The property will be managed by Ashford Trust's affiliated property manager, Remington Lodging.
Ashford Hospitality Trust, Inc. announced it has completed the previously-announced acquisition of the 232-room Marriott Memphis East hotel for total consideration of $43.5 million in cash ($187,500 per key). The company intends to finance the property with approximately $33.3 million of non-recourse mortgage debt.
On a forward 12-month basis, the purchase price represents an estimated cap rate of 8.6% on net operating income and an estimated 10.3x forward EBITDA multiple.
The Marriott Memphis East is in excellent physical condition with virtually no capex needs as the hotel recently completed an extensive renovation prior to its conversion to a full-service Marriott. The property will be managed by Ashford Trust’s affiliated property manager, Remington Lodging.
“With its desirable location in the heart of East Memphis and recent capital investments in anticipation of its conversion, the Marriott Memphis East is another example of our team’s ability to identify attractive investments with considerable upside potential,” said Monty J. Bennett, Ashford Trust’s Chairman and Chief Executive Officer. “We are very excited to add this hotel to our portfolio and with the installation of our affiliate manager, Remington, we are confident in our ability to achieve solid increases in RevPAR and RevPAR index as the property further stabilizes post-conversion.”
Located just minutes away from upscale restaurants and shopping, the Marriott Memphis East is an excellent choice for guests visiting famous local attractions such as Elvis’ Graceland, Beale Street and Historic Downtown Memphis. The property has 232 well-equipped guestrooms and 6 meeting rooms with approximately 8,960 square feet of meeting space. Hotel amenities include an indoor pool and whirlpool, 24-hour fitness center, Table – A Delta Grill restaurant, and complimentary on-site parking.
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.
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