Ashford Hospitality Trust (AHT) Closes $13.2M Sale of SpringHill Suites Gaithersburg
- AT&T (T) Agrees to Acquire Time Warner (TWX) for More than $80 Billion - WSJ
- Top 10 News for 10/17 - 10/21: Merger Rumors Abound; CEOs Depart; Tesla Kicks Autopilot Up A Notch
- Wall Street ends little changed; Microsoft hits record
- AT&T (T) in Advanced Talks to Acquire Time Warner (TWX) - DJ
- Rockwell Automation (ROK) Said to Attract Takeover Interest from Schneider Electric - Source
Get access to the best calls on Wall Street with StreetInsider.com's Ratings Insider Elite. Get your Free Trial here.
Ashford Hospitality Trust, Inc. (NYSE: AHT) announced that it has closed on the sale of the 162-room SpringHill Suites Gaithersburg in Gaithersburg, MD for approximately $13.2 million ($81,000 per key).
The purchase price for the SpringHill Suites Gaithersburg represents a trailing 12-month cap rate of 7.1% on net operating income. On a trailing 12-month basis, the hotel achieved RevPAR of $72, with occupancy of 66% 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."
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Martin Midstream Partners (MMLP) to Divest Corpus Christi Terminalling Assets for Net Proceeds of $93M
- Concordia International (CXRX) CEO to Step Down
- Merck (MRK) Announces KEYTRUDA Phase 3 KEYNOTE-045 Met Primary Endpoint; Trial Stopped Early
Create E-mail Alert Related CategoriesCorporate News, Spinoffs
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!