DALLAS, Feb. 9, 2015 /PRNewswire/ --
Acquisition Highlights:
- Purchase price represents an estimated forward 12-month cap
rate of 8.7% and estimated forward 12-month EBITDA multiple of
9.5x
- Minimal CapEx needs after capital improvements totaling
$6 million over past 24 months
including complete renovation of guestrooms
- Unique lakefront location in Austin, one of the fastest growing MSA's in
the country in both population and job growth
Ashford Hospitality Trust, Inc. (NYSE: AHT) ("Ashford Trust" or
the "Company") announced today that it has completed the
previously-announced acquisition of the 168-room Lakeway Resort
& Spa for a total consideration of $33.5
million ($199,000 per
key). Upon closing, the property will be managed by Remington
Lodging.
The purchase price of $33.5
million represents a forward 12-month estimated cap rate of
8.7% on net operating income which equates to an estimated 9.5x
forward 12-month 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.
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.
"We are very excited to complete this transaction considering
the Lakeway Resort & Spa's unique lakefront location in
Austin's northwest corridor," said
Monty J. Bennett, Ashford Trust's
Chairman and Chief Executive Officer. "This was a very
attractive investment for us and we believe it has tremendous
upside potential given the strength of the Austin economy and the recent capital
investments at the property. We look forward to seeing
improvement in the hotel's operating performance through the
installation of our affiliated property manager, Remington Lodging
given its proven experience with similar assets."
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.
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 forward-looking statements
include, but are not limited to, the launch of the select-service
hotel platform, the terms of the contribution of assets by Ashford
Trust to Ashford Select, including the consideration payable to
Ashford Trust, the business and investment strategies of Ashford
Trust and Ashford Select, and current market trends and
opportunities. 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.