Ashford Hospitality Trust Swaps Hotels with Hilton
December 17 2007 - 9:00AM
Business Wire
Ashford Hospitality Trust, Inc. (NYSE: AHT) today announced it has
restructured two of its joint ventures with Hilton Hotels resulting
in Ashford receiving 100% ownership in nine hotels and Hilton
receiving 100% ownership in two hotels. Ashford�s third joint
venture with Hilton concerning the Capital Hilton and the Hilton
LaJolla Torrey Pines was not restructured. The transaction is
expected to be earnings neutral to the Company. Of the 13 hotels
originally involved in the joint ventures, which the joint venture
interests were acquired by Ashford as part of the acquisition of
CNL Hotels & Resorts in April 2007, Ashford will have 100%
interest in: Hilton Dallas Lincoln Centre (482 rooms), Hilton
Tucson El Conquistador (338 rooms), Hilton Rye Town (435 rooms),
Embassy Suites Orlando Airport (163 rooms), Embassy Suites Santa
Clara (241 rooms), Embassy Suites Crystal City (267 rooms), Hilton
Suites Auburn Hills (224 rooms), Hilton Costa Mesa (474 rooms) and
Embassy Suites Portland (276 rooms). Hilton will have 100% interest
in: Hilton Miami Airport (419 rooms) and Doubletree Crystal City
(475 rooms). Ashford will retain 75% interest and Hilton will
retain 25% interest in: Capital Hilton (544 rooms) and Hilton
LaJolla Torrey Pines (394 rooms). Commenting on the announcement,
Monty J. Bennett, President and CEO of Ashford Hospitality Trust,
stated, "Although the strategic benefits of this exchange are more
long term in nature, we believe we benefited from the relative
valuations of this transaction. With full control of the hotels, we
will be able to more efficiently direct the operational, financing,
capital expenditure, and sale strategies. This transaction also
facilitates a reduction in our inherited overexposure to the
Crystal City-Washington, D.C. market, where we have our highest
concentration of hotel assets. We are pleased with the outcome of
this swap with Hilton, who remains one of our strongest brand
relations." 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
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. 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.
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