Ashford Hospitality Trust Inc. will double in size and become the nation's second-largest lodging real estate investment trust with its $2.4 billion deal announced Friday.

The Dallas-based company said it has agreed to purchase 51 hotels from closely held CNL Hotels & Resorts Inc. in what Ashford executives described as a "transformational investment."

After gaining as much as 12 percent in pre-market trading, shares in Ashford rose 2.74 percent to finish at $12.37, up 33 cents, in New York Stock Exchange trading.

Under the agreement, Ashford would acquire higher-end properties in 31 U.S. and Canadian metropolitan areas.

The acquisition would expand Ashford's reach in markets with the biggest potential for revenue growth and heighten the company's visibility among investors and potential joint-venture partners, executives said.

Host Hotels & Resorts Inc., based in Bethesda, Md., is the nation's largest lodging real estate investment trust.

Ashford's president and chief executive, Monty J. Bennett, said, "This transaction gives us the opportunity to extend our proven investment and portfolio management strategies on a much larger platform."

The hotels included in the portfolio are in fast-growing markets and are "well-positioned to continue to outperform their competitive sets," Mr. Bennett said in a conference call with investors.

He said Ashford plans to invest $55 million in additional improvements in the properties.

The average daily rate for the 51 hotels is $137.34, or about 14 percent higher than the average rate of $120.32 for Ashford's existing portfolio of 81 hotels.

The deal is in conjunction with Morgan Stanley Real Estate's $6.6 billion acquisition of CNL Hotels & Resorts, a transaction expected to close during the second quarter of this year.

Morgan Stanley would keep eight iconic properties valued at $4.2 billion.

The deal is expected to add 35 cents per share in additional funds from operations, the measure used to reflect cash flow for real estate companies.

But analysts said the additional debt could put pressure on Ashford's stock and cause volatility in the short term.

"Investors have generally reacted positively, but there's some concern that they'll be back in the market selling equity, and that may depress the stock," said David Loeb, an analyst at Robert W. Baird & Co.

The acquisition would increase Ashford's debt ratio to 71 percent from 46 percent, although the company hopes to push that figure to less than 60 percent within a year of closing the deal through asset sales, joint ventures and possibly by raising equity in the capital markets.

"We feel very confident about the sustainability of this platform, even if, heaven forbid, we were to go into recession," Mr. Bennett said during the call.

Ashford officials said the negotiations for the deal began late last year and were helped by the company's previous dealings with CNL, based in Orlando, Fla. In 2005, Ashford bought 30 hotels from the real estate investment trust for $465 million.

By tapping those contacts and moving aggressively, Ashford was able to edge out other potential bidders, company officials said.

Bloomberg News contributed to this report.

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