Dallas-based Ashford Hospitality Trust Inc. has contracted to pay $120,238 per unit for the property which Roger Kennedy Construction Co. of Orlando completed in 2001 at a hard construction cost of $12 million. or $56,872 per unit, according to the general contractor at the time of construction. The sellers are Tarsada Hotels of Orange County, CA and JHM Hotels of Greenville, SC.
Ashford president and CEO Monty J. Bennett says the purchase price equates to a "9.7 x trailing 12-month Ebitda multiple." He says Ashford plans to invest an additional $250,000 of capital improvements at the property which sits at Palm Parkway and State Road 535, a vibrant commercial and tourism hot spot in south Orange County.
The property is "consistent with Ashford's strategy to acquire strong-branded hotels at an attractive return with upside, in this case via increased sales efforts, further penetration of its base business, and further recovery of the Orlando market," Bennett says.
The addition of Marriott Residence Inn will increase Ashford's portfolio to 18 assets "that collectively represent a strategically diversified high-yielding asset base," he says.
The inn has 3,400 sf of meeting space, an outdoor pool, fitness room and tennis court. Dallas-based Remington Lodging & Hospitality LP will manage the property.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
