Ashford Hospitality Trust Buys Memphis Marriott East Hotel for $43.5M
- Jan 28, 2015
Ashford Hospitality Trust Inc. signed a definitive agreement to purchase the 232-room Memphis Marriott East Hotel for $43.5 million or $187,500 per room. According to an official statement, the acquisition price represents a trailing 12-month cap rate of 7.6 percent on net operating income.
“This transaction was particularly attractive given the hotel’s prime location and market attributes, which include no new competitive supply projected for the submarket and stable corporate demand generators,” said Monty J. Bennett, Ashford Trust’s Chairman and CEO. “Additionally, with the hotel’s recent conversion to a full-service Marriott, it has virtually no capex needs. After the installation of our affiliated property manager, Remington Lodging, we expect to achieve continued solid increases in RevPAR penetration as the property stabilizes.
Located at 5795 Poplar Avenue, the hotel is in the vicinity of various restaurants and shopping centers and minutes away from Elvis’ Graceland, Beale Street and Historic Downtown Memphis. It features six meeting rooms, an indoor pool and whirlpool, a 24-hour fitness center, complimentary on-site parking and Table – A Delta Grill restaurant.
The deal is expected to close in the next 30 days.