Real Estate: Ashford Hospitality Trust Sells 102-room SpringHill Suites Jacksonville

December 5, 2019 | Investments, News, Real Estate
https://dailyalts.com/wp-content/uploads/2019/12/57e7d34b4d51a414ea898579ce203e7c1d22dfe05454744b752a73dc_640.jpg

The deal represents roughly $109,000 per room.

Ashford Hospitality Trust announced the sale of the 102-room SpringHill Suites Jacksonville in Jacksonville, Florida for $11.2 million.

That price works out to be $109,000 per key. The sales price represents a trailing twelve-month cap rate of 5.9% on net operating income. The deal had a 14.3x Hotel EBITDA multiple.

The hotel had an occupancy rate of 81% and Average Daily Rate of $118 resulting in a $95 RevPAR for the year ending October 31, 2019. The hotel had no debt and $10.8 million proceeds available to Ashford were approximately $10.8 million.

Details of the Ashford Hospitality Trust Deal

Meanwhile, Douglas A. Kessler, Ashford Trust’s President and Chief Executive Officer commented on the transaction.

“This transaction is another successful example of our focus on unlocking embedded value in our portfolio by selling an asset at a very attractive cap rate compared to our current market valuation,” he said.  “We are pleased with the financial results of our ongoing asset sales which have sought to enhance our balance sheet and provide additional liquidity for other potential future opportunities.”

Ashford has also been selling hotels that have lower than average revenue per available room rates this year. In turn, it also used the money to pay down debt and purchase more attractive properties. Kessler also said on a conference call in October that repurchasing stock is also a possible end use of capital.

Earlier this year, Ashford Hospitality Trust sold its 156-room Courtyard Savannah Downtown in Savannah, GA. It also divested its 128-room Hilton Garden Inn in Wisconsin Dells, WI. All told, the sales price was $37.8 million. Here’s the press release.

 

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Shape

Latest Alternative Investment News

https://dailyalts.com/wp-content/uploads/2023/02/the-eleventh-hour-gfac76b1a4_640.png
Alternative Investments/ESG: Six New Responsible Funds Flag Off Morgan Stanley’s ETF Platform

Morgan Stanley Investment Management (MSIM) has launched its ETF platform with six Calvert ETFs listed on NYSE Arca. The ETFs feature Calvert’s responsible investing approach and offer access to four…

https://dailyalts.com/wp-content/uploads/2023/02/adi-goldstein-i3gs_IIyvuI-unsplash.jpg
Artificial Intelligence: MusicLM, A New Generative AI Tool From Google, Creates Music From Text
February 2, 2023     Artificial Intelligence, News

Google (NASDAQ: GOOGL) recently published a research paper on its new AI tool, MusicLM, designed to create music. The tool is based on machine learning and is trained on vast…

https://dailyalts.com/wp-content/uploads/2023/02/augmented-reality-g86922a9f7_640.jpg
Artificial Intelligence: Snap Mulling AR Glasses Powered By Generative AI
February 2, 2023     Artificial Intelligence, News

Snap (NYSE: SNAP), the parent company of Snapchat, has hinted at future AR glasses powered by generative AI technology. CEO Evan Spiegel stated that AI will be critical to the…

https://dailyalts.com/wp-content/uploads/2023/02/94280bca-3fa2-430a-a5cd-2b2b997f622b.png
Digital Assets: Binance And Mastercard Launch Prepaid Crypto Card In Brazil
February 1, 2023     Digital Assets, News

Binance and Mastercard (NYSE: MA) have jointly launched the Binance Card in Brazil, allowing Binance users in the country to make purchases and pay bills with cryptocurrencies like bitcoin and…