Ashford Hospitality Trust, Inc. (NYSE: AHT) announced yesterday that it has completed the sale of the 124-room Hampton Inn & Suites in Gainesville, FL for approximately $27 million in cash ($218,000 per key) to Key International.
The purchase price, including projected capex to be invested by Key, represents a trailing 12-month cap rate of 8.3% on net operating income. On a trailing 12-month basis, the hotel achieved RevPAR of $130, with occupancy of 83% and Average Daily Rate of $156. The hotel had an existing debt balance of approximately $21 million, and the Company realized net proceeds from the disposition of approximately $5 million after debt repayment and transaction costs.
"We continue to be pleased with the progress we are making with the sale of our non-core, select-service hotels," said Monty J. Bennett, Ashford Trust's Chairman and Chief Executive Officer. "We believe this sale is another step in unlocking the value of this portfolio and we remain committed to maximizing value for our shareholders by focusing on upper-upscale, full-service hotels."
Ashford Hospitality Trust is a real estate investment trust (REIT) focused on investing opportunistically in the hospitality industry in upper upscale, full-service hotels.
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