AHT Ashford Hospitality Trust Inc

Ashford Hospitality Trust, Inc. (NYSE:AHT) today reported the following results and performance measures for the third quarter ended September 30, 2008. The proforma performance measurements for Occupancy, Average Daily Rate (ADR), revenue per available room (RevPAR), and Hotel Operating Profit (or Hotel EBITDA) include the Company's 103 hotels owned and included in continuing operations as of September 30, 2008. Unless otherwise stated, all reported results compare the third quarter ended September 30, 2008, with the third quarter ended September 30, 2007. The reconciliation of non-GAAP financial measures is included in the financial tables accompanying this press release. FINANCIAL HIGHLIGHTS AND LIQUIDITY Corporate unrestricted available cash at the end of the quarter was $135 million; corporate unrestricted available cash currently available is $225 million Total revenue increased 2.1% to $285.3 million from $279.5 million Net income available to common shareholders was $1.8 million, or $0.02 per diluted share, compared with net loss of $6.6 million or $0.05 loss per diluted share, in the prior-year quarter Adjusted funds from operations (AFFO) per diluted share increased 4.0% to $0.26 per diluted share Cash available for distribution (CAD) per diluted share increased 11.1% to $0.20 per diluted share CAD dividend coverage was 119% year to date Fixed charge ratios were 1.72x and 1.75x under the senior credit facility covenants and the Series B convertible preferred covenants, respectively, versus required minimums of 1.25x each PORTFOLIO HIGHLIGHTS Proforma RevPAR was down 0.03% for hotels not under renovation on a 1.8% increase in ADR to $139.59 and a 138-basis point decline in occupancy Proforma RevPAR decreased 0.9% for all hotels on a 1.9% increase in ADR to $139.12 and a 206-basis point decline in occupancy Proforma Hotel Operating Profit for hotels not under renovation improved 0.9% Proforma Hotel Operating Profit margin for hotels not under renovation improved 23 basis points CAPITAL RECYCLING Remaining common stock repurchase amount of $20 million of the $75 million authorization has been modified by the Board to now include preferred stock Three hotels sold in the quarter and one subsequent to quarter end for $148.2 million Year to date asset sales reach $437 million on a 6.6% trailing 12-month NOI cap rate and 12.0x trailing 12-month EBITDA multiple Repurchased 9.9 million common shares in the quarter and 17.2 million common shares to date in fourth quarter Common stock repurchase program totals $105 million since inception Currently anticipate announcing a determination of the 4th quarter dividend and dividend guidance for 2009 on or around December 17, 2008 One mezzanine loan acquired in the quarter for $98.4 million Capex invested in the quarter totaled $25.7 million Property level hard debt maturities with no extension options include $29.6 million in 2009 and $75 million in 2010 Other property level debt totaling $411.8 million that initially matures in 2009 and 2010 may be extended subject to no events of default, proper notice of election to extend, and purchases of LIBOR caps The Company�s senior credit revolver of $300 million initially matures 2010 with two one-year extension options subject to no events of default and coverage tests PORTFOLIO REVPAR As of September 30, 2008, the Company had a portfolio of direct hotel investments consisting of 103 properties classified in continuing operations. During the third quarter, 97 of the hotels included in continuing operations were not under renovation. The Company believes reporting its operating metrics for continuing operations on a proforma total basis (all 103 hotels) and proforma not-under-renovation basis (97 hotels) is a measure that reflects a meaningful and focused comparison of the operating results in its direct hotel portfolio. The Company's reporting by region and brand includes the results of all 103 hotels in continuing operations. Details of each category are provided in the tables attached to this release. Proforma RevPAR was down 0.03% for hotels not under renovation on a 1.8% increase in ADR to $139.59 and a 138-basis point decline in occupancy Proforma RevPAR decreased 0.9% for all hotels on a 1.9% increase in ADR to $139.12 and a 206-basis point decline in occupancy HOTEL EBITDA MARGINS AND QUARTERLY SEASONALITY TRENDS For the 97 hotels as of September 30, 2008 that were not under renovation, Proforma Hotel EBITDA (adjusted as if all hotels were included throughout both periods) increased 0.9% to $75.3 million. Proforma Hotel EBITDA margin (expressed as a percentage of Total Hotel Revenue) improved 23 basis points to 28.6%. For all 103 hotels included in continuing operations as of September 30, 2008, Proforma Hotel EBITDA decreased 1.7% to $75.4 million and Hotel EBITDA margin decreased 23 basis points to 27.1%. Ashford believes year-over-year Hotel EBITDA and Hotel EBITDA margin comparisons are more meaningful to gauge the performance of the Company�s hotels than sequential quarter-over-quarter comparisons. Given the substantial seasonality in the Company�s portfolio and its active capital recycling, to help investors better understand this seasonality, the Company provides quarterly detail on its Proforma Hotel EBITDA and Proforma Hotel EBITDA margin for the current and certain prior-year periods based upon the number of core hotels in the portfolio as of the end of the current period. As Ashford�s