Ashford Hospitality and Special Servicer Mutually Agree to Transfer Hyatt Regency Dearborn to Receivership
December 09 2009 - 4:00PM
PR Newswire (US)
DALLAS, Dec. 9 /PRNewswire-FirstCall/ -- Ashford Hospitality Trust,
Inc. (NYSE:AHT) today announced that the Company and the special
servicer who is administering the $29.1 million first mortgage on
the Company's Hyatt Regency Dearborn have mutually agreed to
transfer the Company's possession and control of the hotel to a
court-appointed receiver, effective December 3, 2009. The Company
has been fully cooperating with the servicer for a consensual
foreclosure or deed in lieu of foreclosure since June 2009. As a
result of the transfer, the Company deconsolidated the hotel from
its financial reporting, including the $28.9 million hotel asset
(previously impaired by $10.9 million in the second quarter of
2009) and the hotel's $29.1 million mortgage indebtedness, and will
recognize a gain on the extinguishment of debt. Additionally, the
Company will reclassify the hotel's results of operations through
the effective date of the transfer to discontinued operations on
its statement of operations. The transfer also eliminates the
remaining 2010 debt maturity for the Company, leaving the Company
with no debt maturities in 2010 and $229.0 million maturing in
2011. The Company's average current interest rate on its total
indebtedness is 3.62%. As of September 30, 2009 the Company had
$197.9 million of unrestricted cash available. 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 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 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. DATASOURCE:
Ashford Hospitality Trust, Inc. CONTACT: David Kimichik, Chief
Financial Officer, +1-972-490-9600; or Tripp Sullivan, Corporate
Communications, Inc., +1-615-324-7318 Web Site:
http://www.ahtreit.com/
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