The Texas REIT paid Huron Jacksonville LP $6.3 million in cash; about 106,675 operating partnership units valued at nearly $1.1 million, or $10.08 per unit; and the assumption of about $15.7 million in debt. Ashford president and CEO Monty J. Bennett says the debt load equated to a 10.1x trailing 12-month EBITDA multiple.
"After a very busy first quarter of direct hotel and mezzanine investments, we are pleased to begin the second quarter with the closing of the Sea Turtle acquisition," Bennett says. "Coupled with the expected closing of the SpringHill Suites-BWI Airport and the Sheraton Bucks County acquisitions later this quarter, this transaction expands our current portfolio to 19 hotels totaling 3,104 rooms."
In acquiring the 32-year-old, 193-room oceanfront Sea Turtle Inn, Ashford gains entry to one of the most desirable resort markets in the state. The hotel is 14 miles east of Downtown Jacksonville and Interstate 95.
"The unique and appealing characteristics of Sea Turtle Inn and the opportunity to increase cash flow in the first year through enhanced cost controls are an added bonus to the diversification it provides to our portfolio of branded full-service and limited-service hotels," Bennett says.
The property generated trailing 12-month gross revenue of about $9.2 million. The assumed first mortgage carries an interest rate of 7.25%, based on a 25-year amortization schedule and matures in December 2005.
Located on 3.3 acres of beachfront in Atlantic Beach, FL, the Sea Turtle Inn has about 8,500 sf of meeting space; an outdoor pool; and banquet-restaurant facilities. Built in 1972, the property underwent a recent $9-million total renovation.
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