Ashford Hospitality Trust Procures $33.3M Financing for Acquisition of Marriott Hotel
- Mar 31, 2015
After announcing that it entered a definitive purchase agreement to buy the 232-room Marriott Memphis East Hotel back in January, Ashford Hospitality Trust Inc. wasted no time in closing on financing for the hotel.
The company announced that the acquisition went through in February and that it has recently procured a $33.3 million mortgage loan for the acquisition. According to an official press statement, the loan is interest-only and has a floating interest rate of Libor + 4.95 percent. The loan has a two-year term and three one-year extension options.
“This latest financing of the Marriott Memphis East is another example of our team’s ability to access debt capital on favorable terms,” said Monty J. Bennett, Ashford Trust’s Chairman and CEO. “We continue to capitalize on the attractive debt capital markets to strengthen our liquidity position and maximize our flexibility.”
As Commercial Property Executive has reported, the Ashford Trust acquired the Marriott Memphis East Hotel for $43.5 million or $187,500 per room. The acquisition price represented a trailing 12-month cap rate of 7.6 percent on Net Operating Income and an 8.6 percent estimated capitalization rate on NOI on a forward 12-month basis.