portfolio mix changes from time to time so will the seasonality for Proforma Hotel EBITDA and Proforma Hotel EBITDA margin. The details of the quarterly calculations for the previous four quarters for the current portfolio of 103 hotels included in continuing operations are provided in the tables attached to this release. Monty J. Bennett, President and CEO, commented, "The second half of the year has been more difficult for the lodging industry than projected, yet we continued to make progress on asset sales and redeploying capital to accretive opportunities such as share repurchases and a mezzanine loan purchase. Cost containment efforts at our hotels have helped mitigate declining RevPAR trends, and we have enhanced our liquidity considerably with a combination of recent asset sales, financings and a full drawdown on our credit facility." CAPITAL STRUCTURE On August 6, 2008, the Company refinanced its major debt maturity in 2009, a loan with Prudential that was secured by interests in the Capital Hilton and the Hilton Torrey Pines. These two assets are owned in a joint venture between Ashford and Hilton. The gross principal outstanding was $127.2 million, with Ashford�s share being $95.4 million. The new $160.0 million loan has an interest rate of 275 basis points over LIBOR and is for a three year term with two one-year extension options. The excess proceeds will be used to fund future renovations of the two hotels. On September 5, 2008, the Board of Directors authorized an additional $75 million of the Company�s common stock that may be purchased under its share repurchase program. The Company had recently completed all of the repurchase of the $50 million previously allocated under its existing share repurchase program. The Board has modified its most recent authority related to the $75 million share repurchase program to include both common and preferred shares. On September 5, 2008, the Company closed a financing of its JW Marriott San Francisco totaling $55 million. The two-year loan bears interest at a rate of 375 basis points over LIBOR with two one-year extension options. Ashford purchased a LIBOR cap at a strike rate of 5.0% for the initial term of the loan. On September 9, 2008, the Company closed a financing of its Hyatt Regency Orange County totaling $65 million. The Hyatt loan was repaid on October 2, 2008 upon the sale of the hotel property and the related interest rate cap was subsequently sold. At September 30, 2008, the Company's net debt (defined as total debt less unrestricted cash) to total gross assets (defined as un-depreciated investment in hotel property plus notes receivable) was 59.8%. With the effect of the $1.8 billion interest rate swap, the Company�s $2.8 billion debt balance as of September 30, 2008, consisted of 95% of floating-rate debt, with a total weighted average interest rate of 6.25%. The Company�s weighted average debt maturity including extension options is 6.3 years. Since September 30, 2008, the Company made a full draw on its senior credit revolver which the Company invested in U.S. Treasuries and separately repaid the mortgage note on the Hyatt Regency Orange County. The Company as of today has total debt outstanding of $2.8 billion with a weighted average interest rate of 4.46% based on the current 30-day LIBOR rate of 1.96%. For each 10 basis point reduction in LIBOR, the Company would save approximately $2.8 million in annual interest payments. The Company currently has no debt maturing in the remainder of 2008. Assuming available extension options are exercised on all debt with initial maturities in 2009 and 2010, the only maturities will be $29.6 million in 2009 and $75 million in 2010. With the effect of the $1.8 billion interest rate swap, $2.7 billion of the Company�s $2.8 billion debt at September 30, 2008 was floating rate debt, of which $2.5 billion is subject to interest rate caps of varying time periods. INVESTMENT ACTIVITY On July 14, 2008, the Company acquired a mezzanine loan participation secured by interests in 681 extended-stay hotels purchased by affiliates of the Lightstone Group and Arbor Realty Trust. The loan participation, which is part of a $400 million mezzanine loan tranche, was acquired for $98.4 million and had a face value of $164 million and an interest rate of 250 basis points over LIBOR at par. Ashford�s investment at the time of purchase is expected to yield approximately 23.9% based upon the purchase price discount to par and the forward LIBOR curve at the time purchase through the final maturity of the loan (initial maturity in June 2009 and all three one-year extension options). The loan can be prepaid at anytime. Financing on the portfolio includes $6 billion in first mortgage and mezzanine financing senior to the $400 million tranche in which Ashford is participating, $1 billion in mezzanine financing junior to Ashford�s position, and $600 million in equity, which is also junior to Ashford�s position. Based on trailing 12-month net cash flow from the portfolio, the debt service coverage ratio at closing through Ashford�s position was approximately 1.63x, and Ashford�s investment in the capital structure is approximately 75% to 80% loan to cost, or $82,142 per key. In the third quarter, the Company sold three hotels: the Radisson Hotel in Rockland, Massachusetts, the Sheraton Milford in Milford, Massachusetts, and the Radisson Hotel MacArthur Airport in Holtsville, New York. Subsequent to quarter end, Ashford sold the Hyatt Regency