Ashford Trust Completes $69 Million Financing of Pier House Resort
DALLAS, Sept. 11, 2013 /PRNewswire/ -- Ashford Hospitality Trust, Inc. (NYSE: AHT) ("Ashford Trust" or the "Company") today announced that it has completed a $69 million property level debt financing for the previously-closed acquisition of the 142-room Pier House Resort in Key West, Florida. The new financing has a two-year term and three, one-year extension options with no test requirements for the first two extensions. The loan provides for a floating interest rate of LIBOR + 4.90%, with no LIBOR Floor.
"Capitalizing on present conditions in the debt market allowed us to complete this financing of the Pier House Resort at very attractive terms while realizing substantial proceeds to further strengthen our liquidity position," commented Monty J. Bennett, Ashford Trust's Chairman and Chief Executive Officer. "RevPAR for the Pier House is up over 9% since we closed on the acquisition. This strong revenue growth, along with the cost savings we have implemented, resulted in significant lender interest to finance this asset."
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.
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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; the degree and nature of our competition; and the satisfaction of the condition to the completion of the spin-off. These and other risk factors are more fully discussed in Ashford's filings with the Securities and Exchange Commission.
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SOURCE Ashford Hospitality Trust, Inc.