Daily market intelligence on mortgages, equity raising, investment sales, and CMBS.

Tuesday, 19 May 2015

Ashford to Pay $224Mln for 9 Hotels with 1,251 Rooms

Written by 
Rate this item
(0 votes)

Ashford Hospitality Trust Inc. has agreed to pay $224 million, or $179,056/room, for a portfolio of nine hotels with 1,251 rooms in seven states.

The Dallas REIT is buying the portfolio from Rockbridge Capital Group, a Columbus, Ohio, investment manager that has sponsored at least six funds that pursue hotel assets.

The properties Ashford is buying are seven years old on average. The price it's paying results in a capitalization rate of 7.5 percent, based on projected financials, and 7.2 percent based on the most recent 12-month period.

During that time, the portfolio operated at a 76 percent occupancy rate and generated an average daily room rate of $131, for revenue per available room of $100.

Ashford, which will turn management of the properties over to its Remington Lodging affiliate, said it would fund its proposed purchase with some $179 million of mortgage financing.

The portfolio is comprised of the:

- 210-room Courtyard by Marriott at 270 Concord Road in Billerica, Mass., near Boston;

- 128-room Courtyard at 820 East 2nd St. in Wichita, Kan., which is housed in what was developed in 1930 as a warehouse;

- 145-room Hampton Inn & Suites at 4150 Stelzer Road in Columbus, Ohio;

- 103-room Hampton Inn at 475 Johnson Road in the Pittsburgh suburb of Washington, Pa.;

- 113-room Hampton Inn at 301 West Waterfront Drive in Homestead, Pa., also a Pittsburgh suburb;

- 106-room Hampton Inn at 601 North 44th St. near Phoenix Sky Harbor Airport;

- 148-room Homewood Suites at 3000 Horizon Vue Drive in Canonsburg, Pa., near Pittsburgh;

- 101-room Residence Inn at 800 South Murphy St. in Stillwater, Okla., and the

- 197-room Sheraton Inn Ann Arbor at 3200 Boardwalk St. in Ann Arbor, Mich.

Monty J. Bennett, chairman and chief executive of Ashford, said the portfolio is comprised of "well-placed, well-conditioned assets with strong and diverse brands that will expand the geographic footprint of our platform."

Most of the properties in the portfolio were either developed or redeveloped by RockBridge, a 23-year-old investment manager that was formed by what then was Banc One Capital Markets and was spun off in 1999 when Banc One acquired First Chicago.

Comments? E-mail Orest Mandzy, or call him at (267) 247-0112, Ext. 211.


“The Weekly”

“The Weekly” is Commercial Real Estate Direct’s PDF newsletter, sent to subscribers every Friday morning. With over 100 news stories published on Commercial Real Estate Direct each week, “The Weekly” features the top stories in commercial real estate that industry participants need to know first. “The Weekly” also contains:

  • Breaking mortgage, CMBS, and REIT news

  • Quarterly league tables with rankings of B-piece buyers, book runners, and lenders

  • Industry moves and changes in “The Insider“

Additional Info

  • Syndicate to Realpoint: No
  • Sector: Hotel & Resort
  • Subject: Property Acquisitions (ACQ)
  • Company: Associated Estates Realty Corp.
  • Valuation: More than $150 million
  • Private: No
Read 1253 times

Data Digest







Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44




cppichart FP



CMBS 2.0 Spreads


Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41





  • Challenging Retail Environment Weights on REITs
    Mixed economic news is weighing on retail markets, pushing REIT performance down in 2015. This week, the National Retail Federation announced that back-to-school spending is expected to be down 9.3% in 2015. This news came on the heels of a report from the Commerce Department stating that retail sales declined 0.3%...
  • US REITs Feeling Effects from Turmoil in Greece and China
    International economic forces have taken center stage this week, affecting both US stock markets and REITs. The crash in the Chinese stock market and ongoing concerns about the future of Greece in the eurozone drove markets down during the first half of the week. REITs fared better than the overall market...

  • What Does Increased Construction Mean for Apartment REITs?
    REITs so far this year have raised $17.1 billion of capital through the sale of unsecured notes, bringing the total raised over the past two and a half years to just more than $75 billion. That’s more than they raised during the previous five years. The massive volume shouldn’t be a surprise as it comes while the yield from 10-year Treasury bonds, the benchmark...
shouldn’t be a surprise as it comes while the yield from 10-year Treasury bonds, the benchmark against which most REIT’s price their bonds