Ashford Hospitality Trust, Inc. (AHT - Free Report) announced that it has sold Residence Inn Tampa Downtown in Tampa, FL. This 109-room property was sold for $24 million or $220,000 per key.
As of Mar 31, 2018, the hotel’s EBITDA multiple of 11.8x and a 12-month trailing cap rate of 7.6% on its net operating income was represented in the sales price.
Further, revenues per available room achieved by the hotel for the 12-month period (ended Mar 31, 2018) was $122, with occupancy of 76%. The average daily rate was $161.
The Residence Inn Tampa’s standing-debt balance of $19.5 million was settled prior to closing. Additionally, the debt pay-down amount of $2.9 million, relating to the release of the hotel from the loan pool, was paid off too.
Notably, the company has opted to be a net seller and has not acquired any hotels since 2015. In fact, the company has sold about $350 million of hotels over this period. During first-quarter 2018, Ashford Hospitality sold SpringHill Suites Glen Allen for $10.9 million and towards the end of the quarter, it also disposed SpringHill Suites Centreville for $7.5 million.
The President and chief executive officer of Ashford Trust, Douglas A. Kessler informed, "The Residence Inn Tampa transaction demonstrates our value-added approach given pricing was at an attractive cap rate compared with our current market valuation." He also feels that the above-mentioned sale is in sync with the company’s efforts to improve returns for shareholders, using their strategies of investing opportunistically in upper-upscale, full-service hotels in the hospitality industry.
Encouragingly, in the past year, this Zacks Rank #3 (Hold) stock has outperformed the industry. While the company’s shares have gained 26.2%, the industry has recorded 2.7% rise.
Stocks Worth a Look
A few better-ranked stocks from the same space include Arbor Realty Trust (ABR - Free Report) , Prologis, Inc. (PLD - Free Report) and Host Hotels & Resorts, Inc. (HST - Free Report) . All three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Arbor Realty Trust’s Zacks Consensus Estimate for 2018 FFO per share rose 14.4% to $1.03 over the past month. Its shares have returned 15.8% in the past three months.
Prologis’ FFO per share estimates for the current year inched up 1.7% to $2.96 in a month’s time. Its shares have gained 6% over the past three months.
Over the past month, Host Hotels & Resorts’ FFO per share estimates for 2018 witnessed rise of 3% and moved to $1.71. The stock has gained 6.1% in the past three months.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Ashford Hospitality Trust, Inc. (AHT - Free Report) announced that it has sold Residence Inn Tampa Downtown in Tampa, FL. This 109-room property was sold for $24 million or $220,000 per key.
As of Mar 31, 2018, the hotel’s EBITDA multiple of 11.8x and a 12-month trailing cap rate of 7.6% on its net operating income was represented in the sales price.
Further, revenues per available room achieved by the hotel for the 12-month period (ended Mar 31, 2018) was $122, with occupancy of 76%. The average daily rate was $161.
The Residence Inn Tampa’s standing-debt balance of $19.5 million was settled prior to closing. Additionally, the debt pay-down amount of $2.9 million, relating to the release of the hotel from the loan pool, was paid off too.
Notably, the company has opted to be a net seller and has not acquired any hotels since 2015. In fact, the company has sold about $350 million of hotels over this period. During first-quarter 2018, Ashford Hospitality sold SpringHill Suites Glen Allen for $10.9 million and towards the end of the quarter, it also disposed SpringHill Suites Centreville for $7.5 million.
The President and chief executive officer of Ashford Trust, Douglas A. Kessler informed, "The Residence Inn Tampa transaction demonstrates our value-added approach given pricing was at an attractive cap rate compared with our current market valuation." He also feels that the above-mentioned sale is in sync with the company’s efforts to improve returns for shareholders, using their strategies of investing opportunistically in upper-upscale, full-service hotels in the hospitality industry.
Encouragingly, in the past year, this Zacks Rank #3 (Hold) stock has outperformed the industry. While the company’s shares have gained 26.2%, the industry has recorded 2.7% rise.
Stocks Worth a Look
A few better-ranked stocks from the same space include Arbor Realty Trust (ABR - Free Report) , Prologis, Inc. (PLD - Free Report) and Host Hotels & Resorts, Inc. (HST - Free Report) . All three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Arbor Realty Trust’s Zacks Consensus Estimate for 2018 FFO per share rose 14.4% to $1.03 over the past month. Its shares have returned 15.8% in the past three months.
Prologis’ FFO per share estimates for the current year inched up 1.7% to $2.96 in a month’s time. Its shares have gained 6% over the past three months.
Over the past month, Host Hotels & Resorts’ FFO per share estimates for 2018 witnessed rise of 3% and moved to $1.71. The stock has gained 6.1% in the past three months.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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