Ashford Hospitality Announces $103 Million of Asset Sales
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Ashford Hospitality Announces $103 Million of Asset Sales
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Category: Worldwide
This is a press release selected by our editorial committee and published online for free on 2007-10-09
Ashford Hospitality Trust, Inc. (NYSE: AHT):
Highlights:
-- Proceeds used to reduce debt
-- Completes sale of the 17th asset in Phase 1 of capital
recycling
-- Four assets in Phase II are now sold or under firm contract
-- Sales price equates to $79,000 per key and 7.3% trailing
12-month NOI cap rate
Ashford Hospitality Trust, Inc. (NYSE: AHT) today announced that it has completed the sale of three hotels for $35.0 million and has three additional hotels under contract for a total of $68.5 million that are expected to close in the fourth quarter of 2007. The pricing equates to a 7.3% trailing 12-month NOI cap rate.
The Company has now sold $157.3 million of the estimated $170 million of Phase 1 assets, with a projected net gain of $35.2 million. Of the 16 hotels and two office buildings included in Phase 1, only one hotel and one office building remain to be sold.
The Hampton Inn in Horse Cave, Kentucky and the Doubletree Guest Suites - Dayton/Miamisburg in Dayton, Ohio, both of which were Phase I assets, were sold in the third quarter. Among the Phase II assets, the Hilton Birmingham Perimeter Park in Birmingham, Alabama, was sold in the fourth quarter of 2007. The Residence Inn Atlanta Perimeter West in Atlanta, Georgia, the Residence Inn Torrance in Torrance, California, and the Residence Inn Kansas City in Kansas City, Missouri are all under firm contract.
Monty J. Bennett, President and Chief Executive Officer of Ashford, commented, "Capital recycling and internally generated growth are top priorities for us as we continue to enhance our balance sheet and concentrate the portfolio in strong, growing metropolitan and coastal markets."
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