DALLAS, Dec. 4, 2024
/PRNewswire/ -- Ashford Hospitality Trust, Inc. (NYSE: AHT)
("Ashford Trust" or the "Company") announced today that it has
signed a definitive agreement to sell the 315-room Courtyard Boston
Downtown located in Boston,
Massachusetts for $123.0
million ($390,500 per key).
The sale is expected to be completed in January 2025 and is subject to normal closing
conditions. The Company provides no assurances that the sale will
be completed on these terms or at all.
When adjusted for the Company's anticipated capital
expenditures, the sale price represents a 5.9% capitalization rate
on net operating income for the trailing twelve months ended
September 30, 2024, or 14.3x Hotel
EBITDA for the same time period. Excluding the anticipated capital
spend, the sale price represents a 6.9% capitalization rate on net
operating income for the trailing twelve months ended September 30, 2024, or 12.3x Hotel EBITDA for the
same time period.
"We are pleased to announce the signed agreement to sell the
Courtyard Boston Downtown at a very attractive cap rate," commented
Stephen Zsigray, Ashford Trust's
President and Chief Executive Officer. "This sale will not only
deleverage our BAML Highland Pool loan, but will also result in
significant capital expenditure savings. We continue to have
several assets in the market at various stages of the sales process
and are encouraged by the improved sentiment we are seeing in the
transaction market."
Ashford Hospitality Trust is a real estate investment trust
(REIT) focused on investing predominantly in upper upscale,
full-service hotels.
|
Ashford Hospitality
Trust, Inc.
|
|
Courtyard Boston
Downtown
|
|
Reconciliation of
Hotel Net Income to Hotel EBITDA and Hotel Net Operating
Income
|
|
(Unaudited, in
millions)
|
|
|
|
|
|
12 Months
Ended
|
|
|
September 30,
2024
|
|
Net income
(loss)
|
|
$
(1.8)
|
|
Interest
expense
|
|
8.7
|
|
Depreciation and
amortization
|
|
3.1
|
|
Hotel EBITDA
|
|
$
10.0
|
|
Capital
reserve
|
|
(1.5)
|
|
Hotel Net Operating
Income
|
|
$
8.5
|
|
_________
|
|
All information in this
table is based upon unaudited operating financial data for the
twelve month period ended September 30, 2024. This data has not
been audited or reviewed by the Company's independent registered
public accounting firm. The financial information presented could
change.
|
|
EBITDA is defined as
net income (loss), computed in accordance with generally accepted
accounting principles, before interest, taxes, depreciation and
amortization. Hotel EBITDA multiple is defined as the purchase
price divided by the trailing 12 month EBITDA. A capitalization
rate is determined by dividing the property's annual net operating
income by the purchase price. Net operating income is the
property's hotel EBITDA minus a capital expense reserve of 5% of
gross revenues.
|
Forward-Looking Statements
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 federal
securities regulations. Forward-looking statements are generally
identifiable by use of forward-looking terminology such as "may,"
"will," "should," "potential," "intend," "expect," "anticipate,"
"estimate," "approximately," "believe," "could," "project,"
"predict," or other similar words or expressions. Additionally,
statements regarding the following subjects are forward-looking by
their nature: our business and investment strategy; anticipated or
expected purchases, sales or dispositions of assets; our projected
operating results; completion of any pending transactions; our plan
to pay off strategic financing; our ability to restructure existing
property-level indebtedness; our ability to secure additional
financing to enable us to operate our business; our understanding
of our competition; projected capital expenditures; the impact of
technology on our operations and business; the risk that the notice
and noncompliance with NYSE continued listing standards may impact
the Company's results of operations, business operations and
reputation and the trading prices and volatility of the Company's
common stock; and the Company's ability to regain compliance with
the NYSE continued listing standards. Such forward-looking
statements are based on our beliefs, assumptions, and expectations
of our future performance taking into account all information
currently known to us. These beliefs, assumptions, and expectations
can change as a result of many potential events or factors, not all
of which are known to us. If a change occurs, our business,
financial condition, liquidity, results of operations, plans, and
other objectives may vary materially from those expressed in our
forward-looking statements. You should carefully consider this risk
when you make an investment decision concerning our securities.
These and other risk factors are more fully discussed in the
Company's filings with the SEC.
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 will not publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or circumstances, changes in expectations or
otherwise except to the extent required by law.
View original
content:https://www.prnewswire.com/news-releases/ashford-hospitality-trust-announces-agreement-to-sell-the-courtyard-boston-downtown-302322450.html
SOURCE Ashford Hospitality Trust, Inc.