Completed Sales Reach $437 Million in 2008 - Expects to Report Net Gains of $42 Million
Ashford Hospitality Trust, Inc. (NYSE: AHT) announced that since July 1, 2008 the Company completed a total of $148.2 million in asset sales. To date in 2008, the Company has completed $437 million in asset sales.
The third quarter activity included the sale of the Radisson Hotel in Rockland, Massachusetts and the Sheraton Milford in Milford, Massachusetts in July and the Radisson Hotel MacArthur Airport in Holtsville, New York in September. The Hyatt Regency Orange County in Anaheim, California sold in early October. The four sales in aggregate represent a price of approximately $130,000 per key, a 7.8% trailing 12-month NOI cap rate and a 10.6x trailing 12-month EBITDA multiple. Ashford expects to record a net gain of approximately $42 million associated with the sales and does not anticipate that the net gains will result in the requirement for any special dividends for 2008.
Year to date 2008 Ashford has sold ten assets for a combined sales price of $437 million. The ten sales in aggregate represent a price of approximately $133,000 per key, a 6.6% trailing 12-month NOI cap rate and a 12.0x trailing 12-month EBITDA multiple.
Monty Bennett, President and CEO of Ashford, noted, 'Our disposition activity continues to fund the recycling of capital into stock repurchases and capital preservation. As a result of these recent sales, we were also able to eliminate approximately $112 million of mortgage debt. We are pleased with our asset sales progress and pricing despite capital markets disruption and the slower transaction pace for hotels.'
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.
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