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8-K - FORM 8-K - ASHFORD HOSPITALITY TRUST INC | d80054e8vk.htm |
Exhibit 99.1
NEWS RELEASE | ||||||
Contact:
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Douglas Kessler | Tripp Sullivan | ||||
President | Corporate Communications, Inc. | |||||
(972) 490-9600 | (615) 324-7318 |
ASHFORD HOSPITALITY INCREASES LIQUIDITY WITH SALE OF JW MARRIOTT FOR $96.0 MILLION
DALLAS (February 24, 2011) Ashford Hospitality Trust, Inc. (NYSE: AHT) today announced it has
completed the sale of the JW Marriott San Francisco for $96.0 million in cash to an affiliate of
Thayer Lodging Group. The sale equates to an NOI capitalization rate of 3.7% on a trailing 12-month
basis.
Ashford used the proceeds from the sale to payoff a $47.5 million loan secured by the hotel that
was maturing in March 2013 and to reduce borrowings on its credit facility.
Monty Bennett, CEO of Ashford, noted, The very attractive pricing we were able to achieve on this
asset further improves our liquidity position and allows us to pursue other opportunities to create
value for our shareholders.
* * * * *
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, second mortgages, mezzanine loans and sale-leaseback
transactions. Additional information can be found on the Companys website 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. These forward-looking statements are subject to
risks and uncertainties. When we use the words will likely result, may, anticipate,
estimate, should, expect, believe, intend, or similar expressions, we intend to identify
forward-looking statements. Such forward-looking statements include, but are not limited to, the
timing for closing, the impact of the transaction on our business and future financial condition,
our business and investment strategy, our understanding of our competition and current market
trends and opportunities and projected capital expenditures. Such statements are subject to
numerous assumptions and uncertainties, many of which are outside Ashfords control.
These forward-looking statements are subject to known and unknown risks and uncertainties, which
could cause actual results to differ materially from those anticipated, including, without
limitation: general volatility of the capital markets and the market price of our common stock;
changes in our business or investment strategy; availability, terms and deployment of capital;
availability of qualified personnel; changes in our industry and the market in which we operate,
interest rates or the general economy; and the degree and nature of our competition. These and
other risk factors are more fully discussed in Ashfords filings with the Securities and Exchange
Commission. EBITDA is defined as net income before interest, taxes, depreciation and amortization.
EBITDA yield is defined as trailing twelve month EBITDA divided by the purchase price. A
capitalization rate is
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14185 Dallas Parkway, Suite 1100, Dallas, TX 75254 | Phone: (972) 490-9600 |
AHT Sells JW Marriott San Francisco
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February 24, 2011
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February 24, 2011
determined by dividing the propertys annual net operating income by the purchase price. Net
operating income is the propertys funds from operations minus a capital expense reserve of either
4% or 5% of gross revenues. Funds from operations (FFO), as defined by the White Paper on FFO
approved by the Board of Governors of the National Association of Real Estate Investment Trusts
(NAREIT) in April 2002, represents net income (loss) computed in accordance with generally
accepted accounting principles (GAAP), excluding gains (or losses) from sales or properties and
extraordinary items as defined by GAAP, plus depreciation and amortization of real estate assets,
and net of adjustments for the portion of these items related to unconsolidated entities and joint
ventures.
The forward-looking statements included in this press release are only made as of the date of this
press release. Investors should not place undue reliance on these forward-looking statements. We
are not obligated to publicly update or revise any forward-looking statements, whether as a result
of new information, future events or circumstances, changes in expectations or otherwise.
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