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Ashford Hospitality Trust Acquires $50 Million Hotel Portfolio

2003-09-23

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DALLAS Sept. 22, 2003 Ashford Hospitality Trust, Inc. (NYSE: AHT) today announced it has signed a definitive agreement with FelCor Lodging Trust (NYSE: FCH) to acquire a five-property, 894-suite portfolio of Embassy Suites Hotels(R) and Doubletree Guest Suites(R) hotels for $50.0 million in cash. The acquisition is expected to close in early October 2003.

The portfolio consists of: the Embassy Suites in Phoenix, Arizona; the Embassy Suites in Syracuse, New York; the Embassy Suites in Flagstaff, Arizona; the Doubletree Guest Suites in Columbus, Ohio; and the Doubletree Guest Suites in Dayton, Ohio. Ashford intends to invest an additional $8.2 million in capital improvements to gain market share and increase top line performance.

Commenting on the announcement, Monty J. Bennett, President and CEO of Ashford Hospitality Trust, said, "We are pleased to announce our first of what will be many transactions at an attractive initial yield with what we believe to be substantial upside. This acquisition is consistent with Ashford's diversified investment strategy focused on direct equity investments, first mortgages, mezzanine loans and sale-leaseback transactions involving hotel assets. We believe this strategy is best suited to optimize shareholder returns throughout all business cycles.

"At a purchase price of approximately $56,000 per suite, we believe this is a very attractive price for well branded hotels. We are confident that there are opportunities for increased top line performance from the expected economic recovery and capital improvements. Ashford has engaged Remington Lodging, an affiliate of Remington Hotel Corporation, to be the property manager."

The 229-suite Embassy Suites Hotel - Phoenix-Airport is located 1.5 miles north of Sky Harbor International Airport and one block north of the access road to Loop 202 - I-10 and I-17. The property includes approximately 9,200 square feet of meeting space, a full service restaurant, an outdoor pool, gift shop and fitness room.

The 215-suite Embassy Suites - Syracuse located in Syracuse, New York, is convenient to all of the area's major corporations and regional attractions. The property includes approximately 3,300 square feet of meeting space, a full service restaurant, an indoor pool, gift shop and fitness room.

The Embassy Suites - Flagstaff is located in the heart of Flagstaff - a popular destination in Arizona, and a natural stop over between two scenic wonders - Sedona/Oak Creek and the Grand Canyon. The property includes approximately 1,400 square feet of meeting space, a fitness room, outdoor pool and gift shop.

The 194-suite Doubletree Guest Suites - Columbus is located downtown near the Ohio State Capitol with views of the Scioto River. The property includes 2,600 square feet of meeting space, a full service restaurant, and business center.

The 137-suite Doubletree Guest Suites - Dayton/Miamisburg is within minutes of downtown Dayton, Ohio, and is proximate to the Dayton Convention Center. The property includes approximately 2,600 square of meeting space, a full service restaurant, an indoor/outdoor pool and a fitness room.

Jones Lang LaSalle Hotels acted as the exclusive advisor in this transaction.

Ashford Hospitality Trust is a self-administered real estate investment trust focused exclusively 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. The Company currently owns six hotel properties and through its management team has experience in sourcing, underwriting, operating, repositioning, developing, selling and financing a wide variety of lodging investments.

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