| |
property for sale in north south france
News and Information Article
Acquisition Highlights: - Acquired for $100 million with a reimbursement to
seller for $7 million of recently spent CapEx
- TTM NOI cap rate of 9.0% and EBITDA yield of 11.4% based upon $107
million of consideration
- Continues Ashfords expansion into major markets with prominent
Washington, D.C. hotel
- Will invest additional CapEx of $13 million over next 12 months for rooms
renovation
- Seller takes $46.5 million at $11.20 per unit in operating partnership
units as part of the total consideration
- Ashfords direct hotel portfolio to increase to 73 assets totaling 12,963
rooms
DALLAS, May 18 /-FirstCall/ - Ashford Hospitality Trust, Inc.
(NYSE: AHT) announced it has signed a definitive agreement to acquire the
697- room Marriott Crystal Gateway in Arlington, Virginia, for total
consideration of $107.0 million ($153,515 per key) from EADS, a partnership
headed by Robert H. Smith and Arthur A. Birney. The seller was represented
by Molinaro Koger. Marriott Crystal Gateway is managed by Marriott
International under a long- term management agreement. The acquisition is
expected to close within 30 days.
The purchase price is comprised of the assumption of a $53.5 million
loan with a fixed interest rate of 7.24% and maturity date of 2017, the
reimbursement of capital expenditures costs of approximately $7.0 million,
and the issuance of approximately $46.5 million in Class B Operating
Partnership units. The Class B Operating Partnership units are priced at
$11.20 per unit, will have a fixed dividend of 6.63% in years 1-3 and 7.0%
thereafter based upon the $11.20 per unit price, and will have priority
over common dividends. After 10 years, either party may convert the units
to common units. On a trailing 12-month basis, the purchase price
represents a cap rate of 9% on net operating income and an 8.8x EBITDA
multiple.
Marriott Crystal Gateway has 697 rooms, 33,355 square feet of meeting
space and 2 food and beverage facilities. Opening in 1982 with the 453-room
Capital Tower and subsequently adding the 244-room Arlington Tower in 1986,
the hotel completed a $9.5 million renovation in 2002 and renovated the
lobby and food and beverage areas in 2005. Ashford expects to invest $13
million during the first year of ownership on additional capital
improvements to complete a full guestroom renovation. The Marriott Crystal
Gateway is one of two hotels that directly connect to the Metro, DCs rapid
transit rail system. The hotel is located within Crystal City, a premier
office, residential and retail market, and minutes away from Reagan
National Airport.
Monty Bennett, President and CEO of Ashford Hospitality Trust, said,
"The Marriott Crystal Gateway acquisition is another example of our ability
to acquire off-market hotels at accretive yields utilizing favorable
structures. With an operating partnership structure, we were able to make
good use of Ashfords currency at a price premium to the last offering, and
at a stated payment that is less than the current dividend payment. This
per-key price for an upper-upscale hotel in such a high demand location
with strong barriers to entry represents a value well below todays
replacement cost. We expect this hotel to benefit from increased demand in
the DC hotel market, aggressive yield and asset management, and further
RevPAR penetration resulting from the recent and future capital
expenditures. We look forward to adding this hotel to our growing portfolio
of luxury, upper-upscale, and upscale hotels."
Ashford Hospitality Trust is a self-administered real estate investment
trust focused on investing in the hospitality industry across all segments
and at all levels of the capital structure, including direct hotel
investments, first mortgages, mezzanine loans and sale-leaseback
transactions. Additional information can be found on the Companys web site
at http://www.ahtreit.com.
Certain statements and assumptions in this press release contain or are
based upon "forward-looking" information and are being made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform Act of
1995. These forward-looking statements are subject to risks and
uncertainties. When we use the words "will likely result," "may,"
"anticipate," "estimate," "should," "expect," "believe," "intend," or
similar expressions, we intend to identify forward-looking statements. Such
forward-looking statements include, but are not limited to, the expectation
that the renovation will be completed in the next 12 months, the impact of
the transaction on our business and future financial condition, our
business and investment strategy, our understanding of our competition and
current market trends and opportunities and projected capital expenditures.
Such statements are subject to numerous assumptions and uncertainties, many
of which are outside Ashfords control.
These forward-looking statements are subject to known and unknown risks
and uncertainties, which could cause actual results to differ materially
from those anticipated, including, without limitation: general volatility
of the capital markets and the market price of our common stock; changes in
our business or investment strategy; availability, terms and deployment of
capital; availability of qualified personnel; changes in our industry and
the market in which we operate, interest rates or the general economy; and
the degree and nature of our competition. These and other risk factors are
more fully discussed in Ashfords filings with the Securities and Exchange
Commission. EBITDA is defined as net income before interest, taxes,
depreciation and amortization. EBITDA yield is defined as trailing twelve
month EBITDA divided by the purchase price. A capitalization rate is
determined by dividing the propertys annual net operating income by the
purchase price. Net operating income is the propertys funds from
operations minus a capital expense reserve of 5% of gross revenues. Funds
from operations ("FFO"), as defined by the White Paper on FFO approved by
the Board of Governors of the National Association of Real Estate
Investment Trusts ("NAREIT") in April 2002, represents net income (loss)
computed in accordance with generally accepted accounting principles
("GAAP"), excluding gains (or losses) from sales or properties and
extraordinary items as defined by GAAP, plus depreciation and amortization
of real estate assets, and net of adjustments for the portion of these
items related to unconsolidated entities and joint ventures.
The forward-looking statements included in this press release are only
made as of the date of this press release. Investors should not place undue
reliance on these forward-looking statements. We are not obligated to
publicly update or revise any forward-looking statements, whether as a
result of new information, future events or circumstances, changes in
expectations or otherwise.
Contact: Douglas Kessler
Chief Operating Officer and Head of Acquisitions
(972) 490-9600
Tripp Sullivan
Corporate Communications, Inc.
(615) 254-3376
| |
|
|
 |
property for sale in north south france |
|
|
|
|
|
|
|
|
|
Locations
