The publicly traded REIT's team did not respond to requests foran interview about the SEC filing. Of the 10 traditional hotelREITs, Dallas-based Ashford has substantially more floating ratedebt than its peers, with 90% of its $2.69-billion debt tied toLibor. In the first quarter, Ashford moved $1.8 billion offixed-rate debt to a one-month Libor structure, which was 2.64% atthe time. A three-year cap at 3.75% was embedded in the deal.

Since then, the Libor rate, which resets monthly, has topped 4%,driving the REIT to explore options to safeguard its strategy forits other floating-rate vehicles. [IMGCAP(2)]"They saw how themarket perceived the risk and they wanted to limit their exposure,"explains David Loeb, senior real estate research analyst andmanaging director of Milwaukee-based RW Baird & Co. "It's aprudent thing to do."

Libor would have to stay at 4% or higher for one straight yearbefore Calyon would end up losing on the bet, according to Loeb'scalculation. "It's probably not a bad bet," he tells GlobeSt.com."The market is open for this, but it's expensive." Calyon's clockstarts ticking Oct. 14.