Ashford Hospitality, HFF Reveal Details of Marriott Financing
- Apr 02, 2015
- Marriott Memphis East
A month after Ashford Hospitality Trust Inc. closed on the $43.5 million purchase of the Marriott Memphis East Hotel, the REIT and its advisor, HFF, have revealed details of the acquisition financing.
Dallas-based Ashford reported in late March that it had obtained a $33.3 million floating-rate mortgage pegged to Libor plus 4.95 percent. Other highlights of the loan include a two-year term and three one-year extension options.
The loan was provided by CCRE, noted HFF, which arranged the financing on behalf of Ashford. HFF’s team was led by senior managing director Travis Anderson, managing director John Bourret, and real estate analyst Cory Fowler.
“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 Bennett, Ashford’s chairman & CEO, in a statement. “We continue to capitalize on the attractive debt capital markets to strengthen our liquidity position and maximize our flexibility.”
As previously reported by Commercial Property Executive, Ashford acquired the 232-key hotel for about $187,500 per room. The price represented a trailing 12-month cap rate of 7.6 percent on net operating income and an 8.6 percent estimated cap rate on NOI on a 12-month forward basis.