Ashford Hospitality Trust, Inc. (NYSE:AHT) today announced it has priced a follow-on public offering of 5,000,000 shares of common stock at $10.25 per share, resulting in net proceeds after underwriting discounts and expenses of approximately $49.3 million.
The closing of the offering is scheduled for April 5, 2005. The underwriters have been granted a 30-day option to purchase an additional 750,000 shares of common stock from the Company to cover over-allotments.
Wachovia Securities and Friedman Billings Ramsey acted as the book-running managers of the offering. A.G. Edwards, Legg Mason Wood Walker, Incorporated, and Stifel, Nicolaus & Company, Incorporated acted as co-managers.
The offering proceeds to the Company will be used for general corporate purposes, which may include the acquisition of additional hotel investments. In the ordinary course of the Company's business, the Company continually evaluates hotel investments and is in various stages of due diligence as part of its evaluations. The Company is currently party to non-binding letters of intent or conditional commitments in respect of hotel investments in an aggregate amount of approximately $500 million. Consummation of any potential transaction is necessarily subject to significant outstanding conditions, including satisfactory completion of due diligence or, in the case of letters of intent, the negotiation of definitive agreements. As a result, there are no assurances that any such transaction will be completed, or, if completed, what the terms or timing of the transaction will be.
Ashford Hospitality Trust is a self-administered real estate investment trust focused on investing in the hospitality industry across all segments and at all levels of the capital structure, including direct hotel investments, first mortgages, mezzanine loans and sale-leaseback transactions.
Logos, product and company names mentioned are the property of their respective owners.
