DALLAS, Aug. 5, 2019 /PRNewswire/ -- Ashford Hospitality
Trust, Inc. (NYSE: AHT) ("Ashford Trust" or the "Company") today
announced the sale of the 251-room Marriott
Plaza San Antonio in San Antonio,
Texas for $34.0 million
($135,500 per key). The sales price,
inclusive of buyer's estimated anticipated capex of $21.3 million, represents a trailing twelve-month
cap rate of 4.9% on net operating income and a 17.1x Hotel EBITDA
multiple as of June 30, 2019.
The hotel had an existing allocated loan balance of
approximately $23.3 million that was
paid off at closing along with an additional $3.5 million of loan pay down associated with the
release of the hotel from the loan pool. After loan payoff and
transaction costs, the net proceeds from the sale were
approximately $6 million. Based
upon the 12-month period ended June 30,
2019, the hotel achieved an occupancy rate of 76% and
Average Daily Rate of $135 resulting
in a $102 RevPAR. This compares
to the Company's trailing 12-month RevPAR of $127 as of June 30,
2019. A reconciliation of non-GAAP financial measures is
included in the financial table below.
"The Marriott Plaza San Antonio transaction demonstrates our
financially calibrated approach to unlocking embedded value in our
portfolio by selling an asset at a very attractive cap rate
compared to our current market valuation," said Douglas A. Kessler, Ashford Trust's President
and Chief Executive Officer. "With this successful transaction, we
believe we accomplished three goals, namely reducing our debt,
preserving cash, and demonstrating the value within our
portfolio. We will continue to pursue these types of
transactions that we believe will enhance returns for our
shareholders."
Ashford Hospitality Trust is a real estate investment trust
(REIT) focused on investing opportunistically in the hospitality
industry in upper upscale, full-service hotels.
Ashford has created an Ashford App for the hospitality REIT
investor community. The Ashford App is available for free
download at Apple's App Store and
the Google Play Store by searching "Ashford."
Ashford
Hospitality Trust
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Marriott Plaza San
Antonio
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Reconciliation of
Hotel Net Income to Hotel EBITDA and Hotel Net Operating
Income
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(Unaudited, in
millions)
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12
Months
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Ended June 30,
2019
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Hotel Net
Income
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$
0.5
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Adjustment:
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Depreciation and
amortization
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$
1.4
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Interest
expense
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$
1.3
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Hotel
EBITDA
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$
3.2
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Adjustment:
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Capital
reserve
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$
(0.5)
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Hotel Net Operating
Income
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$
2.7
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(1) All
information in this table is based upon unaudited operating
financial data for the prior twelve-
|
month period ended
June 30, 2019. This data has not been audited or reviewed by
the Company's
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independent
registered public accounting firm. The financial information
presented could change.
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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: 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; changes in our industry and the markets in
which we operate, interest rates or the general economy; our
ability to successfully complete and integrate acquisitions, and
manage our planned growth, 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.