Ashford Completes $18.85 Million Sale
CORAL GABLES, FL, June 17, 2005. Ashford Hospitality Trust today announced it has completed the sale of three non-core hotels for a total sale price of $18.85 million.
Acquired by Ashford in March 2005 as part of a 21-hotel portfolio, the 168-room Holiday Inn Coral Gables in Coral Gables, Fla., the 72-room Inn on the Square in Falmouth, Mass., and the 136-room Gull Wing Suites in South Yarmouth, Mass., had been designated as non-core properties along with five other hotels in this portfolio (two of which remain under contract for sale). CB Richard Ellis and Molinaro Koger brokered the transactions for Ashford. Collectively, the properties were sold at a 3.8% net operating income capitalization rate on trailing 12-month net operating income and on a 19.5x EBITDA multiple.
Monty J. Bennett, President and Chief Executive Officer of Ashford, commented, "We are pleased to remain on schedule on the disposition of our non-core hotels. With the two remaining hotels expected to close later this year for total proceeds of $11 million, we have been able to lower the net purchase price for the remaining 13 core hotels in this 21-hotel portfolio to $212.5 million and raise the trailing 12-month net operating income cap rate as of April 2005 to 11% and the trailing 12-month EBITDA yield to 13% on the core portfolio. This transaction has once again demonstrated Ashford's ability to quickly and accretively assimilate large portfolios."
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