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Ashford Prime Enters Sales Agreement for Ritz-Carlton Sarasota

266-Room Hotel Could Fetch $171M
February 21, 2018
Ashford Hospitality Prime Inc., based out of Dallas, has entered into an agreement to acquire the Ritz-Carlton Sarasota hotel at 1111 Ritz Carlton Dr. in Sarasota, FL.

The estimated purchase price of $171 million would result in year-one CAP rate of 6 percent, according to sources.

Built in 2001, the 266-room, 775,013-square-foot hospitality building sits on 7.7 acres in the Sarasota submarket of Sarasota County, roughly 60 miles south of Tampa on Sarasota Bay. The hotel boasts a number of amenities including a waterfront restaurant, a variety of clubs and two outdoor swimming pools.

The property experienced 78.1-percent occupancy in 2017, with an average daily rate (ADR) of $364.

"The acquisition of the Ritz-Carlton Sarasota is an opportunity for us to acquire a luxury resort property with a premier location in the upscale and growing Sarasota market," said Richard J. Stockton, president and CEO of Ashford Prime. "This property fits perfectly with our strategy of owning luxury hotels and resorts and further diversifies our portfolio while also increasing the overall RevPAR of our portfolio, which is already the highest among our hotel REIT peers."

Ashford Prime plans to fund the acquisition with cash on its balance sheet and will either draw from its revolving line of credit or securing a non-recourse mortgage loan on the asset.

Subject to customary closing conditions, the acquisition is expected to close in the beginning of the second quarter of 2018.

The company is also purchasing a 22-acre vacant lot for $9.7 million to be used for residential development that is adjacent to a Tom Fazio-designed golf course.
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