Ashford Hospitality Trust,
Inc. announced it has completed the acquisition of the 157-room Hilton
Santa Fe in Santa Fe, NM, for $18.2 million in cash from Santa Fe Hotel
Joint Venture. The acquisition increases Ashford’s direct hotel portfolio
to 55 assets totaling 9,346 rooms. 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%. 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 $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 assume management of the
property.

Monty J. Bennett, President and CEO of Ashford Hospitality Trust, said,
“We are pleased with our strong investment pace early in 2005. The
addition of the Hilton Santa Fe and our recently completed acquisition of
21 hotels for $250 million bring our level of investments to an even
stronger pace than that achieved in the first quarter a year ago. We
intend to start work on improvements to the Hilton Santa Fe as soon as
practical to position this property for increased RevPAR penetration and
EBITDA flow through next year.”
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