Ashford Hospitality Trust Reports Fourth Quarter Results and Reinstates Quarterly Dividend of $.10 Per Share

Ashford Hospitality Trust, Inc. (NYSE:AHT) today reported the following results and performance measures for the fourth quarter ended December 31, 2010. The proforma performance measurements for Occupancy, Average Daily Rate (ADR), Revenue Per Available Room (RevPAR), and Hotel Operating Profit (or Hotel EBITDA) include the Company's 97 hotels owned and included in continuing operations as of December 31, 2010. Unless otherwise stated, all reported results compare the fourth quarter ended December 31, 2010, with the fourth quarter ended December 31, 2009 (see discussion below). The reconciliation of non-GAAP financial measures is included in the financial tables accompanying this press release.

FINANCIAL HIGHLIGHTS

• RevPAR increased 7.5% for the hotels not under renovation
• Operating profit margin increased 384 basis points for the hotels not under renovation
• Net loss attributable to common shareholders was $111.5 million, or $2.17 per diluted share, compared with net loss attributable to common shareholders of $76.9 million, or $1.30 per diluted share, in the prior-year quarter
• Adjusted funds from operations (AFFO) was $0.40 per diluted share for the quarter
• Adjusted funds from operations (AFFO) was $1.50 per diluted share for the entire year
• Net debt to gross assets ratio improved to 55.0% compared with 59.0% a year ago
• Fixed charge coverage ratio was 1.70x under the senior credit facility covenant versus a required minimum of 1.25x
• Reinstates common stock quarterly dividend at $0.10 per share, or $0.40 per share annualized rate

CAPITAL ALLOCATION

• Capex invested in the quarter was $15.7 million and $62.2 million year to date

IMPAIRMENTS

During the fourth quarter due to assets being marketed for sale, the Company recorded impairments of $39.9 million for the Hilton Tucson and $23.6 million for the Hilton Rye Town. Also the Company took impairments of $21.6 million for its JER portfolio mezzanine loan six position and an impairment of $7.8 million for a partial write down of the Tharaldson portfolio mezzanine loan maturing in April 2011. In addition, the Company received in the fourth quarter a $4.4 million payoff of its mezzanine loan secured by interests in the Hotel La Jolla, which when combined with a payment of $1.8 million in the third quarter of 2010, resulted in a discounted payoff of 87.5%.

CAPITAL STRUCTURE

In October 2010, the Company converted its $1.8 billion interest rate swap to a fixed rate of 4.09%, resulting in locked-in annual interest expense savings of approximately $32 million for the remaining term of the swap. There was no cash cost to the Company in structuring the swap, and the Company's flooridors for 2010 and 2011, remained outstanding, the latter of which may provide additional benefit.

In November 2010, the Company closed a $105 million loan with Deutsche Bank secured by the Marriott Crystal Gateway in Arlington, VA. The new financing, which has a 10-year term and a fixed interest rate of 6.26%, replaced an existing $60.8 million loan on the property that had an initial maturity date in March 2012 and had an interest rate of 400 basis points over LIBOR. The excess loan proceeds were used to pay down the Company’s credit facility and for general corporate purposes.

In December 2010, the Company closed its underwritten public offering of 7.5 million shares of its common stock at a price to the public of $9.65 per share. In January 2011, the underwriter exercised its option to purchase an additional 300,000 shares of common stock at $9.65 per share. The proceeds were used for general corporate purposes.

PORTFOLIO REVPAR

As of December 31, 2010, the Company had a portfolio of direct hotel investments consisting of 97 properties classified in continuing operations. During the fourth quarter, 80 of the hotels included in continuing operations were not under renovation. The Company believes reporting its operating metrics for continuing operations on a proforma total basis (all 97 hotels) and proforma not-under-renovation basis (80 hotels) is a measure that reflects a meaningful and focused comparison of the operating results in its direct hotel portfolio. The Company's reporting by region and brand includes the results of all 97 hotels in continuing operations. Details of each category are provided in the tables attached to this release.

• Proforma RevPAR increased 7.5% for hotels not under renovation on a 0.5% increase in ADR to $117.07 and a 429 basis point increase in occupancy
• Proforma RevPAR increased 5.3% for all hotels on a 0.2% increase in ADR to $122.80 and a 324 basis point increase in occupancy

HOTEL EBITDA MARGINS AND QUARTERLY SEASONALITY TRENDS

For the 80 hotels as of December 31, 2010, that were not under renovation, Proforma Hotel EBITDA increased 23.5% to $42.8 million. Proforma Hotel EBITDA margin (expressed as a percentage of Total Hotel Revenue) increased 384 basis points to 27.2%. For all 97 hotels included in continuing operations as of December 31, 2010, Proforma Hotel EBITDA increased 14.7% to $60.7 million and Hotel EBITDA margin increased 256 basis points to 26.9%.

Ashford believes year-over-year Hotel EBITDA and Hotel EBITDA margin comparisons are more meaningful to gauge the performance of the Company’s hotels than sequential quarter-over-quarter comparisons. Given the substantial seasonality in the Company’s portfolio and its active capital recycling, to help investors better understand this seasonality, the Company provides quarterly detail on its Proforma Hotel EBITDA and Proforma Hotel EBITDA margin for the current and certain prior-year periods based upon the number of core hotels in the portfolio as of the end of the current period. As Ashford’s portfolio mix changes from time to time so will the seasonality for Proforma Hotel EBITDA and Proforma Hotel EBITDA margin. The details of the quarterly calculations for the previous four quarters for the current portfolio of 97 hotels included in continuing operations are provided in the tables attached to this release.

COMMON STOCK DIVIDEND REINSTATED

Ashford announced that the Board of Directors has declared a dividend on the Company’s common stock for the first quarter of 2011 of $0.10 per share and has given guidance that while each future quarter’s dividend, if any, will be definitively announced near the end of each quarter, the Company intends to maintain at least a $.10 per share dividend per quarter going forward. The dividend is payable on April 15, 2011, to shareholders of record as of March 31, 2011, and equates to an annualized yield of 4.1% based on today’s closing stock price.

