Ashford Hospitality Trust Inc. has completed the previously announced acquisition of La Posada de Santa Fe located in Santa Fe, New Mexico, for total consideration of $50 million. This acquisition is the second transaction to benefit from the Enhanced Return Funding Program with Ashford Inc.
In connection with the acquisition of La Posada, Ashford Inc. will provide Ashford Trust with $5 million of cash via the future purchase of hotel furniture, fixtures, and equipment at Ashford Trust properties.
Santa Fe is a world class leisure market as well as New Mexico’s state capital. The city hosts numerous festivals throughout the year including: Fiestas de Santa Fe, the International Folk Art Market, the Santa Fe Wine and Chile Fiesta, and the Santa Fe Film Festival. Santa Fe is considered the third largest art market in the U.S. by sales. The 157-room hotel with 7,810 square feet of meeting space is part of Marriott’s Tribute Portfolio and is the only full service Marriott hotel in the market.
According to a prepared statement, the distinctively southwestern asset is within the city’s historic area and benefits from nearby art galleries, retail, restaurants, and cultural attractions. The hotel’s Spa Sage was ranked 4th in USA Today’s Best Hotel Spa rankings. This market has significant hurdles to entry, with no competitive full service hotels under construction. Remington Lodging will manage the hotel, and expects to achieve operational synergies in conjunction with existing operations in the Santa Fe market.
“We are pleased to complete the acquisition of La Posada which increases our ownership presence in the very attractive Santa Fe market,” said Douglas A. Kessler, Ashford Trust’s President and Chief Executive Officer. “This is our second transaction to utilize the Enhanced Return Funding Program with Ashford Inc. which should further improve the returns to our shareholders from this deal. Going forward, we expect this funding arrangement will be a clear competitive advantage for us as we continue to look for opportunities to grow our platform and increase stockholder value.”