Hotels / Motels / Cruise Lines
Ashford Hospitality Trust Inc Completes Acquisition Of Pier House Resort And Spa
Ashford Hospitality Trust Inc announced that it has completed the previously-announced acquisition of the 142-room Pier House Resort and Caribbean Spa in Key West, Florida, for total consideration of $90 million in cash ($634,000 per key). Ashford funded the entire purchase price with cash on hand. At the end of the first quarter, Ashford had total cash, cash equivalents, and marketable securities of $234 million and nothing drawn on its $165 million corporate credit facility. The Company is currently in the market evaluating property level debt financing for the acquisition.
Ashford Hospitality Trust Inc Announces Acquisition Of Pier House Resort and Spa For $90 Million
Ashford Hospitality Trust Inc announced that it has signed a definitive agreement to acquire the 142-room Pier House Resort and Caribbean Spa in Key West, Florida, for total consideration of $90 million in cash ($634,000 per key). Ashford intends to fund the entire purchase price with cash on hand. The acquisition is expected to close within the next 15 days. The purchase price of $90 million represents a trailing 12-month cap rate of 6.2% on net operating income and an EBITDA yield of 7.0%. On a forward 12-month basis, the purchase price represents a cap rate of 7.6% on net operating income and an EBITDA yield of 8.5%, which equates to an 11.8x forward EBITDA multiple. In 2012, the hotel achieved RevPAR of $275, with occupancy of 83% and an Average Daily Rate of $333.
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