Ashford Hospitality Provides Financing For Denver’s Hotel Teatro

DENVER— The Hotel Teatro here has received a $15-million loan from Ashford Hospitality Trust, Inc. Set to mature in September 2006, the loan carries an interest rate that is 565 basis points over LIBOR. Ashford received an origination fee of 1% for the financing, which includes three one-year extension options. Ashford also negotiated terms to sell off a first mortgage on the property in the range of $10 million. If it is able to sell off the mortgage, Ashford plans on retaining a $5-million mezzanine loan on the asset with pricing that would be equal to 1,100-plus basis points over LIBOR. The nine-story Hotel Teatro opened in January 1999 in a historic renovated building. It contains 111 rooms and is owned by Tramway Hotel LLC.