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:

“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.

Tatiana Rokou

News Editor - TravelDailyNews Media Network | + Posts

Tatiana is the news coordinator for TravelDailyNews Media Network (traveldailynews.gr, traveldailynews.com and traveldailynews.asia). Her role includes monitoring the hundreds of news sources of TravelDailyNews Media Network and skimming the most important according to our strategy.

She holds a Bachelor's degree in Communication & Mass Media from Panteion University of Political & Social Studies of Athens and she has been editor and editor-in-chief in various economic magazines and newspapers.

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