra iling twe lve mo nth E BIT DA divide d b y the purc ha se pric e o r de b t a mo unt. 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 BIT DA flo w-thro ug h is the c ha ng e in Ho te l E BIT DA divide d b y the c ha ng e in to ta l re ve nue s. E BIT 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 o r in the a ppe ndix to this pre se nta tio n. 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, Inc . 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

Ma na g e me nt T e a m D OUGL AS A. K E R SSL E D E RIC S. E UBANKS , CF A J E MY J. W E R RE L T E Chie f E xe c utive Offic e r & Chie f F inanc ial Offic e r E VP o f Asse t Manag e me nt Pre side nt    33 ye a rs o f re a l e sta te & 17 ye a rs o f ho spita lity e xpe rie nc e 12 ye a rs o f ho spita lity e xpe rie nc e  ho spita lity e xpe rie nc e  7 ye a rs with Ashfo rd (5 ye a rs with 14 ye a rs with Ashfo rd  Ashfo rd pre de c e sso r) 15 ye a rs with Ashfo rd  3 ye a rs with Club Co rp  5 ye a rs with Ste phe ns Inve stme nt  10 ye a rs with Go ldma n Sa c hs  CF A c ha rte rho lde r Ba nk  Sta nfo rd BA, MBA   So uthe rn Me tho dist Unive rsity BBA Okla ho ma Sta te Unive rsity BS D AVID A. B ROOKS M ARK L . N UNNE Y J. R OBISON H AYS L E Chie f Ope rating Offic e r, Chie f Ac c o unting Offic e r Chie f Strate g y Offic e r Ge ne ral Co unse l    32 ye a rs o f ho spita lity & le g a l 32 ye a rs o f ho spita lity e xpe rie nc e 12 ye a rs o f ho spita lity e xpe rie nc e e xpe rie nc e   14 ye a rs with Ashfo rd (18 ye a rs 12 ye a rs with Ashfo rd  14 ye a rs with Ashfo rd (11 ye a rs with Ashfo rd pre de c e sso r)  3 ye a rs o f M&A e xpe rie nc e a t with Ashfo rd pre de c e sso r)  Pe ppe rdine Unive rsity BS, Dre sse r Inc . & Me rrill L ync h  Unive rsity o f No rth T e xa s BS, Unive rsity o f Ho usto n MS, CPA  Princ e to n Unive rsity AB Unive rsity o f Ho usto n JD 3

Po rtfo lio Ove rvie w AS (2),(3) T OP T N M E RO A RE E T 120 25,000 T T M Hotel % of EBIT DA T otal Wa shing to n DC $45,405 9.8% Sa n F ra n/ Oa kla nd , C A $34,729 7.5% Hote ls Rooms L o s Ang eles, C A $33,971 7.3% New Yo rk/ New Jersey $30,237 6.5% Na shville, T N $26,734 5.8% B o sto n, MA $26,477 5.7% 31 $5.7B $122 Atla nta , GA $25,410 5.5% DF W, T X $25,123 5.4% Minn./ St. Pa ul, MN $15,678 3.4% oss Asse ts (1) (2) State s Gr Re vPAR Austin, T X $12,979 2.8% T ota l Portfolio $463,933 100.0% DA (2) P ORT IO BY H OT E BIT F OL E L Br and Pr ope r ty Manage r MSA Chainsc ale Inde p. Inde p. Inte r state Uppe r -Midsc ale 6% 4% <1% 3% IHG Othe r 4% Hyatt L uxur y 8% 4% 5% Mar r iott Upsc ale T op 50 31% 33% 19% Hilton Mar r iott T op 25 Re mington 28% 58% 73% 59% Uppe r -Upsc ale 55% Hilton 6% Hyatt 3% (1) As o f Se pte mb e r 30, 2017 4 (2) T T M a s o f Se pte mb e r 30, 2017 fo r the 120 o wne d ho te ls a s o f No ve mb e r 7, 2017 (3) Ho te l E BIT DA in tho usa nds

