Hotel Online  Special Report

 Ashford Hospitality Trust, Inc. Acquires Four-property
Portfolio from Day Hospitality Group
for $25,860,000 in Cash


DALLAS - July 26, 2004 -- Ashford Hospitality Trust, Inc. (NYSE: AHT):

Transaction Highlights:

  • Acquired at 9.5x trailing twelve-month EBITDA multiple
  • Combined market RevPAR up 7% YTD
  • Increases direct hotel portfolio to 23 assets totaling 3,469 rooms
Ashford Hospitality Trust, Inc. today announced it has completed the acquisition of a four-property, 365-room portfolio from Day Hospitality Group for $25,860,000 in cash. The acquisition includes a contingent component of consideration to be paid, if earned, no later than April 30, 2005. The purchase price equates to a 9.5x trailing twelve-month EBITDA multiple (without taking into account the contingent consideration, if earned), and an EBITDA yield of 10.5%. The trailing twelve month net operating income capitalization rate is 9.4%. The properties have combined annual gross revenues of approximately $8,000,000.

The contingent part of the purchase price is based on 25% of the difference between (i) the value of the properties derived by dividing the trailing 12-month net operating income for the properties as of December 31, 2004, by a net operating income capitalization rate of 9.4%, less (ii) the stated purchase price of $25,860,000.

The portfolio consists of the following Hilton and Marriott branded hotels in greater Atlanta, Georgia: 

Hampton Inn - Mall of Georgia in Buford
SpringHill Suites by Marriott - Mall of Georgia in Buford
SpringHill Suites by Marriott in Kennesaw
Fairfield Inn & Suites in Kennesaw

Day Hospitality Group will continue to operate the four properties under incentive-based, three-year management agreements.

Commenting on the announcement, Monty J. Bennett, President and CEO of Ashford Hospitality Trust, said, "These four properties are accretive additions to our growing portfolio. The combination of great brands, strong RevPAR growth in these two sub-markets and an experienced select service operator should be a winning formula for us. With this acquisition, we have now invested approximately $410 million in capital since our IPO."

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
Douglas Kessler, 972-490-9600
Also See: The Sea Turtle Inn, a 193-room, Independently Operated Resort in Atlantic Beach, Florida, Acquired by Ashford Hospitality Trust for $23,100,000 / February 2004
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

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