DALLAS, June 15, 2018 /PRNewswire/ -- Ashford Hospitality
Trust, Inc. (NYSE: AHT) ("Ashford Trust" or the "Company")
announced today that it has successfully refinanced seven mortgage
loans with existing outstanding balances totaling approximately
$1.07 billion. The previous
mortgage loans that were refinanced were the MIP Portfolio loan
with a final maturity date in February
2019, the Morgan Stanley Pool A loan with a final maturity
date in August 2019, the Morgan
Stanley Pool B loan with a final maturity date in August 2019, the Marriott Memphis loan with a
final maturity date in April 2020,
the Lakeway Resort loan with a final maturity date in May 2020, the W Atlanta Downtown loan with a
final maturity date in July 2020, and
the JP Morgan 17-Pack loan with a final maturity date in
October 2022.
The new financing is comprised of six separate mortgage loans
with an average size of approximately $211.7
million that together total approximately $1.27 billion and each has a two-year initial
term with five one-year extension options, subject to the
satisfaction of certain conditions. The loans bear interest
at a combined weighted average rate of LIBOR + 3.85%, which is 72
basis points lower than the previous mortgage loans. The terms
allow for the potential to lower the spread on this financing
depending upon where the securitization of the debt ultimately
prices. After closing this transaction, the weighted average
maturity of Company's debt will be 6.2 years assuming extension
options are exercised. The closing of this financing brings
the Company's total refinancing activity since the start of 2017 to
$3.4 billion.
The loans are interest only and are comprised of six pools. The
Pool A loan is secured by seven hotels: Courtyard Columbus Tipton
Lakes, Courtyard Scottsdale Old Town, Residence Inn Phoenix
Airport, SpringHill Suites Manhattan Beach, SpringHill Suites
Plymouth Meeting, Residence Inn Las Vegas Hughes Center and
Residence Inn Newark. The Pool B loan is secured by seven
hotels: Courtyard Newark, SpringHill Suites BWI, Courtyard Oakland
Airport, Courtyard Plano Legacy, Residence Inn Plano, TownePlace
Suites Manhattan Beach and Courtyard Basking Ridge. The Pool
C loan is secured by five hotels: Sheraton San Diego Mission
Valley, Sheraton Bucks County, Hilton Ft. Worth, Hyatt Regency
Coral Gables and Hilton Minneapolis. The Pool D loan is
secured by five hotels: Hilton Santa Fe, Embassy Suites Dulles,
Marriott Beverly Hills, One Ocean Resort and Marriott Suites Dallas
Market Center. The Pool E loan is secured by five hotels:
Marriott Memphis East, Embassy Suites Philadelphia Airport,
Sheraton Anchorage, Lakeway Resort & Spa and Marriott Fremont. The Pool F loan is
secured by five hotels: W Atlanta Downtown, Embassy Suites
Flagstaff, Embassy Suites Walnut Creek, Marriott Bridgewater and Marriott Durham
Research Triangle Park.
"This was a very important financing for us as it allowed us to
extend the maturity of a significant portion of our debt while
maximizing our flexibility by managing loan pool sizes," said
Douglas A. Kessler, Ashford Trust's
President and Chief Executive Officer. "We have had great success
recently in our proactive efforts to capitalize on the favorable
debt markets to significantly lower the loan spreads from what we
would have paid under the previous terms."
Ashford Hospitality Trust is a real estate investment trust
(REIT) focused on investing opportunistically in the hospitality
industry in upper upscale, full-service hotels.
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: timing of closing of the transaction and
satisfaction of conditions to closing, 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.