Ashford Hospitality Completes $135.5 Million of Asset Sales
June 17 2008 - 4:00PM
Business Wire
Ashford Hospitality Trust, Inc. (NYSE: AHT) today announced that it
has completed the previously disclosed sales of the Hyatt Regency
Montreal in Montreal, Quebec for $57.5 million and, the Hyatt
Dulles Airport in Herndon, Virginia, for $78 million. For the Hyatt
Regency Montreal, the sales price in U.S. dollars equates to
approximately $95,000 per key, a 3.9% trailing 12-month NOI cap
rate, and a 16.2x trailing 12-month EBITDA multiple. The Hyatt
Dulles Airport sales price equates to $247,000 per key and a 7.5%
trailing 12-month NOI cap rate, and a 11.4x trailing 12-month
EBITDA multiple. The Company also announced that it has contracts
in place to sell two other assets: the Radisson Hotel in Rockland,
Massachusetts, and the Sheraton Milford in Milford, Massachusetts,
for a combined $20.9 million that equates to $70,000 per key and a
5.1% trailing 12 month cap rate, and a 17.5x trailing 12-month
EBITDA multiple. Both contracts are expected to close in the third
quarter, subject to customary closing conditions. Commenting on the
announcement, Monty Bennett, President and CEO, said, "We are
particularly pleased to close these transactions in light of the
challenging current market conditions. Year to date, we have closed
or announced asset sales of $238 million. We continue to position
the portfolio for long-term success and recycle capital from asset
sales into debt paydown, mezzanine loans, share repurchase, and
capital expenditure.� 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
timing for closing, 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. EBITDA 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 either 4% or 5% 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.
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