[Skip to Content]Privacy Policy
 

Press Release

Ashford Trust Completes Acquisition Of 9-Hotel Portfolio For $224 Million

Company Release - 6/17/2015 6:14 PM ET

DALLAS, June 17, 2015 /PRNewswire/ --

Acquisition Highlights:

  • 9-hotel portfolio consists of 8 select-service hotels and 1 full-service hotel with 1,251 total rooms
  • Purchase price equates to an estimated forward 12-month cap rate of 7.7% and an estimated forward 12-month EBITDA multiple of 11.6x
  • Well-located and diversified portfolio proximate to stable demand generators
  • Relatively new assets with average age of 7 years
  • Remington Lodging assumes property management

Ashford Hospitality Trust, Inc. (NYSE: AHT) ("Ashford Trust" or the "Company") announced today that it has completed the previously-announced acquisition of a 9-hotel portfolio for total consideration of $224 million ($179,000 per key).  Concurrent with the completion of the acquisition, the Company has financed the portfolio with non-recourse debt of approximately $179 million.  The first tranche of financing is a $144 million non-recourse mortgage loan secured by the eight select-service assets.  This loan is interest only and provides for a floating interest rate of LIBOR + 4.09% with a two-year term with three, one-year extension options subject to the satisfaction of certain conditions.  The second tranche of the financing is a $35.2 million non-recourse mortgage loan secured by the Sheraton Ann Arbor, the only full-service hotel in the portfolio.  This loan is interest only and provides for a floating interest rate of LIBOR + 4.15% with a two-year term with three, one-year extension options subject to the satisfaction of certain conditions.  All of the properties are now managed by Remington Lodging.

The purchase price represents a trailing 12-month cap rate of 7.4% on net operating income and a trailing 12.1x EBITDA multiple.  On a forward 12-month basis, the purchase price represents an estimated cap rate of 7.7% on net operating income and an estimated 11.6x EBITDA multiple.  On a trailing 12-month basis, the portfolio achieved RevPAR of $100, with occupancy of 76% and Average Daily Rate of $132.

The portfolio includes:

 

Hotel

Brand Family 

Market  

State 

Rooms

Courtyard Boston Billerica 

Marriott 

Boston 

MA 

210

Courtyard Wichita Old Town 

Marriott 

Wichita 

KS 

128

Hampton Inn & Suites Columbus Easton 

Hilton 

Columbus 

OH 

145

Hampton Inn & Suites Pittsburgh Washington 

Hilton 

Pittsburgh 

PA 

103

Hampton Inn & Suites Pittsburgh Waterfront 

Hilton 

Pittsburgh 

PA 

113

Hampton Inn Phoenix Airport 

Hilton 

Phoenix 

AZ 

106

Homewood Suites Pittsburgh Southpointe 

Hilton 

Pittsburgh 

PA 

148

Residence Inn Stillwater 

Marriott 

Stillwater 

OK 

101

Sheraton Ann Arbor 

Starwood 

Ann Arbor 

MI 

197





1,251

"We are excited to have completed this accretive transaction which allowed us to further expand the geographic footprint of our diverse portfolio with well-located assets affiliated with strong and diverse brands," said Monty J. Bennett, Ashford Trust's Chairman and Chief Executive Officer.  "With the installation of Remington property management at all of these properties, we look forward to being able to realize solid increases in operating performance at these hotels."

Ashford Hospitality Trust is a real estate investment trust (REIT) focused on investing opportunistically in the hospitality industry across all segments and at all levels of the capital structure primarily within the United States. 

Follow Chairman and CEO Monty Bennett on Twitter at www.twitter.com/MBennettAshford or @MBennettAshford. 

Ashford has created an Ashford App for the hospitality REIT investor community.  The Ashford App is available for free download at Apple's App Store and the Google Play Store by searching "Ashford."

Certain statements and assumptions in this press release contain or are based upon "forward-looking" information and are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.  These forward-looking statements are subject to risks and uncertainties.  When we use the words "will likely result," "may," "anticipate," "estimate," "should," "expect," "believe," "intend," or similar expressions, we intend to identify forward-looking statements.  Such statements are subject to numerous assumptions and uncertainties, many of which are outside Ashford Trust's control.

These forward-looking statements are subject to known and unknown risks and uncertainties, which could cause actual results to differ materially from those anticipated, including, without limitation:  general volatility of the capital markets and the market price of our common stock; changes in our business or investment strategy; availability, terms and deployment of capital; availability of qualified personnel; changes in our industry and the market in which we operate, interest rates or the general economy; and the degree and nature of our competition.  These and other risk factors are more fully discussed in Ashford Trust's filings with the Securities and Exchange Commission. 

The forward-looking statements included in this press release are only made as of the date of this press release.  Investors should not place undue reliance on these forward-looking statements.  We are not obligated to publicly update or revise any forward-looking statements, whether as a result of new information, future events or circumstances, changes in expectations or otherwise.

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/ashford-trust-completes-acquisition-of-9-hotel-portfolio-for-224-million-300101066.html

SOURCE Ashford Hospitality Trust, Inc.

Investor Toolkit
Social media sharing Social media sharing
Investor Search