DALLAS, April 5 /PRNewswire-FirstCall/ -- Ashford
Hospitality Trust, Inc. (NYSE: AHT) today announced it has
restructured the $157 million loan
with Aareal Bank AG that is secured by the Hilton LaJolla Torrey
Pines and the Capital Hilton held in a joint venture with Hilton
Worldwide. The modification provides a full extension of the
loan maturity to August 2013 without
tests along with reduced cash management provisions in exchange for
a reduction in the loan balance of $2.5
million at closing and another $2.5
million over the next twelve months. The loan was set to
mature in August 2011 and had two
one-year extension options. Since January 1st, 2009, Ashford has completed
$442 million of loan extensions,
modifications, and refinancing. The company does not have any
non-extendable 2010 loan maturities. In 2011, the company's
non-extendable loan maturities include a $6
million loan due in the first quarter and $203 million due at the end of the fourth quarter
2011.
Monty Bennett, Chief Executive
Officer of Ashford, noted, "We have made very solid progress in
addressing loan maturities at a time when hotel lending remains
challenging. However, as lodging and capital market
conditions improve, we see increasing interest among lenders to
consider loans on existing hotel assets backed by high quality
owners. Even though we have limited near term maturities, we
intend to continue to work constructively with lenders on longer
dated loan maturities to seek modifications and extensions."
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.
SOURCE Ashford Hospitality Trust, Inc.