The Ault Alliance Inc (NYSEAMERICAN: AULT) rallied 40% after announcing that it was selling four newly renovated hotels for about $100 million. The sale is being conducted by its wholly-owned subsidiary, Ault Global Real Estate Equities, Inc. (AGREE).
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The company plans to list four recently renovated Midwest hotels, including the Residence Inn in Madison West, the Hilton Garden Inn in Rockford, the Hilton Garden Inn in Madison West, and the Courtyard in Madison West. The four hotels are being sold for $100 million.
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The decision to sell its real estate properties comes after the company decided to focus on its core businesses, which are the data center operations, its California licensed dealer business and its crane rental business. The company has also decided to list its St. Petersburg property for the same reasons.
Ault Alliance plans to use the sale proceeds from its hotel properties to pay off its debt and commit more capital to its core businesses. The company believes the comprehensive renovation of all four properties delivers best-in-class assets to the Madison West and Rockford markets.
AGREE has listed the four properties with Hospitality Real Estate Counselors (HREC), a national real estate brokerage firm, and it is seeking about $100 million for the four hotels. The company completed the major renovations of the four hotels via its partnership with hotel management firm GF Hotels & Resorts.
The renovations included installing new fitness equipment, upgraded bathroom trims, new furniture, new mattresses, new soft goods and many other changes.
Milton “Todd” Ault III, Ault Alliance’s Executive Chairman, said: “We have decided to focus on our core cash-producing assets, which include our crane rental company, Circle 8 Crane Services, LLC, data center operations through Sentinum, Inc., and our California licensed lender, Ault Lending, LLC. Given the current macro environment, we believe these core assets are best suited to produce sustainable cash flow and long-term value for the Company and its stockholders.”
Ault concluded, “There can be no assurance that the hotels will be sold or that our asking price will be met. However, given the hotels’ strong standing and recent renovations, we are optimistic and expect the properties to attract significant interest.”
Ault Alliance (AULT) stock price.
The Ault Alliance stock price rallied 40% to trade at $1.47, from Friday’s closing price of $1.05.
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