Orange County in Anaheim, California. The four sales in aggregate represent a total of $148.2 million in proceeds, or pricing equating to approximately $130,000 per key, a 7.8% trailing 12-month cap rate, and a 10.6x trailing 12-month EBITDA multiple. INVESTOR CONFERENCE CALL AND SIMULCAST Ashford Hospitality Trust, Inc. will conduct a conference call on Thursday, November 6, 2008, at 11:00 a.m. ET. The number to call for this interactive teleconference is (303) 262-2053. A replay of the conference call will be available through November 14, 2008, by dialing (303)�590-3000 and entering the confirmation number, 11111808#. The Company will also provide an online simulcast and rebroadcast of its third quarter 2008 earnings release conference call. The live broadcast of Ashford's quarterly conference call will be available online at the Company's website at www.ahtreit.com on Thursday, November 6, 2008, beginning at 11:00 a.m. ET. The online replay will follow shortly after the call and continue for approximately one year. A direct link to the live broadcast can be found at: http://www.videonewswire.com/event.asp?id=51628. Substantially all of our non-current assets consist of real estate investments and debt investments secured by real estate. Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, most industry investors consider supplemental measures of performance, which are not measures of operating performance under GAAP, to assist in evaluating a real estate company's operations. These supplemental measures include FFO, AFFO, EBITDA, Hotel Operating Profit, and CAD. FFO is computed in accordance with our interpretation of standards established by NAREIT, which may not be comparable to FFO reported by other REITs that do not define the term in accordance with the current NAREIT definition or that interpret the NAREIT definition differently than us. Neither FFO, AFFO, EBITDA, Hotel Operating Profit, nor CAD represents cash generated from operating activities as determined by GAAP and should not be considered as an alternative to a) GAAP net income (loss) as an indication of our financial performance or b) GAAP cash flows from operating activities as a measure of our liquidity, nor are such measures indicative of funds available to satisfy our cash needs, including our ability to make cash distributions. However, management believes FFO, AFFO, EBITDA, Hotel Operating Profit, and CAD to be meaningful measures of a REIT's performance and should be considered along with, but not as an alternative to, net income and cash flow as a measure of our operating performance. 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, second 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 TRUST, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousands, except share amounts) � � � September 30, December 31, � 2008 � � 2007 � (Unaudited) ASSETS Investment in hotel properties, net $ 3,583,827 $ 3,885,737 Cash and cash equivalents 227,816 92,271 Restricted cash 64,812 52,872 Accounts receivable, net 49,703 51,314 Inventories 3,858 4,100 Assets held for sale 70,829 75,739 Notes receivable 211,470 94,225 Investment in unconsolidated joint venture 24,083 - Deferred costs, net 25,290 25,714 Prepaid expenses 16,334 20,223 Other assets 6,983 6,027 Intangible assets, net 3,100 13,889 Due from third-party hotel managers � 46,262 � � 58,300 � � Total assets $ 4,334,367 � $ 4,380,411 � � LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities Indebtedness - continuing operations $ 2,724,273 $ 2,639,546 Indebtedness - discontinued operations 65,000 61,229 Capital leases payable 249 498 Accounts payable and accrued expenses 118,171 124,696 Dividends payable 33,127 35,031 Unfavorable management contract liabilities 21,703 23,396 Due to related parties 1,056 2,732 Due to third-party hotel managers 3,446 4,699 Interest rate derivatives 32,855 - Other liabilities � 8,215 � � 8,514 � � Total liabilities � 3,008,095 � � 2,900,341 � � Minority interests in consolidated joint ventures 21,631 19,036 Minority interests in operating partnership 92,214 101,031 Series B Cumulative Convertible Redeemable Preferred stock, 7,447,865 issued and outstanding 75,000 75,000 � Stockholders' Equity: Preferred stock, $0.01 par value, 50,000,000 shares authorized: Series A Cumulative Preferred Stock, 2,300,000 shares issued and outstanding 23 23 Series D Cumulative Preferred Stock, 8,000,000 shares issued and outstanding 80 80 Common stock, $0.01 par value, 200,000,000 shares authorized, 122,748,859 shares issued and 109,973,985 shares outstanding at September 30, 2008 and 122,765,691 shares issued and 120,376,055 shares outstanding at December 31, 2007 � � 1,227 1,228 Additional paid-in capital 1,458,687 1,455,917 Accumulated other comprehensive loss (203 ) (115 ) Accumulated deficit (259,620 ) (153,664 ) Treasury stock, at cost (12,774,874 shares at September 30, 2008 and 2,389,636 shares at December 31, 2007) � (62,767 ) � (18,466 ) � Total shareholders' equity � 1,137,427 � � 1,285,003 � � Total liabilities and owners' equity $ 4,334,367 � $ 4,380,411 � ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) � � � � � Three Months Ended Nine Months Ended September 30, � September 30, � � 2008 � � 2007 � � 2008 � � 2007 � (Unaudited) REVENUE Rooms $ 208,856 $ 210,276 $ 642,264 $ 517,582 Food and beverage 53,143 52,928 175,153 138,330 Rental income from operating leases 1,367 1,449 4,239 2,633 Other � 12,604 � � 12,106 � � 38,924 � � 29,280 � � Total hotel revenue 