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Hilton Santa Fe in Santa Fe, NM, for $18.2 million |
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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.
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.
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. |
Contact:
Ashford Hospitality Trust, Inc.
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