Premier resort in St. Thomas recently underwent comprehensive $22 million renovation supporting strong trailing 12-month RevPAR of over $430 with meaningful upside potential.
DALLAS – Ashford Hospitality Prime, Inc. announced it has entered into a definitive agreement to acquire the award-winning 180-room Ritz-Carlton St. Thomas for $64 million ($355,000 per key) from Marriott International, Inc. The acquisition is expected to close in approximately 30 days, subject to customary closing conditions. The Company intends to finance the property with approximately $40 million of non-recourse mortgage debt. The property will continue to be operated as a Ritz-Carlton property under a long-term management agreement with Ritz-Carlton.
The purchase price for The Ritz-Carlton St. Thomas represents a trailing 12-month cap rate of 10% on net operating income and a trailing 7.2x EBITDA multiple, according to the Company’s preliminary estimates. On a trailing 12-month basis as of October 2015, Ashford estimates The Ritz-Carlton St. Thomas achieved RevPAR of $433, with an Average Daily Rate (ADR) of $555 and 78% occupancy.
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.
These include upgraded and additional food & beverage offerings, expanded wedding venue capacity, as well as the construction of a desalination plant and new electricity generators enabling the hotel to operate self-sufficiently off the grid.
The property boasts 180 luxurious guest rooms, all featuring a spacious private balcony or terrace with dramatic ocean views or dazzling garden views. Newly remodeled bathrooms feature large double vanities, soaking tubs and separate glass showers. The resort offers unparalleled amenities including a beachfront infinity-edge pool and access to a traditional pool. The property features the signature Bleuwater Restaurant and three other distinctive oceanfront dining options, as well as more than 10,000 square feet of indoor and outdoor meeting and function space offering stunning views of Great Bay and neighboring St. John, a 7,500 square foot award-winning spa and a 2,000 square foot fitness center. The resort also offers Jean-Michel Cousteau’s Ambassadors of the Environment eco adventures for children and adults, a comprehensive aquatic center and day sails, sunset cruises and private charters aboard Lady Lynsey, the hotel’s 53-foot luxury catamaran.
In addition, The Ritz-Carlton St. Thomas has been the recipient of the following awards:
- Best Hotels in U.S. Virgin Islands – U.S. News & World Report, 2015
- World’s Best Awards – Travel + Leisure, 2015
- Reader’s Choice Award, Best Resorts in the Caribbean – Conde Nast Traveler, 2014
- Hot List, Best U.S. Virgin Island Hotels – Conde Nast Traveler, 2014
“We are thrilled to expand the Prime portfolio to the Caribbean with a property of this caliber,” said Monty J. Bennett, Ashford Prime’s Chairman and Chief Executive Officer. “The Ritz-Carlton St. Thomas is an iconic U.S. Virgin Islands hotel, underscoring our 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, this property will be a fantastic addition to our portfolio at what we believe is a great value. Having recently undergone a comprehensive renovation, the resort’s RevPAR of over $430 is already ramping strongly, outperforming its competitive set. We have the ability to expand the resort further through additional keys and villas. Group revenue booking pace for 2016 is up 8.6% over 2015. With the extremely high quality of this resort, strong cash flow, and meaningful growth opportunities, we believe this is a very attractive acquisition for our shareholders.”
Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales.
She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.
