BM Capital Management LLC of Richardson pocketed the deed to a townhouse-style hotel on 3.5 acres at 13636 Goldmark Dr. in a deal bundled by a CB Richard Ellis Inc. team, an Ashford contact tells GlobeSt.com. The 14-year-old hotel, with room rates upward of $60 per night, has sold for $130,000 less than its Dallas County assessment. The state of the flag could not be determined by press time.
"This asset was operating with negative cash flow so we will actually increase recurring EBITDA following the sale," Monty J. Bennett, Ashford's president and CEO, says in a press release issued this morning. The Telecom Corridor hotel was part of 4,094-room package in nine states bought for $250 million from the Fisher Brothers, Gordon Getty Trust and George Soros. For previous story, click here.
To aid with the disposition, Ashford has paid $18.2 million in securitized debt for six of the non-core properties, according to the release. The REIT took a one-time $3.8-million charge to pay off debt and related defeasance costs, but Ashford execs say the gain from the sales will exceed the fiscal hit when the dust settles on the disposition.
Occupancy and individual RevPAR aren't available for the just-sold hotel. However, the Dallas County market overall racked up a 2% gain in RevPAR in the past year to end 2004 at nearly $66.3 million for 46,321 rooms at properties with 40 or more doors, according to the latest hotel statistics from Guram Enterprises in Dallas.
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