Wednesday, July 8, 2009

Ashford Hospitality Trust Remains on Stable Ground

Despite the bankruptcy filing of Extended Stay America a few weeks ago, Ashford Hospitality Trust (AHT) remains on solid footing. As my analysis demonstrated, even if Ashford’s entire mezzanine loan portfolio goes bad, they would still be in good shape. This means being able to meet all debt service requirements, meet all debt covenant requirements, meet the preferred dividend payments, and have plenty of cash on hand for capital expenditures and principal repayments due in 2010 and 2011.
The company sits on $240 million of unrestricted cash.

Read more:
http://seekingalpha.com/article/147565-ashford-hospitality-trust-remains-on-stable-ground

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