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ASHFORD HOSPITALITY TRUST ANNOUNCES AGREEMENT TO SELL THE COURTYARD BOSTON DOWNTOWN

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Ashford Hospitality Trust (NYSE: AHT) has announced a definitive agreement to sell the Courtyard Boston Downtown for $123.0 million ($390,500 per key). The 315-room hotel sale is expected to close in January 2025, subject to conditions.

When adjusted for anticipated capital expenditures, the sale represents a 5.9% capitalization rate on net operating income and 14.3x Hotel EBITDA for the trailing twelve months ended September 30, 2024. Without capital spend adjustments, these figures are 6.9% and 12.3x respectively.

The property generated $8.5 million in Hotel Net Operating Income and $10.0 million in Hotel EBITDA during this period, with a net loss of $1.8 million after accounting for interest expense and depreciation.

Ashford Hospitality Trust (NYSE: AHT) ha annunciato un accordo definitivo per vendere il Courtyard Boston Downtown per 123,0 milioni di dollari (390.500 dollari per chiave). La vendita dell'hotel con 315 stanze dovrebbe chiudersi a gennaio 2025, soggetta a condizioni.

Regolando per le spese in conto capitale previste, la vendita rappresenta un tasso di capitalizzazione del 5,9% sul reddito operativo netto e un EBITDA dell'hotel di 14,3 volte per i dodici mesi terminati il 30 settembre 2024. Senza aggiustamenti delle spese in conto capitale, queste cifre sono rispettivamente del 6,9% e 12,3 volte.

La proprietà ha generato 8,5 milioni di dollari di reddito operativo netto dell'hotel e 10,0 milioni di dollari di EBITDA dell'hotel durante questo periodo, con una perdita netta di 1,8 milioni di dollari dopo aver considerato le spese per interessi e l'ammortamento.

Ashford Hospitality Trust (NYSE: AHT) ha anunciado un acuerdo definitivo para vender el Courtyard Boston Downtown por 123,0 millones de dólares (390.500 dólares por habitación). Se espera que la venta del hotel de 315 habitaciones se cierre en enero de 2025, sujeto a condiciones.

Al ajustar por los gastos de capital previstos, la venta representa una tasa de capitalización del 5,9% sobre el ingreso operativo neto y 14,3 veces EBITDA del hotel para los últimos doce meses que finalizaron el 30 de septiembre de 2024. Sin ajustes de gasto de capital, estas cifras son 6,9% y 12,3 veces respectivamente.

La propiedad generó 8,5 millones de dólares en Ingreso Operativo Neto del Hotel y 10,0 millones de dólares en EBITDA del Hotel durante este período, con una pérdida neta de 1,8 millones de dólares después de contabilizar los gastos por intereses y la depreciación.

Ashford Hospitality Trust (NYSE: AHT)Courtyard Boston Downtown1억 2,300만 달러에 판매하기로 확정 계약을 발표했습니다 (객실당 39만 500달러). 315개 객실의 호텔 판매는 2025년 1월에 마감될 것으로 예상되며, 조건이 적용됩니다.

예상되는 자본 지출에 조정했을 때, 이 판매는 순 운영 소득에 대한 5.9% 자본화 이율14.3배 호텔 EBITDA를 나타냅니다, 2024년 9월 30일 종료된 지난 12개월 기준입니다. 자본 지출 조정이 없으면 이 수치는 각각 6.9%와 12.3배입니다.

이 부동산은 이 기간 동안 호텔 순 운영 소득으로 850만 달러와 호텔 EBITDA로 1,000만 달러를 기록했으며, 이자 비용과 감가상각을 고려한 후 순손실은 180만 달러입니다.

Ashford Hospitality Trust (NYSE: AHT) a annoncé un accord définitif pour vendre le Courtyard Boston Downtown pour 123,0 millions de dollars (390 500 dollars par clé). La vente de l'hôtel de 315 chambres devrait se clôturer en janvier 2025, sous réserve de conditions.

Lorsqu'on ajuste les dépenses d'investissement anticipées, la vente représente un taux de capitalisation de 5,9% sur le revenu d'exploitation net et un EBITDA hôtelier de 14,3 fois pour les douze mois précédents se terminant le 30 septembre 2024. Sans ajustements de dépenses d'investissement, ces chiffres sont respectivement de 6,9% et 12,3 fois.

