Ashford Hospitality to Buy New Mexico Resort for $50M
The acquisition, which is expected to close later this month, equates to approximately $287,000 per key.
SANTA FE, NM—Ashford Hospitality Trust reports it has signed a definitive agreement to acquire the 157-room La Posada de Santa Fe resort here for $50 million.
The acquisition, which is expected to close later this month, equates to approximately $287,000 per key and represents, as of Aug. 31, 2018, a trailing 12-month capitalization rate of 5.3% on hotel net operating income of $2.4 million and a trailing 12-month 15.2x hotel EBITDA multiple.
In addition to the 157 rooms, the property also offers 30 suites, spread across 26 structures throughout the resort. Among amenities, include a 4,500-square-foot full-service Spa Sage, four food and beverage outlets, including the Julia – Spirited Restaurant & Bar, 7,800 square-feet of flexible indoor/outdoor meeting space, an outdoor pool, 24-hour state-of-the-art fitness club as well as an on-site curator service with prominent paintings and sculptures displayed for sale throughout the property.
The property received more than $6 million in capital improvements during the past few years. Post-closing, the property will be managed by Remington Lodging, which also manages Ashford Trust’s Hilton Santa Fe. The company expects to realize synergies from the joint management of La Posada and the Hilton Santa Fe including the clustering of revenue management resources, consolidating accounting functions as well as sharing various positions in sales and human resources, the company reports.
“The acquisition of La Posada provides us the opportunity to own another high-quality asset in this attractive market where we have been a long-time owner of the Hilton Santa Fe,” says Douglas A. Kessler, Ashford Trust’s president and CEO. “We believe that by installing Remington as manager at La Posada we should be able to realize significant operational synergies given our existing hotel in the market that should benefit both properties. Additionally, the ERFP contribution by Ashford Inc. should serve to increase the returns on this investment for our shareholders.”
Back in June, Dallas-based Ashford Hospitality acquired the Hilton Alexandria Old Town for $111 million.