Ashford Hospitality Trust Originates $8.5 Million Mezzanine Loan on Embassy Suites Anaheim
May 31 2005 - 6:33PM
PR Newswire (US)
Ashford Hospitality Trust Originates $8.5 Million Mezzanine Loan on
Embassy Suites Anaheim Transaction Highlights: DALLAS, May 31
/PRNewswire-FirstCall/ -- Ashford Hospitality Trust, Inc.
(NYSE:AHT) today announced it has closed on an $8.5 million,
two-year mezzanine loan on the 375-room Embassy Suites Anaheim -
South, adjacent to Disneyland(R) Resort in Garden Grove, CA. The
loan bears interest at a rate of 975 basis points over LIBOR with a
two-year term and three one-year extension options. Ashford
received an origination fee of 1%. Financing on the Embassy Suites
Anaheim - South includes a first mortgage of approximately $28.5
million by JPMorgan Chase Bank, N.A. and the $8.5 million mezzanine
loan originated by Ashford. Ashford's investment in the capital
structure is approximately 58% to 76% loan to value, and trailing
twelve month debt service coverage is 1.18x. The borrower is
Landmark Mezzanine, LLC, and the hotel is managed by Hilton Hotels.
Opened in 2001, the 14-story hotel has 375 rooms and 10,980 square
feet of meeting space. One of the newest hotels in the market, the
Embassy Suites Anaheim - South is adjacent to the Disneyland(R)
Resort, Disney's California Adventure, Downtown Disney CA and the
Anaheim Convention Center. The full- service, upscale all-suites
hotel is conveniently located to other major attractions in the
area and within walking distance of several restaurants and retail
centers. Commenting on the announcement, Monty J. Bennett,
President and CEO of Ashford Hospitality Trust, stated, "The
Embassy Suites Anaheim - South is an excellent addition to our loan
portfolio. With strong operating trends, this is a high quality,
stable asset located in an improving RevPAR environment. The
hotel's all-suites offering is clearly an advantage in the leisure
segment of the Anaheim resort market. The strong debt service
coverage, experienced sponsorship and hotel management, together
with our knowledge of the Anaheim market made a very compelling
investment case." 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. Contact: Douglas Kessler COO and Head of
Acquisitions (972) 490-9600 Tripp Sullivan Corporate
Communications, Inc. (615) 254-3376 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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