Ashford Trust Completes Sale of Two-Hotel Portfolio

The buyer assumed the existing debt of $24 million and obtained net proceeds of roughly $11 million.

by Csilla Borsos

Courtyard Palm Desert
Courtyard Palm Desert

Palm Desert, Calif.—Ashford Hospitality Trust has completed the sale of a two-hotel portfolio, consisting of the 151-key Courtyard Palm Desert and the 130-key Residence Inn Palm Desert. The deal totaled $36 million or $128,000 per key and the buyer assumed the assets’ existing debt of roughly $24 million.

Courtyard Palm Desert is situated at 74895 Frank Sinatra Drive, just 3.3-miles away from the Desert Willow Golf Resort. Amenities include a pool, a meeting room, free parking and a fitness center, as well as a restaurant and lounge.

Residence Inn Palm Desert is located at 38305 Cook St., only 5.7 miles from Mission Hills Country Club and offers guests free parking, a fitness center, pool and business rooms.

On a trailing 12-month basis, the portfolio achieved RevPAR of $92 with a 74 percent occupancy and average daily rate of $123. With this deal, Ashford has now closed on approximately $218 million of sales of its non-core, select-service hotels.

“The completion of this portfolio sale brings the total number of assets sold to nine since we announced our select-service sales strategy earlier this year. We will continue to pursue opportunities to divest of our non-core, select-service hotels,” Monty Bennet, Ashford’s chairman & CEO, said in prepared remarks.

Image courtesy of Marriott