La propriété a généré 8,5 millions de dollars de revenu d'exploitation net de l'hôtel et 10,0 millions de dollars d'EBITDA hôtelier pendant cette période, avec une perte nette de 1,8 million de dollars après prise en compte des charges d'intérêts et des amortissements.

Ashford Hospitality Trust (NYSE: AHT) hat eine endgültige Vereinbarung zur Veräußrung des Courtyard Boston Downtown für 123,0 Millionen Dollar (390.500 Dollar pro Zimmer) angekündigt. Der Verkauf des 315-Zimmer-Hotels wird voraussichtlich im Januar 2025 abgeschlossen, vorbehaltlich bestimmter Bedingungen.

Bei Anpassung an die erwarteten Investitionen stellt der Verkauf eine Kapitalisierungsrate von 5,9% des Netto-Betriebsergebnisses und 14,3-faches Hotel-EBITDA für die letzten zwölf Monate bis zum 30. September 2024 dar. Ohne Anpassungen an den Investitionen betragen diese Zahlen 6,9% und 12,3-fach.

Das Grundstück erzielte in diesem Zeitraum 8,5 Millionen Dollar an Netto-Betriebsergebnis des Hotels und 10,0 Millionen Dollar an Hotel-EBITDA, mit einem Nettoverlust von 1,8 Millionen Dollar nach Berücksichtigung von Zinsaufwendungen und Abschreibungen.

Positive
  • Sale price of $123.0 million represents a favorable 5.9% cap rate
  • Transaction will deleverage BAML Highland Pool loan
  • Will result in significant capital expenditure savings
Negative
  • Property reported net loss of $1.8 million for trailing twelve months
  • Sale is subject to closing conditions and may not complete as planned

Insights

The sale of the Courtyard Boston Downtown represents a significant strategic move for Ashford Hospitality Trust. At $123 million ($390,500 per key), the transaction appears favorable with a 5.9% cap rate (adjusted for CapEx) and 14.3x Hotel EBITDA multiple. The pricing metrics are particularly strong considering the property's modest net income performance of -$1.8 million over the trailing twelve months.

The deal will help deleverage the BAML Highland Pool loan, improving the company's balance sheet. With a market cap of about $51 million, this sale represents a transaction worth more than 2.4x the company's current market value, highlighting its significance to AHT's portfolio restructuring efforts. The timing aligns with improved market sentiment in hotel transactions, potentially setting a positive precedent for future asset dispositions in their pipeline.

The $390,500 per key valuation for this downtown Boston property reflects strong market positioning despite operational challenges. The 315-room hotel's sale metrics are noteworthy given its location in a prime urban market. The spread between the 5.9% adjusted cap rate and 6.9% unadjusted cap rate indicates substantial anticipated capital expenditure requirements, which the buyer will need to address.

The transaction demonstrates continued investor appetite for well-located urban hotels in major markets, particularly as the hotel sector recovery continues. The multiple sales processes mentioned by management suggest a broader portfolio optimization strategy, which could lead to improved operational efficiency and financial stability for AHT.

DALLAS, Dec. 4, 2024 /PRNewswire/ -- Ashford Hospitality Trust, Inc. (NYSE: AHT) ("Ashford Trust" or the "Company") announced today that it has signed a definitive agreement to sell the 315-room Courtyard Boston Downtown located in Boston, Massachusetts for $123.0 million ($390,500 per key). The sale is expected to be completed in January 2025 and is subject to normal closing conditions. The Company provides no assurances that the sale will be completed on these terms or at all.

When adjusted for the Company's anticipated capital expenditures, the sale price represents a 5.9% capitalization rate on net operating income for the trailing twelve months ended September 30, 2024, or 14.3x Hotel EBITDA for the same time period. Excluding the anticipated capital spend, the sale price represents a 6.9% capitalization rate on net operating income for the trailing twelve months ended September 30, 2024, or 12.3x Hotel EBITDA for the same time period.