Ge o g ra phic a lly Dive rse L as Ve gas – 1.8% Dallas / F t. Wor th – 5.4% Minne apolis – 3.4% Indianapolis – 1.5% Boston – 5.7% Ne w Yor k – 6.5% Por tland – 2.1% Philade lphia – 1.7% San F r anc isc o – 7.5% Washington D.C. – 9.8% L os Ange le s – 7.3% Nashville – 5.8% Atlanta – 5.5% San Die go – 1.6% Savannah – 2.4% Phoe nix – 1.4% Jac ksonville – 2.3% Austin – 2.8% Or lando – 2.2% <1% Houston – 2.5% T ampa – 2.5% Ke y We st – 1.4% Miami – 2.4% No te : Pe rc e nt o f to ta l po rtfo lio Ho te l E BIT DA sho wn fo r the T T M pe rio d a s o f Se pte mb e r 30, 2017 5 fo r the 120 o wne d ho te ls a s o f No ve mb e r 7, 2017

Hig h Qua lity W Atla nta Do wnto wn Ma rrio tt Be ve rly HIlls Cro wne Pla za L a Co nc ha L e Pa villo n Atlanta, GA Be ve rly Hills, CA Ke y We st, F L Ne w Orle ans, L A One Oc e a n L e Me ridie n Minne a po lis W Minne a po lis T he Silve rsmith Jac kso nville , F L Minne apo lis, MN Minne apo lis, MN Chic ag o , I L T he Churc hill Re na issa nc e Na shville Hya tt Sa va nna h Washing to n D.C. Nashville , T N Savannah, GA Hya tt Co ra l Ga b le s Co ral Gab le s, F L 6

Ove rvie w Opportunistic pla tform foc use d on uppe r upsc a le , Hig he st inside r owne rship full- se rvic e hote ls Disc ipline d c a pita l Alig ne d a dvisory struc ture ma na g e me nt T a rg e ts de bt le ve ls of 55- 60% Attra c tive divide nd yie ld ne t de bt/ g ross a sse ts T a rg e ts c a sh le ve l of 25- 30% Supe rior long - te rm tota l of tota l e quity ma rke t c a p sha re holde r re turn 7

F ull-Se rvic e Ra tio na le F E A CQUISIT ION Y IE DS V AL UE - A DD O PPORT S AVORABL L UNIT IE 6.5% 8.5% 39% L ow E nd Hig h E nd a nc hise d Uppe r Upsc a le Rooms a s a % o f Manag e me nt E stimate s F r T o ta l Uppe r Upsc a le Cha in Sc a le Se g me nt (1) A T IVE S UPPL Y F S T RACT UNDAME NT AL 170 BPS 150 BPS L OWE R L OWE R 4.0% 3.5% 3.5% 3.1% 3.0% 2.5% 2.0% 2.0% 1.4% 1.5% 1.0% W Atla nta Downtown 0.5% Atlanta, GA 0.0% 10-YR 2018E (2) Uppe r-Upsc a le Othe r Cha insc a le s (1) E stima te b a se d upo n MAR, HL T , H, a nd IHG b ra nde d ro o ms 8 (2) Othe r c ha in sc a le s inc lude luxury, upsc a le , a nd uppe r midsc a le So urc e : PWC, ST R, Blo o mb e rg & Co mpa ny F iling s

Disc ipline d Ca pita l Ma na g e me nt T ra c k re c o rd o f inc r ns b y c a pita lizing upo n e asing shar e holde r r e tur c yc lic a l c ha ng e s a nd a dva nta g e o us pric ing situa tio ns C OMMON S HARE B UYBACKS 73.6M 50% $3.28 $1,400 Of Outsta nding Ave ra g e F ina nc ia l Crisis Sha r e s Sha re s Buyba c k $1,200 $200 R P RE D E Y A CT Y E CE NT F E RRE QUIT IVIT $1,000 2016 2017 9.0%  7.4% 8.5%  7.5% $800 $400 Millio ns Old Coupon Ne w Coupon Old Coupon Ne w Coupon $600 $18 ~$2M in total annual inc r e me ntal c ash savings $400 $116 $574 $73 $200 $65 $305 $76 $112 $10 $52 $275 $90 $218 $11 $45 $170 $147 $112 $97 $95 $90 $89 $81 $17 $68 $72 $0 (1) 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Co mmo n Ra ise s Co mmo n Buyb a c ks Pre fe rre d Ra ise s Pre fe rre d Buyb a c ks / Re de mptio ns (1) T hro ug h Oc to b e r 2017 9