275,970 276,759 860,580 687,825 Interest income from notes receivable 8,801 2,373 15,273 8,594 Asset management fees and other � 510 � � 334 � � 1,953 � � 996 � � Total Revenue � 285,281 � � 279,466 � � 877,806 � � 697,415 � � EXPENSES Hotel operating expenses Rooms 47,258 48,128 140,530 114,229 Food and beverage 39,468 39,878 124,237 99,476 Other direct 6,726 7,203 21,218 16,223 Indirect 80,110 79,714 238,405 190,944 Management fees � 10,690 � � 10,755 � � 33,726 � � 26,285 � � Total hotel expenses 184,252 185,678 558,116 447,157 � Property taxes, insurance, and other 14,918 14,248 45,776 36,106 Depreciation and amortization 44,406 33,137 126,405 97,171 Corporate general and administrative: Stock-based compensation 1,719 1,704 5,188 4,669 Other general and administrative � 7,115 � � 6,365 � � 19,715 � � 15,141 � � Total Operating Expenses � 252,410 � � 241,132 � � 755,200 � � 600,244 � � OPERATING INCOME 32,871 38,334 122,606 97,171 � Equity in earnings of unconsolidated joint venture 491 - 2,304 - Interest income 697 776 1,594 2,249 Other income 3,379 - 6,244 - Interest expense (38,436 ) (38,911 ) (112,004 ) (91,054 ) Amortization of loan costs (1,434 ) (1,931 ) (4,767 ) (4,229 ) Write-off of loan costs and exit fees (1,226 ) - (1,226 ) (3,709 ) Unrealized gains/(losses) on derivatives � 12,528 � � (175 ) � (38,861 ) � (144 ) � INCOME/(LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND MINORITY INTERESTS 8,870 (1,907 ) (24,110 ) 284 Income tax expense (421 ) (2,116 ) (1,150 ) (762 ) Minority interests in (earnings)/losses of consolidated joint ventures (123 ) (106 ) (2,907 ) 417 Minority interests in (earnings)/losses of operating partnership � (747 ) � 253 � � 1,987 � � (741 ) � INCOME/(LOSS) FROM CONTINUING OPERATIONS 7,579 (3,876 ) (26,180 ) (802 ) Income from discontinued operations, net � 1,220 � � 4,384 � � 14,660 � � 33,885 � � NET INCOME/(LOSS) 8,799 508 (11,520 ) 33,083 Preferred dividends � (7,018 ) � (7,146 ) � (21,054 ) � (16,972 ) � NET INCOME/(LOSS) AVAILABLE TO COMMON SHAREHOLDERS $ 1,781 � $ (6,638 ) $ (32,574 ) $ 16,111 � � INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS PER SHARE: Basic ? Income/(loss) from continuing operations $ 0.01 $ (0.09 ) $ (0.40 ) $ (0.18 ) Income from discontinued operations � 0.01 � � 0.04 � � 0.12 � � 0.34 � � Net income/(loss) $ 0.02 � $ (0.05 ) $ (0.28 ) $ 0.16 � Diluted ? Income/(loss) from continuing operations $ 0.01 $ (0.09 ) $ (0.40 ) $ (0.18 ) Income from discontinued operations � 0.01 � � 0.04 � � 0.12 � � 0.34 � � Net income/(loss) $ 0.02 � $ (0.05 ) $ (0.28 ) $ 0.16 � Weighted Average Common Shares Outstanding: Basic � 115,819 � � 121,235 � � 117,828 � � 100,708 � Diluted � 115,852 � � 121,235 � � 117,828 � � 100,708 � ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES RECONCILIATION OF NET INCOME TO EBITDA (in thousands, except per share amounts and ratios) � � � � � Three Months Ended Nine Months Ended September 30, September 30, � 2008 � � 2007 � � 2008 � � 2007 � (Unaudited) � Net income/(loss) $ 8,799 $ 508 $ (11,520 ) $ 33,083 � Interest income (697 ) (776 ) (1,594 ) (2,249 ) Interest expense and amortization of loan costs 39,756 47,649 118,389 109,857 Depreciation and amortization 44,731 40,235 131,716 117,644 Minority interest in earnings/(losses) of operating partnership 856 219 (738 ) 4,026 Income tax expense (benefit) � 421 � � (1,309 ) � 1,360 � � 5,085 � � EBITDA 93,866 86,526 237,613 267,446 � Amortization of unfavorable management contract liabilities (565 ) (564 ) (1,693 ) (1,501 ) Gains on sale of properties (1,411 ) (531 ) (8,315 ) (35,237 ) Write-off of loan costs, premiums and exit fees (1) 1,354 - 8 5,966 Unrealized (gains)/losses on derivatives (12,528 ) 175 38,861 144 � � � � Adjusted EBITDA $ 80,716 � $ 85,606 � $ 266,474 � $ 236,818 � � � RECONCILIATION OF NET INCOME TO FUNDS FROM OPERATIONS ("FFO") (in thousands) � Three Months Ended Nine Months Ended September 30, September 30, � 2008 � � 2007 � � 2008 � � 2007 � (Unaudited) � Net income $ 8,799 $ 508 $ (11,520 ) $ 33,083 Preferred dividends � (7,018 ) � (7,146 ) � (21,054 ) � (16,972 ) � Net income/(loss) available to common shareholders 1,781 (6,638 ) (32,574 ) 16,111 � Depreciation and amortization on real estate 44,609 40,128 131,351 117,372 Gains on sales of hotel properties, net of related income taxes (1,411 ) (531 ) (8,315 ) (28,370 ) Minority interest in earnings/(loss) of operating partnership � 856 � � 219 � � (738 ) � 4,026 � � FFO available to common shareholders 45,835 33,178 89,724 109,139 � Dividends on convertible preferred stock 1,564 1,564 4,692 4,692 Non-cash dividends on Series C preferred stock - 140 - 845 Write-off of loan costs, premiums and exit fees (1) 1,354 - 8 5,966 Unrealized (gains)/losses on derivatives � (12,528 ) � 175 � � 38,861 � � 144 � � Adjusted FFO $ 36,225 � $ 35,057 � $ 133,285 � $ 120,786 � � Adjusted FFO per diluted share available to common shareholders $ 0.26 � $ 0.25 � $ 0.96 � $ 0.99 � � Weighted average diluted shares � 137,690 � � 142,249 � � 139,372 � � 122,152 � � Dividend declared on common stock, units and Series B Preferred $ 27,614 � $ 30,077 � $ 86,940 � $ 79,965 � � Dividend declared coverage ratio � 131 % � 117 % � 153 % � 151 % � (1)For the nine months ended September 30, 2008, the amount includes a write-off of debt premium of $2,086,000 at the sale of a hotel property. ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES CASH AVAILABLE FOR DISTRIBUTION ("CAD") (in thousands, except per share amounts) � � � � � � � � � � � � � � � � Three Months Three Months Nine Months Nine Months Ended Per Ended Per Ended Per Ended Per September 30, Diluted September 30, Diluted September 30, Diluted September 30, Diluted 2008 Share 2007 Share 2008 Share 2007 Share � Net income/(loss) available to common shareholders $ 1,781 $ 0.01 $ (6,638) $ (0.05) $ (32,574) $ (0.23) $ 16,111 $ 0.13 Dividends on convertible preferred stock 1,564 0.01 1,564 0.01 4,692 0.03 4,692 0.04 � Total 3,345 0.02 (5,074) (0.04) (27,882) (0.20) 20,803 0.17 � Depreciation and amortization on real estate 44,609 0.33 40,128 0.28 131,351 0.94 117,372 0.96 Non-cash dividends on Series C preferred stock - - 140 0.00 - - 845 0.01 Minority interest in (losses)/earnings of operating partnership 856 0.01 219 0.00 (738) (0.01) 4,026 0.03 Stock-based compensation 1,719 0.01 1,704 0.01 5,188 0.04 4,669 0.04 Amortization of loan costs 1,440 0.01 2,524 0.02 4,924 0.04 5,447 0.04 Write-off of loan costs, premiums and exit fees (1) 1,354 0.01 - - 8 0.00 5,966 0.05 Amortization of unfavorable management contract liabilities (565) (0.00) (564) (0.00) (1,693) (0.01) (1,501) (0.01) Gains on sales of properties, net of related income taxes (1,411) (0.01) (531) (0.00) (8,315) (0.06) (28,370) (0.23) Unrealized (gains)/losses on derivatives (12,528) (0.09) 175 0.00 38,861 0.28 144 0.00 Capital improvements reserve (11,948) (0.09) (13,430) (0.09) (38,061) (0.27) (33,920) (0.28) � CAD $ 26,871 $ 0.20 $ 25,291 $ 0.18 $ 103,643 $ 0.75 $ 95,481 $ 0.78 � Dividends declared $ 27,614 $ 30,077 $ 86,940 $ 79,965 � Dividend declared coverage ratio 97% 84% 119% 119% � (1) For the nine months ended September 30, 2008, the amount includes a write-off of debt premium of $2,086,000 at the sale of a hotel property. ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES DEBT SUMMARY SEPTEMBER 30, 2008 (dollars in thousands) � � � � Fixed-Rate Floating-Rate Total Debt Debt Debt � Mortgage loan secured by 25 hotel properties, matures between July 1, 2015 and February 1, 2016, at an average interest rate of 5.42% � $ 455,115 $ - $ 455,115 Mortgage loan secured by 16 hotel properties, matures between December 11, 2014 and December 11, 2015, at an average interest rate of 5.73% � 211,475 - 211,475 Secured credit facility, matures April 9, 2010, at an interest rate of LIBOR plus a range of 1.55% to 1.95% depending on the loan-to-value ratio, with two one-year extension options � - 195,000 195,000 Mortgage loan secured by one hotel property, matures December 1, 2017, with an interest rate of 7.39% at September 30, 2008 48,019 - 48,019 Mortgage loan secured by one hotel property, matures December 8, 2016, at an interest rate of 5.81% 101,000 - 101,000 Mortgage loan secured by five hotel properties, matures December 11, 2009, at an interest rate of LIBOR plus 1.72%, with two one-year extension options � - 189,570 189,570 Mortgage loan secured by 28 hotel properties, matures April 11, 2017, at an average blended interest rate of 5.95% 928,465 - 928,465 Mortgage loan secured by 10 hotel properties, matures May 9, 2009, at an interest rate of LIBOR plus 1.65%, with three one-year extension options - 167,202 167,202 Mortgage loan secured by one hotel property, matures January 1, 2011, at an interest rate of 8.32% 5,111 - 5,111 Mortgage loan secured by one hotel property, matures January 1, 2023, at an interest rate of 7.78% 6,122 - 6,122 TIF loan secured by one hotel property, matures June 30, 2018, at an interest rate of 12.85% 6,927 - 6,927 Mortgage loan secured by one hotel property, matures April 1, 2009, at an interest rate of 5.6% 29,641 - 29,641 Mortgage loan secured by three hotel property, matures April 5, 2011, at an interest rate of 5.47% 66,801 - 66,801 Mortgage loan secured by four hotel property, matures March 1, 2010, at an interest rate of 5.95% 75,000 - 75,000 Mortgage loan secured by one hotel property, matures June 1, 2011, at an interest rate of LIBOR plus 2% - 19,740 19,740 Mortgage loan secured by two hotel properties, matures August 8, 2011, at an interest rate of LIBOR plus 2.75%, with two one-year extension options 119,850 119,850 Mortgage loan secured by one hotel properties, matures August 6, 2011, at an interest rate of LIBOR plus 2.5%, with two one-year extension options 65,000 65,000 Mortgage loan secured by one hotel properties, matures September 9, 2010, at an interest rate of LIBOR plus 3.75%, with two one-year extension options � 55,000 55,000 � Total Debt Excluding Premium $ 1,933,676 $ 811,362 2,745,038 Mark-to-Market Premium 1,447 Plus Debt Attributable to joint venture partners 42,788 Total Debt Including Premium and debt attributable to joint venture partners $ 2,789,273 Percentage 70.4% 29.6% 100.0% � Weighted average interest rate at September 30, 2008 5.90% � Total with the effect of interest rate swap $ 133,676 $ 2,611,362 $ 2,745,038 � Percentage with the effect of interest rate swap 4.9% 95.1% 100.0% � Weighted average interest rate with the effect of interest rate swap 6.25% ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES DEBT BY MATURITY ASSUMING EXTENSION OPTIONS NOT SUBJECT TO COVERAGE TESTS ARE EXERCISED SEPTEMBER 30, 2008 (in thousands) � � � � � � � � 2009 � 2010 � 2011 � 2012 � 2013 Thereafter Total � Mortgage loan secured by one hotel property $ 29,641 $ - $ - $ - $ - $ - $ 29,641 Mortgage loan secured by four hotel property - 75,000 - - - - 75,000 Mortgage loan secured by one hotel property - - 5,111 - - - 5,111 Mortgage loan secured by three hotel