Ashford Hospitality Trust Sells $10 Million First Mortgage on Hotel Teatro in Denver
December 09 2004 - 4:40PM
PR Newswire (US)
Ashford Hospitality Trust Sells $10 Million First Mortgage on Hotel
Teatro in Denver Retains $5 Million Mezzanine Loan at 1,135 Basis
Points over LIBOR DALLAS, Dec. 9 /PRNewswire-FirstCall/ -- Ashford
Hospitality Trust, Inc. (NYSE:AHT) today announced it has closed on
the sale of a $10 million first mortgage secured by The Hotel
Teatro in Denver, Colorado, to CWCapital at par. The loan is
interest only at a rate of 280 basis points over LIBOR with a
maturity date of October 2006. As expected, Ashford retained a $5
million mezzanine loan on the property at an interest rate of 1,135
basis points over LIBOR. The loan matures in October 2006 and is
interest only. Ashford's mezzanine loan represents between 50% and
74% of the borrower's capital structure. The trailing 12-month debt
service coverage ratio for the mezzanine loan is 1.4 to 1.
Commenting on the announcement, Monty J. Bennett, President and CEO
of Ashford Hospitality Trust, stated, "When we originated the $15
million whole loan on The Hotel Teatro in September, our intent all
along was to sell the first mortgage piece. With the strong credit
of this asset and its sponsors, we were able to conduct an active
selling process and retain a very attractive mezzanine loan with
strong coverage at an attractive position within the capital
structure. We expect to continue to utilize our financial
flexibility and creativity to generate similar opportunities in the
future." The nine-story, 111-room Hotel Teatro opened in January
1999 in a renovated building that is registered on the National
Register of Historic Places and located next to the Denver Center
for the Performing Arts. Recently selected to become a member of
Small Luxury Hotels, a collection of 300 of the finest luxury
properties around the world, the hotel features an on-site fitness
center, complimentary high speed internet access, and 2,400 square
feet of meeting space. The Hotel Teatro is owned and managed by
Tramway Hotel LLC. 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
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 impact of the financing 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. 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. Contact: Douglas Kessler Tripp Sullivan
COO and Head of Acquisitions Corporate Communications, Inc. (972)
490-9600 (615) 254-3376 DATASOURCE: Ashford Hospitality Trust, Inc.
CONTACT: Douglas Kessler, COO and Head of Acquisitions of Ashford
Hospitality Trust, Inc., +1-972-490-9600; or Tripp Sullivan of
Corporate Communications, Inc., +1-615-254-3376, for Ashford
Hospitality Trust, Inc. Web site: http://www.ahtreit.com/
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