Among
the noteworthy deals of the past week was Ashford Hospitality Trust's sale of
the Hilton Boston Back Bay to an undisclosed buyer for $171 million.
BOSTON — During its fourth-quarter earnings call on February
28, Dallas-based Ashford Hospitality Trust said it had signed a definitive
agreement to sell the 390-key Hilton Boston Back Bay in Boston for $171 million
to an undisclosed buyer. The sale is expected to be completed in March.
The REIT said the deal is expected to have net proceeds of
$70 million and will help pay off a loan from Oaktree Capital Management.
Ashford borrowed $200 million from Oaktree in 2021, and the loan matures in
January 2026.
The deal represents a 7.3% cap rate on 2023 NOI when
adjusted for anticipated capex. For the trailing 12 months ended December 31,
2023, the hotel's net income was $2.3 million and its EBITDA was $16.7 million.
Property records show that the hotel's 2024 assessed value is $72.4 million.
The property in Boston is one of six that Ashford expects to
sell from its U.S. portfolio. Five hotels are subject to a definitive
agreement, and one is under LOI. If all six hotels are sold as expected, total
gross proceeds would be $225 million (net proceeds would be approximately
$85-$90 million). The Oaktree loan has a $183.1 million principal balance (14%
interest rate), and the exit fee would be an incremental $30 million cost to
Ashford.
To download our list of deals from the past week in Excel
format, click here.