Hotel Yountville
Yountville, CA
Ashford Hospitality Prime Inc. has completed the acquisition of the 80-room Hotel Yountville in Yountville, CA, for $96.5 million ($1.2 million per key). Concurrent with the completion of the acquisition, the company has financed the hotel with a $51-million non-recourse mortgage loan. This loan is interest only and provides for a floating interest rate of LIBOR + 2.55% with a five-year term. The property will be managed by Remington Lodging.
The purchase price for the Hotel Yountville represents, as of Dec. 31, 2016, a trailing 12-month capitalization rate of 6.2% on hotel net operating income of $6 million and a trailing 12-month 14.5x hotel EBITDA multiple, according to the company’s preliminary estimates based on unaudited operating financial data provided by the sellers.
On a forward 12-month basis, the purchase price represents an estimated capitalization rate of 6.8% on estimated hotel net operating income of $6.5 million and an estimated 13.4x hotel EBITDA multiple, according to the company’s preliminary estimates based on unaudited operating financial data provided by the sellers.
Seven-Hotel Portfolio
Southeast
Hospitality Investors Trust Inc. has acquired seven hotels from Summit Hotel Properties Inc. for $66.8 million.
All properties in the portfolio—which amount to 651 keys—have long-term franchise agreements with the following brands: Marriott International (Courtyard, Residence Inn and Fairfield Inn), Hilton Hotels (Homewood Suites) or IHG (Staybridge Suites). They include the 100-key Residence Inn by Marriott in Jackson, MS; the 93-key Courtyard by Marriott in Germantown, TN; the 117-key Courtyard by Marriott in Jackson, MS; the 80-key Fairfield Inn & Suites by Marriott in Germantown, TN; the 78-key Residence Inn by Marriott in Germantown, TN; the 92-key Staybridge Suites in Ridgeland, MS; and the 91-key Homewood Suites by Hilton in Ridgeland, MS.
The transaction increases the company’s lodging portfolio to 148 hotels totaling 17,844 keys across 33 states.