"We are pleased to announce the signed agreement to sell the Courtyard Boston Downtown at a very attractive cap rate," commented Stephen Zsigray, Ashford Trust's President and Chief Executive Officer. "This sale will not only deleverage our BAML Highland Pool loan, but will also result in significant capital expenditure savings. We continue to have several assets in the market at various stages of the sales process and are encouraged by the improved sentiment we are seeing in the transaction market."

Ashford Hospitality Trust is a real estate investment trust (REIT) focused on investing predominantly in upper upscale, full-service hotels.


Ashford Hospitality Trust, Inc.

Courtyard Boston Downtown

Reconciliation of Hotel Net Income to Hotel EBITDA and Hotel Net Operating Income

(Unaudited, in millions)






12 Months Ended



September 30,
2024

Net income (loss)


$                     (1.8)

Interest expense


8.7

Depreciation and amortization


3.1

Hotel EBITDA


$                    10.0

Capital reserve


(1.5)

Hotel Net Operating Income


$                      8.5

_________

All information in this table is based upon unaudited operating financial data for the twelve month period ended September 30, 2024. This data has not been audited or reviewed by the Company's independent registered public accounting firm. The financial information presented could change.

EBITDA is defined as net income (loss), computed in accordance with generally accepted accounting principles, before interest, taxes, depreciation and amortization. Hotel EBITDA multiple is defined as the purchase price divided by the trailing 12 month EBITDA. A capitalization rate is determined by dividing the property's annual net operating income by the purchase price. Net operating income is the property's hotel EBITDA minus a capital expense reserve of 5% of gross revenues.

Forward-Looking Statements

Certain statements and assumptions in this press release contain or are based upon "forward-looking" information and are being made pursuant to the safe harbor provisions of the federal securities regulations. Forward-looking statements are generally identifiable by use of forward-looking terminology such as "may," "will," "should," "potential," "intend," "expect," "anticipate," "estimate," "approximately," "believe," "could," "project," "predict," or other similar words or expressions. Additionally, statements regarding the following subjects are forward-looking by their nature: our business and investment strategy; anticipated or expected purchases, sales or dispositions of assets; our projected operating results; completion of any pending transactions; our plan to pay off strategic financing; our ability to restructure existing property-level indebtedness; our ability to secure additional financing to enable us to operate our business; our understanding of our competition; projected capital expenditures; the impact of technology on our operations and business; the risk that the notice and noncompliance with NYSE continued listing standards may impact the Company's results of operations, business operations and reputation and the trading prices and volatility of the Company's common stock; and the Company's ability to regain compliance with the NYSE continued listing standards. Such forward-looking statements are based on our beliefs, assumptions, and expectations of our future performance taking into account all information currently known to us. These beliefs, assumptions, and expectations can change as a result of many potential events or factors, not all of which are known to us. If a change occurs, our business, financial condition, liquidity, results of operations, plans, and other objectives may vary materially from those expressed in our forward-looking statements. You should carefully consider this risk when you make an investment decision concerning our securities. These and other risk factors are more fully discussed in the Company's filings with the SEC.

The forward-looking statements included in this press release are only made as of the date of this press release. Investors should not place undue reliance on these forward-looking statements. We will not publicly update or revise any forward-looking statements, whether as a result of new information, future events or circumstances, changes in expectations or otherwise except to the extent required by law.

Cision View original content:https://www.prnewswire.com/news-releases/ashford-hospitality-trust-announces-agreement-to-sell-the-courtyard-boston-downtown-302322450.html

SOURCE Ashford Hospitality Trust, Inc.

FAQ

What is the sale price of Courtyard Boston Downtown by AHT?

Ashford Hospitality Trust (AHT) has agreed to sell the Courtyard Boston Downtown for $123.0 million, or $390,500 per key.

When is AHT expected to complete the Courtyard Boston Downtown sale?

The sale is expected to be completed in January 2025, subject to normal closing conditions.

What is the capitalization rate for AHT's Courtyard Boston Downtown sale?

The sale represents a 5.9% capitalization rate when adjusted for anticipated capital expenditures, or 6.9% excluding capital spend adjustments.

What was the Hotel EBITDA multiple for AHT's Courtyard Boston Downtown sale?

The sale represents 14.3x Hotel EBITDA when adjusted for capital expenditures, or 12.3x excluding capital spend adjustments.

Ashford Hospitality Trust, Inc.

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