DALLAS, Jan. 12, 2015 /PRNewswire/ -- Ashford
Hospitality Trust, Inc. (NYSE: AHT) ("Ashford Trust" or the
"Company") announced today that it has signed a definitive
agreement to acquire the 168-room Lakeway Resort & Spa for a
total consideration of $33.5 million
($199,000 per key). The
acquisition is expected to close within the next 30 days.
Located in the thriving Austin, TX
market, the hotel features approximately 24,000 square feet of
meeting space (including 17 meeting rooms and four flexible
ballrooms). Upon closing, the property will be managed by
Remington Lodging.
The purchase price of $33.5
million represents a trailing 12-month cap rate of 7.0% on
net operating income which equates to an 11.4x trailing 12-month
EBITDA multiple. On a forward 12-month basis, the purchase
price represents an estimated cap rate of 8.7% on net operating
income, which equates to an estimated 9.5x forward EBITDA
multiple. On a trailing 12-month basis, the hotel achieved
RevPAR of $108.67, with occupancy of
62.5% and an Average Daily Rate of $173.87.
"This acquisition represents an exceptional opportunity
considering its significant upside potential. With its unique
lakefront location in Austin's
northwest corridor and the recent capital investments at the
property, the Lakeway Resort & Spa is well positioned within
the marketplace to provide best-in-class product and services and
capitalize on the tremendous growth that is occurring in
Austin," said Monty J. Bennett, Ashford Trust's Chairman and
Chief Executive Officer. "Additionally, with the ability to
install our affiliated property manager, Remington Lodging, as the
new property manager for the hotel, we expect to achieve continued
growth in the hotel's operating performance."
The robust strength of the Austin economy and the continued growth in the
technology sector combined with increasing visitation to the area
is expected to continue to fuel solid demand in the coming
years. The resort is located on the southern bend of
Lake Travis in the high-growth
northwest corridor of Austin a
short drive from the downtown area. This ideal location is
proximate to Austin's 4,400
technology companies while also providing exceptional access to the
area's numerous and varied recreational activities, nightlife and
other popular attractions.
Originally developed in 1966, the Lakeway Resort & Spa
underwent major expansions in 2001 and 2007 which significantly
increased the size of the property. The lakefront property
features four separate buildings with 168 well-equipped guestrooms
and approximately 24,000 square feet of meeting space including
four large flexible ballrooms. In addition to the guestrooms,
the hotel controls 8 luxury condominium units through a rental pool
agreement. Amenities include a full-service spa, 24-hour
fitness center, three swimming pools, a full-service restaurant
overlooking Lake Travis, as well
as proximate access to golf, tennis and the Lakeway Marina.
The Lakeway Resort & Spa is in exceptional condition with
minimal capex needs, having already undergone capital improvements
of approximately $6 million
($36,000 per key) over the past 24
months including a complete renovation of the guestrooms.
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.
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SOURCE Ashford Hospitality Trust, Inc.; Ashford Inc.