DALLAS, June 11, 2015 /PRNewswire/ -- Acquisition
Highlights:
- Purchase price represents an estimated forward 12-month cap
rate of 7.2% and an estimated forward 12-month EBITDA multiple of
11.6x
- Ideal Downtown Atlanta
location proximate to multiple growing demand generators
- Hotel is in excellent physical condition having been recently
built in 2009
- Purchase price represents an approximately 40% discount to
replacement cost
Ashford Hospitality Trust, Inc. (NYSE: AHT) ("Ashford Trust" or
the "Company") announced today that it has signed a definitive
agreement to acquire the 237-room W Atlanta Downtown hotel for
total consideration of $56.8 million
($239,000 per key). Located in
the heart of Downtown Atlanta, the
hotel features over 9,000 sq. ft. of meeting space. The
Company intends to finance the property with approximately
$45.4 million of non-recourse
mortgage debt. Post-closing, the hotel will continue to be
managed by Starwood Hotels.
The purchase price represents a trailing 12-month cap rate of
6.4% on net operating income and a trailing 13.1x EBITDA
multiple. On a forward 12-month basis, the purchase price
represents an estimated cap rate of 7.2% on net operating income
and an estimated 11.6x EBITDA multiple. On a trailing
12-month basis, the hotel achieved RevPAR of $147.97 with occupancy of 73.2% and Average Daily
Rate (ADR) of $202.24.
"We are very excited about the acquisition of the W Atlanta
Downtown as the hotel's central location in this thriving market
offered us an extremely attractive opportunity, and we see
substantial upside potential for this property. The W Atlanta
Downtown is ideally located to draw corporate demand from the many
Fortune 500 companies that call the Atlanta metropolitan area home," said
Monty J. Bennett, Ashford Trust's
Chairman and Chief Executive Officer. "This acquisition is
consistent with our strategy of identifying well-located assets in
attractive markets, and we will continue exploring similar
transactions to drive the exceptional shareholder returns for which
our team is known."
Since opening in 2009, the W Atlanta Downtown has established a
new standard in luxury hospitality in its market. Centrally located
in the downtown district, the hotel is part of the Allen Plaza
Complex, a $2 billion mixed use
development that includes luxury condominiums as well as Ernst
& Young's headquarters. The hotel is closely situated to
several leading attractions including the Civil Rights Museum, the
Atlanta Aquarium, the World of Coca Cola Children's Museum of
Atlanta, the Georgia Dome, the
College Football Hall of Fame and Centennial Olympic Park.
The W Atlanta Downtown has 237 well–appointed guestrooms
including 20 suites. Hotel amenities include over 9,000 sq.
ft. of meeting space, a partially-covered outdoor infinity pool and
pool bar that offer panoramic views of the city, the 3,300 square
foot Bliss Spa, a state-of-the-art FIT Fitness Center, and
exceptional dining at the renowned BLT Steak restaurant.
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.