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 The Sea Turtle Inn, a 193-room, Independently Operated Resort in Atlantic Beach, Florida, Acquired by Ashford Hospitality Trust for $23,100,000
DALLAS - Feb. 26, 2004 --

Transaction Highlights: 

  • Acquired at an 8.2 first year EBITDA multiple
  • Asset enjoys strong reputation in high barrier to entry market
  • Consistent with stated investment strategy to acquire select independents
  • Direct hotel portfolio to increase to 17 assets totaling 2,784 rooms
Ashford Hospitality Trust, Inc. (NYSE:AHT) today announced it has signed a definitive agreement to acquire the Sea Turtle Inn, a 193-room, independently operated, full service beach front resort in Atlantic Beach, Florida, for total consideration of $23,100,000. The acquisition is expected to close in March 2004.
The purchase price includes approximately $4.9 million in cash, operating partnership units valued at approximately $2.5 million and the assumption of $15.7 million in debt, equating to a 10.1 trailing twelve month EBITDA multiple. The assumed first mortgage bears interest at a rate of 7.25% based on a 25-year amortization schedule and matures in December 2005. The operating partnership units will be issued at par based upon the average closing price of the Company's common shares for the week preceding the third business day 
before closing.

Located on 3.3 acres of beach front property in Atlantic Beach, the Sea Turtle Inn includes approximately 8,500 square feet of meeting space, an outdoor pool and banquet/restaurant facilities. Built in 1972, the property has been completely renovated recently with over $9 million of improvements. The only full service hotel in the Atlantic/Jacksonville Beach markets, the Sea Turtle Inn has established a loyal local following for both business and tourist travelers. Remington Lodging & Hospitality, L.P. will manage the property.

Monty J. Bennett, President and CEO of Ashford Hospitality Trust, stated, "We have focused our direct hotel investment strategy to date primarily on properties that were either under-managed, well below replacement cost or offered strategic diversification to our portfolio. The Sea Turtle Inn exceeds our investment hurdles by offering a strong initial yield, the opportunity to increase cash flow through enhanced cost controls, and an enviable competitive position in Atlantic, Jacksonville and Neptune Beaches due to current development and environmental restrictions."

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 Inc.
Douglas Kessler

Also See: 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
Smaller than Anticipated IPO Raised $202.5 million for Ashford Hospitality Trust / August 2003

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