Ashford Hospitality Trust has completed the sale of the 124-room Hampton Inn & Suites in Gainesville, Florida for approximately $27m in cash ($218,000 per key) to Key International.
The acquisition price, including projected capex to be invested by Key, accounts for a trailing 12-month cap rate of 8.3% on net operating income.
On a trailing 12-month basis, the hotel achieved RevPAR of $130, with occupancy of 83% and average daily rate of $156.
The hotel had an existing debt balance of approximately $21m, and the company realised net proceeds from the divestment of approximately $5m after debt repayment and transaction costs.
Ashford Trust chairman and CEO Monty J Bennett said: "We continue to be pleased with the progress we are making with the sale of our non-core, select-service hotels.
"We believe this sale is another step in unlocking the value of this portfolio and we remain committed to maximizing value for our shareholders by focusing on upper-upscale, full-service hotels."
Ashford Hospitality Trust is a real estate investment trust (REIT) focused on investing opportunistically in the hospitality industry in upper upscale, full-service hotels.