Ashford Hospitality Trust Originates $3.0 Million Mezzanine Loan on Doubletree Albuquerque
October 04 2005 - 5:00PM
PR Newswire (US)
Transaction Highlights: - $3.0 Million Mezzanine Loan Secured by
Interests in Doubletree Albuquerque - Investment in the Capital
Structure is approximately 60% to 70% loan to value - Loan
Originations and Purchases Reach $135 Million - Loan Bears Interest
at LIBOR plus 1,115 Basis Points DALLAS, Oct. 4
/PRNewswire-FirstCall/ -- Ashford Hospitality Trust, Inc.
(NYSE:AHT) today announced it has closed on a $3.0 million,
three-year mezzanine loan on the Doubletree Albuquerque in
Albuquerque, New Mexico. The loan bears interest at a rate of LIBOR
plus 1,115 basis points for a term of three years with a one-year
extension option. The loan is interest only and locked from
prepayment for the first 12 months. Financing on the Doubletree
Albuquerque includes a first mortgage of $13.9 million by Merrill
Lynch Capital, a division of Merrill Lynch Business Financial
Services, Inc., and the $3.0 million mezzanine loan originated by
Ashford. Ashford will receive a 1% origination fee. Ashford's
investment in the capital structure is approximately 60% to 73%
loan to value. The hotel was recently acquired by ABQ Hotel
Ventures, LLC, an affiliate of American Property Management Company
(APMC), which will also assume management of the property. The
Doubletree Albuquerque opened in 1975 and has 295 rooms, 6,000
square feet of meeting space and one restaurant. Located in the
heart of downtown, just 3.6 miles from the Albuquerque
International Airport and two miles from the University of New
Mexico, the hotel is close to major office and government
buildings, in addition to attractions such as historic Old Town
Albuquerque and Galleria shops. The Doubletree Albuquerque is also
the only hotel connected to the 168,000-square-foot Albuquerque
Convention Center via an underground concourse. APMC is expected to
begin a $5.5 million renovation of the hotel to significantly
upgrade hotel guestrooms and public areas. Commenting on the
announcement, Monty J. Bennett, President and CEO of Ashford
Hospitality Trust, stated, "The Doubletree Albuquerque is a well-
located, full-service hotel that has a significant opportunity to
benefit from improved flow-through under new management and a
renovation that should enhance both its cash flow and value. We are
pleased to once again team with Merrill Lynch and American Property
Management Company to help fund the purchase and renovation of this
hotel." 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 or 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, for
Ashford Hospitality Trust, Inc. Web site: http://www.ahtreit.com/
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