The managers of ARA US Hospitality Trust XZL are proposing to sell Hyatt Place Oklahoma City Airport for US$8.0 million ($10.8 million). A conditional purchase and sale agreement (PSA) was entered into with the purchaser, Bhanumati LLC, on July 1.
Hyatt Place Oklahoma City Airport is a select-service hotel with 126 rooms. It is situated on freehold land situated at 1818 South Meridian Avenue in Oklahoma City, US. It was about six miles from the Myriad Botanical Gardens and the Oklahoma City National Memorial. The hotel commenced operations in 1997 and last renovated in 2016.
According to independent appraiser, Newmark Valuation & Advisory Services, LLC, the hotel is valued at US$8.6 million as at Dec 31, 2022. The valuation is calculated based on the income capitalization approach and the sales comparison approach.
The sale consideration is negotiated on a willing-buyer and willing-seller basis, taking into account the independent valuation, and represents a 7.0% discount to the independent valuation. The sale consideration will be satisfied fully in cash.
In accordance with the trust deeds, the managers are entitled to a divestment fee of around US$40,000, or 0.5% of the sale consideration.
As at 9.39am, units in ARA US Hospitality Trust are trading flat at 34 US cents.
