Ashford Hospitality Trust Originates $8 Million Mezzanine Loan on Hyatt Regency Philadelphia
April 18 2005 - 6:28PM
PR Newswire (US)
Ashford Hospitality Trust Originates $8 Million Mezzanine Loan on
Hyatt Regency Philadelphia Transaction Highlights: DALLAS, April 18
/PRNewswire-FirstCall/ -- Ashford Hospitality Trust, Inc.
(NYSE:AHT) today announced it has closed on an $8 million,
five-year mezzanine loan on the 350-room Hyatt Regency Philadelphia
at Penn's Landing in Philadelphia, PA. The loan bears interest at a
fixed rate of 14% for the first year and increases 100 basis points
each year of the term until 18% in year five. Maturing in April
2010, the loan is locked out from prepayment through December 2007.
Ashford received an origination fee of 2.56%. Financing on the
Hyatt Regency Philadelphia includes a first mortgage of
approximately $45 million by Credit Suisse First Boston and the $8
million mezzanine loan originated by Ashford. Ashford's investment
in the capital structure is approximately 69% to 82% loan to value.
The borrower is the Keating Group, who are prominent Philadelphia
developers. The hotel is managed by Hyatt. Built in 2000, the Hyatt
Regency Philadelphia at Penn's Landing is a 350- room landmark
hotel located on Philadelphia's revitalized Delaware River
waterfront. Located on the eastern edge of downtown, Philadelphia's
newest hotel has immediate access to the exciting Dock Street
shopping and entertainment area. The 22-story tower features
spectacular views of the Delaware River and the impressive downtown
skyline. The hotel also includes 24,000 square feet of meeting
space on two floors with two ballrooms, seven meeting rooms and one
boardroom. Other amenities include a fitness center with
glass-enclosed indoor pool, 24-hour business center, attached
six-story parking garage, high-speed Internet access and Keating's
Bar and Restaurant. Commenting on the announcement, Monty J.
Bennett, President and CEO of Ashford Hospitality Trust, stated,
"Hyatt Regency Philadelphia at Penn's Landing is a well-known
hotel, with a superb location, proven sponsorship and a strong
brand. This loan demonstrates the flexibility of our lending
program as we were able to offer a fixed-rate loan with locked
interest rate steps tailored to the needs of the borrower. With
excellent debt service coverage and improving fundamentals at the
property, this loan is a strong addition to our investment
portfolio." 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 impact of the financing 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. 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, COO 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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