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Ce rta in sta te me nts a nd a ssumptio ns in this pre se nta tio n c o nta in o r a re b a se d upo n “fo rwa rd-lo o king ” info rma tio n a nd a re b e ing ma de pursua nt to the sa fe ha rb o r pro visio ns o f the Priva te Se c uritie s L itig a tio n Re fo rm Ac t o f 1995. T he se fo rwa rd-lo o king sta te me nts a re sub je c t to risks a nd unc e rta intie s. 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, a nd pro je c te d c a pita l e xpe nditure s. Suc h sta te me nts a re sub je c t to nume ro us a ssumptio ns a nd unc e rta intie s, ma ny o f whic h a re o utside o f o ur c o ntro l. 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, the g e ne ra l e c o no my o r the ho spita lity industry, whe the r the re sult o f ma rke t e ve nts o r o the rwise ; o ur a b ility to de plo y c a pita l a nd ra ise a dditio na l c a pita l a t re a so na b le c o sts to re pa y de b ts, inve st in o ur pro pe rtie s a nd fund future a c q uisitio ns; una ntic ipa te d inc re a se s in fina nc ing a nd o the r c o sts, inc luding a rise in inte re st ra te s; the de g re e a nd na ture o f o ur c o mpe titio n; a c tua l a nd po te ntia l c o nflic ts o f inte re st with Ashfo rd Ho spita lity T rust, I nc ., Ashfo rd Ho spita lity Adviso rs, L L C (“Ashfo rd L L C”), Ashfo rd I nc ., Re ming to n L
- dg ing & Ho spita lity, L
L C, o ur e xe c utive o ffic e rs a nd o ur no n-inde pe nde nt dire c to rs; o ur a b ility to imple me nt a nd e xe c ute o n pla nne d initia tive s a nno unc e d in c o nne c tio n with the c o nc lusio n o f o ur inde pe nde nt dire c to rs’ stra te g ic re vie w pro c e ss; c ha ng e s in pe rso nne l o f Ashfo rd L L C o r the la c k o f a va ila b ility o f q ua lifie d pe rso nne l; c ha ng e s in g o ve rnme nta l re g ula tio ns, a c c o unting rule s, ta x ra te s a nd simila r ma tte rs; le g isla tive a nd re g ula to ry c ha ng e s, inc luding c ha ng e s to the I nte rna l Re ve nue Co de a nd re la te d rule s, re g ula tio ns a nd inte rpre ta tio ns g o ve rning the ta xa tio n o f re a l e sta te inve stme nt trusts (“RE I T s”); a nd limita tio ns impo se d o n o ur b usine ss a nd o ur a b ility to sa tisfy c o mple x rule s in o rde r fo r us to q ua lify a s a RE I T fo r U.S. fe de ra l inc o me ta x purpo se s. T he se a nd o the r risk fa c to rs a re mo re fully disc usse d in the se c tio n e ntitle d “Risk F a c to rs” in o ur Annua l Re po rt o n F
- rm 10-K
, a nd fro m time to time , in o ur o the r filing s with the Se c uritie s a nd E xc ha ng e Co mmissio n (“SE C”). T he fo rwa rd-lo o king sta te me nts inc lude d in this pre se nta tio n a re o nly ma de a s o f the da te o f this pre se nta tio n. I nve sto rs sho uld no t pla c e undue re lia nc e o n the se fo rwa rd-lo o king sta te me nts. We a re no t o b lig a te d to pub lic ly upda te o r re vise a ny fo rwa rd-lo o king sta te me nts, whe the r a s a re sult o f ne w info rma tio n, future e ve nts o r c irc umsta nc e s, c ha ng e s in e xpe c ta tio ns o r o the rwise . 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
- 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 Prime
- 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.
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