Atlanta has witnessed a strong uptick in revenue per available hotel room in recent years. That, in turn, is driving an increase in new development, CBRE reports, even as opportunistic investors like Ashford find their place in the market. Hotel construction is concentrated in specific submarkets, such as Interstate 85 North, Chamblee, Central Perimeter, Midtown and Interstate 85 South near the airport. All this is good news for Atlanta's economy.

Hotel developments are economic drivers, creating job opportunities for the local community and bolstering revitalization projects that contribute to economic growth. For example, projects like the Embassy Suites by Hilton Charlotte Uptown serve as a testament to how hotel developments in the Southeast, and especially infill projects like this one, continue the momentum of re-emerging communities while helping create dynamic live-work-play environments. We are also seeing this in the rise of “surban” areas, or areas containing attributes of both urban and suburban lifestyles.

ATLANTA—Ashford Hospitality Trust, a REIT focused on opportunistic investments in upscale, full-service hotels, sold the 495-room Crowne Plaza Ravinia in Atlanta. The sale price is $88.7 million, or $179,000 per key.

The price represents a trailing 12-month cap rate of 5.6% on net operating income and a trailing 15.3x EBITDA multiple. Based upon the prior 12-month period, the Crowne Plaza achieved RevPAR of $84 with occupancy of 71% and Average Daily Rate of $119.

“The Crowne Plaza Ravinia transaction demonstrates our value-added approach given this was an opportunity for us to sell an asset at a very attractive cap rate,” says Douglas A. Kessler, Ashford Trust's president and CEO. “With a RevPAR that is well below our portfolio average, the sale should improve our overall RevPAR while also freeing up capital that can potentially be recycled into upper upscale, full-service assets or for other general corporate purposes. We will continue to pursue strategies that we believe will enhance returns for our shareholders.”

Crowne Plaza Ravinia had an existing allocated debt balance of approximately $65.6 million that was paid off along with an additional $13.1 million of debt pay down used to release the asset from the loan pool. After debt payoff and transaction costs, the net proceeds were approximately $9 million.

Atlanta has witnessed a strong uptick in revenue per available hotel room in recent years. That, in turn, is driving an increase in new development, CBRE reports, even as opportunistic investors like Ashford find their place in the market. Hotel construction is concentrated in specific submarkets, such as Interstate 85 North, Chamblee, Central Perimeter, Midtown and Interstate 85 South near the airport. All this is good news for Atlanta's economy.

Hotel developments are economic drivers, creating job opportunities for the local community and bolstering revitalization projects that contribute to economic growth. For example, projects like the Embassy Suites by Hilton Charlotte Uptown serve as a testament to how hotel developments in the Southeast, and especially infill projects like this one, continue the momentum of re-emerging communities while helping create dynamic live-work-play environments. We are also seeing this in the rise of “surban” areas, or areas containing attributes of both urban and suburban lifestyles.