Ashford’s sales fuel alternative buy-style
DALLAS— The current prevailing wisdom among many hotel investors is sell only if you must in this deteriorating environment. Judging from the transaction market for the upper hotel echelon, there aren’t too many in that unenviable group. But one owner, Ashford Hospitality Trust, Inc., has now risen as the primary exception to that assumed rule, selling $289 million worth of assets this year while marching to the beat of its own unique strategy that has it focused on opportunities elsewhere.
One on One with David Mumford
Senior Principal of the Mumford Co.Q. We hear conflicting reports about just how badly the transactions market is faring this year in light of the present turmoil in the financial markets. As a prominent broker, what has been your experience?
A. In our [predominantly select-service] segment, year-to-date through May we’re about 80% of last year’s volumes. But the good thing we’re seeing is that volumes are holding up in terms of cap rates, room revenue multiples. We’re seeing those as fairly flat to last year at this point in time. Obviously, in some cases that’s on a lower level of revenue and profitability because things are a little softer this year than they were last year. But our level of transaction activity is generally holding up well in terms of value.
Hersha loan program bears Sheraton
JAMAICA, NY— Hersha Hospitality Trust has purchased the Sheraton JFK Airport Hotel in Jamaica, NY. The recently developed 150-room property was acquired for approximately $34 million and will be managed by Hersha Hospitality Management, LP.
KS Wyndham buyer rides suburban success
OVERLAND PARK, KS— The Wyndham Garden Overland Park hotel here in suburban Kansas City, MO, is now under new ownership following its acquisition. Jones Lang LaSalle Hotels’ select-service division brokered the disposition between the undisclosed buyer and institutional seller.
Boston area Residence Inn buy to fuel owner’s growth
TEWKSBURY, MA— The 130-suite Residence Inn Boston Tewksbury/ Andover here has been sold for an undisclosed price. In a deal brokered by Molinaro Koger, Lion ES Hotels II, LLC sold the suburban Boston extended-stay property to Tewksbury Residence Inn Hotel Associates, LLC.
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