July 5, 2017
Dallas-based Ashford Hospitality Trust, Inc. sold the 495-room Crowne Plaza Ravinia in Atlanta for $88.7 million to an undisclosed buyer. The sales price translates to $179,000-per-key, and represents a trailing 12-month cap rate of 5.6% on net operating income and a trailing 15.3x EBITDA multiple.
The hotel 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.
Ashford Trust’s Douglas A. Kessler said, “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.”
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