Ashford Hospitality announces sale of SpringHill Suites Gaithersburg, MD
Ashford Hospitality Trust announced that it has closed on the sale of the 162-room SpringHill Suites Gaithersburg in Gaithersburg, MD for approximately $13.2M, or $81,000 per key. The purchase price for the SpringHill Suites Gaithersburg represents a trailing 12-month cap rate of 7.1% on net operating income. On a trailing 12-month basis, the hotel achieved RevPAR of $72, with occupancy of 66% and Average Daily Rate of $108. The consideration received from the sale was a combination of cash and approximately 2M Class B common units of the Company's operating partnership. The Class B operating partnership units were redeemed at a price of $5.74 per unit, or a price of $6.05 per common share after taking into account the current conversion factor. The Company also paid off approximately $10.4M of debt associated with the property. With this sale, the Company has now closed on or announced $218M of sales of its non-core select-service hotels.