property - - 66,801 - - - 66,801 Mortgage loan secured by one hotel property - - 19,740 - - - 19,740 Mortgage loan secured by five hotel property - - 189,570 - - - 189,570 Secured credit facility - 195,000 (a) (1) - - - - 195,000 Mortgage loan secured by 10 hotel property - - - 167,202 - - 167,202 Mortgage loan secured by one hotel property - - 55,000 (a) - - - 55,000 Mortgage loan secured by two hotel property - - 119,850 (a) - - - 119,850 Mortgage loan secured by one hotel property - - 65,000 (b) - - - 65,000 Mortgage loan secured by eight hotel property - - - - - 110,899 110,899 Mortgage loan secured by eight hotel property - - - - - 100,576 100,576 Mortgage loan secured by 25 hotel property part I - - - - - 160,490 160,490 Mortgage loan secured by one hotel property - - - - - 101,000 101,000 Mortgage loan secured by 25 hotel property part II - - - - - 294,625 294,625 Mortgage loan secured by one hotel property - - - - - 49,466 49,466 Mortgage loan secured by 28 hotel property part I - - - - - 893,465 893,465 Mortgage loan secured by 28 hotel property part II - - - - - 35,000 35,000 TIF loan secured by one hotel property - - - - - 6,927 6,927 Mortgage loan secured by one hotel property - - - - - 6,122 6,122 � � � � � � � 29,641 270,000 521,072 167,202 - 1,758,570 2,746,485 � Debt attributable to joint venture partners - - 40,852 - - 1,936 42,788 � � � � � � � $ 29,641 $ 270,000 $ 561,924 $ 167,202 $ - $ 1,760,506 $ 2,789,273 � � NOTE: These maturities assume no event of default would occur. (a) Extensions available but certain coverage tests have to be met. (b) Paid off October 2, 2008. (1) Since has been fully drawn to $300 million. ASHFORD HOSPITALITY TRUST, INC. KEY PERFORMANCE INDICATORS - PRO FORMA (Unaudited) � � � � � � � Three Months Ended Nine Months Ended September 30, September 30, 2008 2007 % Variance � 2008 2007 % Variance � ALL HOTELS INCLUDED IN CONTINUING OPERATIONS: � Room revenues (in thousands) $ 213,820 $ 215,763 -0.90% $ 657,903 $ 654,904 0.46% RevPAR $ 103.76 $ 104.68 -0.88% $ 106.87 $ 106.62 0.23% Occupancy 74.58% 76.64% -2.06% 73.87% 75.60% -1.73% ADR $ 139.12 $ 136.58 1.86% $ 144.67 $ 141.04 2.57% � � NOTE:The above pro forma table assumes the 103 hotel properties owned and included in continuing operations at September 30, 2008 were owned as of the beginning of period presented. � � Three Months Ended Nine Months Ended September 30, September 30, 2008 2007 % Variance � 2008 2007 % Variance � ALL HOTELS NOT UNDER RENOVATION INCLUDED IN CONTINUING OPERATIONS: Room revenues (in thousands) $ 204,141 $ 204,249 -0.05% $ 617,063 $ 611,268 0.95% RevPAR $ 105.60 $ 105.63 -0.03% $ 106.83 $ 106.06 0.73% Occupancy 75.65% 77.03% -1.38% 74.22% 75.56% -1.34% ADR $ 139.59 $ 137.13 1.80% $ 143.93 $ 140.36 2.55% � � NOTE:The above pro forma table assumes the 97 hotel properties owned and included in continuing operations at September 30, 2008 but not under renovation for the three and nine months ended September 30, 2008 were owned as of the beginning of the periods presented. � Excluded Hotels Under Renovation: Embassy Suites Philadelphia Airport, Hilton Tucson El Conquistador, Hampton Inn Houston Galleria, Hampton Inn Jacksonville Embassy Suites West Palm Beach, Hyatt Regency Coral Gables � OTHER NOTE: As the Company's Courtyard by Marriott hotel in Philadelphia, Pennsylvania, is leased to a third-party tenant on a triple-net lease basis, the Company only records rental income related to this operating lease for GAAP purposes. However, in the above pro forma tables, all room revenues related to this hotel are reflected, which is consistent with the Company's other hotels. ASHFORD HOSPITALITY TRUST, INC. PRO FORMA HOTEL OPERATING PROFIT (dollars in thousands) (Unaudited) � ALL HOTELS INCLUDED IN CONTINUING OPERATIONS: � � Three Months Ended Nine Months Ended September 30, September 30, 2008 2007 % Variance � 2008 2007 % Variance REVENUE Rooms $ 213,820 $ 215,763 -0.9% $ 657,903 $ 654,904 0.5% Food and beverage 53,853 52,496 2.6% 177,490 176,060 0.8% Other 10,850 12,772 -15.0% 37,375 40,721 -8.2% Total hotel revenue 278,523 281,031 -0.9% 872,768 871,685 0.1% � EXPENSES Rooms 48,342 49,358 -2.1% 143,817 144,330 -0.4% Food and beverage 40,017 40,442 -1.1% 125,943 127,773 -1.4% Other direct 6,792 7,266 -6.5% 21,410 22,177 -3.5% Indirect 79,441 78,706 0.9% 238,053 231,287 2.9% Management fees, includes base and incentive fees 13,376 13,846 -3.4% 40,796 41,867 -2.6% Total hotel operating expenses 187,968 189,618 -0.9% 570,019 567,434 0.5% Property taxes, insurance, and other 15,182 14,719 3.1% 46,069 45,922 0.3% HOTEL OPERATING PROFIT (Hotel EBITDA) 75,373 76,694 -1.7% 256,680 258,329 -0.6% Hotel EBITDA Margin 27.06% 27.29% -0.23% 29.41% 29.64% -0.23% � Minority interest in earnings of consolidated joint ventures 1,644 1,577 4.2% 6,267 5,564 12.6% HOTEL OPERATING PROFIT (Hotel EBITDA), excluding minority interest in joint ventures $ 73,729 $ 75,117 -1.8% $250,413 $252,765 -0.9% � NOTE:The above pro forma table assumes the 103 hotel properties owned and included in continuing operations at September 30, 2008 were owned as of the beginning of the periods presented. � � ALL HOTELS NOT UNDER RENOVATION INCLUDED IN CONTINUING OPERATIONS: � Three Months Ended Nine Months Ended September 30, September 30, 2008 2007 % Variance � 2008 2007 % Variance REVENUE Rooms (1) $ 204,141 $ 204,249 -0.1% $ 617,063 $ 611,268 0.9% Food and beverage 49,845 48,165 3.5% 162,028 159,694 1.5% Other 9,347 10,665 -12.4% 30,352 32,182 -5.7% Total