Ashford Closes Acquisition of Marriott Research Triangle Park for $28.0 Million
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Ashford Closes Acquisition of Marriott Research Triangle Park for $28.0 Million
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Category: North America & West Indies / Carribean islands
This is a press release selected by our editorial committee and published online for free on 2006-02-28
Acquisition Highlights: - Acquired at a trailing pro-forma twelve-month cap rate of 8.5%, EBITDA multiple of 9.5x, and EBITDA yield of 10.5% using a 5% FF&E Reserve - Expects to commence $5.7 million renovation in fourth quarter of 2006 - Ashford's direct hotel portfolio increases to 80 assets totaling 13,558 rooms including announced acquisitions
DALLAS, Feb 27, 2006 /PRNewswire-FirstCall via COMTEX News Network/ -- Ashford Hospitality Trust, Inc. (NYSE: AHT) announced it has closed on the acquisition of the 225-room Marriott at Research Triangle Park in Durham, NC, for $28.0 million in cash.
The purchase price, on a pro-forma basis excluding Marriott incentive management fees that are not payable going forward by Ashford and using a 5% FF&E reserve, equates to a 9.5x trailing twelve-month EBITDA multiple, an EBITDA yield of 10.5% and a trailing twelve-month net operating income capitalization rate of 8.5%. The property generated revenues of $9.9 million on a trailing twelve month basis.
The Marriott at Research Triangle Park completed a $2.5 million renovation in 2002 of the guestrooms and bathrooms, which included the replacement of softgoods and casegoods. Ashford will invest an additional $5.7 million over a two-year period to renovate the lobby, restaurant, function space, guest corridors, guestrooms and bathrooms. Remington Lodging & Hospitality, L.P. has assumed management of the property under a long-term incentive based agreement.
Monty J. Bennett, President and CEO of Ashford Hospitality Trust, said, "We are pleased to add this asset to our portfolio of well-branded upscale and upper-upscale hotels. With its strong location and brand, we fully expect the Marriott at Research Triangle Park to outpace its competitive set in this thriving market."
Opened in 1988, the Marriott at Research Triangle Park has 225 rooms, 4,252 square feet of meeting space and two food and beverage facilities. The hotel has land available for an expansion opportunity to the function space. The hotel also benefits from its close proximity to Research Triangle Park, a 7,000-acre office park limited to organizations in research, development and scientifically-oriented production. The park is closely tied to the three major research universities of the University of North Carolina at Chapel Hill, Duke University in Durham and North Carolina State University in Raleigh. Research Triangle Park has over 100 research and development organizations employing over 38,000 people.
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