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8-K - FORM 8-K - ASHFORD HOSPITALITY TRUST INC | d80410e8vk.htm |
Exhibit 99.1
NEWS RELEASE |
Contact:
|
Douglas Kessler President (972) 490-9600 |
Tripp Sullivan Corporate Communications, Inc. (615) 324-7335 |
ASHFORD HOSPITALITY SELLS HILTON RYE TOWN FOR $35.5 MILLION
DALLAS (March 7, 2011) Ashford Hospitality Trust, Inc. (NYSE: AHT) today announced it has
completed the sale of the Hilton Rye Town in Rye Brook, New York for $35.5 million in cash to an
investment group spearheaded by Lodging Capital Partners. Ashford used the proceeds from the sale
to reduce borrowings on its credit facility.
Monty Bennett, CEO of Ashford, noted, We are pleased to complete the accretive sale of this hotel
that exhibited no positive operating cash flow over the past year. In 2011, we have already
generated in excess of $130 million in gross proceeds that have been used to reduce our debt levels
and free up capacity on our line of credit.
* * * * *
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 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.
-END-
14185 Dallas Parkway, Suite 1100, Dallas, TX 75254 | Phone: (972) 490-9600 |