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
DALLAS, July 2, 2015 – Ashford Hospitality Trust, Inc. (NYSE: AHT) ("Ashford Trust" or the "Company") announced today that it has completed the previously-announced acquisition of the 237-room W Atlanta Downtown hotel for total consideration of $56.8 million ($239,000 per key). The hotel will continue to be managed by Starwood Hotels. Concurrent with the completion of the acquisition, the Company has financed the hotel with a $40.5 million non-recourse mortgage loan. This loan is interest only and provides for a floating interest rate of LIBOR + 5.1% with a two-year term with three, one-year extension options subject to the satisfaction of certain conditions.
The purchase price represents an estimated forward 12-month 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 $150.32 with occupancy of 73.8% and Average Daily Rate (ADR) of $203.57.
"We are thrilled to complete the acquisition of the W Atlanta Downtown considering its prime location in this booming market," said Monty J. Bennett, Ashford Trust's Chairman and Chief Executive Officer. "This transaction typifies our investment strategy which focuses on finding centrally located assets in markets with growing demand generators. Our team is constantly searching for assets with similar upside potential, which we believe ultimately drives the outsized shareholder returns our team is recognized for throughout the industry."
Centrally located in the heart of Downtown Atlanta, the W Atlanta Downtown has established a new standard in luxury hospitality since opening in 2009. 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 W Atlanta Downtown 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 hotel 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.
