DALLAS—Ashford Hospitality Prime, Inc. has entered into a definitive agreement to sell the 250-room Courtyard Seattle Downtown for $84.5 million in cash ($338,000 per key).
The purchase price represents a trailing 12-month cap rate of 6.7% on net operating income. On a trailing 12-month basis, the property achieved RevPAR of $157, with occupancy of 80% and ADR of $196. The hotel has an existing allocated debt balance of approximately $65 million, and the company expects the net proceeds from the disposition to be approximately $16 million after debt repayment and transaction costs. The transaction is scheduled to close in the next 60 days, subject to certain closing conditions.
“We are pleased to announce the planned sale of the Courtyard Seattle Downtown at an attractive value for our shareholders,” said Monty J. Bennett, Ashford Prime’s chairman and CEO. “We will continue to execute on the other initiatives we announced at the conclusion of our strategic review in an effort to further maximize value for our shareholders.”
Ashford Hospitality Prime is a real estate investment trust focused on investing in luxury hotels located in resort and gateway markets.