Ashford Hospitality continues proactive management of debt maturities with extension of $157 million loan
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Ashford Hospitality continues proactive management of debt maturities with extension of $157 million loan
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Category: Worldwide - Industry economy
- Figures / Studies
This is a press release selected by our editorial committee and published online for free on 2010-04-06
Ashford Hospitality Trust, Inc. (NYSE: AHT) today announced it has restructured the $157 million loan with Aareal Bank AG that is secured by the Hilton LaJolla Torrey Pines and the Capital Hilton held in a joint venture with Hilton Worldwide. The modification provides a full extension of the loan maturity to August 2013 without tests along with reduced cash management provisions in exchange for a reduction in the loan balance of $2.5 million at closing and another $2.5 million over the next twelve months. The loan was set to mature in August 2011 and had two one-year extension options. Since January 1st, 2009, Ashford has completed $442 million of loan extensions, modifications, and refinancing. The company does not have any non-extendable 2010 loan maturities. In 2011, the company’s non-extendable loan maturities include a $6 million loan due in the first quarter and $203 million due at the end of the fourth quarter 2011.
Monty Bennett, Chief Executive Officer of Ashford, noted, "We have made very solid progress in addressing loan maturities at a time when hotel lending remains challenging. However, as lodging and capital market conditions improve, we see increasing interest among lenders to consider loans on existing hotel assets backed by high quality owners. Even though we have limited near term maturities, we intend to continue to work constructively with lenders on longer dated loan maturities to seek modifications and extensions.”
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