Ashford Hospitality Trust Inc. has completed the sale of the Hilton Houston NASA Clear Lake in Houston for $27 million and the sale of the Residence Inn Evansville East in Evansville, IN, for $6 million.
The sale of the Houston property was announced in May.
When adjusted for the company’s anticipated capital expenditures, the combined sale price represents a 1.3% capitalization rate on net operating income or a multiple of 45.3 times hotel EBITDA for the 12 months ended July 31. Excluding the anticipated capital spend, the combined sale price represents a 2% capitalization rate on net operating income or a multiple of 28.1 times hotel EBITDA for the 12 months ended July 31.
“These transactions reflect our continued focus on creating shareholder value via multiple avenues,” said Stephen Zsigray, president/CEO. “In addition to our GRO AHT effort aimed at driving increased performance, selling these two non-core assets has deleveraged the platform, improved the coverage metrics of our recently extended MS 17 loan pool and increased portfolio cash flow after debt service. We anticipate pursuing similar opportunistic sales in the coming months.”
