Acquisition Highlights:
- Acquired at forward twelve-month cap rate of 8.8%, EBITDA multiple of
9.2x, EBITDA yield of 10.8%, and cost per key of $116,000
- Provides entry to a market with high barriers to entry
- Ashford's direct hotel portfolio increased to 55 assets totaling
9,346 rooms
DALLAS, March 23 /PRNewswire-FirstCall/ -- Ashford Hospitality Trust, Inc.
(NYSE: AHT) announced it has completed the acquisition of the 157-room Hilton
Santa Fe in Santa Fe, NM, for $18.2 million in cash from Santa Fe Hotel Joint
Venture. The acquisition increases Ashford's direct hotel portfolio to
55 assets totaling 9,346 rooms.
The purchase price equates to a 9.2x forward twelve-month EBITDA multiple,
an EBITDA yield of 10.8% and a forward twelve-month net operating income
capitalization rate of 8.8%. The property generated revenues of $7.7 million
in 2004. The trailing twelve month unleveraged EBITDA yield is 8.1% and the
net operating income capitalization rate is 6.4%. Solid Rock Advisors, Inc.
represented Ashford.
Opened in 1971, the Hilton Santa Fe has 157 rooms and 6,400 square feet of
state-of-the-art meeting space. Located in the heart of historic downtown
Santa Fe, the hotel is within walking distance to art galleries, shopping,
restaurants, museums and cultural sites. The hotel features three restaurants,
including the award-winning Pinon Grill, a courtyard oasis with poolside
fireplace and hot tub, fitness center, and wireless Internet access. The
Hilton Santa Fe is also conveniently located near the Santa Fe Ski Basin and
minutes from legendary golf courses.
The Hilton Santa Fe recently completed a $1.2 million renovation that
included new bedding packages, soft goods and case goods in all rooms as well
as flat screen televisions. Ashford intends to invest an additional
$2.5 million in brand PIP requirements and other improvements in 2005.
Remington Lodging & Hospitality, L.P. will assume management of the property.
Monty J. Bennett, President and CEO of Ashford Hospitality Trust, said,
"We are pleased with our strong investment pace early in 2005. The addition of
the Hilton Santa Fe and our recently completed acquisition of 21 hotels for
$250 million bring our level of investments to an even stronger pace than that
achieved in the first quarter a year ago. We intend to start work on
improvements to the Hilton Santa Fe as soon as practical to position this
property for increased RevPAR penetration and EBITDA flow through next year."
Ashford Hospitality Trust is a self-administered real estate investment
trust focused on investing in the hospitality industry across all segments and
at all levels of the capital structure, including direct hotel investments,
first mortgages, mezzanine loans and sale-leaseback transactions. Additional
information can be found on the Company's web site at http://www.ahtreit.com .
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 forward-looking statements include,
but are not limited to, the forward EBITDA multiple, the forward income
capitalization rate, the forward EBITDA yield, the impact of the transaction
on our business and future financial condition, our business and investment
strategy, our understanding of our competition and current market trends and
opportunities and projected capital expenditures. 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; and the
degree and nature of our competition. These and other risk factors are more
fully discussed in Ashford's filings with the Securities and Exchange
Commission. EBITDA is defined as net income before interest, taxes,
depreciation and amortization. EBITDA yield is defined as trailing twelve
month EBITDA divided by the purchase price. A capitalization rate is
determined by dividing the property's annual net operating income by the
purchase price. Net operating income is the property's funds from operations
minus a capital expense reserve of 4% of gross revenues. Funds from operations
("FFO"), as defined by the White Paper on FFO approved by the Board of
Governors of the National Association of Real Estate Investment Trusts
("NAREIT") in April 2002, represents net income (loss) computed in accordance
with generally accepted accounting principles ("GAAP"), excluding gains (or
losses) from sales or properties and extraordinary items as defined by GAAP,
plus depreciation and amortization of real estate assets, and net of
adjustments for the portion of these items related to unconsolidated entities
and joint ventures.
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.
-0- 03/23/2005
/CONTACT: Douglas Kessler, Chief Operating Officer and Head of
Acquisitions of Ashford Hospitality Trust, Inc., +1-972-490-9600, or Tripp
Sullivan of Corporate Communications, Inc., +1-615-254-3376/
/Web site: http://www.ahtreit.com /
(AHT)
CO: Ashford Hospitality Trust, Inc.; Santa Fe Hotel Joint Venture
ST: Texas, New Mexico
IN: TRA LEI
SU: TNM
AB-CF
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5208 03/23/200508:30 ESThttp://www.prnewswire.com