Ashford Hospitality Trust Completes Sale of Eight Residence Inns for $102 Million
Capital recycling efforts have now generated $140 million in gross proceeds - Sale boosts TTM EBITDA yield on 15 core assets from 30 property portfolio to 10.6%
Ashford Hospitality Trust, Inc. (NYSE:AHT) announced it has completed the sale of eight non-core hotels to Schuylkill, LLC for a total sales price of $102 million. The sale price includes $93.7 million of existing financing assumed by the buyer. Molinaro Koger brokered the transaction for Ashford.
The hotels, which are all Generation One Residence Inns, were acquired by Ashford in June 2005 as part of the 30-hotel portfolio acquired from CNL Hotels and Resorts. The Residence Inns are located in Fishkill, NY; Ft. Worth, TX; Orlando, FL; Tyler, TX; Ann Arbor, MI; Providence, RI; Sacramento, CA; and Wilmington, DE. Collectively, the properties are being sold at a 9.1% net operating income (NOI) capitalization rate on trailing 12-month net operating income. The hotels had been designated as non-core properties along with seven other hotels in that portfolio. The remaining 15 core hotels from the original 30 hotels purchased currently produce a trailing 12-month NOI return of 9.3% and EBITDA yield of 10.6% based upon their original allocated purchase price.
Monty J. Bennett, President and Chief Executive Officer of Ashford, commented, "Capital recycling has been an important component of our growth strategy. With the proceeds from these sales and others completed, we have been able to invest in value-added renovations and additional acquisitions. These investments have had a significant positive effect on our internal growth. We expect to continue our aggressive recycling effort during the year as opportunities arise."
Ashford Hospitality Trust is a self-administered real estate investment trust focused on investing in the hospitality industry across all segments and at all levels of the capital structure, including direct hotel investments, first mortgages, mezzanine loans and sale-leaseback transactions.
Logos, product and company names mentioned are the property of their respective owners.
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