DALLAS, June 17, 2015 /PRNewswire/ --
Acquisition Highlights:
- 9-hotel portfolio consists of 8 select-service hotels and 1
full-service hotel with 1,251 total rooms
- Purchase price equates to an estimated forward 12-month cap
rate of 7.7% and an estimated forward 12-month EBITDA multiple of
11.6x
- Well-located and diversified portfolio proximate to stable
demand generators
- Relatively new assets with average age of 7 years
- Remington Lodging assumes property management
Ashford Hospitality Trust, Inc. (NYSE: AHT) ("Ashford Trust" or
the "Company") announced today that it has completed the
previously-announced acquisition of a 9-hotel portfolio for total
consideration of $224 million
($179,000 per key). Concurrent
with the completion of the acquisition, the Company has financed
the portfolio with non-recourse debt of approximately $179 million. The first tranche of
financing is a $144 million
non-recourse mortgage loan secured by the eight select-service
assets. This loan is interest only and provides for a
floating interest rate of LIBOR + 4.09% with a two-year term with
three, one-year extension options subject to the satisfaction of
certain conditions. The second tranche of the financing is a
$35.2 million non-recourse mortgage
loan secured by the Sheraton Ann Arbor, the only full-service hotel
in the portfolio. This loan is interest only and provides for
a floating interest rate of LIBOR + 4.15% with a two-year term with
three, one-year extension options subject to the satisfaction of
certain conditions. All of the properties are now managed by
Remington Lodging.
The purchase price represents a trailing 12-month cap rate of
7.4% on net operating income and a trailing 12.1x EBITDA
multiple. On a forward 12-month basis, the purchase price
represents an estimated cap rate of 7.7% on net operating income
and an estimated 11.6x EBITDA multiple. On a trailing
12-month basis, the portfolio achieved RevPAR of $100, with occupancy of 76% and Average Daily
Rate of $132.
The portfolio includes:
Hotel
|
Brand
Family
|
Market
|
State
|
Rooms
|
Courtyard Boston
Billerica
|
Marriott
|
Boston
|
MA
|
210
|
Courtyard Wichita Old
Town
|
Marriott
|
Wichita
|
KS
|
128
|
Hampton Inn &
Suites Columbus Easton
|
Hilton
|
Columbus
|
OH
|
145
|
Hampton Inn &
Suites Pittsburgh Washington
|
Hilton
|
Pittsburgh
|
PA
|
103
|
Hampton Inn &
Suites Pittsburgh Waterfront
|
Hilton
|
Pittsburgh
|
PA
|
113
|
Hampton Inn Phoenix
Airport
|
Hilton
|
Phoenix
|
AZ
|
106
|
Homewood Suites
Pittsburgh Southpointe
|
Hilton
|
Pittsburgh
|
PA
|
148
|
Residence Inn
Stillwater
|
Marriott
|
Stillwater
|
OK
|
101
|
Sheraton Ann
Arbor
|
Starwood
|
Ann
Arbor
|
MI
|
197
|
|
|
|
|
1,251
|
"We are excited to have completed this accretive transaction
which allowed us to further expand the geographic footprint of our
diverse portfolio with well-located assets affiliated with strong
and diverse brands," said Monty J.
Bennett, Ashford Trust's Chairman and Chief Executive
Officer. "With the installation of Remington property
management at all of these properties, we look forward to being
able to realize solid increases in operating performance at these
hotels."
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-9-hotel-portfolio-for-224-million-300101066.html
SOURCE Ashford Hospitality Trust, Inc.