* Expects to lose entire Extended Stay investment
* Second-quarter revenue sinks 21.7 pct
NEW YORK Aug 5 Ashford Hospitality Trust Inc
(AHT.N), a lender to now-bankrupt Extended Stay Hotels, said on
Wednesday it expects its stake in the hotel company will be
wiped out by bankruptcy and wrote down its entire investment.
The company, which owns a $164 million note in Extended
Stay's mezzanine debt, said it elected to write off the full
investment in the company-- $109.4 million as of June 30--
resulting in a non-cash impairment charge of $1.18-per share
in the second quarter of 2009.
The loan was secured by interests in Extended Stay's
hotels, Ashford said.
The real estate investment trust also reported second
quarter adjusted funds from operations of 31 cents per share,
down from 41 cents per share a year earlier.
Revenue sank about 21.7 percent to $239.9 million amid
continued weakness in the hotel industry.
(Reporting by Deepa Seetharaman; editing by Carol Bishopric)