The properties are in metro Atlanta, Jacksonville, FL and Mobile, AL. Noble Management Group, a wholly owned management affiliate of Noble Investment Group, will continue to operate the hotels under incentive-based management contracts, according to Monty J. Bennett, Ashford's president and CEO.
"The trailing 12-month cap rate of 9.6% on this portfolio is within our target range," Bennett says. The Texas REIT is paying an average $86,132 per unit. The acquisition increases Ashford's portfolio to 15 hotels containing 2,381 rooms.
The properties include the 86-room, six-year-old Hampton Inn in the northeast Atlanta suburb of Lawrenceville; the 119-room, four-year-old Hilton Garden Inn and the 102-suite, three-year-old SpringHill Suites, both in Jacksonville; and the 86-room, five-year-old Homewood Suites in Mobile.
Bennett says his company plans to do other deals with Noble. "This unique ability to offer a one-stop shop for the lodging industry has opened many doors for us and has created a significant amount of interest within the industry," he says. "Our investment strategy provides the flexibility to invest at all levels of the capital structure and across all hotel segments."
Noble owns and manages 21 hotels with 2,800 rooms. The company also operates 41 hotels with 6,044 rooms through Alliance Hospitality Management, a majority owned affiliate. Noble's development arm, Stormont Noble Development and its predecessors have developed $700 million in prime hospitality projects totaling 5,500 rooms and 300,000 sf of convention and meeting space.
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