DALLAS, Jan. 20, 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 232-room Memphis Marriott East hotel for total
consideration of $43.5 million in
cash ($187,500 per key). The
acquisition is expected to close within the next 30 days.
Upon closing, the property will be managed by Remington
Lodging.
The purchase price of $43.5
million represents a trailing 12-month cap rate of 7.6% on
net operating income and a trailing 11.6x EBITDA multiple. On
a forward 12-month basis, the purchase price represents an
estimated cap rate of 8.6% on net operating income and an estimated
10.3x forward EBITDA multiple.
"This transaction was particularly attractive given the hotel's
prime location and market attributes, which include no new
competitive supply projected for the submarket and stable corporate
demand generators," said Monty J.
Bennett, Ashford Trust's Chairman and Chief Executive
Officer. "Additionally, with the hotel's recent conversion to
a full service Marriott, it has virtually no capex needs.
After the installation of our affiliated property manager,
Remington Lodging, we expect to achieve continued solid increases
in RevPAR penetration as the property stabilizes."
Located in the heart of East
Memphis, the Memphis Marriott East hotel is minutes away
from upscale restaurants and shopping and is an ideal choice for
guests visiting nearby attractions such as Elvis' Graceland,
Beale Street and Historic Downtown
Memphis. The property has 232 well- equipped guestrooms and 6
meeting rooms with approximately 8,960 square feet of meeting
space. Hotel amenities include an indoor pool and whirlpool,
24-hour fitness center, Table - A Delta Grill restaurant, and
complimentary on-site parking.
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.