DALLAS, Jan. 5, 2015 /PRNewswire/ -- Ashford
Hospitality Trust, Inc. (NYSE: AHT) ("Ashford Trust" or the
"Company") announced today that it has successfully refinanced two
mortgage loans with an existing outstanding balance of
approximately $354 million. The
two previous mortgage loans that were refinanced include:
- $211 million Goldman Sachs
Floater loan with a final maturity date in November 2017
- $143 million Merrill Lynch 1 loan
with a final maturity date in July
2015
The new loans total $478 million
and resulted in excess net proceeds of approximately $107 million after closing costs and
reserves.
The two previous mortgage loans were refinanced with four new
mortgage loan pools, the details of which are as follows:
Mortgage Loan Pool 1
- $377 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 + 4.95%.
- The loan is secured by eight hotels: Embassy Suites Portland,
Hilton Costa Mesa, Sheraton
Minneapolis, Crowne Plaza Key West, Historic Inns of Annapolis,
Embassy Suites Santa Clara, Embassy Suites Crystal City and Embassy
Suites Orlando Airport.
Mortgage Loan Pool 2
- $55 million non-recourse mortgage
loan with a 10-year term.
- The loan has a fixed interest rate of 4.45%.
- The loan is secured by three hotels: Courtyard Overland Park,
Residence Inn Salt Lake City Cottonwood, and Residence Inn Orlando
Sea World.
Mortgage Loan Pool 3
- $25 million non-recourse mortgage
loan with a 10-year term.
- The loan has a fixed interest rate of 4.45%.
- The loan is secured by two hotels: Courtyard Palm Desert and
Residence Inn Palm Desert.
Mortgage Loan Pool 4
- $21 million non-recourse mortgage
loan with a 10-year term.
- The loan has a fixed interest rate of 4.45%.
- The loan is secured by two hotels: Springhill Suites Charlotte
University and Springhill Suites Raleigh-Durham Airport.
"We are pleased to start 2015 with a refinancing of these two
portfolios that will result in substantial excess proceeds and
further strengthen our liquidity position," said Monty J. Bennett, Ashford Trust's Chairman and
Chief Executive Officer. "This transaction is yet another
example of our team's ability to proactively manage our upcoming
maturities, and we will continue to look for additional
opportunities such as this 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.
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SOURCE Ashford Hospitality Trust, Inc.