DALLAS, May 10, 2012 /PRNewswire/ -- Ashford
Hospitality Trust, Inc. (NYSE: AHT) today announced that it has
successfully refinanced its sole 2012
debt maturity. The $167.2
million loan set to mature in May has been refinanced with a
new $135.0 million loan that matures
in May of 2014 and has three one-year extension options subject to
satisfaction of certain conditions. The new loan provides for
a floating interest rate of LIBOR + 6.50%, with no LIBOR
Floor. Additionally, the new loan is secured by nine hotels
as the Doubletree Guest Suites in Columbus, Ohio, is now unencumbered as a
result of this restructuring. The Company has listed the
Doubletree Columbus for sale and plans to either sell or re-finance
this hotel. After selling or re-financing the Doubletree
Columbus, the Company will have only utilized its restricted cash
to fund the net paydown on the new loan.
Ashford is presently engaged in discussions with several lenders
regarding its $102 million of loans
set to mature in early 2013. The debt yield on this high
quality portfolio is currently in excess of 16%. At this
time, given the level of lender interest to refinance these loans
there is no anticipated pay down required.
"We are very pleased to announce this successful portfolio
refinancing which also unencumbers one of our hotels," said
Monty J. Bennett, Chief Executive
Officer of Ashford Hospitality Trust. "After selling or
re-financing the Doubletree Columbus, and by utilizing our
restricted cash balance to pay down the loan, we have maintained
our liquidity position and have greater financial flexibility to
explore more accretive opportunities that will maximize long-term
shareholder value."
Ashford 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. Additional
information can be found on the Company's website 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 of 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.