The Ritz-Carlton St Thomas has a new owner.
The property, which recently underwent a $22 million renovation, is being acquired by Dallas-based Ashford Hospitality Prime for $64 million from Marriott International.
The deal for the 180-room hotel in the US Virgin Islands is expected to close within 30 days.
Ashford said it intended to finance the property with $40 million of non-recourse mortgage debt.
It will continue to be operated as a Ritz-Carlton resort.
“We are thrilled to expand the Prime portfolio to the Caribbean with a property of this caliber,” said Monty J. Bennett, Ashford Prime’s Chairman and Chief Executive Officer. “The Ritz-Carlton St. Thomas is an iconic US Virgin Islands hotel, underscoring our strategy of investing in high quality, luxury assets in gateway and resort markets. Located in a stable market with high barriers to entry, where tourism trends remain positive, this property will be a fantastic addition to our portfolio at what we believe is a great value.”
Bennett said the resort’s RevPAR of more than $430 was “ramping strongly, outperforming its competitive set.”
He also said the company had the ability to expand the resort further through “additional keys and villas.”
“With the extremely high quality of this resort, strong cash flow, and meaningful growth opportunities, we believe this is a very attractive acquisition for our shareholders,” he said.
Ashford Hospitality Prime is a real estate investment trust focused on investing in luxury hotels and resorts.
The property is the second Ritz-Carlton Caribbean property to be sold in two years, following the high-profile sale of the Ritz-Carlton Rose Hall in Jamaica in 2013.