Ashford Hospitality Trust has signed a definitive agreement to sell a five-hotel, 1,396-room portfolio of select-service hotels for $142m in cash to Noble Investment Group.

This portfolio comprises the 146-room Courtyard Edison in Edison, New Jersey; the 150-room Residence Inn Buckhead in Atlanta; and the 312-room Courtyard Lake Buena Vista, 388-room Fairfield Inn Lake Buena Vista and 400-room Springhill Suites Lake Buena Vista in Orlando.

The three Orlando properties are managed by Marriott and the other two properties are managed by Remington Lodging.

Purchase price, including projected capex to be invested by Noble, represents a trailing 12-month cap rate of 8% on net operating income.

On a trailing 12-month basis, the portfolio achieved RevPAR of $84, with occupancy of 79% and average daily rate of $106.

This portfolio has an existing debt balance of around $98m.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Ashford expects the net proceeds from the sale to be approximately $37m after debt repayment and transaction costs.

It intends to use the net proceeds from the sale for general corporate purposes including net debt reduction, stock buybacks, or the acquisition of full-service hotels in line with its refined investment strategy.

The transaction is scheduled to close in the second quarter.

Ashford Trust chairman and chief executive officer Monty J. Bennett said: "We are pleased to announce this sale as it provides a positive first step in our announced strategy of divesting of our non-core, select-service assets.

"We will continue to pursue the sale of these hotels with a focus on maximizing value for our shareholders."

A real estate investment trust (REIT), Ashford Hospitality Trust is focused on investing opportunistically in the hospitality industry in upper upscale, full-service hotels.