Ashford paid an average $70,849 per room for the Hilton and Marriott-branded assets which have combined annual gross revenue of approximately $8 million. "These four properties are accretive additions to our growing portfolio," says Monty J. Bennett, president and CEO of the Dallas-based hotel REIT.

The properties are the Hampton Inn-Mall of Georgia and the SpringHill Suites by Marriott-Mall of Georgia in suburban Buford, GA; and the SpringHill Suites by Marriott and the Fairfield Inn & Suites in nearby Kennesaw, GA. Bennett says Day will continue to operate the four properties under incentive-based, three-year management agreements.

"The combination of great brands, strong RevPAR growth in these two sub-markets and an experienced select service operator should be a winning formula for us," Bennett says in a prepared statement.

He says the purchase price equates to a 9.5x trailing 12-month EBITDA multiple and an EBITDA yield of 10.5%. The trailing 12-month net operating income capitalization rate is 9.4%.

The acquisition includes a contingent component to be paid, if earned, by April 30, 2005 at the latest. Bennett says the contingent part of the purchase price is "based on 25% of the difference between the value of the properties derived by dividing the trailing 12-month net operating income for the properties as of Dec. 31, 2004 by a net operating income capitalization rate of 9.4%, less the stated purchase price of $25.86 million."