DALLAS-After five months of pruning its $2.4-billion buy, Ashford Hospitality Trust Inc. is reporting a $35.2-million net gain from sales to date. As part of the update, the local REIT says it's holding firm contracts to sell three Residence Inns for $68.5 million.
Ashford's most recent sale was the 205-key Hilton Birmingham Perimeter Park at 8 Perimeter Park S. in Birmingham, AL to Noble Investment Group of Atlanta, one of three properties sold in recent months for a combined $35 million, according to the REIT. In the third quarter, Ashford sold the 72-room Hampton Inn at 750 Flint Ridge Rd. in Horse Cave, KY and 137-key Doubletree Guest Suites at 300 Prestige Place in Dayton/Miamisburg, OH.
Since the disposition began, Ashford has sold 17 of the 51 hotels that it bought from Boca Raton, FL-based CNL Hotels & Resorts Inc., collecting $157.3 million thus far from buyers. Still to come will be hand-offs of the 248-suite Residence Inn at 3701 Torrance Blvd., in Torrance, CA, 128-suite Residence Inn Atlanta Perimeter West at 6096 Barfield Rd. in Atlanta and 96-suite Residence Inn at 2975 Main St. in Kansas City, MO. Details about the upcoming closings or buyers weren't unavailable by press time, but information most likely will surface during Ashford's Nov. 1 earnings call.
The Ashford team broke its disposition list into two phases. The first phase, expected to gross $170 million, has one office building and one hotel left to sell out of an 18-asset stack. The Atlanta Hilton is the first to sell from the second wave. Sales to date have generated $79,000 per key and 7.3% trailing, 12-month NOI cap rate. In the release, Ashford's president and CEO Monty J. Bennett says the REIT's goal is aimed at concentrating “the portfolio in strong, growing metropolitan and coastal markets.”
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