Ashford Hospitality Buys Sheraton In PA

DALLAS— Ashford Hospitality Trust has completed the acquisition of the 187-room Sheraton Bucks County and an adjacent 56,000-square-foot office building in suburban Philadelphia for $16.7 million in cash. The purchase price including the office building equates to a trailing twelve month EBITDA multiple of 7.6x and an EBITDA yield of 13.2%. Following the planned sale of the office building, the returns are expected to improve to a trailing twelve month EBITDA multiple below 6.5x and an EBITDA yield of 15.5%. The property has annual revenues of approximately $9,000,000, according to the company. Located near I-95, Route 1 and the Pennsylvania Turnpike, the Sheraton Bucks County is adjacent to the Sesame Street Place Theme Park, the Oxford Valley Mall, and the Frankford Bucks Hospital. The full-service hotel offers 12,000 square feet of meeting space, a restaurant, a lobby bar and a health club. Ashford will begin investing approximately $5.7 million in the hotel in the third quarter of 2004 to significantly upgrade the hotel. Remington Lodging & Hospitality, L.P. will manage the property. Ashford is currently negotiating for the sale of the office building.