Ashford Hospitality Trust Originates $5.6 Million Mezzanine Loan on Sheraton Gunter in San Antonio
July 13 2005 - 9:30AM
PR Newswire (US)
Ashford Hospitality Trust Originates $5.6 Million Mezzanine Loan on
Sheraton Gunter in San Antonio Transaction Highlights: DALLAS, July
13 /PRNewswire-FirstCall/ -- Ashford Hospitality Trust, Inc.
(NYSE:AHT) today announced it has closed on a $5.6 million,
three-year mezzanine loan on the Sheraton Gunter in San Antonio,
Texas. The loan bears interest at a rate of LIBOR plus 950 basis
points for a term of three years with a one-year extension option
based on a net operating income test. The loan is interest only and
locked from prepayment for the first 12 months, with yield
maintenance requirements for prepayment during months 13 through
18. Principal payments based on a 25-year amortization commence in
month 19. Financing on the Sheraton Gunter includes a first
mortgage of $24.9 million by Merrill Lynch Capital, a division of
Merrill Lynch Business Financial Services, Inc., and the $5.6
million mezzanine loan originated by Ashford. Ashford will receive
a 1% origination fee as well as a 1% exit fee. Ashford's investment
in the capital structure is approximately 60% to 74% loan to value,
and trailing twelve month debt service coverage is 1.07x. The hotel
is owned and managed by American Property Management Company. The
historic Sheraton Gunter Hotel opened in 1909 and has 322 rooms,
19,000 square feet of meeting space and a restaurant, bar and
bakery. Located in the heart of Downtown San Antonio and only one
block from the famous San Antonio River Walk, the historic hotel
offers convenient access to its many restaurants, night clubs, and
shops. The Sheraton Gunter has recently begun a $5 million
renovation to its guestrooms and corridors. Commenting on the
announcement, Monty J. Bennett, President and CEO of Ashford
Hospitality Trust, stated, "The Sheraton Gunter is an excellent
addition to our growing loan portfolio. This historic full-service
hotel benefits from a strong brand as well as the expected
improvement in its competitive positioning with the $5 million
renovation. A stable base of meetings and convention business as
well as a growing tourist demand to the culturally rich San Antonio
make this an attractive market. We are pleased to work with
American Property Management to meet their capital needs." 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 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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