ITEM 1.01- ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT
On October 13, 2009, Ashford Hospitality Limited Partnership (the "Operating Partnership"), the operating partnership of Ashford Hospitality Trust, Inc. (the "Company"), purchased a "flooridor" for a notional amount of $2.7 billion with a term commencing October 1, 2009, and ending December 31, 2009. Under this flooridor, the counterparty will make payments to the Operating Partnership when one-month LIBOR ("LIBOR") is below 2.00% but only down to LIBOR of 1.00% such that the counterparty's liability is capped at LIBOR of 1.00%. LIBOR is currently 0.24% and if it stays below 1.00% for the entire term of the flooridor, the counterparty's obligation to the Operating Partnership would be 1.00% of the notional amount of $2.7 billion, calculated on an annual basis, for the term of the flooridor.
The Company has paid the upfront cost of the flooridor and has no further liability under the flooridor to the counterparty.
The foregoing summary does not purport to be complete and is qualified in its entirety by the executed Confirmation of Trade related to the flooridor as it will be filed with the Securities and Exchange Commission as an exhibit to the Company's Annual Report on Form 10-K for the year ending December 31, 2009.

---