Ashford Hospitality sells Hilton Boston Back Bay in Boston for $171M

Ashford Hospitality has signed a definitive agreement to sell the 390-room Hilton Boston Back Bay in Boston, Massachusetts for $171M, or $438K per key. The sale is expected to be completed in March, and is subject to normal closing conditions. The company provides no assurances that the sale will be completed on these terms or at all. For , 2023, the Hotel’s net income was $2.3M, its net operating income was $14.9M, and its Hotel EBITDA was $16.7M. When adjusted for the company’s anticipated capital expenditures, the sale price represents a 7.3% 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% capitalization rate on 2023 net operating income, or 10.2x 2023 Hotel EBITDA. The company expects the net proceeds to be approximately $70M 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.