The Hilton Santa Cruz/Scotts Valley Has Been Sold

(Dallas, TX) The Hilton Santa Cruz/Scotts Valley, is affectionately known, for being a refuge in the mountains.  Additionally; it is considered to be conveniently located near the cities of San Jose, and, San Francisco.  As a result, it is also considered to be ideally located near the Silicon Valley, in the State of California, U.S.A.  Recently, the Ashford Hospitality Trust, Inc. revealed that, it has completed the acquisition of the hotel; Hilton Santa Cruz/Scotts Valley.  After the acquisition has been formally closed, Remington Lodging, will be in charge of the hotel’s management and operations.  The acquisition cost, or purchase price, was revealed to be $50 million USD.

          As part of the $50 million USD acquisition cost, Ashford Hospitality Trust, Inc. (NYSE:  AHT), also did the following things to be able to pay the acquisition cost.  First, the previously mentioned real estate investment trust (R.E.I.T.) issued to the seller of the Hilton Santa Cruz/Scotts Valley; Ashford Hospitality Trust Operating Partnership Units.  To be precise, the latter paid the former, approximately 1.5 million operating partnership units.  Each individual unit had a value of $7.00 dollars.  The seven dollars, is also, approximately 31% higher than normal.  Second, Ashford Hospitality Trust, Inc. also took on a mortgage loan.  This mortgage loan is a non-recourse loan of $25.3 million USD.  The $25.3 million dollars, also comes with, a fixed interest rate of 4.7%.  Additionally, this mortgage loan matures in March of the year, 2025. 

          The acquisition of the Hilton Santa Cruz/Scotts Valley, in general, is highlighted by the following things.  First, the actual hotel property is classified as a full-service Hilton brand asset, in the Santa Cruz hotel lodging market.  The previous, is also classified as a high barrier to entry, hotel lodging market.  Second, this hotel is expected to be in high demand, for leisure travelers.  The previously mentioned, is due to the fact that; it is located near the iconic Santa Cruz Beach Boardwalk, the Santa Cruz Mountains and the Monterey Bay National Marine Sanctuary.  Third, the Hilton Santa Cruz/Scotts Valley was first opened for business in the year 1999.  As a result, the actual building is considered to be, in excellent physical condition.  Fourth, there are 178 hotel guestrooms, along with, 21 suites.  Fifth, the hotel operations are fully loaded with amenities.  The Stonehouse Bar & Grill, an outdoor swimming pool, a fitness center, a business center, a gift shop, a laundry facility and 7,900 ft² of flexible meeting space are the previously noted amenities. 

          This particular hotel, Hilton Santa Cruz/Scotts Valley, does check-in at 4:00 pm.  Additionally, check-out is at 11:00 am.  This hotel; is also considered to be the type of hotel that charges a $25 dollar fee for smoking in the hotel guestrooms, has only self-parking, has a $50 dollar pet fee and has free Wi-Fi.  The Hilton Santa Cruz/Scotts Valley, is located on 6001 La Madrona Drive, Santa Cruz, CA 95060.  The telephone number is (831) 440-1000.  The website is www.hilton.com.

          Overall, and for the Ashford Hospitality Trust, Inc., the acquisition transaction is highlighted by the following things.  The first thing, is the acquisition of a high quality hotel, located in Santa Cruz, California U.S.A.  Second, is the included exceptional amenities that, become part of the hotel operations.  Third, the hotel has a revenue per available room (RevPAR) of $158 dollars.  Fourth, the hotel building has very limited capital expenditure needs.  Fifth, Ashford Hospitality Trust issued Operating Partnership Units as part of the payment.  Sixth, the acquisition releases an internal funding program valued at, $5 million dollars. 

          To end, Ashford Hospitality Trust, Inc. did release a press statement.  Douglas A. Kessler is the President and the Chief Executive Officer of the Ashford Hospitality Trust, Inc.  Through a press statement, Mr. Kessler said the following.  “We are excited to complete the acquisition of another high-quality, well-positioned asset that we believe will benefit from the very strong and growing Silicon Valley/Bay Area economy.”  Douglas A. Kessler also said.  “Additionally, we are able to once again benefit from the competitive advantages provided by our Enhanced Return Funding Program, which we expect to significantly increase the returns for our shareholders.  We are pleased with the meaningful progress of our utilization of the ERFP program to acquire these attractive assets, which should add value to our portfolio.”  As previously stated, the aforementioned real estate investment trust recently revealed that, it has completed the acquisition of the hotel; Hilton Santa Cruz/Scotts Valley.  Post-acquisition, Remington Lodging, will be in charge of the hotel’s management and operations.  Lastly, the acquisition cost, or purchase price, was revealed to be $50 million USD.

 

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Written from Press Release

Registered Writer with

PR Newswire Association, LLC

R-Berumen28

03/02/2019

 

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