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.