Ashford Acquires Senior Mezzanine Loan for 29-Hotel Portfolio

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. October 14, 2008

FEBRUARY 19, 2008. Ashford Hospitality Trust, Inc. (NYSE: AHT) today announced that its joint venture with PREI has acquired a senior mezzanine loan secured by a 29-hotel portfolio of full- and select-service hotels owned by affiliates of JER Partners. Ashford's 25% of the joint venture investment equals $17.5 million and is priced to yield approximately 17.9% based upon the purchase price discount to par, the forward LIBOR curve through the initial maturity of the loan, and the joint venture promote.

The interest only loan, with an initial term of three years from origination, has the potential for two one-year extension options. The loan can be prepaid with penalty during the first two years and is open to prepayment without penalty thereafter. Based on trailing 12-month net cash flow from the property, the debt service coverage ratio at closing is approximately 1.72x and the investment in the capital structure is approximately 68% to 72% loan to cost. The borrower has invested $444.2 million of equity in this transaction including $347.1 million of cash and capital improvement reserves of $97 million.

Commenting on the announcement, Monty J. Bennett, President and CEO of Ashford Hospitality Trust, stated, "This transaction exemplifies key characteristics of our lending platform that are unique among our peer group. The joint venture structure and timing resulted in a very attractive return for our shareholders while making a more secure investment in the capital structure of the overall loan. Other attractive features of this loan are: strong sponsorship and equity in the portfolio, geographic diversity across major urban markets, and market leading brands. Given current pricing in the market for loans that are consistent with our investment criteria, we anticipate continued capital recycling from asset sales into higher yielding loans."

The loan portfolio includes 22 full-service hotels totaling 7,307 rooms and 7 select-service hotels totaling 1,326 rooms. Hotel managers include Ritz-Carlton, Hilton, Marriott, Hyatt, Crestline and McKibbon. Located among 14 states and the District of Columbia, the portfolio has a significant concentration in urban markets and is predominantly comprised of luxury and upper-upscale properties with brands such as Ritz-Carlton, Hyatt, Hilton and Renaissance. The select-service hotels consist of brands such as Hilton Garden Inn, Hampton Inn and Residence Inn.

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 www.ahtreit.com.