Ashford Hospitality Trust Secures $212 Million in New Long-Term, Fixed-Rate Financing
November 17 2005 - 5:08PM
PR Newswire (US)
DALLAS, Nov. 17 /PRNewswire-FirstCall/ -- Ashford Hospitality
Trust, Inc. (NYSE:AHT) today announced it has closed a $212 million
fixed-rate financing with UBS Real Estate Investments, Inc. The new
loan is comprised of a $111 million loan at an interest rate of
5.75% and term of nine years with interest only payments for four
years and a $101 million loan at an interest rate of 5.70% and a
term of ten years with interest only payments for five years. The
two loans are secured by a total of 16 hotels. The new loan
refinances $210 million in floating-rate debt at a rate of 195
basis points over LIBOR secured by a 25 hotel portfolio that the
Company financed last year, and $6.2 million of debt at a fixed
rate of 7.08% secured by a single hotel. In connection with the
refinancing, the Company expects to incur a one-time expense
totaling approximately $4.9 million, or $0.08 per diluted share, in
the fourth quarter of 2005 for an exit fee and the write-off of
unamortized loan costs. "We have been very proactive in locking in
favorable long-term, fixed-rate financing with flexible terms. Our
recent financing initiatives, which are virtually complete, have
expanded our unencumbered asset base while reducing our weighted
average fixed cost of debt to 5.5%. We were also able to lengthen
our weighted average maturity to 10 years, and fixed the rate on
approximately 93% of our non-revolving debt," said Monty J.
Bennett, President and CEO of Ashford Hospitality Trust. 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 Web site:
http://www.ahtreit.com/
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