One of the Leading Hotels in the U.S. Virgin Islands

Ashford Hospitality Prime announced that it has completed the previously-announced acquisition of the award-winning 180-room Ritz-Carlton St. Thomas for $64 million ($355,000 per key) from Marriott International, Concurrent with the completion of the acquisition, the Company has financed the hotel with a $42 million non-recourse mortgage loan.

This loan is interest only and provides for a floating interest rate of LIBOR + 4.95% with a two-year term with three, one-year extension options subject to the satisfaction of certain conditions. The property will continue to be operated as a Ritz-Carlton under a long-term management agreement with Ritz-Carlton. On a trailing 12-month basis as of November 2015, the hotel achieved RevPAR of $441, with an Average Daily Rate (ADR) of $556 and 79% occupancy.

«We are excited to complete the acquisition of this iconic U.S. Virgin Islands hotel as we believe it is a very attractive acquisition for our shareholders,» said Monty J. Bennett, Ashford Prime’s Chairman and Chief Executive Officer. «With the extremely high quality of this resort, strong cash flow, and meaningful growth opportunities, The Ritz-Carlton St. Thomas fits perfectly with Ashford Prime’s strategy of investing in high quality, luxury assets in gateway and resort markets. Located in a stable market with high barriers to entry, where tourism trends remain positive, and having recently undergone a comprehensive renovation, this property is poised to continue the strong operating performance it has realized over the past year.»

Located on 30 pristine oceanfront acres along Great Bay, The Ritz-Carlton St. Thomas is recognized as one of the best hotels in the U.S. Virgin Islands. Opened as The Ritz-Carlton St. Thomas in 1996, the resort recently completed a comprehensive $22 million renovation of guest rooms and public space.