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.
"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.