DALLAS, July 1, 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 completed the
previously-announced acquisition of the 237-room W Atlanta Downtown
hotel for total consideration of $56.8
million ($239,000 per
key). The hotel will continue to be managed by Starwood
Hotels. Concurrent with the completion of the acquisition,
the Company has financed the hotel with a $40.5 million non-recourse mortgage loan.
This loan is interest only and provides for a floating interest
rate of LIBOR + 5.1% with a two-year term with three, one-year
extension options subject to the satisfaction of certain
conditions.
The purchase price represents an estimated forward 12-month 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 $150.32 with occupancy of
73.8% and Average Daily Rate (ADR) of $203.57.
"We are thrilled to complete the acquisition of the W Atlanta
Downtown considering its prime location in this booming market,"
said Monty J. Bennett, Ashford
Trust's Chairman and Chief Executive Officer. "This
transaction typifies our investment strategy which focuses on
finding centrally located assets in markets with growing demand
generators. Our team is constantly searching for assets with
similar upside potential, which we believe ultimately drives the
outsized shareholder returns our team is recognized for throughout
the industry."
Centrally located in the heart of Downtown Atlanta, the W Atlanta Downtown has
established a new standard in luxury hospitality since opening in
2009. 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 W Atlanta Downtown 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 hotel 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 in upper upscale, full-service hotels.
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.