Ashford Hospitality Trust Prices $50 Million Perpetual Preferred Offering.

DALLAS -- Ashford Hospitality Trust, Inc. (NYSE: AHT) today announced that it has priced 2,000,000 shares of 8.55% Series A Cumulative Preferred Stock at $25.00 per share, resulting in net proceeds after expenses of approximately $48.0 million. The annual distribution for the preferred stock is $2.1375 per share, payable quarterly. The closing of this offering is scheduled for September 22, 2004.

The underwriters have been granted an option, exercisable for 30 days, to purchase up to an additional 300,000 shares to cover over-allotments. The preferred stock may be redeemed at the election of the Company on or after September 22, 2009, for an amount equal to the liquidation value ($25 per share), plus accrued and unpaid dividends to the date of redemption. These securities have no stated maturity, sinking fund or mandatory redemption and are not convertible into any other securities of the Company.

The net proceeds from the offering will be used by the Company for general corporate purposes, which may include the acquisition of additional hotel investments.

Wachovia Securities and Friedman Billings Ramsey acted as joint book-running managers and Legg Mason Wood Walker, Incorporated and Stifel, Nicolaus & Company, Incorporated acted as co-managers. A shelf registration statement relating to these securities was filed in August with the Securities and Exchange Commission and has been declared effective. A copy of the prospectus supplement and base prospectus related to the offering, when available, may be obtained from Wachovia Securities, Attn: Prospectus Department, 8739 Research Drive, Charlotte, North Carolina 28262, or [phone].

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.