DALLAS—Ashford Hospitality Trust, headquarteredhere, and Prudential Real Estate Investors havesigned an agreement for AHT to acquire the remaining 28.26% ofownership interest in the Highland Hospitalityportfolio. The REIT will pay a value-add fundmanaged by PREI $250.1 million in cash to consolidate its ownershipin the 28-property portfolio, which is valued at $1.735billion.

The purchase price AHT is paying for the remaining ownershipinterest equates to a forward 12-month cap rate of 7.4% and aforward EBITDA multiple of 11.6x, and a trailing 6.9% cap andEBITDA multiple of 12.5x. The deal is expected to close in thefirst quarter of 2015.

Included in the Highland Hospitality portfolio, which AHT andPREI have owned since 2011, are 19 full-servicehotels and nine select-service properties, with aconcentration in major brands such as Hilton, Marriott, Hyatt andStarwood. The two companies first partnered with a $70-millionmezzanine loan in the sixth tranche position on the portfolio in2008.