GlobeSt.com UPDATE: Ashford, CNL Polish Off $465M Sale

DALLAS-As promised, Ashford Hospitality Trust Inc. and CNL Hotels & Resorts Inc. have swapped $465 million in cash for 30 Marriott-branded hotels in 16 states. Now, plans are being made to pump another $34 million into 20 assets in the coming two years.

According to the Ashford’s early morning press release, the exchange, bringing $107,000 per key for 4,328 rooms, was financed with a $370-million, 10-year loan at a fixed rate of 5.32% interest from Merrill Lynch Mortgage Lending Inc. The balance is coming from cash on hand, the sale of nearly 6.7 million shares of preferred stock to Security Capital Preferred Growth Inc. and exercising an option to sell 2.1 million shares of common stock to the Greenwich, CT-based investment group. The second stock sale is expected to close July 1.

“The timely closing of this transaction, combined with the continued strong performance of the hotels in the portfolio and the attractive financing we secured, has positioned us for strong growth in 2005 and beyond,” Monty J. Bennett, president and CEO of the Dallas-based Ashford, says in the press release. “Our recent decision to increase our second quarter dividend was a direct result of the favorable outlook at these hotels and their expected positive impact on our operations.” The portfolio was acquired at a trailing 12-month net NOI cap rate of 8.5%, according to Ashford.