Ashford Hospitality Trust has completed the acquisition of the 168-room Lakeway Resort & Spa, in Austin, Texas, for $33.5 million, or $199,000 per key. The property will be managed by Remington Lodging. Originally developed in 1966, the resort underwent major expansions in 2001 and 2007 which significantly increased the size of the property.
The purchase price of $33.5 million represents a forward 12-month estimated cap rate of 8.7% on net operating income which equates to an estimated 9.5x forward 12-month EBITDA multiple. On a trailing 12-month basis, the hotel achieved RevPAR of $108.67, with occupancy of 62.5 percent and an ADR of $173.87.
"We are very excited to complete this transaction considering the Lakeway Resort & Spa's unique lakefront location in Austin's northwest corridor," said Monty J. Bennett, Ashford Trust's chairman and CEO. "This was a very attractive investment for us and we believe it has tremendous upside potential given the strength of the Austin economy and the recent capital investments at the property. We look forward to seeing improvement in the hotel's operating performance through the installation of our affiliated property manager, Remington Lodging given its proven experience with similar assets."