Ashford Trust Enters Into Nine New Franchise Agreements Including The New
Marriott Beverly Hills
Enters into Agreement to Convert the Crowne Plaza Beverly Hills to a Marriott
Hotel and Converts Eight Hotels from Brand-Managed to Franchised
DALLAS, Aug. 12, 2013
DALLAS, Aug. 12, 2013 /PRNewswire/ -- Ashford Hospitality Trust, Inc. (NYSE:
AHT) today announced that as part of the Company's ongoing asset management
initiatives, it has entered into a franchise agreement to convert the
258-room, Crowne Plaza Beverly Hills to a Marriott after the expiration of the
existing Crowne Plaza license agreement in March of 2015.
The conversion includes an extensive product improvement plan (PIP), estimated
at $25 million, to include an upgrade of the Heating, Ventilation and Air
Conditioning (HVAC) system, an extensive renovation of the guestrooms and
public areas, including a transformational lobby renovation, and exterior
improvements which will enhance the sense of arrival for guests. The
newly-minted Marriott Beverly Hills will continue to be managed by Remington
Lodging & Hospitality following the completion of the conversion.
Additionally, the Company also announced that on May 31, 2013 it completed the
transfer of management from Marriott to Remington Lodging & Hospitality at
seven of its select-service hotels (SpringHill Suites Richmond Virginia
Center; Residence Inn Phoenix Airport; Residence Inn Newark Silicon Valley,
CA; Courtyard Oakland Airport; Courtyard by Marriott Newark Fremont, CA;
Courtyard Palm Desert; and Residence Inn Palm Desert) and one full-service
hotel (Marriott Suites Market Center Dallas). All of the franchise agreements
"We are very pleased with the conversion of these newly franchised assets and
the planned repositioning of our Beverly Hills hotel. Our goal is always to
maximize the value of our assets and create long-term value creation. We
believe these initiatives will ultimately result in increased revenues and
additional cost savings," commented Monty J. Bennett, Ashford's Chairman and
Chief Executive Officer. "The Marriott Beverly Hills is well positioned
within the marketplace as presently there are few full service Marriott hotels
near the hotel. We believe the conversion of our Beverly Hills hotel is
well-timed and we expect to reap the benefits of this market demand."
Ashford Hospitality Trust is a real estate investment trust (REIT) focused on
investing opportunistically in the hospitality industry across all segments
and at all levels of the capital structure primarily within the United States.
Follow Chairman and CEO Monty Bennett on Twitter at
www.twitter.com/MBennettAshford or @MBennettAshford.
Certain statements and assumptions in this press release contain or are based
upon "forward-looking" information and are being made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements are subject to risks and uncertainties. When
we use the words "will likely result," "may," "anticipate," "estimate,"
"should," "expect," "believe," "intend," or similar expressions, we intend to
identify forward-looking statements. Such statements are subject to numerous
assumptions and uncertainties, many of which are outside Ashford's control.
These forward-looking statements are subject to known and unknown risks and
uncertainties, which could cause actual results to differ materially from
those anticipated, including, without limitation: general volatility of the
capital markets and the market price of our common stock; changes in our
business or investment strategy; availability, terms and deployment of
capital; availability of qualified personnel; changes in our industry and the
market in which we operate, interest rates or the general economy; the degree
and nature of our competition; and the satisfaction of the condition to the
completion of the spin-off . These and other risk factors are more fully
discussed in Ashford's filings with the Securities and Exchange Commission.
The forward-looking statements included in this press release are only made as
of the date of this press release. Investors should not place undue reliance
on these forward-looking statements. We are not obligated to publicly update
or revise any forward-looking statements, whether as a result of new
information, future events or circumstances, changes in expectations or
SOURCE Ashford Hospitality Trust, Inc.
Contact: David Kimichik, Chief Financial Officer, (972) 490-9600; Deric
Eubanks, SVP - Finance, (972) 490-9600; Elise Chittick, Investor Relations,
(972) 778-9487; Scott Eckstein, Financial Relations Board, (212) 827-3766
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