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