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Ashford Hospitality Trust sells Hilton Boston Back Bay
Transactions - FEBRUARY 29, 2024

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Ashford Hospitality Trust sells Hilton Boston Back Bay

by Andrea Zander

Ashford Hospitality Trust has sold the 390-room Hilton Boston Back Bay in Boston for $171 million.

In 2023, the hotel’s net income was $2.3 million, its net operating income was $14.9 million, and its hotel EBITDA was $16.7 million. When adjusted for the company’s anticipated capital expenditures, the sale price represents a 7.3 percent capitalization rate on 2023 net operating income, or 12.3x 2023 hotel EBITDA. Excluding the anticipated capital spend, the sale price represents an 8.7 percent capitalization rate on 2023 net operating income, or 10.2x 2023 hotel EBITDA.

Ashford  expects the net proceeds to be approximately $70 million after repayment of the underlying mortgage debt and closing costs. The company expects to use the net proceeds for general corporate purposes including the paydown of its strategic financing.

“We are pleased to announce the planned sale of the Hilton Boston Back Bay for a very attractive value,” commented Rob Hays, Ashford

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