Ashford Hospitality Trust closes sale of Maryland SpringHill

Ashford Hospitality Trust closed on the sale of the 162-room SpringHill Suites Gaithersburg in Gaithersburg, Md., for approximately $13.2 million (or $81,000 per key).

The purchase price for the SpringHill Suites Gaithersburg represents a trailing 12-month cap rate of 7.1 percent on net operating income. On a trailing 12-month basis, the hotel achieved RevPAR of $72, with occupancy of 66 percent and average daily rate of $108.

The consideration received from the sale was a combination of cash and approximately 2.0 million class B common units of the company's operating partnership. The class B operating partnership units were redeemed at a price of $5.74 per unit, or a price of $6.05 per common share after taking into account the current conversion factor. The company also paid off approximately $10.4 million of debt associated with the property. With this sale, the company has now closed on or announced $218 million of sales of its non-core select-service hotels.

Virtual Event

HOTEL OPTIMIZATION PART 2 | SEPTEMBER 10 & 24, 2020

Survival in these times is highly dependent on a hotel's ability to quickly adapt and pivot their business to meet the current needs of travelers and the surrounding community. Join us for Optimization Part 2 – a FREE virtual event – as we bring together top players in the industry to discuss alternative uses when occupancy is down, ways to boost F&B revenue, how to help your staff adjust to new challenges and more, in a series of panels focused on how you can regain profitability during this crisis.


"Consistent with our strategy, we continue to pursue transactions with our non-core, select-service hotel portfolio that we believe maximize value for our shareholders," said Monty J. Bennett, Ashford Trust's Chairman and Chief Executive Officer. "This was a unique opportunity to not only sell an asset at an attractive valuation but with a deal structure that allowed us to also buy back units in our operating partnership at an attractive value."

Ashford Hospitality Trust is a real estate investment trust focused on investing opportunistically in the hospitality industry in upper-upscale, full-service hotels.

Suggested Articles

The pandemic has shown how our industry can take advantage of online interactions and how we can support our virtual-reliant guests.

A resort casino in New York City and a brand debut in Canada are underway.

This role has continued to change with some revenue managers taking on leadership roles within hotel brand and management companies.