Monty J. Bennett, Chief Executive Officer, commented, "The strong results for the fourth quarter continue to reflect the benefit of an improving lodging market and our ability to achieve better margin improvement through differentiated asset management strategies. Combined with our opportunistic capital market activities, we have been able to position our portfolio for better performance.”

INVESTOR CONFERENCE CALL AND SIMULCAST

Ashford Hospitality Trust, Inc. will conduct a conference call on Friday, February 25, 2011, at 11 a.m. ET. The number to call for this interactive teleconference is (212) 231-2906. A replay of the conference call will be available through Thursday, March 3, 2011, by dialing (402) 977-9140 and entering the confirmation number, 21508722.

The Company will also provide an online simulcast and rebroadcast of its fourth quarter 2010 earnings release conference call. The live broadcast of Ashford's quarterly conference call will be available online at the Company's website at www.ahtreit.com on Friday, February 25, 2011, beginning at 11 a.m. ET. The online replay will follow shortly after the call and continue for approximately one year.

Substantially all of our non-current assets consist of real estate investments and debt investments secured by real estate. Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, most industry investors consider supplemental measures of performance, which are not measures of operating performance under GAAP, to assist in evaluating a real estate company's operations. These supplemental measures include FFO, AFFO, EBITDA, and Hotel Operating Profit. FFO is computed in accordance with our interpretation of standards established by NAREIT, which may not be comparable to FFO reported by other REITs that do not define the term in accordance with the current NAREIT definition or that interpret the NAREIT definition differently than us. Neither FFO, AFFO, EBITDA, nor Hotel Operating Profit represents cash generated from operating activities as determined by GAAP and should not be considered as an alternative to a) GAAP net income (loss) as an indication of our financial performance or b) GAAP cash flows from operating activities as a measure of our liquidity, nor are such measures indicative of funds available to satisfy our cash needs, including our ability to make cash distributions. However, management believes FFO, AFFO, EBITDA, and Hotel Operating Profit to be meaningful measures of a REIT's performance and should be considered along with, but not as an alternative to, net income and cash flow as a measure of our operating performance.

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, second mortgages, mezzanine loans and sale-leaseback transactions. Additional information can be found on the Company's web site at 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 timing for closing, the impact of the transaction 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. EBITDA is defined as net income before interest, taxes, depreciation and amortization. EBITDA yield is defined as trailing twelve month EBITDA divided by the purchase price. A capitalization rate is determined by dividing the property's annual net operating income by the purchase price. Net operating income is the property's funds from operations minus a capital expense reserve of either 4% or 5% of gross revenues. Funds from operations ("FFO"), as defined by the White Paper on FFO approved by the Board of Governors of the National Association of Real Estate Investment Trusts ("NAREIT") in April 2002, represents net income (loss) computed in accordance with generally accepted accounting principles ("GAAP"), excluding gains (or losses) from sales of properties and extraordinary items as defined by GAAP, plus depreciation and amortization of real estate assets, and net of adjustments for the portion of these items related to unconsolidated entities and joint ventures.

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.

ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
					December 31,
					2010				2009
					(Unaudited)
ASSETS
	Investment in hotel properties, net				$	3,023,736			$	3,383,759
	Cash and cash equivalents					217,690				165,168
	Restricted cash					67,666				77,566
	Accounts receivable, net					27,493				31,503
	Inventories					2,909				2,975
	Notes receivable					20,870				55,655
	Investment in unconsolidated joint ventures					15,000				20,736
	Assets held for sale					144,511				-
	Deferred costs, net					17,519				20,960
	Prepaid expenses					12,727				13,234
	Interest rate derivatives					106,867				94,645
	Other assets					7,502				3,471
	Intangible assets, net					2,899				2,988
	Due from third-party hotel managers					49,135				41,838
		Total assets			$	3,716,524			$	3,914,498
LIABILITIES AND EQUITY
Liabilities
	Indebtedness of continuing operations				$	2,518,164			$	2,772,396
	Indebtedness of assets held for sale					50,619				-
	Capital leases payable					36				83
	Accounts payable and accrued expenses					79,248				91,387
	Dividends payable					7,281				5,566
	Unfavorable management contract liabilities					16,058				18,504
	Due to related parties					2,400				1,009
	Due to third-party hotel managers					1,870				1,563
	Other liabilities					4,627				7,932
	Other liabilities of assets held for sale					2,995				-
		Total liabilities				2,683,298				2,898,440
Series B-1 Cumulative Convertible Redeemable Preferred stock, 7,247,865 shares and 7,447,865 shares issued and outstanding at December 31, 2010 and 2009						72,986				75,000
Redeemable noncontrolling interests in operating partnership						126,722				85,167
Equity:
	Shareholders' equity of the Company
		Preferred stock, $0.01 par value, 50,000,000 shares authorized:
		Series A Cumulative Preferred Stock, 1,487,900 shares issued and outstanding at December 31, 2010 and 2009				15				15
		Series D Cumulative Preferred Stock, 8,966,797 shares and 5,666,797 shares issued and outstanding at December 31, 2010 and 2009				90				57
		Common stock, $0.01 par value, 200,000,000 shares authorized, 123,403,893 shares and 122,748,859 shares issued at December 31, 2010 and 2009, 58,999,324 and 57,596,878 shares outstanding at December 31, 2010 and 2009				1,234				1,227
		Additional paid-in capital				1,552,657				1,436,009
		Accumulated other comprehensive loss				(550	)			(897	)
		Accumulated deficit				(543,788	)			(412,011	)
		Treasury stock, at cost (64,404,569 shares and 65,151,981 shares at December 31, 2010 and 2009)				(192,850	)			(186,424	)
		Total shareholders' equity of the Company				816,808				837,976
	Noncontrolling interests in consolidated joint ventures					16,710				17,915
		Total equity				833,518				855,891
		Total liabilities and equity			$	3,716,524			$	3,914,498

ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
					Three Months Ended								Year Ended
					December 31,								December 31,
					2010				2009				2010				2009
					(Unaudited)
REVENUE
	Rooms				$	166,901			$	157,646			$	643,694			$	629,298
	Food and beverage					42,187				41,894				151,105				152,366
	Rental income from operating leases					1,708				1,820				5,436				5,650
	Other					9,858				10,401				39,327				41,676
		Total hotel revenue				220,654				211,761				839,562				828,990
	Interest income from notes receivable					346				479				1,378				10,876
	Asset management fees and other					113				174				425				726
		Total Revenue				221,113				212,414				841,365				840,592
EXPENSES
	Hotel operating expenses
		Rooms				39,865				37,756				148,854				143,024
		Food and beverage				28,474				28,926				105,229				106,909
		Other direct				5,855				6,105				23,618				24,084
		Indirect				64,925				63,990				243,508				243,825
		Management fees				9,504				9,039				35,051				34,327
			Total hotel operating expenses			148,623				145,816				556,260				552,169
	Property taxes, insurance, and other					11,761				13,904				49,623				53,386
	Depreciation and amortization					33,071				34,268				133,435				139,385
	Impairment charges					47,667				(593	)			46,404				148,679
	Gain on insurance settlement					-				(1,329	)			-				(1,329	)
	Transaction acquisition and contract termination costs					7,001				-				7,001				-
	Corporate general and administrative:
		Stock/unit-based compensation				1,899				1,141				7,067				5,037
		Other general and administrative				6,039				5,796				23,552				24,914
			Total Operating Expenses			256,061				199,003				823,342				922,241
OPERATING INCOME (LOSS)						(34,948	)			13,411				18,023				(81,649	)
	Equity in (loss) earnings of unconsolidated joint ventures					(21,590	)			623				(20,265	)			2,486
	Interest income					57				44				283				297
	Other income					15,781				21,416				62,826				56,556
	Interest expense					(33,906	)			(32,608	)			(135,685	)			(126,110	)
	Amortization of loan costs					(1,079	)			(1,644	)			(4,924	)			(6,887	)
	Write-off of premiums, loan costs, premiums and exit fees, net					(3,893	)			(559	)			(3,893	)			371
	Unrealized (loss) gain on derivatives					(18,540	)			(17,616	)			12,284				(31,782	)
(LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES						(98,118	)			(16,933	)			(71,351	)			(186,718	)
	Income tax benefit (expense)					591				(1,136	)			155				(1,508	)
(LOSS) INCOME FROM CONTINUING OPERATIONS						(97,527	)			(18,069	)			(71,196	)			(188,226	)
(Loss) income from discontinued operations						(24,658	)			(66,196	)			9,404				(100,434	)
NET (LOSS) INCOME						(122,185	)			(84,265	)			(61,792	)			(288,660	)
Loss from consolidated joint ventures attributable to noncontrolling interests						262				136				1,683				765
Net loss (income) attributable to redeemable noncontrolling interests in operating partnership						16,979				12,085				8,369				37,653
NET (LOSS) INCOME ATTRIBUTABLE TO THE COMPANY						(104,944	)			(72,044	)			(51,740	)			(250,242	)
Preferred dividends						(6,545	)			(4,830	)			(21,194	)			(19,322	)
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS					$	(111,489	)		$	(76,874	)		$	(72,934	)		$	(269,564	)
INCOME PER SHARE – BASIC AND DILUTED:
		Loss from continuing operations attributable to common shareholders			$	(1.75	)		$	(0.34	)		$	(1.59	)		$	(2.66	)
		(Loss) income from discontinued operations attributable to common shareholders				(0.42	)			(0.96	)			0.16				(1.27	)
		Net loss attributable to common shareholders			$	(2.17	)		$	(1.30	)		$	(1.43	)		$	(3.93	)
	Weighted average common shares outstanding – basic and diluted					51,407				59,101				51,159				68,597
Amounts attributable to common shareholders:
	Loss from continuing operations, net of tax				$	(83,621	)		$	(15,301	)		$	(60,066	)		$	(163,432	)
	(Loss) income from discontinued operations, net of tax					(21,323	)			(56,743	)			8,326				(86,810	)
	Preferred dividends					(6,545	)			(4,830	)			(21,194	)			(19,322	)
	Net loss attributable to common shareholders				$	(111,489	)		$	(76,874	)		$	(72,934	)		$	(269,564	)

ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES
RECONCILIATION OF NET INCOME (LOSS) TO EBITDA
(in thousands)
				Three Months Ended								Year Ended
				December 31,								December 31,
				2010				2009				2010				2009
				(Unaudited)
Net (loss) income				$	(122,185	)		$	(84,265	)		$	(61,792	)		$	(288,660	)
Loss from consolidated joint ventures attributable to noncontrolling interests					262				136				1,683				765
Net loss (income) attributable to redeemable noncontrolling interests in operating partnership					16,979				12,085				8,369				37,653
Net (loss) income attributable to the Company					(104,944	)			(72,044	)			(51,740	)			(250,242	)
	Interest income				(57	)			(44	)			(273	)			(289	)
	Interest expense and amortization of loan costs				35,819				36,945				147,233				145,171
	Depreciation and amortization				34,706				37,341				141,547				153,907
	Net (loss) income attributable to redeemable noncontrolling interests in operating partnership				(16,979	)			(12,085	)			(8,369	)			(37,653	)
	Income tax expense				(649	)			979				(132	)			1,565
EBITDA					(52,104	)			(8,908	)			228,266				12,459
	Amortization of unfavorable management contract liabilities				(753	)			(752	)			(2,447	)			(2,446	)
	Loss (gain) on sale/disposition of properties				-				511				(55,931	)			511
	Gain on insurance settlement				-				(1,329	)			-				(1,329	)
	Write-off of loan costs, premiums and exit fees, net				3,893				1,111				3,893				181
	Income from interest rate derivatives (1)				(15,786	)			(19,079	)			(62,906	)			(52,282	)
	Impairment charges				71,249				58,735				82,055				218,878
	Impairment charge in unconsolidated joint venture				21,590				-				21,590				-
	Transaction acquisition and contract termination costs				7,001				-				7,001				-
	Unrealized loss (gain) on derivatives				18,540				17,616				(12,284	)			31,782
Adjusted EBITDA				$	53,630			$	47,905			$	209,237			$	207,754
RECONCILIATION OF NET INCOME (LOSS) TO FUNDS FROM OPERATIONS ("FFO")
(in thousands, except per share amounts)
				Three Months Ended								Year Ended
				December 31,								December 31,
				2010				2009				2010				2009
				(Unaudited)
Net (loss) income				$	(122,185	)		$	(84,265	)		$	(61,792	)		$	(288,660	)
Loss from consolidated joint ventures attributable to noncontrolling interests					262				136				1,683				765
Net loss (income) attributable to redeemable noncontrolling interests in operating partnership					16,979				12,085				8,369				37,653
Preferred dividends					(6,545	)			(4,830	)			(21,194	)			(19,322	)
Net loss attributable to common shareholders					(111,489	)			(76,874	)			(72,934	)			(269,564	)
	Depreciation and amortization on real estate				34,642				37,271				141,285				153,621
	Loss (gain) on sale/disposition of properties				-				511				(55,931	)			511
	Gain on insurance settlement				-				(1,329	)			-				(1,329	)
	Net income (loss) attributable to redeemable noncontrolling interests in operating partnership				(16,979	)			(12,085	)			(8,369	)			(37,653	)
FFO available to common shareholders					(93,826	)			(52,506	)			4,051				(154,414	)
	Dividends on convertible preferred stock				1,015				1,043				4,143				4,171
	Write-off of loan costs, premiums and exit fees, net				3,893				1,111				3,893				181
	Impairment charges				71,249				58,735				82,055				218,878
	Impairment charge in unconsolidated joint venture				21,590				-				21,590				-
	Transaction acquisition and contract termination costs				7,001				-				7,001				-
	Unrealized loss (gain) on derivatives				18,540				17,616				(12,284	)			31,782
Adjusted FFO				$	29,462			$	25,999			$	110,449			$	100,598
Adjusted FFO per diluted share available to common shareholders				$	0.40			$	0.32			$	1.50			$	1.12
Weighted average diluted shares					73,956				80,892				73,833				89,987
(1) Income from interest rate derivatives is excluded from the adjusted EBITDA calculations for all periods presented.

ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES
SUMMARY OF INDEBTEDNESS OF CONTINUING OPERATIONS
DECEMBER 31, 2010
(dollars in thousands)
(Unaudited)
								Fixed-Rate				Floating-Rate				Total
Indebtedness		Collateral		Maturity		Interest Rate		Debt				Debt				Debt
Mortgage loan		1 hotel		January 2011		8.32%		$	5,775	(1)		$	-			$	5,775
Senior credit facility		Notes receivable		April 2011		LIBOR + 2.75% to 3.5%			-				115,000	(2) (3)			115,000
Mortgage loan		10 hotels		May 2011		LIBOR + 1.65%			-				167,202	(2)			167,202
Mortgage loan		5 hotels		December 2011		LIBOR + 1.72%			-				203,400				203,400
Mortgage loan		2 hotels		August 2013		LIBOR + 2.75%			-				150,383				150,383
Mortgage loan		1 hotel		December 2014		Greater of 5.5% or LIBOR + 3.5%			-				19,740				19,740
Mortgage loan		8 hotels		December 2014		5.75%			108,940				-				108,940
Mortgage loan		10 hotels		July 2015		5.22%			159,001				-				159,001
Mortgage loan		8 hotels		December 2015		5.70%			100,576				-				100,576
Mortgage loan		5 hotels		December 2015		12.26%			148,013				-				148,013
Mortgage loan		5 hotels		February 2016		5.53%			114,629				-				114,629
Mortgage loan		5 hotels		February 2016		5.53%			95,062				-				95,062
Mortgage loan		5 hotels		February 2016		5.53%			82,345				-				82,345
Mortgage loan		1 hotel		April 2017		5.91%			35,000				-				35,000
Mortgage loan		2 hotels		April 2017		5.95%			128,251				-				128,251
Mortgage loan		3 hotels		April 2017		5.95%			260,980				-				260,980
Mortgage loan		5 hotels		April 2017		5.95%			115,600				-				115,600
Mortgage loan		5 hotels		April 2017		5.95%			103,906				-				103,906
Mortgage loan		5 hotels		April 2017		5.95%			158,105				-				158,105
Mortgage loan		7 hotels		April 2017		5.95%			126,466				-				126,466
TIF loan		1 hotel		June 2018		12.85%			8,098				-				8,098
Mortgage loan		1 hotel		November 2020		6.26%			104,901				-				104,901
Mortgage loan		1 hotel		April 2034		Greater of 6% or Prime + 1%			-				6,791				6,791
Total indebtedness of continuing operations								$	1,855,648			$	662,516			$	2,518,164
Percentage									73.7%				26.3%				100.0%
Weighted average interest rate at December 31, 2010									6.38%				2.57%				5.37%
Weighted average interest rate with the effect of interest rate swap and flooridor									3.18%	(4)			2.57%	(4)			3.02%	(4)
(1) We are currently working with the loan servicer for an extension or a restructure of the loan.
(2) Each of these loans has a one-year extension option as of December 31, 2010.
(3) Based on the debt-to-assets ratio defined in the loan agreement, interest rate on this debt was at LIBOR plus 3% as of December 31, 2010.
(4) These rates are calculated assuming the LIBOR rate stays at the December 31, 2010 level and with the effect of our interest rate derivatives.

ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES
INDEBTEDNESS OF CONTINUING OPERATIONS BY MATURITY
ASSUMING EXTENSION OPTIONS NOT SUBJECT TO COVERAGE/LTV TESTS ARE EXERCISED
DECEMBER 31, 2010
(in thousands)
(Unaudited)
						2010			2011				2012			2013			2014			Thereafter			Total
Mortgage loan secured by Manchester Courtyard						$	-		$	5,775	(1)		$	-		$	-		$	-		$	-		$	5,775
Secured credit facility							-			115,000	(2)			-			-			-			-			115,000
Mortgage loan secured by 10 hotel properties, Wachovia Floater							-			-				167,202			-			-			-			167,202
Mortgage loan secured by five hotel properties							-			203,400				-			-			-			-			203,400
Mortgage loan secured by two hotel properties							-			-				-			150,383			-			-			150,383
Mortgage loan secured by El Conquistador Hilton							-			-				-			-			19,740			-			19,740
Mortgage loan secured by eight hotel properties, UBS Pool 1							-			-				-			-			108,940			-			108,940
Mortgage loan secured by 10 hotel properties, Merrill Lynch Pool 1							-			-				-			-			-			159,001			159,001
Mortgage loan secured by eight hotel properties, UBS Pool 2							-			-				-			-			-			100,576			100,576
Mortgage loan secured by five hotel properties							-			-				-			-			-			148,013			148,013
Mortgage loan secured by five hotel properties, Merrill Lynch Pool 2							-			-				-			-			-			114,629			114,629
Mortgage loan secured by five hotel properties, Merrill Lynch Pool 3																				-			95,062			95,062
Mortgage loan secured by five hotel properties, Merrill Lynch Pool 7																				-			82,345			82,345
Mortgage loan secured by Philadelphia Courtyard, Wachovia Stand-Alone							-			-				-			-			-			35,000			35,000
Mortgage loan secured by two hotel properties, Wachovia Fixed Rate Pool 3							-			-				-			-			-			128,251			128,251
Mortgage loan secured by three hotel properties, Wachovia Fixed Rate Pool 7							-			-				-			-			-			260,980			260,980
Mortgage loan secured by five hotel properties, Wachovia Fixed Rate Pool 1							-			-				-			-			-			115,600			115,600
Mortgage loan secured by five hotel properties, Wachovia Fixed Rate Pool 5							-			-				-			-			-			103,906			103,906
Mortgage loan secured by five hotel properties, Wachovia Fixed Rate Pool 6							-			-				-			-			-			158,105			158,105
Mortgage loan secured by seven hotel properties, Wachovia Fixed Rate Pool 2							-			-				-			-			-			126,466			126,466
TIF loan secured by Philadelphia Courtyard							-			-				-			-			-			8,098			8,098
Mortgage loan secured by Arlington Marriott							-			-				-			-			-			104,901			104,901
Mortgage loan secured by Jacksonville Residence Inn							-			-				-			-			-			6,791			6,791
Total indebtedness of continuing operations						$	-		$	324,175			$	167,202		$	150,383		$	128,680		$	1,747,724		$	2,518,164
NOTE: These maturities assume no event of default would occur.
(1) We are currently working with the loan servicer for an extension or a restructure of the loan.
(2) Extensions available but certain coverage tests have to be met.

ASHFORD HOSPITALITY TRUST, INC.
KEY PERFORMANCE INDICATORS - PRO FORMA
(dollars in thousands)
(Unaudited)
			Three Months Ended								Year Ended
			December 31,								December 31,
			2010			2009			% Variance		2010			2009			% Variance
ALL HOTELS INCLUDED IN CONTINUING OPERATIONS:
	Room revenues (in thousands)		$	172,678		$	164,066		5.25%		$	662,019		$	648,781		2.04%
	RevPAR		$	82.17		$	78.07		5.25%		$	87.39		$	85.64		2.04%
	Occupancy			66.92%			63.68%		3.24%			70.27%			66.73%		3.54%
	ADR		$	122.80		$	122.60		0.16%		$	124.35		$	128.35		-3.12%
NOTES:
	(1) The above pro forma table assumes the 97 hotel properties owned and included in continuing operations as of December 31, 2010, were owned as of the beginning of the periods presented.
			Three Months Ended								Year Ended
			December 31,								December 31,
			2010			2009			% Variance		2010			2009			% Variance
ALL HOTELS NOT UNDER RENOVATION INCLUDED IN CONTINUING OPERATIONS:
	Room revenues (in thousands)		$	123,891		$	115,280		7.47%		$	468,444		$	455,688		2.80%
	RevPAR		$	77.79		$	72.39		7.46%		$	82.13		$	79.90		2.79%
	Occupancy			66.45%			62.16%		4.29%			69.36%			65.28%		4.08%
	ADR		$	117.07		$	116.45		0.53%		$	118.42		$	122.39		-3.24%
NOTES:
(1)	The above pro forma table assumes the 80 hotel properties owned and included in continuing operations as of December 31, 2010, but not under renovation for the three months and year ended December 31, 2010, were owned as of the beginning of the periods presented.
(2)	Excluded Hotels Under Renovation: Capital Hilton, Courtyard Edison, Embassy Suites Philadelphia Airport, Embassy Suites Las Vegas Airport, Sheraton Anchorage, Hilton Costa Mesa, Sheraton Minneapolis West, Crowne Plaza Beverly Hills, Embassy Suites Crystal City-Reagan Airport, Hilton Minneapolis Airport, Marriott Seattle Waterfront, Fairfield Inn and Suites Kennesaw, Renaissance Tampa, Courtyard Crystal City Reagan Airport, Courtyard Philadelphia Downtown, Courtyard Louisville Airport, and Marriott Legacy Center.
(3)	As the Company's Courtyard by Marriott hotel in Philadelphia, Pennsylvania, is leased to a third-party tenant on a triple-net lease basis, the Company only records rental income related to this operating lease for GAAP purposes. However, in the above pro forma tables, all room revenues related to this hotel are reflected, which is consistent with the Company's other hotels.

