Dallas-based Ashford Hospitality Trust Inc. has sold the 251-room Marriott Plaza San Antonio in San Antonio, TX for $34 million. The sales price, inclusive of buyer’s estimated anticipated capex of $21.3 million, represents a trailing twelve-month cap rate of 4.9% on net operating income and a 17.1x Hotel EBITDA multiple as of June 30, 2019.
The hotel had an existing allocated loan balance of approximately $23.3 million that was paid off at closing along with an additional $3.5 million of loan pay down associated with the release of the hotel from the loan pool. After loan payoff and transaction costs, the net proceeds from the sale were approximately $6 million.
According to a prepared statement, based upon the 12-month period ended June 30, 2019, the hotel achieved an occupancy rate of 76% and Average Daily Rate of $135 resulting in a $102 RevPAR. This compares to the company’s trailing 12-month RevPAR of $127 as of June 30, 2019.
“The Marriott Plaza San Antonio transaction demonstrates our financially calibrated approach to unlocking embedded value in our portfolio by selling an asset at a very attractive cap rate compared to our current market valuation,” said Douglas A. Kessler, Ashford Trust’s President and Chief Executive Officer. “With this successful transaction, we believe we accomplished three goals, namely reducing our debt, preserving cash, and demonstrating the value within our portfolio. We will continue to pursue these types of transactions that we believe will enhance returns for our shareholders.”