Ashford Hospitality Trust Buys Old Town Hotel For $111M
The REIT used a new funding program that its asset manager Ashford Inc. launched to make acquisitions easier and more profitable.
WASHINGTON, DC–Ashford Hospitality Trust has signed an agreement to acquire the Hilton Alexandria Old Town for $111 million.
The 252-key hotel, which has 12,967-square feet of meeting space, opened in 2000 and has had $9.6 million in renovations since 2013. It has a trailing 12-month occupancy, ADR and RevPAR of 85%, $190 and $161, respectively.
The acquisition financing for the hotel consists of a five-year $73.5 million mortgage loan with an interest rate of Libor plus 2.45%.
This deal represents a milestone for Ashford Trust and its asset manager Ashford Inc., as it is the first property to be partially financed by a new funding program that Ashford Inc. has launched.
Briefly, the company is making $50 million available to Ashford Hospitality Trust that can support up to $500 million in acquisitions. Under the program Ashford Inc. will provide 10% of a hotel’s purchase price to Ashford Trust free and clear without any rights to the property. In the case of the Hilton Alexandria Old Town, Ashford Inc. provided $11.1 million.