Ashford Trust announces acquisition of 9-hotel portfolio for $224 million

DALLAS - Ashford Hospitality Trust, Inc. announced that it has signed a definitive agreement to acquire a 9-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 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 Average Daily Rate of $131.

The portfolio includes:

Hotel		Brand Family		Market		State		Rooms
Courtyard Boston Billerica		Marriott		Boston		MA		210
Courtyard Wichita Old Town		Marriott		Wichita		KS		128
Hampton Inn & Suites Columbus Easton		Hilton		Columbus		OH		145
Hampton Inn & Suites Pittsburgh Washington		Hilton		Pittsburgh		PA		103
Hampton Inn & Suites Pittsburgh Waterfront		Hilton		Pittsburgh		PA		113
Hampton Inn Phoenix Airport		Hilton		Phoenix		AZ		106
Homewood Suites Pittsburgh Southpointe		Hilton		Pittsburgh		PA		148
Residence Inn Stillwater		Marriott		Stillwater		OK		101
Sheraton Ann Arbor		Starwood		Ann Arbor		MI		197
								1,251

"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 Chief Executive Officer. "With the installation of Remington property management at all of these properties, we see substantial upside to the operating performance across this portfolio."

Ashford Hospitality Trust is a real estate investment trust (REIT) focused on investing opportunistically in the hospitality industry across all segments and at all levels of the capital structure primarily within the United States.