Ashford Hospitality Trust Inc. has signed a definitive agreement to sell the 315-room Courtyard Boston Downtown for $123 million ($390,500 per key). The sale is expected to be completed in January 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 12 months ended Sept. 30, 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 12 months ended Sept. 30, 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,” said Stephen Zsigray, Ashford Trust’s president/CEO. “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.”
