DALLAS, Aug. 15, 2019 /PRNewswire/ -- Ashford
Hospitality Trust, Inc. (NYSE: AHT) ("Ashford Trust" or the
"Company") today announced the sales of the 156-room Courtyard
Savannah Downtown in Savannah,
Georgia and the 128-room Hilton Garden Inn in Wisconsin Dells, Wisconsin for $37.8 million. The combined sales price,
inclusive of the buyers' estimated anticipated capex of
$8.2 million, represents a trailing
twelve-month cap rate of 5.3% on net operating income and a 16.2x
Hotel EBITDA multiple as of June 30,
2019.
The hotels had existing allocated loan balances of approximately
$32.8 million that were paid off at
closing along with an additional $3.8
million of loan pay down associated with the release of the
Courtyard Savannah from its loan pool. Approximately all of the net
proceeds from the sales were used to pay down debt. Based
upon the 12-month period ended June 30,
2019, the Courtyard Savannah achieved an occupancy rate of
80% and Average Daily Rate of $132
resulting in a $106 RevPAR.
Based upon the 12-month period ended June
30, 2019, the Hilton Garden Inn Wisconsin Dells achieved an
occupancy rate of 65% and Average Daily Rate of $116 resulting in a $75 RevPAR. This compares to the Company's
trailing 12-month RevPAR of $127 as
of June 30, 2019. A
reconciliation of non-GAAP financial measures is included in the
financial table below.
"These transactions continue to demonstrate our ability to sell
non-core assets at attractive cap rates compared to our current
market valuation," said Douglas A.
Kessler, Ashford Trust's President and Chief Executive
Officer. "With these sales and the associated debt paydown, we have
lowered our leverage while also highlighting the value within our
hotel properties. We will continue to pursue transactions
that we believe will unlock value in our portfolio and enhance
returns for our shareholders."
Ashford Hospitality Trust is a real estate investment trust
(REIT) focused on investing opportunistically in the hospitality
industry in upper upscale, full-service hotels.
Ashford has created an Ashford App for the hospitality REIT
investor community. The Ashford App is available for free
download at Apple's App Store and
the Google Play Store by searching "Ashford."
Ashford
Hospitality Trust
|
Courtyard Savannah
and Hilton Garden Inn Wisconsin Dells
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Reconciliation of
Hotel Net Income to Hotel EBITDA and Hotel Net Operating
Income
|
(Unaudited, in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
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12
Months
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|
|
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Ended June 30,
2019
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Hotel Net
Income
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$
(1.2)
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|
|
|
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Adjustment:
|
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Depreciation and
amortization
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$
1.9
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Interest
expense
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$
2.1
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Hotel
EBITDA
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$
2.8
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Adjustment:
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|
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Capital
reserve
|
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$
(0.4)
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|
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|
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Hotel Net Operating
Income
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$
2.4
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|
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|
|
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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.