Hotel Online  Special Report

Ashford Hospitality Trust Acquiring the 157-room
Hilton Santa Fe in Santa Fe, NM, for $18.2 million


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.
Acquisition Highlights:
  • 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 rooms

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 Ashford. 

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 included new 

Hilton Santa Fe
100 Sandoval Street
Santa Fe, New Mexico 
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.

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 to us."

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. 


Ashford Hospitality Trust, Inc.
Douglas Kessler
Chief Operating Officer and Head of Acquisitions
(972) 490-9600
Web Site:

Also See: Ashford Hospitality Trust to Acquire 21-Hotel Portfolio for $250 Million; Transaction Increases Management's Ownership Interest in Ashford / January 2005
Ashford Hospitality Trust, Inc. Acquires Four-property Portfolio from Day Hospitality Group for $25,860,000 in Cash / July 2004
The Pueblo of Pojoaque and Hilton Hotels Begin Construction on a $250 million Destination Resort Near Santa Fe, New Mexico / March 2004

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