Ashford Hospitality Trust, Inc.
today announced it has closed on the sale of a 56,000-square-foot office
building in suburban Philadelphia to Keystone Property Fund I, an
affiliate of Keystone Property Group, for $3,050,000 in cash. Acquired by Ashford in July 2004 together with the 187-room Sheraton Bucks
County, the 13-year-old office building, which is attached to the hotel,
had been designated as a non-core property and actively marketed by
Ashford. To facilitate its marketing, Ashford implemented a condominium
regime for the mixed use property in order to sell the office building
component. The 444 Oxford Valley Road Building is located in Langhorne,
Pennsylvania, adjacent to the Sheraton Bucks County and currently has one
tenant occupying approximately 2,600 square feet.

Monty J. Bennett, President and Chief Executive Officer of Ashford,
commented, “We acquired the Sheraton Bucks County and the adjacent office
building as a package with the intent of selling it to a premier office
building investor that would commit significant capital investment to the
project and further enhance our yield on the hotel asset. These sale
proceeds are consistent with our previous projections which should
increase the trailing 12-month EBITDA yield from 13.2% to 15.5% and
increase the NOI capitalization rate from 11% to 13%. With our extensive
$5.7 million renovation of the Sheraton Bucks County nearing completion,
we are excited about the prospects of the hotel after Keystone completes
its renovations to the office building and secures first class tenants.”

Keystone Property Group has a proven record of turning around office
properties in the Philadelphia area with significant client-tenant
relationships. Keystone is expected to invest an additional $6.0 million
in this office property. Their redevelopment plan includes replacing the
HVAC system, windows, roof, common areas and tenant improvements.
——-