Ashford Hospitality Trust Completes $148 Million of Asset Sales
October 28 2008 - 4:00PM
Business Wire
Ashford Hospitality Trust, Inc. (NYSE: AHT) today announced that
since July 1, 2008 the Company completed a total of $148.2 million
in asset sales. To date in 2008, the Company has completed $437
million in asset sales. The third quarter activity included the
sale of the Radisson Hotel in Rockland, Massachusetts and the
Sheraton Milford in Milford, Massachusetts in July and the Radisson
Hotel MacArthur Airport in Holtsville, New York in September. The
Hyatt Regency Orange County in Anaheim, California sold in early
October. The four sales in aggregate represent a price of
approximately $130,000 per key, a 7.8% trailing 12-month NOI cap
rate and a 10.6x trailing 12-month EBITDA multiple. Ashford expects
to record a net gain of approximately $42 million associated with
the sales and does not anticipate that the net gains will result in
the requirement for any special dividends for 2008. Year to date
2008 Ashford has sold ten assets for a combined sales price of $437
million. The ten sales in aggregate represent a price of
approximately $133,000 per key, a 6.6% trailing 12-month NOI cap
rate and a 12.0x trailing 12-month EBITDA multiple. Monty Bennett,
President and CEO of Ashford, noted, �Our disposition activity
continues to fund the recycling of capital into stock repurchases
and capital preservation. As a result of these recent sales, we
were also able to eliminate approximately $112 million of mortgage
debt. We are pleased with our asset sales progress and pricing
despite capital markets disruption and the slower transaction pace
for hotels.� 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.
Ashford Hospitality (NYSE:AHT)
Historical Stock Chart
From Jul 2024 to Jul 2024
Ashford Hospitality (NYSE:AHT)
Historical Stock Chart
From Jul 2023 to Jul 2024