RobertDouglas has advised Ashford Hospitality Trust Inc. on the sale of the 144-room Residence Inn Salt Lake City Cottonwood to the PEG Companies for $19.2 million.
The hotel is located in Salt Lake City’s Cottonwood Heights submarket with accessibility to the nearby canyons and four Utah ski resorts. The property includes large suites with full kitchens and facilities including an outdoor pool, sports court, fitness center and meeting space.
When adjusted for the anticipated capital expenditures, the sale price represented a 4.6% capitalization rate on 2023 net operating income, or 18.2x 2023 hotel EBITDA. Excluding the anticipated capital spend, the sale price represented a 6% capitalization rate on 2023 net operating income, or 14.0x 2023 hotel EBITDA.
“There was a high level of interest for this premium-branded extended-stay property from a diverse pool of buyers who saw the strategic value and understood the long-term potential for the hotel,” said Patrick Tan, SVP, RobertDouglas.
