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Ashford Hospitality Trust, Inc. Selling Eight Residence Inns
to Schuylkill, LLC for $102 million
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  • Eight non-core properties to sell for $102 million
  • Sale boosts yield on remaining assets from 30 property portfolio
  • Total gross proceeds from all non-core sales to reach $128.5 million
DALLAS, Nov. 28, 2005 - Ashford Hospitality Trust, Inc.  (NYSE: AHT) today announced it has placed eight non-core hotels under contract for sale to Schuylkill, LLC for a total sales price of $102 million. The sale price includes $93.7 million of existing financing that will be assumed by the buyer. The closing is subject to standard conditions and is expected to take place in the next 60 days. Molinaro Koger brokered the transaction for Ashford.

The hotels, which are all Generation One Residence Inns, were acquired by Ashford in June 2005 as part of the 30-hotel portfolio acquired from CNL Hotels and Resorts. The Residence Inns are located in 

  • Fishkill, NY; 
  • Ft. Worth, TX; 
  • Orlando, FL; 
  • Tyler, TX; 
  • Ann Arbor, MI; 
  • Providence, RI; 
  • Sacramento, CA; and 
  • Wilmington, DE. 
Collectively, the properties are being sold at an 8.9% net operating income capitalization rate on trailing 12-month net operating income and on a 9.5x EBITDA multiple. The hotels had been designated as non-core properties along with nine other hotels. The remaining 15 core hotels from the original 30 hotels purchased currently produce a trailing 12-month net operating income return of 9.2% based upon their original allocated purchase price.

Monty J. Bennett, President and Chief Executive Officer of Ashford, commented, “The sale of these 8 non-core hotels demonstrates our proactive approach to recycling capital. Our strategy to sell these hotels combined with the favorable financing we arranged enhances the returns on the remaining higher quality assets. We intend to remain a recycler of capital rather than a property aggregator. In doing so, we expect to better match potential sources and uses of capital to achieve dividend and CAD growth as well as increased shareholder returns.”

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. 

Additional information can be found on the Company’s web site at http://www.ahtreit.com.

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. 

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Contact:

Ashford Hospitality Trust, Inc.
Douglas Kessler
COO and Head of Acquisitions
(972) 490-9600
Web Site: http://www.ahtreit.com

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Also See: Ashford Hospitality Trust Finalizes Acquisition of 30-Hotel Portfolio for $465 Million from CNL Hotels & Resorts / June 2005

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