DALLAS, June 11, 2015 — Acquisition Highlights:
•Purchase price represents an estimated forward 12-month cap rate of 7.2% and an estimated forward 12-month EBITDA multiple of 11.6x
•Ideal Downtown Atlanta location proximate to multiple growing demand generators
•Hotel is in excellent physical condition having been recently built in 2009
•Purchase price represents an approximately 40% discount to replacement cost
Ashford Hospitality Trust, Inc. (NYSE: AHT) (“Ashford Trust” or the “Company”) announced today that it has signed a definitive agreement to acquire the 237-room W Atlanta Downtown hotel for total consideration of $56.8 million ($239,000 per key). Located in the heart of Downtown Atlanta, the hotel features over 9,000 sq. ft. of meeting space. The Company intends to finance the property with approximately $45.4 million of non-recourse mortgage debt. Post-closing, the hotel will continue to be managed by Starwood Hotels.
The purchase price represents a trailing 12-month cap rate of 6.4% on net operating income and a trailing 13.1x EBITDA multiple. On a forward 12-month basis, the purchase price represents an estimated cap rate of 7.2% on net operating income and an estimated 11.6x EBITDA multiple. On a trailing 12-month basis, the hotel achieved RevPAR of $147.97 with occupancy of 73.2% and Average Daily Rate (ADR) of $202.24.
“We are very excited about the acquisition of the W Atlanta Downtown as the hotel’s central location in this thriving market offered us an extremely attractive opportunity, and we see substantial upside potential for this property. The W Atlanta Downtown is ideally located to draw corporate demand from the many Fortune 500 companies that call the Atlanta metropolitan area home,” said Monty J. Bennett, Ashford Trust’s Chairman and Chief Executive Officer. “This acquisition is consistent with our strategy of identifying well-located assets in attractive markets, and we will continue exploring similar transactions to drive the exceptional shareholder returns for which our team is known.”
Since opening in 2009, the W Atlanta Downtown has established a new standard in luxury hospitality in its market. Centrally located in the downtown district, the hotel is part of the Allen Plaza Complex, a $2 billion mixed use development that includes luxury condominiums as well as Ernst & Young’s headquarters. The hotel is closely situated to several leading attractions including the Civil Rights Museum, the Atlanta Aquarium, the World of Coca Cola Children’s Museum of Atlanta, the Georgia Dome, the College Football Hall of Fame and Centennial Olympic Park. The W Atlanta Downtown has 237 well–appointed guestrooms including 20 suites. Hotel amenities include over 9,000 sq. ft. of meeting space, a partially-covered outdoor infinity pool and pool bar that offer panoramic views of the city, the 3,300 square foot Bliss Spa, a state-of-the-art FIT Fitness Center, and exceptional dining at the renowned BLT Steak restaurant.
