Ashford Wraps Up $135M Sale of 2 Hotels

Continuing its capital recycling strategy, Ashford Hospitality Trust Inc. has closed on the disposition of the Hyatt Regency Montreal and the Hyatt Dulles Airport in Herndon, Va., in deals totaling $135.5 million. The 605-room Hyatt Regency Montreal (pictured) brought in $57.5 million from Swedish hotel company Pandox AB. Built in 1976, the hotel features 34,000 square feet of meeting space, a restaurant and a fitness center. Ashford came into possession of the lodging facility as part of its $2.4 billion acquisition of a 51-property former CNL Hotels & Resorts Inc. portfolio from Morgan Stanley Real Estate. Located about 25 miles from Washington, D.C., the 316-room Hyatt Dulles Airport fetched $78 millionfrom Thayer Lodging Group. The 19-year-old hotel, which Ashford acquired in 2005 for $72.5 million, also features meeting space, a fitness center and a café. Ashford plans to use proceeds from the sales of the Hyatt Regency Montreal and the Hyatt Dulles–along with profits from other property sales–to pay down debt, fund the company’s mezzanine lending program and for share repurchasing. Additionally, a company spokesperson told CPN today, proceeds will be utilized “to fund investment in Ashford’s existing portfolio, in terms of renovations and other capital projects.” While Ashford has already closed or negotiated $238 million in sales of various assets as part of its capital recycling program this year, the REIT’s disposition spree is not over yet. Ashford recently revealed contracts to sell two suburban Boston properties, the Radisson Hotel in Rockland and Milford’s Sheraton Milford. “They’re targeting $600 million in asset proceeds,” the spokesperson said. Headquartered in Dallas, Ashford is a self-administered REIT that invests across all segments and at all levels of the hospitality industry. Company stock opened today at $5.47.Blog Story and Comments