News for the Hospitality Executive
|DALLAS - December 7, 2006 - Ashford Hospitality Trust,
Inc. (NYSE: AHT) today announced that it has completed the acquisition
of seven full-service, upper-upscale hotels totaling 2,004 rooms for $267.2
million in cash ($133,333 per key).
Ashford intends to invest approximately $40.0 million in revenue-generating brand improvements during the next 12 months. The purchase price represents a trailing 12-month cap rate of 6.0% on net operating income, an EBITDA yield of 7.5% and a 13.4x EBITDA multiple. The acquisition was funded with proceeds from a $212 million first mortgage from Countrywide Commercial Real Estate Finance and proceeds from the Company's July 2006 follow-on offering. The Countrywide interest-only loan, which is secured by the seven hotels, has a three-year term, bears interest at a rate of LIBOR plus 172 basis points and is locked from prepayment for the first 18 months. The loan also provides for an additional funding of $35.0 million for capital expenditures related to the value-added improvements planned for the hotels.
Monty Bennett, President and CEO of Ashford Hospitality Trust, said, "We are pleased to complete this acquisition and move forward with the value-added capital improvements and aggressive property management plan our asset management team has crafted that will enhance both top and bottom-line performance. The attractive financing we were able to secure on this portfolio not only provides us the flexibility to fund this asset management plan but also pursue potential capital recycling with the Trumbull and Iowa City hotels. We fully expect that these well-branded, full-service hotels will generate returns consistent with previous portfolios we have acquired and aggressively asset managed."
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 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.
Ashford Hospitality Trust, Inc.
|Also See:||Ashford Hospitality Trust Finalizes Acquisition of 30-Hotel Portfolio for $465 Million from CNL Hotels & Resorts / June 2005|
|Ashford Hospitality Trust to Acquire 21-Hotel Portfolio for $250 Million; Transaction Increases Management's Ownership Interest in Ashford / January 2005|
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