|DALLAS, March 9, 2005 - Ashford Hospitality Trust, Inc. (NYSE: AHT)
announced it has signed a definitive agreement to acquire the 157-room
Hilton Santa Fe in Santa Fe, NM, for $18.2 million in cash from Santa Fe
Hotel Joint Venture.
Acquired at forward twelve-month cap rate of 8.8%, EBITDA multiple of 9.2x,
EBITDA yield of 10.8%, and value per key of $116,000
Provides entry to a market with high barriers to entry
Ashford's direct hotel portfolio to increase to 55 assets totaling 9,346
The purchase price equates to a 9.2x forward twelve-month EBITDA multiple,
an EBITDA yield of 10.8% and a forward twelve-month net operating income
capitalization rate of 8.8%. The property generated revenues of $7.7 million
in 2004. The trailing twelve month unleveraged EBITDA yield is 8.1% and
the net operating income capitalization rate is 6.4%. The acquisition is
expected to close in March 2005. Solid Rock Advisors, Inc. represented
bedding packages, soft goods and case goods in all rooms as well as flat
screen televisions. Ashford intends to invest an additional $2.5 million
in brand PIP requirements and other improvements in 2005. Remington
Lodging & Hospitality, L.P. will manage the property.
|Opened in 1971, the Hilton Santa
Fe has 157 rooms and 6,400 square feet of state-of-the-art meeting space.
Located in the heart of historic downtown Santa Fe, the hotel is within
walking distance to art galleries, shopping, restaurants, museums and cultural
sites. The hotel features three restaurants, including the award-winning
Pinon Grill, a courtyard oasis with poolside fireplace and hot tub, fitness
center, and wireless Internet access. The Hilton Santa Fe is also conveniently
located near the Santa Fe Ski Basin and minutes from legendary golf courses.
The Hilton Santa Fe recently completed a $1.2 million renovation that
Hilton Santa Fe
100 Sandoval Street
Santa Fe, New Mexico
Monty J. Bennett, President and CEO of Ashford Hospitality Trust, said,
"The Hilton Santa Fe is an excellent opportunity to add to our investment
portfolio a high quality hotel with a strong brand in a superb location.
With the high barrier to entry in the historic downtown area and the stable
operating environment in the market, we believe there is a significant
opportunity to increase the RevPAR penetration and EBITDA flow through
of this asset once the renovation is completed. The possible expansion
for guestrooms, spa and/or additional meeting space is also very attractive
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.