Dallas-based Ashford Hospitality sells Hilton Dallas Lincoln Centre for $72 million

by PegNews wire

DALLAS — Ashford Hospitality Trust, Inc. today announced it has closed on the sale of the Hilton Dallas Lincoln Centre in Dallas for $72.25 million in cash to AP VEF Hilton Dallas Owner’s LLC, an affiliate of Apollo Real Estate Advisors, L.P. The sales prices equates to approximately $145,000 per key and, without taking into account future capital expenditure requirements, a 8.3% trailing 12-month NOI cap rate and a 9.8x trailing 12-month EBITDA multiple.

To date in 2008, the Company has completed $289 million in asset sales and announced sales contracts in place on an additional $20.9 million in assets.

Monty Bennett, President and CEO of Ashford, noted, "The Hilton Lincoln Dallas Centre transaction reduces our concentration of hotels in the Dallas/Ft. Worth area and eliminates the requirement to spend significant future capex on a non-strategic asset we acquired previously in a portfolio. The pace and pricing of asset sales continues to meet our expectations, despite challenging market conditions. Proceeds from the sale will be used for debt reduction and accretive capital recycling. Our team’s success in this market is a testament to their creativity and the attractiveness of our assets.”

Ashford Hospitality Trust is a self-administered real estate investment trust focused on investing in the hospitality industry across all segments and at all levels of the capital structure, including direct hotel investments, first mortgages, mezzanine loans and sale-leaseback transactions.

Source: Ashford Hospitality