Ashford Acquires Hilton Santa Fe for $18.2 Million
March 23 2005 - 8:30AM
PR Newswire (US)
Ashford Acquires Hilton Santa Fe for $18.2 Million Acquisition
Highlights: DALLAS, March 23 /PRNewswire-FirstCall/ -- Ashford
Hospitality Trust, Inc. (NYSE:AHT) announced it has completed the
acquisition of the 157-room Hilton Santa Fe in Santa Fe, NM, for
$18.2 million in cash from Santa Fe Hotel Joint Venture. The
acquisition increases Ashford's direct hotel portfolio 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%. 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 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 assume management of the property.
Monty J. Bennett, President and CEO of Ashford Hospitality Trust,
said, "We are pleased with our strong investment pace early in
2005. The addition of the Hilton Santa Fe and our recently
completed acquisition of 21 hotels for $250 million bring our level
of investments to an even stronger pace than that achieved in the
first quarter a year ago. We intend to start work on improvements
to the Hilton Santa Fe as soon as practical to position this
property for increased RevPAR penetration and EBITDA flow through
next year." 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. Additional
information can be found on the Company's web site at
http://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 forward EBITDA multiple, the forward income
capitalization rate, the forward EBITDA yield, 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
Ashford's 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 Ashford's 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 property's annual net operating income by the purchase price.
Net operating income is the property's funds from operations minus
a capital expense reserve of 4% 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. DATASOURCE:
Ashford Hospitality Trust, Inc. CONTACT: Douglas Kessler, Chief
Operating Officer and Head of Acquisitions of Ashford Hospitality
Trust, Inc., +1-972-490-9600, or Tripp Sullivan of Corporate
Communications, Inc., +1-615-254-3376 Web site:
http://www.ahtreit.com/
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