Ashford Hospitality Trust Completes Sale of Three Non-Core Hotels for $18.85 Million
June 16 2005 - 5:00PM
PR Newswire (US)
Ashford Hospitality Trust Completes Sale of Three Non-Core Hotels
for $18.85 Million DALLAS, June 16 /PRNewswire-FirstCall/ --
Ashford Hospitality Trust, Inc. (NYSE:AHT) today announced it has
completed the sale of three non-core hotels for a total sale price
of $18.85 million. Acquired by Ashford in March 2005 as part of a
21-hotel portfolio, the 168-room Holiday Inn Coral Gables in Coral
Gables, Fla., the 72-room Inn on the Square in Falmouth, Mass., and
the 136-room Gull Wing Suites in South Yarmouth, Mass., had been
designated as non-core properties along with five other hotels in
this portfolio (two of which remain under contract for sale). CB
Richard Ellis and Molinaro Koger brokered the transactions for
Ashford. Collectively, the properties were sold at a 3.8% net
operating income capitalization rate on trailing 12-month net
operating income and on a 19.5x EBITDA multiple. Monty J. Bennett,
President and Chief Executive Officer of Ashford, commented, "We
are pleased to remain on schedule on the disposition of our
non-core hotels. With the two remaining hotels expected to close
later this year for total proceeds of $11 million, we have been
able to lower the net purchase price for the remaining 13 core
hotels in this 21-hotel portfolio to $212.5 million and raise the
trailing 12-month net operating income cap rate as of April 2005 to
11% and the trailing 12-month EBITDA yield to 13% on the core
portfolio. This transaction has once again demonstrated Ashford's
ability to quickly and accretively assimilate large portfolios."
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
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.
EBIDTA 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. Contact:
Douglas Kessler Tripp Sullivan COO and Head of Acquisitions
Corporate Communications, Inc. (972) 490-9600 (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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