Ashford Trust Acquires Two MN Hotels
MINNEAPOLIS — Ashford Hospitality Trust Inc. just decided to place a big bet on the market in Minneapolis. The Dallas-based company has acquired the 229-room W Minneapolis Hotel - The Foshay and the 60-room Le Meridien Chambers Minneapolis hotel for $101 million in cash, or about $349,000 per key. The city has one of the healthiest economies in the US, and Ashford officials believe its hotels have a bright future.
"This transaction represents a remarkable opportunity to acquire two well-located hotels in the Minneapolis market, which is experiencing strong RevPAR growth," said Monty J. Bennett, Ashford's chairman and chief executive officer, in a prepared statement. A company spokesperson did not respond to a call from GlobeSt.com. And "with the expansion of demand drivers, including the highly anticipated addition of the New Minnesota Stadium, which is expected to open in 2016, we believe these hotels are well-positioned to achieve further increases in RevPAR."
The city has seen a number of its most significant properties trade hands recently, including several hotels. As reported in GlobeSt.com, last year New York-based Loews Hotels & Resorts bought the Graves 601 Hotel located in downtown Minneapolis from Graves Hospitality.
As part of its transaction, Ashford will assume about $56 million of mortgage debt on the W Minneapolis Hotel. Both assets have undergone extensive renovations and require minimal capital expenditures. On a forward 12-month basis, the purchase price represents an estimated cap rate of 7.0% on net operating income. Starwood Hotels will continue to manage both properties.
On a trailing 12-month basis, the Le Meridien Chambers Minneapolis achieved RevPAR of $171.00, with occupancy of 84.9% and average daily rate of $201.45, and the W Minneapolis Hotel achieved RevPAR of $166.84, with occupancy of 82% and average daily rate of $203.40.
Located in the city’s vibrant downtown, the Foshay Tower was Minnesota’s first skyscraper and the tallest building in Minneapolis from 1929 to 1971. Following a $90 million restoration, the building reopened in 2008 under the W Hotels brand.
The Le Meridien offers 60 guest rooms on five floors of two landmark downtown buildings. Its amenities include 3,648 square feet of meeting space, a bar and restaurant, a fitness center and more than 200 pieces of original contemporary art work in the guestrooms and public areas.
Reported by: Globest.com
"This transaction represents a remarkable opportunity to acquire two well-located hotels in the Minneapolis market, which is experiencing strong RevPAR growth," said Monty J. Bennett, Ashford's chairman and chief executive officer, in a prepared statement. A company spokesperson did not respond to a call from GlobeSt.com. And "with the expansion of demand drivers, including the highly anticipated addition of the New Minnesota Stadium, which is expected to open in 2016, we believe these hotels are well-positioned to achieve further increases in RevPAR."
The city has seen a number of its most significant properties trade hands recently, including several hotels. As reported in GlobeSt.com, last year New York-based Loews Hotels & Resorts bought the Graves 601 Hotel located in downtown Minneapolis from Graves Hospitality.
As part of its transaction, Ashford will assume about $56 million of mortgage debt on the W Minneapolis Hotel. Both assets have undergone extensive renovations and require minimal capital expenditures. On a forward 12-month basis, the purchase price represents an estimated cap rate of 7.0% on net operating income. Starwood Hotels will continue to manage both properties.
On a trailing 12-month basis, the Le Meridien Chambers Minneapolis achieved RevPAR of $171.00, with occupancy of 84.9% and average daily rate of $201.45, and the W Minneapolis Hotel achieved RevPAR of $166.84, with occupancy of 82% and average daily rate of $203.40.
Located in the city’s vibrant downtown, the Foshay Tower was Minnesota’s first skyscraper and the tallest building in Minneapolis from 1929 to 1971. Following a $90 million restoration, the building reopened in 2008 under the W Hotels brand.
The Le Meridien offers 60 guest rooms on five floors of two landmark downtown buildings. Its amenities include 3,648 square feet of meeting space, a bar and restaurant, a fitness center and more than 200 pieces of original contemporary art work in the guestrooms and public areas.
Reported by: Globest.com
