AHT completes acquisition of Gainesville, Fla., Hampton

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.


Like this story? Subscribe to IHIF!

The hospitality industry turns to IHIF International Hotel Investment News as the must-read source for investment and development coverage worldwide. Sign up today to get inside the deal with the latest transactions, openings, financing, and more delivered to your inbox and read on the go.

"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."

Suggested Articles


This is a metaphor used by Nassim Nicholas Taleb to describe events such as Coronavirus, which happen…

The world used to be our oyster and now our oyster is closed. Oysters can do a lot worse, of course, which is what we are hoping to avoid.

The current outbreak was likely to affect hotel values, Simon Allison, Hoftel chairman & CEO, told a webinar hosted by Questex Hospitality.