Ashford Hospitality Trust Sells Hilton Dallas Lincoln Centre for $72.25 Million (United States)
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Ashford Hospitality Trust Sells Hilton Dallas Lincoln Centre for $72.25 Million (United States)
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Category: North America & West Indies / Carribean islands - United States - Industry economy
- Figures / Studies
This is a press release selected by our editorial committee and published online for free on 2008-06-27
Completed Sales and Announced Contracts Reach $310 Million in 2008
Ashford Hospitality Trust, Inc. (NYSE: AHT) today announced it has closed on the sale of the Hilton Dallas Lincoln Centre in Dallas for $72.25 million in cash to AP VEF Hilton Dallas Owner's LLC, an affiliate of Apollo Real Estate Advisors, L.P. The sales prices equates to approximately $145,000 per key and, without taking into account future capital expenditure requirements, a 8.3% trailing 12-month NOI cap rate and a 9.8x trailing 12-month EBITDA multiple.
To date in 2008, the Company has completed $289 million in asset sales and announced sales contracts in place on an additional $20.9 million in assets.
Monty Bennett, President and CEO of Ashford, noted, "The Hilton Lincoln Dallas Centre transaction reduces our concentration of hotels in the Dallas/Ft. Worth area and eliminates the requirement to spend significant future capex on a non-strategic asset we acquired previously in a portfolio. The pace and pricing of asset sales continues to meet our expectations, despite challenging market conditions. Proceeds from the sale will be used for debt reduction and accretive capital recycling. Our team's success in this market is a testament to their creativity and the attractiveness of our assets."
Ashford Hospitality Trust is a self-administered real estate investment trust focused on investing in the hospitality industry across all segments and at all levels of the capital structure, including direct hotel investments, first mortgages, mezzanine loans and sale-leaseback transactions. Additional information can be found on the Company's web site at www.ahtreit.com.
Certain statements and assumptions in this press release contain or are based upon "forward-looking" information and are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties. When we use the words "will likely result," "may," "anticipate," "estimate," "should," "expect," "believe," "intend," or similar expressions, we intend to identify forward-looking statements. Such forward-looking statements include, but are not limited to, the timing for closing, the impact of the transaction on our business and future financial condition, our business and investment strategy, our understanding of our competition and current market trends and opportunities and projected capital expenditures. Such statements are subject to numerous assumptions and uncertainties, many of which are outside Ashford's control.
These forward-looking statements are subject to known and unknown risks and uncertainties, which could cause actual results to differ materially from those anticipated, including, without limitation: general volatility of the capital markets and the market price of our common stock; changes in our business or investment strategy; availability, terms and deployment of capital; availability of qualified personnel; changes in our industry and the market in which we operate, interest rates or the general economy; and the degree and nature of our competition. These and other risk factors are more fully discussed in Ashford's filings with the Securities and Exchange Commission. EBITDA is defined as net income before interest, taxes, depreciation and amortization. EBITDA yield is defined as trailing twelve month EBITDA divided by the purchase price. A capitalization rate is determined by dividing the property's annual net operating income by the purchase price. Net operating income is the property's funds from operations minus a capital expense reserve of either 4% or 5% of gross revenues. Funds from operations ("FFO"), as defined by the White Paper on FFO approved by the Board of Governors of the National Association of Real Estate Investment Trusts ("NAREIT") in April 2002, represents net income (loss) computed in accordance with generally accepted accounting principles ("GAAP"), excluding gains (or losses) from sales or properties and extraordinary items as defined by GAAP, plus depreciation and amortization of real estate assets, and net of adjustments for the portion of these items related to unconsolidated entities and joint ventures.
The forward-looking statements included in this press release are only made as of the date of this press release. Investors should not place undue reliance on these forward-looking statements. We are not obligated to publicly update or revise any forward-looking statements, whether as a result of new information, future events or circumstances, changes in expectations or otherwise.
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