ASHFORD HOSPITALITY TRUST, INC.
PRO FORMA HOTEL OPERATING PROFIT
(dollars in thousands)
(Unaudited)
ALL HOTELS INCLUDED IN CONTINUING OPERATIONS:
				Three Months Ended								Year Ended
				December 31,								December 31,
				2010			2009			% Variance		2010			2009			% Variance
REVENUE
	Rooms			$	172,678		$	164,066		5.2%		$	662,019		$	648,781		2.0%
	Food and beverage				43,192			43,017		0.4%			154,175			155,789		-1.0%
	Other				9,752			10,219		-4.6%			38,919			41,064		-5.2%
		Total hotel revenue			225,622			217,302		3.8%			855,113			845,634		1.1%
EXPENSES
	Rooms				41,121			39,056		5.3%			153,091			147,284		3.9%
	Food and beverage				29,123			29,637		-1.7%			107,320			109,205		-1.7%
	Other direct				5,883			6,190		-5.0%			23,717			24,343		-2.6%
	Indirect				65,909			65,633		0.4%			245,823			247,345		-0.6%
	Management fees, includes base and incentive fees				10,698			9,864		8.5%			39,508			38,175		3.5%
		Total hotel operating expenses			152,734			150,380		1.6%			569,459			566,352		0.5%
	Property taxes, insurance, and other				12,173			14,006		-13.1%			50,617			54,145		-6.5%
HOTEL OPERATING PROFIT (Hotel EBITDA)					60,715			52,916		14.7%			235,037			225,137		4.4%
	Hotel EBITDA Margin				26.91%			24.35%		2.56%			27.49%			26.62%		0.87%
	Minority interest in earnings of consolidated joint ventures				1,445			1,427		1.3%			5,546			5,787		-4.2%
HOTEL OPERATING PROFIT (Hotel EBITDA), excluding minority interest in joint ventures				$	59,270		$	51,489		15.1%		$	229,491		$	219,350		4.6%
NOTE:		The above pro forma table assumes the 97 hotel properties owned and included in continuing operations as of December 31, 2010 were owned as of the beginning of the periods presented.
ALL HOTELS NOT UNDER RENOVATION INCLUDED IN CONTINUING OPERATIONS:
				Three Months Ended								Year Ended
				December 31,								December 31,
				2010			2009			% Variance		2010			2009			% Variance
REVENUE
	Rooms			$	123,891		$	115,280		7.5%		$	468,444		$	455,688		2.8%
	Food and beverage				26,704			26,034		2.6%			93,949			95,653		-1.8%
	Other				7,015			7,312		-4.1%			28,137			29,492		-4.6%
		Total hotel revenue			157,610			148,626		6.0%			590,530			580,833		1.7%
EXPENSES
	Rooms				29,251			27,716		5.5%			107,619			103,720		3.8%
	Food and beverage				17,951			18,135		-1.0%			66,070			67,229		-1.7%
	Other direct				4,201			4,431		-5.2%			17,210			17,522		-1.8%
	Indirect				45,983			45,713		0.6%			172,148			173,169		-0.6%
	Management fees, includes base and incentive fees				8,482			7,837		8.2%			30,982			30,302		2.2%
		Total hotel operating expenses			105,868			103,832		2.0%			394,029			391,942		0.5%
	Property taxes, insurance, and other				8,921			10,128		-11.9%			36,531			39,248		-6.9%
HOTEL OPERATING PROFIT (Hotel EBITDA)					42,821			34,666		23.5%			159,970			149,643		6.9%
	Hotel EBITDA Margin				27.17%			23.32%		3.84%			27.09%			25.76%		1.33%
	Minority interest in earnings of consolidated joint ventures				558			307		81.8%			2,030			1,603		26.6%
HOTEL OPERATING PROFIT (Hotel EBITDA), excluding minority interest in joint ventures				$	42,263		$	34,359		23.0%		$	157,940		$	148,040		6.7%
NOTES:
	(1)	The above pro forma table assumes the 80 hotel properties owned and included in continuing operations as of December 31, 2010, but not under renovation during the three and twelve months ended December 31, 2010 were owned as of the beginning of the periods presented.
	(2)	Excluded Hotels Under Renovation: Capital Hilton, Courtyard Edison, Embassy Suites Philadelphia Airport, Embassy Suites Las Vegas Airport, Sheraton Anchorage, Hilton Costa Mesa, Sheraton Minneapolis West, Crowne Plaza Beverly Hills, Embassy Suites Crystal City-Reagan Airport, Hilton Minneapolis Airport, Marriott Seattle Waterfront, Fairfield Inn and Suites Kennesaw, Renaissance Tampa, Courtyard Crystal City Reagan Airport, Courtyard Philadelphia Downtown, Courtyard Louisville Airport, and Marriott Legacy Center.
	(3)	As the Company's Courtyard by Marriott hotel in Philadelphia, Pennsylvania, is leased to a third-party tenant on a triple-net lease basis, the Company only records rental income related to this operating lease for GAAP purposes. However, in the above pro forma tables, all room revenues related to this hotel are reflected, which is consistent with the Company's other hotels.

