Ashford Trust Sells Crowne Plaza Ravinia in Atlanta, Georgia for $88.7 Million
June 30, 2017 12:47pm
DALLAS, June 30, 2017 -- Ashford Hospitality Trust, Inc. (NYSE: AHT) ("Ashford Trust" or the "Company") announced today that it has completed the sale of the 495-room Crowne Plaza Ravinia in Atlanta, Georgia for $88.7 million ($179,000 per key). The sales price represents a trailing 12-month cap rate of 5.6% on net operating income and a trailing 15.3x EBITDA multiple.
The hotel had an existing allocated debt balance of approximately $65.6 million that was paid off along with an additional $13.1 million of debt pay down used to release the asset from the loan pool. After debt payoff and transaction costs, the net proceeds were approximately $9 million. Based upon the prior 12-month period, the Crowne Plaza achieved RevPAR of $84 with occupancy of 71% and Average Daily Rate of $119. A reconciliation of non-GAAP financial measures is included in the financial table below.
"The Crowne Plaza Ravinia transaction demonstrates our value-added approach given this was an opportunity for us to sell an asset at a very attractive cap rate," said Douglas A. Kessler, Ashford Trust's President and Chief Executive Officer. "With a RevPAR that is well below our portfolio average, the sale should improve our overall RevPAR while also freeing up capital that can potentially be recycled into upper upscale, full-service assets or for other general corporate purposes. We will continue to pursue strategies that we believe will enhance returns for our shareholders."
EBITDA is defined as net income (loss), computed in accordance with generally accepted accounting principles ("GAAP"), before interest, taxes, depreciation and amortization. Hotel EBITDA multiple is defined as the purchase price divided by the trailing 12 month EBITDA. A capitalization rate is determined by dividing the property's annual net operating income by the purchase price. Net operating income is the property's hotel EBITDA minus a capital expense reserve of either 4% or 5% of gross revenues.
Certain statements and assumptions in this press release contain or are based upon "forward-looking" information and are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties. When we use the words "will likely result," "may," "anticipate," "estimate," "should," "expect," "believe," "intend," or similar expressions, we intend to identify forward-looking statements. Such statements are subject to numerous assumptions and uncertainties, many of which are outside Ashford Trust's control.
These forward-looking statements are subject to known and unknown risks and uncertainties, which could cause actual results to differ materially from those anticipated, including, without limitation: timing of closing of the transaction and satisfaction of conditions to closing, general volatility of the capital markets and the market price of our common stock; changes in our business or investment strategy; availability, terms and deployment of capital; availability of qualified personnel; changes in our industry and the market in which we operate, interest rates or the general economy; and the degree and nature of our competition. These and other risk factors are more fully discussed in Ashford Trust's filings with the Securities and Exchange Commission.
The forward-looking statements included in this press release are only made as of the date of this press release. Investors should not place undue reliance on these forward-looking statements. We are not obligated to publicly update or revise any forward-looking statements, whether as a result of new information, future events or circumstances, changes in expectations or otherwise.
ashford hospitality trust,
crowne plaza ravinia
Ashford Hospitality Trust is a real estate investment trust (REIT) focused on investing opportunistically in the hospitality industry in upper upscale, full-service hotels.
Ashford has created an Ashford App for the hospitality REIT investor community. The Ashford App is available for free download at Apple's App Store and the Google Play Store by searching "Ashford."
CONTACT: Deric Eubanks, Chief Financial Officer, (972) 490-9600, Jordan Jennings, Investor Relations, (972) 778-9487, Joe Calabrese, Financial Relations Board, (212) 827-3772
FelCor Lodging Trust Open to Cash Deal with Ashford Hospitality Trust
Ashford Hospitality Trust Reports Q4 2016 Net Loss of $57.3 Million; Comparable RevPAR for all Hotels not Under Renovation Increased 3.2% During the Quarter
FelCor Lodging Trust Clarifies Background on Ashford Hospitality Trust Proposal
Douglas A. Kessler Appointed Chief Executive Officer Of Ashford Hospitality Trust, Inc.
FelCor Lodging Trust Responds to Ashford Hospitality Trust’s Unsolicited Proposal
Ashford Hospitality Trust Proposes to Acquire FelCor Lodging Trust
Ashford Trust Completes Sale of Two Palm Desert Hotels for $36 Million
Ashford Trust Completes Sale of 162-Room SpringHill Suites Gaithersburg, Maryland for $13.2 Million
Key International Acquires Hampton Inn & Suites by Hilton Downtown Gainesville for $27 Million
The Plasencia Group Represents Ashford Hospitality Trust in Sale of Hampton Inn & Suites Gainesville Downtown
Ashford Reports Second Quarter 2016 Results; Proposed Combination with Remington Remains on Track
Ashford Hospitality Trust to Sell 5-Hotel Select-Service Portfolio to Noble Investment Group for $142 million
Q3 2015 Financial Reports Round Up: Chatham, Strategic, Belmond, RLJ Lodging, & Ashford et al
Ashford, Inc. Enters Agreement to Combine with Remington Holdings
Ashford Trust Completes Conversion of Former Crowne Plaza Beverly Hills to Beverly Hills Marriott
Ashford Trust to Acquire the W Minneapolis & Le Meridien Minneapolis for $101 Million
Ashford Trust Acquires 9-Hotel Portfolio for $224 Million
Ashford Trust to Acquire Prudential Real Estate Investors' Interest in 28-Hotel Highland Portfolio
Ashford Trust Reports Second Quarter 2014 Results; RevPAR Increase of 7.7% for Hotel Portfolio
Ashford Trust Reports Q3 Results Including Ashford Prime Metrics; RevPAR Growth of 4.3%
Please login or register to post a comment.