Ashford Receives Payoff on $33.6 Million Mezz Loan
February 16 2010 - 4:00PM
PR Newswire (US)
DALLAS, Feb. 16 /PRNewswire-FirstCall/ -- Ashford Hospitality
Trust, Inc. (NYSE:AHT) today announced it completed the previously
disclosed discounted payoff with the borrower on the Company's
$33.6 million mezzanine loan, which was secured by interests in the
Ritz-Carlton, Key Biscayne and set to mature in 2017. The Company
received $20 million in cash and a $4 million note secured by
interests in the property and that matures in 2017. The Company had
previously recorded an impairment of $10.7 million to account for
the discounted payoff in the third quarter of 2009. Monty Bennett,
Chief Executive Officer of Ashford, noted, "We continue to actively
manage our loan portfolio and recover the value inherent in the
assets. Given the current environment, we are pleased to complete
this negotiated payoff with a favorable outcome for both parties.
The impact of the market downturn has been particularly felt in the
luxury sector." 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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