"This transaction substantially increases our asset base and market capitalization and reflects strong investor confidence in our business plan," says Monty J. Bennett, president and CEO of Ashford. "Our percentage of full-service, upper-upscale and upscale assets will increase thereby improving Ashford's position for growth going forward, while providing additional brand and geographic diversification."

The acquisition will boost Ashford's direct hotel portfolio to increase to 54 assets totaling 9,189 rooms, according to the REIT. Of the 21-property portfolio acquisition, Ashford considers 13 hotels as core assets, consisting of five brands and one independent totaling 3,099 rooms: Houston Embassy Suites Galleria in Houston; Houston Hilton NASA/Clearlake, also in Houston; Fort Worth Radisson in Fort Worth; St. Petersburg Hilton in St. Petersburg, FL; West Palm Beach Embassy Suites and Admiralty Office Building in West Palm Beach, FL; Key West Crowne Plaza LaConcha in Key West, FL; Sheraton Minneapolis West in Minnetonka, MN; Beverly Hills Crowne Plaza in Los Angeles; Rockland Radisson Hotel Boston/South Shore in Rockland, MA; Milford Radisson in Milford, MA; Indianapolis Airport Radisson Hotel in Indianapolis; Indianapolis Radisson Hotel City Centre, also in Indianapolis; and the Historic Inns in Annapolis, MD.

The core portfolio is current undergoing an estimated $35-million to $40-million capital improvement plan, which will be completed under Ashford's ownership by early 2006. Remington Lodging & Hospitality, an affiliate of the current manager of the properties, will operate the hotels.