Dealmaker: Ashford Hospitality Trust Sells Courtyard Savannah for $30M

Ashford Hospitality Trust, Dallas, sold the 156-room Courtyard Savannah Downtown in Savannah, Ga. to Peachtree Hotel Group, Atlanta, for $29.75 million.

RobertDouglas, New York, advised Ashford on the sale.

“We are seeing substantial demand from investors for premium-branded hotels in proven and expanding markets,” said RobertDouglas Principal and Managing Director Evan Hurd.

Located in Savannah’s historic district, the asset is within walking distance of several Savannah landmarks including the cobblestone River Street, City Market and Savannah College of Art and Design. The historic district’s hospitality market saw a five percent RevPAR compound average growth rate between 2009 and 2018.

During the 12 months ending on June 30, the Courtyard Savannah achieved an occupancy rate of 80 percent and average daily rate of $132 resulting in a $106 RevPAR.

“Savannah’s diverse demand fundamentals and long-term track record of consistent growth attracted a broad range of investors,” said RobertDouglas Associate Annie Ferguson.

Ashford Trust President and CEO Douglas Kessler said the transactions demonstrate the REIT’s ability to sell non-core assets at attractive cap rates compared to current market valuation.

Savannah sees 14 million visitors annually and total visitor spending equaled $3.3 billion last year. The growing city is home to the 330,000-square-foot waterfront Savannah Convention Center and the nation’s second-busiest U.S. container port.

Ashford Trust also sold the 128-room Hilton Garden Inn in Wisconsin Dells, Wis. for $8.05 million. The property achieved an occupancy rate of 65 percent and $116 average daily rate over the last year, resulting in a $75 RevPAR.