GAITHERSBURG, MD–Ashford Hospitality Trust has closed on the stock-and-cash sale of the 162-room SpringHill Suites Gaithersburg for approximately $13.2 million or $81,000 per key — a purchase price that represents a trailing 12-month cap rate of 7.1% on net operating income. Ashford paid off $10.4 million of debt associated with the property.

Including this sale, the company has now closed on or announced $218 million of sales of its non-core select-service hotels.

Ashford signaled in its last earnings call held in May that it would not be pursuing additional spinoffs (Ashford Hospitality Trust spun off Ashford Prime about two years ago). Rather, its strategy would be to continue to divest non-core select service hotels.

SpringHill Suites Gaithersburg sale checked off that box for Ashford Trust as well as gave the REIT the opportunity for a buy back.

As part of the purchase price, Ashford received approximately two million Class B common units of its operating partnership redeemed at $5.74 per unit.

“This was a unique opportunity to not only sell an asset at an attractive valuation but with a deal structure that allowed us to also buy back units in our operating partnership at an attractive value,” said Ashford Trust Chairman and CEO Monty Bennett in a prepared statement.

Including this sale, the company has now closed on or announced $218 million of sales of its non-core select-service hotels.

SpringHill Suites Gaithersburg sale checked off that box for Ashford Trust as well as gave the REIT the opportunity for a buy back.

As part of the purchase price, Ashford received approximately two million Class B common units of its operating partnership redeemed at $5.74 per unit.

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