Finance & DevelopmentFinanceAshford Hospitality to Acquire Memphis Marriott East

Ashford Hospitality to Acquire Memphis Marriott East

DALLAS—Ashford Hospitality Trust, Inc. announced today that it has signed a definitive agreement to acquire the 232-room Memphis Marriott East hotel for total consideration of $43.5 million in cash ($187,500 per key). The acquisition is expected to close within the next 30 days. Upon closing, the property will be managed by Remington Lodging.

The purchase price of $43.5 million represents a trailing 12-month cap rate of 7.6% on net operating income and a trailing 11.6x EBITDA multiple. On a forward 12-month basis, the purchase price represents an estimated cap rate of 8.6% on net operating income and an estimated 10.3x forward EBITDA multiple.

“This transaction was particularly attractive given the hotel’s prime location and market attributes, which include no new competitive supply projected for the submarket and stable corporate demand generators,” said Monty J. Bennett, Ashford Trust’s chairman and chief executive officer. “Additionally, with the hotel’s recent conversion to a full service Marriott, it has virtually no capex needs. After the installation of our affiliated property manager, Remington Lodging, we expect to achieve continued solid increases in RevPAR penetration as the property stabilizes.”

Located in the heart of East Memphis, the Memphis Marriott East hotel is minutes away from upscale restaurants and shopping. The property has 232 well-equipped guestrooms and 6 meeting rooms with approximately 8,960 square feet of meeting space. Hotel amenities include an indoor pool and whirlpool, 24-hour fitness center, Table — A Delta Grill restaurant, and complimentary on-site parking.

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