Portfolio from Day Hospitality Group
for $25,860,000 in Cash
|DALLAS - July 26, 2004 -- Ashford Hospitality Trust, Inc. (NYSE: AHT):
The contingent part of the purchase price is based on 25% of the difference between (i) the value of the properties derived by dividing the trailing 12-month net operating income for the properties as of December 31, 2004, by a net operating income capitalization rate of 9.4%, less (ii) the stated purchase price of $25,860,000.
The portfolio consists of the following Hilton and Marriott branded hotels in greater Atlanta, Georgia:
Hampton Inn - Mall of Georgia in Buford
Day Hospitality Group will continue to operate the four properties under incentive-based, three-year management agreements.
Commenting on the announcement, Monty J. Bennett, President and CEO of Ashford Hospitality Trust, said, "These four properties are accretive additions to our growing portfolio. The combination of great brands, strong RevPAR growth in these two sub-markets and an experienced select service operator should be a winning formula for us. With this acquisition, we have now invested approximately $410 million in capital since our IPO."
Ashford Hospitality Trust is a self-administered real estate investment trust focused exclusively on investing in the hospitality industry across all segments and at all levels of the capital structure, including direct hotel investments, first mortgages, mezzanine loans and sale-leaseback transactions.
Certain statements and assumptions in this press release contain or are based upon "forward-looking" information and are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Ashford Hospitality Trust
Douglas Kessler, 972-490-9600
|Also See:||The Sea Turtle Inn, a 193-room, Independently Operated Resort in Atlantic Beach, Florida, Acquired by Ashford Hospitality Trust for $23,100,000 / February 2004|
|Ashford Hospitality Trust Acquiring a Five-property, 894-suitePortfolio of Embassy Suites Hotels and Doubletree Guest Suites Hotels for $50.0 million in Cash / September 2003|