DALLAS, June 29, 2017 /PRNewswire/ -- Ashford Hospitality
Trust, Inc. (NYSE: AHT) ("Ashford Trust" or the "Company")
announced today that it has completed the sale of the 495-room
Crowne Plaza Ravinia in Atlanta,
Georgia for $88.7 million
($179,000 per key). The sales price
represents a trailing 12-month cap rate of 5.6% on net operating
income and a trailing 15.3x EBITDA multiple.
The hotel had an existing allocated debt balance of
approximately $65.6 million that was
paid off along with an additional $13.1
million of debt pay down used to release the asset from the
loan pool. After debt payoff and transaction costs, the net
proceeds were approximately $9
million. Based upon the prior 12-month period, the
Crowne Plaza achieved RevPAR of $84
with occupancy of 71% and Average Daily Rate of $119. A reconciliation of non-GAAP financial
measures is included in the financial table below.
"The Crowne Plaza Ravinia transaction demonstrates our
value-added approach given this was an opportunity for us to sell
an asset at a very attractive cap rate," said Douglas A. Kessler, Ashford Trust's President
and Chief Executive Officer. "With a RevPAR that is well below our
portfolio average, the sale should improve our overall RevPAR while
also freeing up capital that can potentially be recycled into upper
upscale, full-service assets or for other general corporate
purposes. We will continue to pursue strategies that we
believe will enhance returns for our shareholders."
Ashford Hospitality Trust is a real estate investment trust
(REIT) focused on investing opportunistically in the hospitality
industry in upper upscale, full-service hotels.
Ashford has created an Ashford App for the hospitality REIT
investor community. The Ashford App is available for free
download at Apple's App Store and
the Google Play Store by searching "Ashford."
Ashford
Hospitality Trust
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Crowne Plaza
Ravinia
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Reconciliation of
Hotel Net Income to Hotel EBITDA and Hotel Net Operating
Income
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(Unaudited, in
millions)
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Twelve
Months
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Ended May
31,
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2017
(1)
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Hotel Net
Income
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$
(2.7)
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Adjustment:
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Depreciation and
amortization
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$
5.2
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Interest
expense
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$
3.4
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Hotel
EBITDA
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$
5.8
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Adjustment:
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Capital
reserve
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$
(0.9)
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Hotel Net Operating
Income
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$
4.9
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(1) All
information in this table is based upon unaudited operating
financial data for the trailing
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twelve month period
ended May 31, 2017.
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EBITDA is defined as net income (loss), computed in
accordance with generally accepted accounting principles ("GAAP"),
before interest, taxes, depreciation and amortization. Hotel
EBITDA multiple is defined as the purchase price divided by the
trailing 12 month EBITDA. A capitalization rate is determined
by dividing the property's annual net operating income by the
purchase price. Net operating income is the property's hotel
EBITDA minus a capital expense reserve of either 4% or 5% of gross
revenues.
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: timing of closing of the transaction and
satisfaction of conditions to closing, 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-announces-sale-of-crowne-plaza-ravinia-300482230.html
SOURCE Ashford Hospitality Trust, Inc.