DALLAS, Feb. 26, 2015 /PRNewswire/ --
Acquisition Highlights:
- Purchase price equates to an estimated forward 12-month cap
rate of 8.6% and an estimated forward 12-month EBITDA multiple of
10.3x
- No new material competitive supply projected for the submarket
and stable corporate demand generators
- Virtually no CapEx needs following complete renovation and
conversion to a full-service Marriott
Ashford Hospitality Trust, Inc. (NYSE: AHT) ("Ashford Trust" or
the "Company") announced today it has completed the
previously-announced acquisition of the 232-room Marriott Memphis
East hotel for total consideration of $43.5
million in cash ($187,500 per
key). The Company intends to finance the property with
approximately $33.3 million of
non-recourse mortgage debt.
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.
The Marriott Memphis East is in excellent physical condition
with virtually no capex needs as the hotel recently completed an
extensive renovation prior to its conversion to a full-service
Marriott. The property will be managed by Ashford Trust's
affiliated property manager, Remington Lodging.
"With its desirable location in the heart of East Memphis and recent capital investments in
anticipation of its conversion, the Marriott Memphis East is
another example of our team's ability to identify attractive
investments with considerable upside potential," said Monty J. Bennett, Ashford Trust's Chairman and
Chief Executive Officer. "We are very excited to add this
hotel to our portfolio and with the installation of our affiliate
manager, Remington, we are confident in our ability to achieve
solid increases in RevPAR and RevPAR index as the property further
stabilizes post-conversion."
Located just minutes away from upscale restaurants and shopping,
the Marriott Memphis East is an excellent choice for guests
visiting famous local 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.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/ashford-trust-completes-acquisition-of-marriott-memphis-east-300042008.html
SOURCE Ashford Hospitality Trust, Inc.; Ashford Inc.