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Ashford Trust Reveals Sale of Springhill Suites Jacksonville

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Dallas-based Ashford Hospitality Trust has revealed the sale of the 102-room SpringHill Suites Jacksonville in Jacksonville, Florida for $11.2 million. The sales price, inclusive of buyer’s estimated anticipated capex of $2.5 million, represents a trailing twelve-month cap rate of 5.9% on net operating income and a 14.3x Hotel EBITDA multiple as of October 31, 2019.

The hotel was unencumbered by debt, and the net proceeds of approximately $10.8 million from the sale will be used for general corporate purposes.  Based upon the 12-month period ended October 31, 2019, the hotel achieved an occupancy rate of 81% and Average Daily Rate of $118 resulting in a $95 RevPAR.  This compares to the Company’s trailing 12-month RevPAR of $128 as of October 31, 2019.  A reconciliation of non-GAAP financial measures is included in the financial table below.

“This transaction is another successful example of our focus on 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. “We are pleased with the financial results of our ongoing asset sales which have sought to enhance our balance sheet and provide additional liquidity for other potential future opportunities.”

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