DALLAS—Ashford Hospitality Trust has announced that it has closed on the sale of the 162-room SpringHill Suites Gaithersburg in Gaithersburg, Md. for approximately $13.2 million ($81,000 per key).
The purchase price for the SpringHill Suites Gaithersburg represents a trailing 12-month cap rate of 7.1 percent on net operating income. On a trailing 12-month basis, the hotel achieved RevPAR of $72, with occupancy of 66 percent 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 Chief Executive Officer.”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.”