Ashford Hospitality Trust, Inc. announced it has signed a definitive agreement to acquire the 157-room Hilton Santa Fe in Santa Fe, NM, for $18.2 million in cash from Santa Fe Hotel Joint Venture.
The purchase price equates to a 9.2x forward twelve-month EBITDA multiple, an EBITDA yield of 10.8% and a forward twelve-month net operating income capitalization rate of 8.8%. The property generated revenues of $7.7 million in 2004.

The trailing twelve month unleveraged EBITDA yield is 8.1% and the net operating income capitalization rate is 6.4%. The acquisition is expected to close in March 2005. Solid Rock Advisors, Inc. represented Ashford.

Opened in 1971, the Hilton Santa Fe has 157 rooms and 6,400 square feet of state-of-the-art meeting space. Located in the heart of historic downtown Santa Fe, the hotel is within walking distance to art galleries, shopping, restaurants, museums and cultural sites.

The hotel features three restaurants, including the award-winning Pinon Grill, a courtyard oasis with poolside fireplace and hot tub, fitness center, and wireless Internet access.

The Hilton Santa Fe is also conveniently located near the Santa Fe
Ski Basin and minutes from legendary golf courses.

The Hilton Santa Fe recently completed a US$1.2 million renovation that
included new bedding packages, soft goods and case goods in all rooms as well as flat screen televisions. Ashford intends to invest an additional $2.5 million in brand PIP requirements and other improvements in 2005. Remington Lodging & Hospitality, L.P. will manage the property.

Monty J. Bennett, President and CEO of Ashford Hospitality Trust, said,

“The Hilton Santa Fe is an excellent opportunity to add to our investment
portfolio a high quality hotel with a strong brand in a superb location.
With the high barrier to entry in the historic downtown area and the
stable operating environment in the market, we believe there is a
significant opportunity to increase the RevPAR penetration and EBITDA flow through of this asset once the renovation is completed. The possible expansion for guestrooms, spa and/or additional meeting space is also very attractive to us.”
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