The Ritz-Carlton, Sarasota was built in 2001 and recently underwent $21 million in capital improvements.

SARASOTA, FL—Brokerage firm JLL reports it arranged the sale of the Ritz-Carlton, Sarasota hotel here in a transaction valued at more than $180 million.

The brokerage firm represented SLAB LLC in the sale of the 266-room hotel to Dallas-based Ashford Hospitality Prime, Inc., a REIT focused on luxury hotels and resorts. JLL managing director Gregory Rumpel and SVP Andrew Dickey led the JLL team on the sale.

“The Ritz-Carlton, Sarasota is a well-established landmark in one of the most upscale markets in Florida. It's solid financial track record and commanding market position provide the new ownership with an irreplaceable resort in a segment that continues to grow along with the demographics of the West Coast of Florida,” says Rumpel.

Ashford Hospitality Prime reported in February an agreement to acquire the property that also includes 31 suites, the 27,000-square-foot Ritz-Carlton Beach Club, the 15,000 square foot Ritz-Carlton Spa Club and the Tom Fazio-designed 18-hole Ritz-Carlton Golf Club. The firm announced earlier this month that it closed on the property purchase for $171 million or $643,000 per key.

The new ownership says the property will continue to be operated as a Ritz-Carlton under a management agreement with Ritz-Carlton.

The deal also includes the purchase of a 22-acre plot of vacant land for $9.7 million adjacent to the golf course that is currently entitled for residential development. Ashford Hospitality reports it financed the purchase with a $100-million non-recourse mortgage loan with a floating interest rate of LIBOR + 2.65%. The loan has 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.

“Investor demand for luxury, beachfront resorts is peaking due to limited-to-no new supply on the horizon throughout the Florida market. We expect that investor appetite for these types of assets will continue this year creating further compression and increasing yields,” JLL's Dickey adds.

The Ritz-Carlton, Sarasota was built in 2001 and has received more than $21 million in capital improvements over the past few years.

Instant Insights /

JLL Brokers $180M Ritz-Carlton, Sarasota Hotel Sales Deal

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