DALLAS — August 15, 2019 — Ashford Hospitality Trust, Inc. (NYSE: AHT) (“Ashford Trust” or the “Company”) today announced the sales of the 156-room Courtyard Savannah Downtown in Savannah, Georgia and the 128-room Hilton Garden Inn in Wisconsin Dells, Wisconsin for $37.8 million. The combined sales price, inclusive of the buyers’ estimated anticipated capex of $8.2 million, represents a trailing twelve-month cap rate of 5.3% on net operating income and a 16.2x Hotel EBITDA multiple as of June 30, 2019.
The hotels had existing allocated loan balances of approximately $32.8 million that were paid off at closing along with an additional $3.8 million of loan pay down associated with the release of the Courtyard Savannah from its loan pool. Approximately all of the net proceeds from the sales were used to pay down debt. Based upon the 12-month period ended June 30, 2019, the Courtyard Savannah achieved an occupancy rate of 80% and Average Daily Rate of $132resulting in a $106 RevPAR. Based upon the 12-month period ended June 30, 2019, the Hilton Garden Inn Wisconsin Dells achieved an occupancy rate of 65% and Average Daily Rate of $116 resulting in a $75 RevPAR. This compares to the Company’s trailing 12-month RevPAR of $127 as of June 30, 2019. A reconciliation of non-GAAP financial measures is included in the financial table below.
“These transactions continue to demonstrate our ability to sell non-core assets at attractive cap rates compared to our current market valuation,” said Douglas A. Kessler, Ashford Trust’s President and Chief Executive Officer. “With these sales and the associated debt paydown, we have lowered our leverage while also highlighting the value within our hotel properties. We will continue to pursue transactions that we believe will unlock value in our portfolio and enhance returns for our shareholders.”
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.”
|
Ashford Hospitality Trust |
|||
|
Courtyard Savannah and Hilton Garden Inn Wisconsin Dells |
|||
|
Reconciliation of Hotel Net Income to Hotel EBITDA and Hotel Net Operating Income |
|||
|
(Unaudited, in millions) |
|||
|
12 Months |
|||
|
Ended June 30, 2019 |
|||
|
Hotel Net Income |
$ (1.2) |
||
|
Adjustment: |
|||
|
Depreciation and amortization |
$ 1.9 |
||
|
Interest expense |
$ 2.1 |
||
|
Hotel EBITDA |
$ 2.8 |
||
|
Adjustment: |
|||
|
Capital reserve |
$ (0.4) |
||
|
Hotel Net Operating Income |
$ 2.4 |
||
|
(1) All information in this table is based upon unaudited operating financial data for the prior twelve |
|||
|
month period ended June 30, 2019. This data has not been audited or reviewed by the Company’s |
|||
|
independent registered public accounting firm. The financial information presented could change. |
|||
