UPDATE: KBW Raises PT on Ashford Hospitality Trust to $12.50 (AHT)

KBW is out with its report today on Ashford Hospitality Trust AHT, raising its PT from $10.50 to $12.50. In a note to clients, KBW writes, "We are modestly raising estimates following 1Q11 results, AHT's 5/11 investor day, and the 10-Q filing. Management noted that RevPAR growth should average 6-7% over the next several years if the current cycle plays out similar to previous periods. Increasing price target to $12.50 from $10.50 (12x forward EBITDA or a 5.5% cap rate). The recently acquired Highland portfolio could be a potential source of upside going forward." Shares of AHT closed Wednesday at $12.67, down 2.01% from Tuesday's close.