DALLAS—Ashford Hospitality Prime Inc. has entered into a definitive agreement to acquire Park Hyatt Beaver Creek Resort & Spa in Beaver Creek, CO, for $145.5 million ($766,000 per key). The company plans to use the proceeds from its recently completed public offerings to fund the acquisition and intends to finance the property with approximately $68 million of non-recourse mortgage debt.
Built in 1989, the property has 190 rooms, including 23 suites. Amenities include the 30,000-sq.-ft. Allegria Spa; four F&B outlets, including the 8100 Mountainside Bar & Grill; more than 20,000 sq. ft. of indoor meeting space; a heated outdoor pool beneath a mountain waterfall; a 24-hour fitness club; ski valet service; outdoor fire pits; and access to two championship golf courses and the Beaver Creek Tennis Center. Additionally, the property has more than 18,800 sq. ft. of fully leased retail space in the heart of Beaver Creek. The resort has spent more than $7.5 million in capital improvements over the past few years. Post-closing, the property will continue to be managed by Hyatt.
The purchase price for the Park Hyatt represents, as of Jan. 31, a trailing 12-month capitalization rate of 6% on hotel net operating income of $8.7 million and a trailing 12-month 14.8x hotel EBITDA multiple, according to Ashford Prime’s preliminary estimates based on unaudited operating financial data provided by the sellers. On a forward 12-month basis, the purchase price represents an estimated cap rate of 6.4% on estimated net operating income of $9.2 million and an estimated EBITDA multiple of 14.0x. On a trailing 12-month basis as of Jan. 31, the property achieved RevPAR of $270.92, with 62.5% occupancy and an ADR of $433.57, according to unaudited operating financial data provided by the sellers.