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Tuesday, 19 May 2015

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

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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.



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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
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Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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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

 

RCA CPPI

 

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CMBS 2.0 Spreads

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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

 

 

 

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