SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (date of earliest event reported): April 18, 2006
ASHFORD HOSPITALITY TRUST, INC.
(Exact name of registrant as specified in its charter)
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| MARYLAND
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001-31775
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86-1062192 |
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(Commission File Number)
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(I.R.S. Employer |
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Identification |
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Number) |
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| 14185 Dallas Parkway, Suite 1100 |
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| Dallas, Texas
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75254 |
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(Zip code) |
Registrant’s telephone number, including area code: (972) 490-9600
Check the appropriate box if the Form 8-K filing is intended to simultaneously satisfy the filing
obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
ITEM 2.01. COMPLETION OF AN ACQUISITION OR DISPOSITION OF ASSETS
On April 19, 2006, Ashford Hospitality Trust, Inc. (the “Company”) completed the acquisition of the
338-room Pan Pacific San Francisco Hotel in San Francisco, California, for approximately $95.0
million in cash from W2001 Pac Realty, L.L.C.
On a forward twelve-month basis, the purchase price equates to a 12.2x EBITDA multiple, an EBITDA
yield of 8.2%, and a net operating income capitalization rate of 6.5% with projected revenues of
$32 million. The purchase price equates to a trailing twelve-month net operating income
capitalization rate of 3.9% and a 5.0% EBITDA yield. The property generated revenues of $25.5
million for the calendar year 2005.
The Company will convert the hotel into a JW Marriott with re-branding and renovation costs
expected to approximate $10.0 million. Marriott International, Inc. will manage the hotel under a
long-term incentive management agreement. The Company funded the acquisition from proceeds
received from two credit facility draws of approximately $88.9 million and $15.0 million, as
discussed below in Item 2.03.
ITEM 2.03 MATERIAL FINANCIAL OBLIGATION
On April 18, 2006, the Company completed an approximate $88.9 million draw on its $100.0 million
credit facility, due August 17, 2008, with an interest rate of LIBOR plus a range of 1.6% to 1.95%
depending on the loan-to-value ratio. Considering this draw, the outstanding balance on this
credit facility at April 18, 2006 was approximately $98.9 million.
On April 18, 2006, the Company completed a $15.0 million draw on its $47.5 million credit facility,
due October 10, 2007, with an interest rate of LIBOR plus a range of 1% to 1.5% depending on the
outstanding balance. Considering this draw, the outstanding balance on this credit facility at
April 18, 2006 was approximately $15.0 million.