Home Featured Ashford Trust Announces Sale of Tampa Hotel for $24M

Ashford Trust Announces Sale of Tampa Hotel for $24M

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Dallas-based Ashford Hospitality Trust Inc. recently completed the sale of the 109-room Residence Inn Tampa Downtown in Tampa, FL for $24 million ($220,000 per key). The sales price represents a trailing 12-month cap rate of 7.6% on net operating income and an 11.8x Hotel EBITDA multiple as of March 31, 2018.

The hotel had an existing allocated debt balance of approximately $19.5 million that was paid off at closing along with an additional $2.9 million of debt pay down associated with the release of the hotel from the loan pool.

According to a prepared statement, based upon the prior 12-month period ended March 31, 2018, the hotel achieved RevPAR of $122 with occupancy of 76% and Average Daily Rate of $161.

“The Residence Inn Tampa transaction demonstrates our value-added approach given pricing was at an attractive cap rate compared to our current market valuation,” said Douglas A. Kessler, Ashford Trust’s President and Chief Executive Officer. “This sale is in line with our financially calibrated approach 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.