Ashford Hospitality Trust, Inc.
), a real estate investment trust (REIT), recently replaced its
$167.2 million loan scheduled to mature in May 2012 with a new
$135.0 million loan. The new loan is scheduled to mature in May
2014, and includes an accordion feature, which allows the company
to increase the debt maturity by three additional one-year periods.
The new loan provides a floating interest rate of LIBOR+ 6.50%.
The new loan is secured by nine hotels. The refinancing of the
loan has unencumbered its 'Doubletree Guest Suites' hotel in
Columbus, Ohio, which it now plans to either sell or
The strategic move to refinance the loan is aimed at investing
in more accretive opportunities, which in turn will enhance capital
flexibility. The company further expects to strengthen its balance
sheet and create long-term value for its shareholders.
Ashford Hospitality is focused on investing in the hospitality
industry across all segments and at all levels of the capital
structure. Ashford Hospitality reported first quarter 2012 funds
from operations (FFO) of 28 cents per share compared with 40 cents
in the year-earlier quarter. Funds from operations, a widely used
metric to gauge the performance of REITs, is obtained after adding
depreciation and amortization and other non-cash expenses to net
By the end of first quarter 2012, Ashford Hospitality had cash
and cash equivalents of $150 million. During the first quarter of
2012, the company replaced its previous $105 million senior credit
facility with a new $145 million credit facility with an option to
further expand the borrowing capacity to $225 million.
Ashford Hospitality currently retains a Zacks #3 Rank, which
translates into a short-term Hold rating. We are also maintaining
our long-term Neutral recommendation on the stock. One of its
Host Hotels & Resorts Inc
) holds a Zacks #2 Rank , which translates into a Buy rating.
ASHFORD HOSPTLY (AHT): Free Stock Analysis
HOST HOTEL&RSRT (HST): Free Stock Analysis
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