DALLAS—Ashford Hospitality Prime Inc., the luxury-focused REIT spun off from Ashford Hospitality Trust in 2013, said Wednesday afternoon it had finalized its strategy for its non-core properties. The final pieces of the puzzle fell into place with an agreement with Marriott to convert its Courtyard San Francisco to an Autograph Collection property and the hiring of the Placenia Group to market its Renaissance Tampa for sale.
Earlier on Wednesday, Ashford Prime had finalized the sale of the Marriott Plano Legacy for $104 million. The buyer was not disclosed; the Dallas Morning News reported Wednesday that the 404-key hotel, near the Legacy Town Center and Legacy West developments, was acquired by a Pennsylvania-based investment firm.
The sales price represents a year-end 2017 all-in cap rate of 7.7% on NOI and a year-end 2017 11.1x all-in hotel EBITDA multiple. The closing of the sale also completed a reverse 1031 exchange that was initiated to acquire the Hotel Yountville in California earlier this year.
Ashford Prime president and CEO Richard J. Stockton says the Plano market is experiencing “a significant amount of new supply that will likely negatively impact the Marriott Plano.” Additionally, the company said Wednesday that the property was the lowest RevPAR asset in its portfolio.
The REIT began marketing its Plano property this past June, right about the time it reached an agreement with Marriott for the Courtyard Philadelphia to be converted to an Autograph hotel by June 30, 2019. As with the converted San Francisco property under the agreement announced Wednesday, Marriott will continue to manage the Philadelphia asset after the repositioning is completed.
Third-quarter results were also announced on Wednesday, and Stockton terms Q3 “a challenging quarter on multiple fronts.” Comparable RevPAR decreased 5.3% to $211.36 for all hotels on a 1.4% decrease in ADR and a 4.0% decrease in occupancy during the quarter, and Ashford Prime's assets in Key West, FL and St. Thomas, USVI sustained damage from Hurricane Irma.
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
