DALLAS, Aug. 12, 2013 /PRNewswire/ -- Ashford Hospitality
Trust, Inc. (NYSE: AHT) today announced that as part of the
Company's ongoing asset management initiatives, it has entered into
a franchise agreement to convert the 258-room, Crowne Plaza Beverly
Hills to a Marriott after the expiration of the existing Crowne
Plaza license agreement in March of 2015.
The conversion includes an extensive product improvement plan
(PIP), estimated at $25 million, to
include an upgrade of the Heating, Ventilation and Air Conditioning
(HVAC) system, an extensive renovation of the guestrooms and public
areas, including a transformational lobby renovation, and exterior
improvements which will enhance the sense of arrival for
guests. The newly-minted Marriott Beverly Hills will continue
to be managed by Remington Lodging & Hospitality following the
completion of the conversion.
Additionally, the Company also announced that on May 31, 2013 it completed the transfer of
management from Marriott to Remington Lodging & Hospitality at
seven of its select-service hotels (SpringHill Suites Richmond
Virginia Center; Residence Inn Phoenix Airport; Residence Inn
Newark Silicon Valley, CA; Courtyard Oakland Airport; Courtyard by
Marriott Newark Fremont, CA;
Courtyard Palm Desert; and Residence Inn Palm Desert) and one
full-service hotel (Marriott Suites Market Center Dallas).
All of the franchise agreements include PIPs.
"We are very pleased with the conversion of these newly
franchised assets and the planned repositioning of our Beverly Hills hotel. Our goal is always
to maximize the value of our assets and create long-term value
creation. We believe these initiatives will ultimately result
in increased revenues and additional cost savings," commented
Monty J. Bennett, Ashford's Chairman
and Chief Executive Officer. "The Marriott Beverly Hills is
well positioned within the marketplace as presently there are few
full service Marriott hotels near the hotel. We believe the
conversion of our Beverly Hills
hotel is well-timed and we expect to reap the benefits of this
market demand."
Ashford Hospitality Trust is a real estate investment trust
(REIT) focused on investing opportunistically in the hospitality
industry across all segments and at all levels of the capital
structure primarily within the United
States.
Follow Chairman and CEO Monty
Bennett on Twitter at www.twitter.com/MBennettAshford or
@MBennettAshford.
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 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; the degree and nature of our competition; and the
satisfaction of the condition to the completion of the spin-off
. 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.
SOURCE Ashford Hospitality Trust, Inc.