DALLAS, Feb. 24, 2020 /PRNewswire/ -- Ashford
Hospitality Trust, Inc. (NYSE: AHT) ("Ashford Trust" or the
"Company") today announced that it has successfully amended and
extended its mortgage loan which is secured by the 140-room Hotel
Indigo Atlanta in Atlanta,
Georgia. Additionally, the Company has also refinanced its
mortgage loan for the 226-room Le Pavillon Hotel in New Orleans, Louisiana.
The Hotel Indigo Atlanta loan had a final maturity in May
2022. The amended $16.1 million
loan has a three-year initial term with two, one-year extension
options, subject to the satisfaction of certain conditions. The
loan is interest only during the initial term with 1% annual
amortization payments during the extension periods. The loan
provides for a floating interest rate of LIBOR + 2.25%, with the
remaining terms of the loan essentially identical to the previous
loan.
The Le Pavillon loan had a final maturity in June 2020.
The new, non-recourse loan totals $37
million and has a three-year initial term with two, one-year
extension options, subject to the satisfaction of certain
conditions. The loan is interest only for the first four years of
the loan term with $200,000 quarterly
amortization payments in the fifth year. The loan provides
for a floating interest rate of LIBOR + 3.40%.
In total, the combined loan amounts decreased from approximately
$59.8 million to $53.1 million and the weighted average interest
rate decreased from LIBOR + 4.51% to LIBOR + 3.05%.
"The completion of these two transactions enabled us to extend
loan maturities while also reducing debt and significantly lowering
interest expense," said Douglas A.
Kessler, Ashford Trust's President and Chief Executive
Officer. "It is another example of our focus on being proactive in
our capital markets activities and balance sheet management."
Ashford Hospitality Trust is a real estate investment trust
(REIT) focused on investing predominantly in upper upscale,
full-service hotels.
Ashford has created an Ashford App for the hospitality REIT
investor community. The Ashford App is available for free
download at Apple's App Store and
the Google Play Store by searching "Ashford."
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. Forward-looking
statements in this press release include, among others, statements
about the Company's strategy and future plans. 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 statements are subject to
numerous assumptions and uncertainties, many of which are outside
Ashford Trust'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 Trust'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.
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SOURCE Ashford Hospitality Trust, Inc.