DALLAS—Ashford Hospitality Prime, Inc. completed the previously announced acquisition of the 180-room Ritz-Carlton St. Thomas for $64 million ($355,000 per key) from Marriott International, Inc.
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, the hotel achieved RevPAR of $441, with an ADR of $556 and 79% occupancy, according to the company.
“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,” said Monty J. Bennett, Ashford Prime’s chairman and CEO.
Opened as The Ritz-Carlton St. Thomas in 1996, the resort recently completed a comprehensive $22-million renovation of guestrooms and public space. Upgrades include additional food and beverage offerings, expanded wedding venue capacity, as well as an expanded desalination plant and new electricity generator enabling the hotel to operate independent of the island’s electricity system.
The property offers 180 luxurious guestrooms, all featuring a private balcony or terrace with ocean views or garden views. Newly remodeled bathrooms feature large double vanities, soaking tubs and separate glass showers. Amenities include 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 sq. ft. of indoor and outdoor meeting and function space offering views of Great Bay and neighboring St. John, a 7,500 sq. ft. spa and a 2,000 sq. ft. 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-ft. luxury catamaran.