DALLAS— Ashford Hospitality Trust, Inc. has signed a definitive agreement to acquire a nine-hotel portfolio for total consideration of $224 million in cash ($179,000 per key). The company anticipates financing the portfolio with non-recourse debt of approximately $179 million. Upon closing, all of the properties will be managed by Remington Lodging.
The portfolio consists of eight select-service hotels and one full-service hotel totaling 1,251 rooms. The purchase price represents a trailing 12-month cap rate of 7.2% on net operating income and a trailing 12.1x EBITDA multiple. On a forward 12-month basis, the purchase price represents an estimated cap rate of 7.5% on net operating income and an estimated 11.6x EBITDA multiple. On a trailing 12-month basis, the portfolio achieved RevPAR of $100, with occupancy of 76% and ADR of $131.
The portfolio includes Courtyard Boston Billerica (210 rooms); Courtyard Wichita Old Town in Wichita, KS (128); Hampton Inn & Suites Columbus Easton in Columbus, OH (145); Hampton Inn & Suites Pittsburgh Washington (103); Hampton Inn & Suites Pittsburgh Waterfront (113); Hampton Inn Phoenix Airport (106); Homewood Suites Pittsburgh Southpointe (148); Residence Inn Stillwater in Stillwater, OK (101); and Sheraton Ann Arbor in Ann Arbor, MI (197).
“We are pleased to announce this strategic and accretive transaction. This portfolio afforded us the opportunity to acquire well-placed, well-conditioned assets with strong and diverse brands that will expand the geographic footprint of our platform,” said Monty J. Bennett, Ashford Trust’s chairman and CEO. “With the installation of Remington property management at all of these properties, we see substantial upside to the operating performance across this portfolio.”