DALLAS, July 28, 2014 /PRNewswire/ -- Ashford
Hospitality Trust, Inc. (NYSE: AHT) ("Ashford Trust" or the
"Company") announced today that it has successfully refinanced
three mortgage loans with an existing outstanding balance of
approximately $325 million. The
three previous mortgage loans that were refinanced include:
- $135 million J.P. Morgan Floater
loan with a final maturity date in May
2017
- $101 million UBS 1 loan with a
final maturity date in December
2014
- $89 million Merrill Lynch 3 loan
with a final maturity date in February
2016
The new loans total $468.9 million
and resulted in excess proceeds of approximately $104 million after closing costs and
reserves. The $104 million in
excess proceeds will be added to the Company's unrestricted cash
balance and, as a result, this refinancing is neutral to the
Company on a net debt basis. Also, as a result of the
refinancing, the Homewood Suites Mobile and the Hampton Inn
Terre Haute, Indiana are now
unencumbered by debt.
The three previous mortgage loans were refinanced with five new
mortgage loan pools, the details of which are as follows:
Mortgage Loan Pool 1
- $301 million non-recourse
mortgage loan with a two-year initial term and three one-year
extension options.
- The loan is interest only and provides for a floating interest
rate of LIBOR + 4.35%.
- The loan is secured by seven hotels: Crowne Plaza Beverly
Hills, Embassy Suites Dulles Airport, Embassy Suites Syracuse, Fort
Worth Hilton, Hilton Santa Fe, Hyatt Regency Coral Gables, and
One Ocean in Jacksonville, FL.
Mortgage Loan Pool 2
- $62.9 million non-recourse
mortgage loan with a two-year initial term and three one-year
extension options.
- The loan is interest only and provides for a floating interest
rate of LIBOR + 4.35%.
- The loan is secured by five hotels: Residence Inn Las Vegas,
Courtyard Columbus, SpringHill Suites BWI Airport, SpringHill
Suites Centreville, and SpringHill Suites Gaithersburg.
Mortgage Loan Pool 3
- $67.52 million non-recourse
mortgage loan with a 10-year term.
- The loan has a fixed interest rate of 5.20% and is interest
only for the first two years with 30-year amortization thereafter.
- The loan is secured by three hotels: Residence Inn Lake Buena
Vista, Courtyard Louisville Airport, and Courtyard Ft.
Lauderdale.
Mortgage Loan Pool 4
- $12.5 million non-recourse
mortgage loan with a 10-year term.
- The loan has a fixed interest rate of 4.85% and is interest
only for the first two years with 30-year amortization thereafter.
- The loan is secured by two hotels: Fairfield Inn Kennesaw
and SpringHill Suites Kennesaw.
Mortgage Loan Pool 5
- $24.98 million non-recourse
mortgage loan with a 10-year term.
- The loan has a fixed interest rate of 4.90% and is interest
only for the first two years with 30-year amortization thereafter.
- The loan is secured by three hotels: SpringHill Suites
Buford - Mall of Georgia, Hampton
Inn Lawrenceville, and Hampton Inn Buford - Mall of Georgia.
"This refinancing is the latest example of our team's
proficiency in identifying unique opportunities created by today's
debt market environment to proactively manage our upcoming
maturities while strengthening our liquidity position," said
Monty J. Bennett, Ashford Trust's
Chairman and Chief Executive Officer. "We will continue to
explore strategic refinancing transactions such as this as well as
other innovative ways to create near-term and long-term shareholder
value."
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.
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. 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.