Ashford Hospitality to Sell Hyatt Montreal for $58.3 Million
May 16 2008 - 7:30AM
Business Wire
Ashford Hospitality Trust, Inc. (NYSE: AHT) today announced that it
has agreed to sell the Hyatt Regency Montreal in Montreal, Quebec
to Pandox for $58.5 million CDN ($58.3 million U.S. based on
yesterday�s conversion rate). The transaction, which is under firm
contract, is expected to close by the end of the second quarter of
2008, subject to customary closing conditions. The purchase price
in U.S. dollars equates to approximately $96,363 per key, a 3.6%
trailing 12-month NOI cap rate, and a 17.2x trailing 12-month
EBITDA multiple. The Hyatt Montreal is the only hotel owned by
Ashford outside the United States. Through 2008, the Company has
sold or put under firm contract $217.4 million as part of its
capital recycling strategy. Ashford Hospitality Trust is a
self-administered real estate investment trust focused on investing
in the hospitality industry across all segments and at all levels
of the capital structure, including direct hotel investments, first
mortgages, mezzanine loans and sale-leaseback transactions.
Additional information can be found on the Company's web site at
www.ahtreit.com. Pandox is one of the leading players in the hotel
property market in Europe. The portfolio consists of 45 hotels with
a total of around 10,800 rooms located in Sweden, Denmark, Germany,
Belgium, the Bahamas, the UK, Switzerland and Canada. Pandox hotels
operate under well known brands such as Hilton, InterContinental,
Crowne Plaza, Radisson SAS, Holiday Inn, Scandic, Elite, Clarion,
Quality, First, Hyatt and independent distribution channels.
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 forward-looking
statements include, but are not limited to, the timing for closing,
the impact of the transaction on our business and future financial
condition, our business and investment strategy, our understanding
of our competition and current market trends and opportunities and
projected capital expenditures. Such statements are subject to
numerous assumptions and uncertainties, many of which are outside
Ashford'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's filings
with the Securities and Exchange Commission. EBITDA is defined as
net income before interest, taxes, depreciation and amortization.
EBITDA yield is defined as trailing twelve month EBITDA divided by
the purchase price. A capitalization rate is determined by dividing
the property's annual net operating income by the purchase price.
Net operating income (NOI) is the property's funds from operations
minus a capital expense reserve of either 4% or 5% of gross
revenues. Funds from operations ("FFO"), as defined by the White
Paper on FFO approved by the Board of Governors of the National
Association of Real Estate Investment Trusts ("NAREIT") in April
2002, represents net income (loss) computed in accordance with
generally accepted accounting principles ("GAAP"), excluding gains
(or losses) from sales or properties and extraordinary items as
defined by GAAP, plus depreciation and amortization of real estate
assets, and net of adjustments for the portion of these items
related to unconsolidated entities and joint ventures. 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.
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