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Hilton Houston NASA Clear Lake – Image Credit Hilton
Ashford Hospitality Trust has completed the sale of two hotel properties, the Hilton Houston NASA Clear Lake and the Residence Inn Evansville East, for a total of $33 million.
Ashford Hospitality Trust has announced the completion of the sale of two hotel properties for a combined total of $33 million. The properties sold include the Hilton Houston NASA Clear Lake in Houston, Texas, which was sold for $27 million, and the Residence Inn Evansville East in Evansville, Indiana, which was sold for $6 million.
The sales are part of Ashford Hospitality Trust’s strategy to optimize its portfolio and improve financial metrics. The combined sale price, when adjusted for anticipated capital expenditures, represents a 1.3% capitalization rate on net operating income or a multiple of 45.3 times Hotel EBITDA for the twelve months ending July 31, 2025. Without considering the anticipated capital expenditures, the sale price reflects a 2.0% capitalization rate on net operating income or a multiple of 28.1 times Hotel EBITDA for the same period.
The transactions are intended to deleverage Ashford Hospitality Trust’s platform and improve the coverage metrics of its recently extended MS 17 loan pool. The sales are also expected to increase the portfolio’s cash flow after debt service. The company has indicated that it may continue to pursue similar sales of non-core assets in the future to enhance shareholder value further.
Ashford Hospitality Trust is a real estate investment trust (REIT) that focuses on investing in hotel properties.