hotel revenue 263,333 263,079 0.1% 809,443 803,144 0.8% � EXPENSES Rooms (1) 45,582 46,274 -1.5% 134,496 134,532 0.0% Food and beverage 36,607 36,934 -0.9% 114,668 116,001 -1.1% Other direct 5,202 5,479 -5.1% 16,021 16,335 -1.9% Indirect 73,636 72,846 1.1% 219,802 212,573 3.4% Management fees, includes base and incentive fees 13,078 13,217 -1.1% 38,699 39,542 -2.1% Total hotel operating expenses 174,105 174,750 -0.4% 523,686 518,983 0.9% Property taxes, insurance, and other 13,916 13,689 1.7% 42,132 41,861 0.6% HOTEL OPERATING PROFIT (Hotel EBITDA) 75,312 74,640 0.9% 243,625 242,300 0.5% Hotel EBITDA Margin 28.60% 28.37% 0.23% 30.09% 30.17% -0.08% � Minority interest in earnings of consolidated joint ventures 1,644 1,577 4.2% 6,267 5,564 12.6% HOTEL OPERATING PROFIT (Hotel EBITDA), excluding minority interest in joint ventures $ 73,668 $ 73,063 0.8% $237,358 $236,736 0.3% � NOTES: (1) The above pro forma table assumes the 97 hotel properties owned and included in continuing operations at September 30, 2008 but not under renovation during the three and nine months ended September 30, 2008 were owned as of the beginning of the periods presented. (2) As the Company�s Courtyard by Marriott hotel in Philadelphia, Pennsylvania, is leased to a third-party tenant on a triple-net lease basis, the Company only records rental income related to this operating lease for GAAP purposes. However, in the above pro form tables, all operating results related to this hotel are reflected, which is consistent with the Company's other hotels. ASHFORD HOSPITALITY TRUST, INC. PRO FORMA HOTEL REVPAR BY REGION (Unaudited) � � � � � Three Months Ended Nine Months Ended Number of Number of September 30, September 30, Region Hotels Rooms 2008 2007 % Change 2008 2007 % Change � Pacific (1) 21 5,209 $ 132.97 $ 130.07 2.2% $ 121.86 $ 120.85 0.8% Mountain (2) 8 1,704 $ 82.41 $ 87.23 -5.5% $ 104.38 $ 104.99 -0.6% West North Central (3) 3 690 $ 102.46 $ 96.82 5.8% $ 91.07 $ 91.22 -0.2% West South Central (4) 10 2,086 $ 99.32 $ 97.53 1.8% $ 105.41 $ 101.92 3.4% East North Central (5) 10 2,624 $ 83.59 $ 87.24 -4.2% $ 82.28 $ 82.34 -0.1% East South Central (6) 2 236 $ 93.07 $ 85.87 8.4% $ 94.13 $ 88.53 6.3% Middle Atlantic (7) 9 2,481 $ 107.01 $ 115.25 -7.1% $ 104.06 $ 107.58 -3.3% South Atlantic (8) 38 7,728 $ 96.81 $ 97.58 -0.8% $ 109.46 $ 109.28 0.2% New England (9) 2 158 $ 87.06 $ 92.54 -5.9% $ 87.94 $ 83.92 4.8% � � � � � � � � Total Portfolio 103 22,916 $ 103.76 $ 104.68 -0.9% $ 106.87 $ 106.62 0.2% � � (1) Includes Alaska, California, Oregon, and Washington (2) Includes Nevada, Arizona, New Mexico, and Utah (3) Includes Minnesota and Kansas (4) Includes Texas (5) Includes Ohio, Michigan, Illinois, and Indiana (6) Includes Kentucky and Alabama (7) Includes New York, New Jersey, and Pennsylvania (8) Includes Virginia, Florida, Georgia, Maryland, District of Columbia, and North Carolina (9) Includes Massachusetts and Connecticut � � NOTES: (1) The above pro forma table assumes the 103 hotel properties owned and included in continuing operations as of September 30, 2008 were owned as of the beginning of the periods presented. (2) As the Company's Courtyard by Marriott hotel in Philadelphia, Pennsylvania, is leased to a third-party tenant on a triple-net lease basis, the Company only records rental income related to this operating lease for GAAP purposes. However, in the above pro forma table, all room revenues related to this hotel are reflected, which is consistent with the Company's other hotels. ASHFORD HOSPITALITY TRUST, INC. PRO FORMA HOTEL REVPAR BY BRAND (Unaudited) � � � � � � � � � � Three Months Ended Nine Months Ended Number of Number of September 30, September 30, Brand � � Hotels Rooms 2008 2007 % Change � 2008 2007 % Change � Hilton 34 7,512 $ 108.91 $ 110.98 -1.9% $ 114.14 $ 114.58 -0.4% Hyatt 2 1,014 $ 74.48 $ 85.44 -12.8% $ 91.38 $ 92.80 -1.5% InterContinental 2 420 $ 143.38 $ 135.05 6.2% $ 152.46 $ 152.22 0.2% Independent 2 317 $ 65.03 $ 64.15 1.4% $ 55.59 $ 70.53 -21.2% Marriott 57 11,713 $ 101.14 $ 101.14 0.0% $ 105.04 $ 103.67 1.3% Starwood 6 1,940 $ 111.01 $ 109.45 1.4% $ 94.78 $ 94.82 0.0% � � � � � � � � Total Portfolio 103 22,916 $ 103.76 $ 104.68 -0.9% $ 106.87 $ 106.62 0.2% � � NOTES: (1)The above pro forma table assumes the 103 hotel properties owned and included in continuing operations as of September 30, 2008 were owned as of the beginning of the periods presented. (2)As the Company's Courtyard by Marriott hotel in Philadelphia, Pennsylvania, is leased to a third-party tenant on a triple-net lease basis, the Company only records rental income related to this operating lease for GAAP purposes. However, in the above pro forma table, all room revenues related to this hotel are reflected, which is consistent with the Company's other hotels. ASHFORD HOSPITALITY TRUST, INC. PRO FORMA HOTEL OPERATING PROFIT BY REGION (dollars in thousands) (Unaudited) � � � � � � � � � Three Months Ended Nine Months Ended Number of Number of September 30, September 30, Region Hotels Rooms 2008 % Total � 2007 % Total � % Change � 2008 % Total 2007 % Total % Change � Pacific (1) 21 5,209 $ 26,196 34.8% $ 24,231 31.6% 8.1% $ 70,801 27.6% $ 69,940 27.1% 1.2% Mountain (2) 8 1,704 2,600 3.4% 3,695 4.8% -29.6% 18,586 7.2% 19,585 7.6% -5.1% West North Central (3) 3 690 2,952 3.9% 2,625 3.4% 12.5% 7,503 2.9% 7,495 2.9% 0.1% West South Central (4) 10 2,086 5,974 7.9% 6,714 8.8% -11.0% 23,261 9.1% 22,671 8.8% 2.6% East North Central (5) 10 2,624 7,769 10.3% 