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Ashford Prime Completes $171M Buy

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Dallas-based Ashford Hospitality Prime Inc. recently completed the acquisition of the 266-room Ritz-Carlton Sarasota in Sarasota, FL. The deal was for $171 million or $643,000 per key.

The company also closed on the acquisition of a 22-acre plot of vacant land for $9.7 million that is currently entitled for residential development adjacent to the golf course.  Concurrent with the completion of the acquisition, the company has financed the hotel with a $100 million non-recourse mortgage loan.

According to a prepared statement, the loan provides for a floating interest rate of LIBOR + 2.65% with a five-year term and is interest only for the first two years and then amortizes 1% annually for the remaining term of the loan. The property will continue to be operated as a Ritz-Carlton under a management agreement with Ritz-Carlton.

Ashford Hospitality Prime is a real estate investment trust focused on investing in luxury hotels and resorts.