Home Featured Ashford Trust’s Crowne Plaza Ravinia Sale Expected to “Improve Overall RevPAR”

Ashford Trust’s Crowne Plaza Ravinia Sale Expected to “Improve Overall RevPAR”


Ashford Hospitality Trust Inc. has completed the sale of the 495-room Crowne Plaza Ravinia in Atlanta for $88.7 million. That price equates to approximately $179,000 per key.

According to a prepared statement, the sales price represents a trailing 12-month cap rate of 5.6% on net operating income and a trailing 15.3x EBITDA multiple.

The hotel had an existing allocated debt balance of approximately $65.6 million that was paid off along with an additional $13.1 million of debt pay down used to release the asset from the loan pool.  After debt payoff and transaction costs, the net proceeds were approximately $9 million.

The release says that based upon the prior 12-month period, the Crowne Plaza achieved RevPAR of $84 with occupancy of 71% and Average Daily Rate of $119. A reconciliation of non-GAAP financial measures is included in the financial table below.

“The Crowne Plaza Ravinia transaction demonstrates our value-added approach given this was an opportunity for us to sell an asset at a very attractive cap rate,” said Douglas A. Kessler, Ashford Trust’s President and Chief Executive Officer.

Kessler adds that “With a RevPAR that is well below our portfolio average, the sale should improve our overall RevPAR while also freeing up capital that can potentially be recycled into upper upscale, full-service assets or for other general corporate purposes.  We will continue to pursue strategies that we believe will enhance returns for our shareholders.”

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