ASHFORD HOSPITALITY TRUST, INC.
PRO FORMA HOTEL REVPAR BY REGION
(Unaudited)
								Three Months Ended								Year Ended
				Number of		Number of		December 31,								December 31,
Region				Hotels		Rooms		2010			2009			% Change		2010			2009			% Change
Pacific (1)				20		4,867		$	84.28		$	78.83		6.9%		$	92.49		$	86.95		6.4%
Mountain (2)				8		1,704			67.75			65.37		3.6%			75.89			74.34		2.1%
West North Central (3)				3		690			72.33			65.45		10.5%			75.35			70.38		7.1%
West South Central (4)				9		1,936			82.92			78.28		5.9%			84.63			84.65		0.0%
East North Central (5)				7		1,103			64.00			61.43		4.2%			66.70			64.61		3.2%
East South Central (6)				2		236			82.05			64.85		26.5%			86.97			75.19		15.7%
Middle Atlantic (7)				8		2,035			90.70			91.18		-0.5%			90.95			90.96		0.0%
South Atlantic (8)				38		7,728			84.68			80.39		5.3%			90.60			91.10		-0.5%
New England (9)				2		159			77.60			71.32		8.8%			77.98			69.14		12.8%
Total Portfolio				97		20,458		$	82.17		$	78.07		5.3%		$	87.39		$	85.64		2.0%
(1) Includes Alaska, California, Oregon, and Washington
(2) Includes Nevada, Arizona, New Mexico, and Utah
(3) Includes Minnesota and Kansas
(4) Includes Texas
(5) Includes Ohio and Indiana
(6) Includes Kentucky and Alabama
(7) Includes New York, New Jersey, and Pennsylvania
(8) Includes Virginia, Florida, Georgia, Maryland, District of Columbia, and North Carolina
(9) Includes Connecticut
NOTES:
	(1)	The above pro forma table assumes the 97 hotel properties owned and included in continuing operations as of December 31, 2010 were owned as of the beginning of the periods presented.
	(2)	As the Company's Courtyard by Marriott hotel in Philadelphia, Pennsylvania, is leased to a third-party tenant on a triple-net lease basis, the Company only records rental income related to this operating lease for GAAP purposes. However, in the above pro forma table, all room revenues related to this hotel are reflected, which is consistent with the Company's other hotels.

ASHFORD HOSPITALITY TRUST, INC.
PRO FORMA HOTEL REVPAR BY BRAND
(Unaudited)
								Three Months Ended								Year Ended
				Number of		Number of		December 31,								December 31,
Brand				Hotels		Rooms		2010			2009			% Change		2010			2009			% Change
Hilton				31		6,693		$	87.92		$	84.73		3.8%		$	94.97		$	94.06		1.0%
Hyatt				1		242			114.02			101.35		12.5%			113.04			105.06		7.6%
InterContinental				2		420			125.31			128.85		-2.7%			133.23			129.49		2.9%
Independent				2		317			64.18			60.14		6.7%			76.96			69.10		11.4%
Marriott				56		11,376			80.39			75.52		6.4%			83.25			81.55		2.1%
Starwood				5		1,410			56.75			54.77		3.6%			67.98			64.80		4.9%
Total Portfolio				97		20,458		$	82.17		$	78.07		5.3%		$	87.39		$	85.64		2.0%
NOTES:
	(1)	The above pro forma table assumes the 97 hotel properties owned and included in continuing operations as of December 31, 2010 were owned as of the beginning of the periods presented.
	(2)	As the Company's Courtyard by Marriott hotel in Philadelphia, Pennsylvania, is leased to a third-party tenant on a triple-net lease basis, the Company only records rental income related to this operating lease for GAAP purposes. However, in the above pro forma table, all room revenues related to this hotel are reflected, which is consistent with the Company's other hotels.

ASHFORD HOSPITALITY TRUST, INC.
PRO FORMA HOTEL OPERATING PROFIT BY REGION
(dollars in thousands)
(Unaudited)
								Three Months Ended												Year Ended
				Number of		Number of		December 31,												December 31,
Region				Hotels		Rooms		2010			% Total		2009			% Total		% Change		2010			% Total		2009			% Total		% Change
Pacific (1)				20		4,867		$	15,452		25.5%		$	12,670		23.9%		22.0%		$	61,414		26.1%		$	54,714		24.3%		12.2%
Mountain (2)				8		1,704			2,634		4.3%			2,150		4.1%		22.5%			13,053		5.6%			12,771		5.7%		2.2%
West North Central (3)				3		690			1,977		3.3%			1,563		2.9%		26.5%			7,786		3.3%			6,654		2.9%		17.0%
West South Central (4)				9		1,936			6,368		10.5%			5,178		9.8%		23.0%			22,641		9.6%			21,969		9.8%		3.1%
East North Central (5)				7		1,103			2,375		3.9%			2,106		4.0%		12.8%			9,459		4.0%			8,422		3.7%		12.3%
East South Central (6)				2		236			711		1.2%			362		0.7%		96.4%			3,161		1.3%			2,412		1.1%		31.1%
Middle Atlantic (7)				8		2,035			7,659		12.6%			7,813		14.8%		-2.0%			24,810		10.6%			24,934		11.1%		-0.5%
South Atlantic (8)				38		7,728			23,202		38.2%			20,736		39.2%		11.9%			91,206		38.8%			92,124		40.9%		-1.0%
New England (9)				2		159			337		0.5%			338		0.6%		-0.3%			1,507		0.6%			1,137		0.5%		32.5%
Total Portfolio				97		20,458		$	60,715		100.0%		$	52,916		100.0%		14.7%		$	235,037		100.0%		$	225,137		100.0%		4.4%
(1) Includes Alaska, California, Oregon, and Washington
(2) Includes Nevada, Arizona, New Mexico, and Utah
(3) Includes Minnesota and Kansas
(4) Includes Texas
(5) Includes Ohio and Indiana
(6) Includes Kentucky and Alabama
(7) Includes New York, New Jersey, and Pennsylvania
(8) Includes Virginia, Florida, Georgia, Maryland, District of Columbia, and North Carolina
(9) Includes Connecticut
NOTES:
	(1)	The above pro forma table assumes the 97 hotel properties owned and included in continuing operations as of December 31, 2010 were owned as of the beginning of the periods presented.
	(2)	As the Company's Courtyard by Marriott hotel in Philadelphia, Pennsylvania, is leased to a third-party tenant on a triple-net lease basis, the Company only records rental income related to this operating lease for GAAP purposes. However, in the above pro forma table, all room revenues related to this hotel are reflected, which is consistent with the Company's other hotels.

