Ashford Hospitality Trust Completes Sale of Two Non-Core Hotels for $11.0 Million
January 23 2006 - 9:01AM
PR Newswire (US)
DALLAS, Jan. 23 /PRNewswire-FirstCall/ -- Ashford Hospitality
Trust, Inc. (NYSE:AHT) today announced it has completed the sale of
two non-core hotels for a total sale price of $11.0 million.
Acquired by Ashford in March 2005 as part of a 21-hotel portfolio,
the 110-room Commack Howard Johnson in Commack, NY, and the 80-room
Westbury Howard Johnson in Jericho, NY, had been designated as
non-core properties along with six other hotels in this portfolio.
CB Richard Ellis brokered the transactions for Ashford.
Collectively, the properties were sold at a 1.2% net operating
income capitalization rate on trailing 12-month net operating
income. Monty J. Bennett, President and Chief Executive Officer of
Ashford, commented, "This transaction completes the sale of
non-core hotels from our March 2005 portfolio acquisition and
brings the total capital recycled from that transaction to $37.5
million. This capital has been reinvested in value- added
renovations as well as in our active investment program. With
another eight non-core hotels to be sold in the first quarter from
our 30-hotel portfolio acquisition in June 2005, we are focused on
our strategy of capital recycling." 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 First
Call Analyst: FCMN Contact: 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/
Copyright
Ashford Hospitality (NYSE:AHT)
Historical Stock Chart
From May 2024 to Jun 2024
Ashford Hospitality (NYSE:AHT)
Historical Stock Chart
From Jun 2023 to Jun 2024