of 21-Hotel Portfolio for $250 Million
|DALLAS, March 17, 2005 - Ashford Hospitality Trust, Inc. (NYSE: AHT)
announced it has completed the acquisition of the 21-property, 4,094-room
hotel portfolio from entities controlled by affiliates of the Fisher Brothers,
the Gordon Getty Trust, and George Soros collectively as majority partners,
and certain members of Ashford's senior management team as minority partners
for total consideration of $250 million.
The purchase price is comprised of $35.0 million in cash, the issuance
of $50.3 million in operating partnership units, and the assumption of
$164.7 million in debt. The purchase price equates to an 8.8x trailing
twelve-month EBITDA multiple, an EBITDA yield of 11.4% and a trailing twelve-month
net operating income capitalization rate of 9.5% on the entire 21-hotel
portfolio based on a trailing 12-month NOI of $23.7 million. The average
cost of the assumed debt will be 7.1% following the repayment of approximately
a $14.7 million mezzanine loan.
The operating partnership units were priced at $10.07 using the 20-day average closing price calculated 5 business days prior to the signing of the definitive agreement in December 2004. Ashford management, comprising approximately 22% of the selling entity, structured approximately 100% of their net consideration in the form of operating partnership units. The Fisher, Getty, and Soros entities, comprising approximately 78% of the ownership interests in the selling entity, structured approximately 50% of their consideration in cash and 50% in operating partnership units.
The core portfolio consists of 13 hotels across 5 brands and one independent comprising 3,099 total rooms:
Ashford intends to spend approximately $30 million for capital improvements to the core properties. The scope and completion dates vary by property, but should largely be completed by the first quarter of 2006.
The non-core hotels include:
Ashford Hospitality Trust is a self-administered real estate investment trust focused 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
|Also See:||Owners of Radisson Plaza Hotel Bankroll Effort to Stop Fort Worth City Officials from Financing a Convention Center Hotel Without a Public Vote / Feb 2003|
|Ashford Hospitality Trust to Acquire 21-Hotel Portfolio for $250 Million; Transaction Increases Management's Ownership Interest in Ashford / January 2005|