7,366 9.6% 5.5% 22,477 8.8% 20,613 8.0% 9.0% East South Central (6) 2 236 848 1.1% 778 1.0% 9.0% 2,602 1.0% 2,466 0.9% 5.5% Middle Atlantic (7) 9 2,481 8,042 10.7% 9,212 12.0% -12.7% 22,905 8.9% 25,494 9.9% -10.2% South Atlantic (8) 38 7,728 20,537 27.3% 21,565 28.1% -4.8% 87,189 34.0% 88,862 34.4% -1.9% New England (9) 2 158 455 0.6% 508 0.7% -10.4% 1,356 0.5% 1,203 0.5% 12.7% � � � � � � � � � � � � Total Portfolio 103 22,916 $ 75,373 100.0% $ 76,694 100.0% -1.7% $ 256,680 100.0% $ 258,329 100.0% -0.6% � � (1) Includes Alaska, California, Oregon, and Washington (2) Includes Nevada, Arizona, New Mexico, and Utah (3) Includes Minnesota and Kansas (4) Includes Texas (5) Includes Ohio, Michigan, Illinois, and Indiana (6) Includes Kentucky and Alabama (7) Includes New York, New Jersey, and Pennsylvania (8) Includes Virginia, Florida, Georgia, Maryland, District of Columbia, and North Carolina (9) Includes Massachusetts and Connecticut � NOTES: (1) The above pro forma table assumes the 103 hotel properties owned and included in continuing operations as of September 30, 2008 were owned as of the beginning of the periods presented.��������������������������� � (2) As the Company�s Courtyard by Marriott hotel in Philadelphia, Pennsylvania, is leased to a third-party tenant on a triple-net lease basis, the Company only records rental income related to this operating �lease for GAAP purposes.��However, in the above pro forma table, all operating results related to this hotel are reflected, which is consistent with the Company's other hotels. ASHFORD HOSPITALITY TRUST, INC. PRO FORMA HOTEL OPERATING PROFIT MARGIN (Unaudited) � � 97 HOTELS NOT UNDER RENOVATION AND INCLUDED IN CONTINUING OPERATIONS AT SEPTEMBER 30, 2008 AS IF SUCH HOTELS WERE OWNED AS OF THE BEGINNING OF THE PERIODS PRESENTED: � � HOTEL OPERATING PROFIT (HOTEL EBITDA) MARGIN: � 3rd Quarter 2008 28.60% 3rd Quarter 2007 28.37% Variance 0.23% � HOTEL OPERATING PROFIT (HOTEL EBITDA) MARGIN VARIANCE BREAKDOWN: � Rooms 0.30% Food & Beverage and Other Departmental 0.25% Administrative & General 0.25% Sales & Marketing -0.31% Hospitality -0.02% Repair & Maintenance -0.03% Energy -0.30% Franchise Fee -0.08% Management Fee 0.01% Incentive Management Fee 0.04% Insurance 0.19% Property Taxes -0.28% Leases/Other 0.21% Total 0.23% � � NOTE: As the Company�s Courtyard by Marriott hotel in Philadelphia, Pennsylvania, is leased to a third-party tenant on a triple-net lease basis, the Company only records rental income related to this operating lease for GAAP purposes. However, in the above pro forma table, all operating results related to this hotel are reflected, which is consistent with the Company�s other hotels. ASHFORD HOSPITALITY TRUST, INC. PRO FORMA SEASONALITY TABLE (dollars in thousands) (Unaudited) � � � � � � ALL 103 HOTELS OWNED AND INCLUDED IN CONTINUING OPERATIONS AS OF SEPTEMBER 30, 2008: � � 2008 2008 2008 2007 3rd Quarter 2nd Quarter 1st Quarter 4th Quarter TTM � Total Hotel Revenue $ 278,523 $ 307,691 $ 286,555 $ 313,735 $ 1,186,504 Hotel EBITDA $ 75,373 $ 97,770 $ 83,861 $ 86,543 $ 343,547 Hotel EBITDA Margin 27.1% 31.8% 29.3% 27.6% 29.0% � EBITDA % of Total TTM 21.9% 28.5% 24.4% 25.2% 100.0% � JV Interests in EBITDA $ 1,644 $ 2,868 $ 1,754 $ 1,567 $ 7,833 � � NOTES: (1)The above pro forma table assumes that the 103 hotel properties owned and included in continuing operations as of September 30, 2008 were owned as of the beginning of the periods presented. (2)As the Company�s Courtyard by Marriott hotel in Philadelphia, Pennsylvania, is leased to a third-party tenant on a triple-net lease basis, the Company only records rental income related to this operating lease for GAAP purposes. However, in the above pro-forma table, all operating results related to this hotel are reflected, which is consistent with the Company's other hotels. ASHFORD HOSPITALITY TRUST, INC. Capital Expenditures Calendar 103 Core Hotels (a) � � � � � � � � � � 2007 2008 Actual Actual Actual Actual Actual Actual Actual Estimated Rooms 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter � Residence Inn Evansville 78 x SpringHill Suites BWI Airport 133 x SpringHill Suites Centreville 136 x SpringHill Suites Gaithersburg 162 x Courtyard Overland Park 168 x Hilton Santa Fe 157 x Hilton Garden Inn Jacksonville 119 x Marriott at Research Triangle Park 225 x x x Marriott Crystal Gateway 697 x x x x One Ocean 193 x x x x x x Sheraton City Center - Indianapolis 371 x x x JW Marriott San Francisco 338 x x x x Embassy Suites Las Vegas Airport 220 x Homewood Suites Mobile 86 x x Residence Inn Lake Buena Vista 210 x x Embassy Suites Walnut Creek 249 x x x Embassy Suites Philadelphia Airport 263 x x x x x Residence Inn Jacksonville 120 x Hilton Tucson El Conquistador Golf Resort 428 x x Sheraton San Diego Mission Valley 260 x x Hilton Minneapolis Airport 300 x x Courtyard Basking Ridge 235 x TownePlace Suites Manhattan Beach 144 x Courtyard San Francisco Downtown 405 x x Embassy Suites Santa Clara - Silicon Valley 257 x x Sheraton Anchorage 375 x x x Hampton Inn Houston Galleria 150 x x Hampton Inn Jacksonville 118 x x Embassy Suites West Palm Beach 160 x x Hyatt Regency Coral Gables 242 x x Hampton Inn Lawrenceville 86 x Courtyard Ft. Lauderdale Weston 174 x Hilton Rye Town 446 � � � � � � � � x � � � (a) Only hotels which have had or are expected to have significant capital expenditures during 2007 or 2008 are included in this table. This table excludes a possible $50.0 million related to ROI projects.