ASHFORD HOSPITALITY TRUST INC current report, 18 June 2004

Business Context and Reporting Period

Company: Ashford Hospitality Trust, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: June 18, 2004 (Event Date: June 21, 2004)
Context: The Company announced the acquisition of four hotel properties from Day Hospitality Group.

Key Financial Metrics

Transaction Value: Approximately $25.9 million in cash plus a contingent component.
Contingent Payment: To be paid, if earned, no later than April 30, 2005.
Funding Source: Cash from borrowings.
Closing Timeline: Expected early to mid-July 2004.
Other Metrics: The filing text does not provide a clear value for revenue, profit, cash flow, margins, debt, or liquidity specific to the Company's current operations.

Material Changes

  • Asset Acquisition: Addition of four hotel properties to the Company's portfolio.
  • Capital Structure: Anticipated increase in debt due to the use of borrowings to fund the acquisition.

Guidance, Outlook, and Risks

Management Commentary: The purchase price was the result of an arms-length negotiation.
Outlook: The transaction is expected to close in July 2004.
Contingencies: A portion of the purchase price is contingent on future performance, payable by April 30, 2005.
Financial Statements: Required financial statements of the acquired properties and pro forma financial information will be filed by amendment within 60 days of this report.

Investor Verification Checklist

  • Verify the specific identities and locations of the four acquired hotel properties.
  • Review the upcoming amendment for the financial statements of the acquired properties.
  • Monitor the pro forma financial information to assess the impact on the Company's leverage and liquidity.
  • Confirm the terms of the contingent payment component and the criteria for its payout.
  • Assess the interest rates and terms of the borrowings used to fund the $25.9 million cash portion.