That works out to $643,000 a key!
Ashford Hospitality Prime, Inc. (NYSE: AHP) on Friday announced that it has entered into a definitive agreement to acquire the 266-room Ritz-Carlton Sarasota in Sarasota, Florida for $171 million, or $643,000 per key.
Ashford Hospitality Prime is a real estate investment trust (REIT) focused on investing in luxury hotels and resorts. The purchase price for the Ritz Sarasota represents, as of December 31, 2017, a trailing 12-month capitalization rate of 6.0% on hotel net operating income of $10.2 million. The Company expects to realize a stabilized unleveraged yield of approximately 8% on its investment. On a trailing 12-month basis as of December 31, 2017, the Property achieved RevPAR of $284.38, with 78.1% occupancy and an average daily rate (ADR) of $364.04, according to unaudited operating financial data provided by the sellers. Read entire story here.