DALLAS, Dec. 23, 2013 /PRNewswire/ -- Ashford
Hospitality Trust, Inc. (NYSE: AHT) ("Ashford Trust" or the
"Company") announced today that it has successfully closed mortgage
loans totaling $18.2 million on the
Residence Inn Jacksonville Butler Boulevard and the Residence Inn
Hartford - Manchester, with both
loans now set to mature in January
2024.
The previous $6.4 million loan
balance on the Residence Inn Jacksonville has been refinanced with
a new $10.8 million loan, with a
10-year term that provides for a fixed interest rate of 5.49% and
is non-recourse. The refinance resulted in excess net
proceeds of approximately $4.0
million, which will be added to the Company's unrestricted
cash balance. As a result, this refinancing was neutral to
the Company on a net debt basis.
The new financing on the Residence Inn Hartford - Manchester includes a $7.4 million loan, also with a 10-year
term. The new loan provides for a fixed interest rate of
5.49% and is non-recourse. Ashford has an 85% ownership interest in the
property, with Interstate Hotels & Resorts holding the
remaining 15%. Terms described in this press release refer to
100% of the loan indebtedness unless otherwise indicated. This
property was previously unencumbered, and the excess loan proceeds
above typical closing costs and reserves were distributed to the
partners on a pro rata basis. Ashford Trust's share of the
excess proceeds was approximately $6.0
million, which will be added to the Company's unrestricted
cash balance. As a result, this refinancing was neutral to
the Company on a net debt basis.
"This latest financing represents over $287 million in new loans and refinancings that
Ashford Trust has completed in 2013," said Monty J. Bennett, Ashford Trust's Chairman and
Chief Executive Officer. "Our team always looks for creative
ways to increase shareholder value, including opportunistic
transactions such as these. By leveraging attractive debt
market conditions, we generated excess proceeds to further
strengthen our liquidity position."
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 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.
SOURCE Ashford Hospitality Trust, Inc.