DALLAS—Ashford Hospitality Trust, Inc., has closed on the sale of the 162-room SpringHill Suites Gaithersburg in Gaithersburg, MD, for approximately $13.2 million, or $81,000 per key.
According to Ashford Hospitality Trust: The purchase price for the hotel represents a trailing 12-month cap rate of 7.1% on net operating income. On a trailing 12-month basis, the hotel achieved RevPAR of $72, with occupancy of 66% and Average Daily Rate of $108. The consideration received from the sale was a combination of cash and approximately 2.0 million Class B common units of the company’s operating partnership. The Class B operating partnership units were redeemed at a price of $5.74 per unit, or a price of $6.05 per common share after taking into account the current conversion factor. The company also paid off approximately $10.4 million of debt associated with the property. With this sale, the company has now closed on or announced $218 million of sales of its non-core, select-service hotels.
“Consistent with our strategy, we continue to pursue transactions with our non-core, select-service hotel portfolio that we believe maximize value for our shareholders,” said Monty J. Bennett, Ashford Trust’s chairman and CEO. “This was a unique opportunity to not only sell an asset at an attractive valuation but with a deal structure that allowed us to also buy back units in our operating partnership at an attractive value.”
Ashford Hospitality Trust is a real estate investment trust (REIT) focused on investing opportunistically in the hospitality industry in upper upscale, full-service hotels.