Ashford Hospitality Trust has completed the all-cash acquisition of the 124-room Hampton Inn & Suites Gainesville hotel in FLorida for $25.3 million, or $204,000 per key. The company intends to finance the property with approximately $21.2 million of non-recourse mortgage debt.
The purchase price represents a trailing 12-month cap rate of 8.8% on net operating income and a trailing 10.3x EBITDA multiple. On a forward 12-month basis, the purchase price represents an estimated cap rate of 9.1% on net operating income and an estimated 9.9x EBITDA multiple. On a trailing 12-month basis, the hotel achieved RevPAR of $117.45, with occupancy of 75.6% and Average Daily Rate of $155.38.
AHT says that minimal CapEx will go into the hotel, which was built in 2009. The property will be managed by Ashford Trust's affiliated property manager, Remington Lodging.
"With its excellent location in downtown Gainesville and proximity to the University of Florida campus, as well as the excellent physical condition of the property, the Hampton Inn & Suites Gainesville is a leader in its market," said Monty J. Bennett, Ashford Trust's Chairman and Chief Executive Officer. "We are excited to add this hotel to our portfolio and with the installation of our affiliated property manager, Remington, we are confident that we can drive further solid increases in the operating performance of this property."