Ashford Hospitality Trust, Inc.
(NYSE: AHT) today announced it has closed on a $3.0 million, three-year
mezzanine loan on the Doubletree Albuquerque in Albuquerque, New Mexico.
The loan bears interest at a rate of LIBOR plus 1,115 basis points for a
term of three years with a one-year extension option. The loan is interest
only and locked from prepayment for the first 12 months. Financing on the
Doubletree Albuquerque includes a first mortgage of $13.9 million by Merrill
Lynch Capital, a division of Merrill Lynch Business Financial Services, Inc.,
and the $3.0 million mezzanine loan originated by Ashford. Ashford will
receive a 1% origination fee. Ashford's investment in the capital structure is
approximately 60% to 73% loan to value. The hotel was recently acquired by ABQ
Hotel Ventures, LLC, an affiliate of American Property Management Company
(APMC), which will also assume management of the property.
The Doubletree Albuquerque opened in 1975 and has 295 rooms, 6,000 square
feet of meeting space and one restaurant. Located in the heart of downtown,
just 3.6 miles from the Albuquerque International Airport and two miles from
the University of New Mexico, the hotel is close to major office and
government buildings, in addition to attractions such as historic Old Town
Albuquerque and Galleria shops. The Doubletree Albuquerque is also the only
hotel connected to the 168,000-square-foot Albuquerque Convention Center via
an underground concourse. APMC is expected to begin a $5.5 million renovation
of the hotel to significantly upgrade hotel guestrooms and public areas.
Commenting on the announcement, Monty J. Bennett, President and CEO of
Ashford Hospitality Trust, stated, "The Doubletree Albuquerque is a well-
located, full-service hotel that has a significant opportunity to benefit from
improved flow-through under new management and a renovation that should
enhance both its cash flow and value. We are pleased to once again team with
Merrill Lynch and American Property Management Company to help fund the
purchase and renovation of this hotel."

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. Additional
information can be found on the Company's web site at http://www.ahtreit.com.

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 forward-looking statements include,
but are not limited to, the impact of the financing on our business and future
financial condition, our business and investment strategy, our understanding
of our competition and current market trends and opportunities and projected
capital expenditures. 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; and the
degree and nature of our competition. 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
otherwise.

Contact: Douglas Kessler
COO and Head of Acquisitions
(972) 490-9600
or
Tripp Sullivan
Corporate Communications, Inc.
(615) 254-3376