ASHFORD HOSPITALITY TRUST, INC.
PRO FORMA HOTEL OPERATING PROFIT MARGIN
(Unaudited)
80 HOTELS NOT UNDER RENOVATION INCLUDED IN CONTINUING OPERATIONS AT DECEMBER 31, 2010. SUCH HOTELS WERE OWNED AS OF THE BEGINNING OF THE PERIODS PRESENTED:
HOTEL OPERATING PROFIT (HOTEL EBITDA) MARGIN:
	Fourth Quarter 2010				27.17%
	Fourth Quarter 2009				23.32%
			Variance		3.85%
HOTEL OPERATING PROFIT (HOTEL EBITDA) MARGIN VARIANCE BREAKDOWN:
	Rooms				0.13%
	Food & Beverage and Other Departmental				1.13%
	Administrative & General				0.28%
	Sales & Marketing				-0.06%
	Hospitality				-0.04%
	Repair & Maintenance				0.45%
	Energy				0.30%
	Franchise Fee				-0.05%
	Management Fee				-0.02%
	Incentive Management Fee				-0.09%
	Insurance				0.20%
	Property Taxes				0.97%
	Other Taxes				-0.03%
	Leases/Other				0.67%
			Total		3.85%
NOTE:			As the Company’s Courtyard by Marriott hotel in Philadelphia, Pennsylvania, is leased to a third-party tenant on a triple-net lease basis, the Company only records rental income related to this operating lease for GAAP purposes. However, in the above pro forma table, all operating results related to this hotel are reflected, which is consistent with the Company’s other hotels.

ASHFORD HOSPITALITY TRUST, INC.
PRO FORMA SEASONALITY TABLE
(dollars in thousands)
(Unaudited)
ALL 97 HOTELS OWNED AND INCLUDED IN CONTINUING OPERATIONS AS OF DECEMBER 31, 2010:
				2010			2010			2010			2010
				4th Quarter			3rd Quarter			2nd Quarter			1st Quarter			TTM
Total Hotel Revenue				$	225,622		$	205,526		$	222,040		$	201,925		$	855,113
Hotel EBITDA				$	60,715		$	54,567		$	65,318		$	54,437		$	235,037
Hotel EBITDA Margin					26.9%			26.5%			29.4%			27.0%			27.5%
EBITDA % of Total TTM					25.8%			23.2%			27.8%			23.2%			100.0%
JV Interests in EBITDA				$	1,445		$	1,125		$	1,892		$	1,084		$	5,546
NOTES:
	(1)	The above pro forma table assumes the 97 hotel properties owned and included in continuing operations as of December 31, 2010 were owned as of the beginning of the periods presented.
	(2)	As the Company's Courtyard by Marriott hotel in Philadelphia, Pennsylvania, is leased to a third-party tenant on a triple-net lease basis, the Company only records rental income related to this operating lease for GAAP purposes. However, in the above pro forma table, all room revenues related to this hotel are reflected, which is consistent with the Company's other hotels.

ASHFORD HOSPITALITY TRUST, INC.

Anticipated Capital Expenditures Calendar

100 Core Hotels (a)

2010

2011

Rooms

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

Actual

Actual

Actual

Actual

Estimated

Estimated

Estimated

Estimated

Hilton Nassau Bay - Clear Lake

243

x

x

x

Hilton La Jolla Torrey Pines

296

x

Embassy Suites Portland - Downtown

276

x

x

Marriott Bridgewater

347

x

x

Capital Hilton

408

x

x

x

x

Sheraton City Center - Indianapolis

371

x

x

Embassy Suites Austin Arboretum

150

x

Embassy Suites Philadelphia Airport

263

x

x

Embassy Suites Las Vegas Airport

220

x

Sheraton Anchorage

370

x

Courtyard Edison

146

x

x

Hilton Costa Mesa

486

x

x

x

Sheraton Minneapolis West

222

x

x

Crowne Plaza Beverly Hills

260

x

x

Embassy Suites Crystal City - Reagan Airport

267

x

x

Hilton Minneapolis Airport

300

x

x

Marriott Seattle Waterfront

358

x

x

Fairfield Inn and Suites Kennesaw

87

x

x

Renaissance Tampa

293

x

x

Courtyard Crystal City Reagan Airport

272

x

x

Courtyard Philadelphia Downtown

498

x

x

Courtyard Louisville Airport

150

x

x

x

x

Marriott Legacy Center

404

x

x

x

Embassy Suites Walnut Creek

249

x

x

Hilton Fort Worth

294

x

x

Marriott Suites Dallas Market Center

266

x

x

Residence Inn Jacksonville

120

x

x

Residence Inn Las Vegas

256

x

x

Residence Inn Newark

168

x

x

Residence Inn Phoenix Airport

200

x

x

SpringHill Suites Richmond

136

x

x

Crowne Plaza La Concha - Key West

160

x

x

Courtyard Legacy Park

153

x

Courtyard Oakland Airport

156

x

Courtyard Old Town Scottsdale

180

x

Courtyard Newark

181

x

Courtyard Basking Ridge

235

x

Courtyard Foothill Ranch Irvine

156

x

Courtyard Hartford - Manchester

90

x

Courtyard Seattle Downtown

250

x

SpringHill Suites Mall of Georgia

96

x

SpringHill Suites Philadelphia

199

x

SpringHill Suites Manhattan Beach

164

x

Embassy Suites Dallas Galleria

150

x

Embassy Suites Houston

150

x

(a) Only hotels which have had or are expected to have significant capital expenditures that could result in displacement during 2010 and 2011 are included in this table.