DALLAS--(BUSINESS WIRE)--
Ashford Hospitality Trust, Inc. (NYSE: AHT) today announced that
it has completed the previously disclosed sale of the JW Marriott New
Orleans in New Orleans, Louisiana, for $67.5 million in cash and
assumed debt. The price equates to a 2.9% trailing 12-month NOI cap
rate and a 20.9x trailing 12-month EBITDA multiple. As part of the
sale, the buyer assumed an approximate $43.9 million first mortgage at
an 8.08% interest rate.
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 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 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 (NOI) is the
property's funds from operations minus a capital expense reserve of
either 4% or 5% 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.
Contact: Ashford Hospitality Trust, Inc.
Douglas Kessler, 972-490-9600
COO and Head of Acquisitions
or
Corporate Communications, Inc.
Tripp Sullivan, 615-254-3376