Ashford Hospitality Trust has sold the 315-room Courtyard Boston Downtown for $123.0 million, or $390,500 per key. Other terms and conditions were not disclosed. The sale is expected to be completed in January and is subject to normal closing conditions.
When adjusted for the company's anticipated capital expenditures, the sale price represents a 5.9 percent capitalization rate on net operating income for the trailing 12 months ended Sept. 30, or 14.3x hotel EBITDA for the same time period. Excluding the anticipated capital spend, the sale price represents a 6.9 percent capitalization rate on net operating income for the trailing 12 months ended Sept. 30, or 12.3x Hotel EBITDA for the same time period.
"We are pleased to announce the signed agreement to sell the Courtyard Boston Downtown at a very attractive cap rate," Stephen Zsigray, Ashford Trust's president and CEO, said in a statement. "This sale will not only deleverage our BAML Highland Pool loan, but will also result in significant capital expenditure savings. We continue to have several assets in the market at various stages of the sales process and are encouraged by the improved sentiment we are seeing in the transaction market."