Ashford Hospitality Prime has completed its purchase of the Ritz-Carlton St Thomas for $64 million, the company announced.
Concurrent with the completion of the deal, Ashford has financed the hotel with a $42 million non-recourse mortgage loan.
The property will continue to be operated as a Ritz-Carlton under a long-term management deal with Ritz-Carlton, the company said.
CBRE Hotels arranged the sale of the property; CBRE’s Christian Charre, Paul Weimer and Natalie Castillo marketed the property on behalf of Marriott International.
“Ashford acquired a jewel on the island of St. Thomas,” said Charre, who is Senior Vice President at CBRE Hotels. “This fully renovated property is one of the best performing assets in the Caribbean, appealing to incentive groups and families alike, and consistently receiving great reviews from guests. The sale generated strong interest resulting in a mutually beneficial transaction and an attractive long-term management agreement for Marriott.”
“We are excited to complete the acquisition of this iconic US Virgin Islands hotel as we believe it is a very attractive acquisition for our shareholders,” said Monty Bennett, Ashford Prime’s Chairman and Chief Executive Officer. “With the extremely high quality of this resort, strong cash flow, and meaningful growth opportunities, The Ritz-Carlton St. Thomas fits perfectly with Ashford Prime’s 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, and having recently undergone a comprehensive renovation, this property is poised to continue the strong operating performance it has realized over the past year.”
The 180-room hotel recently completed a $22 million renovation of guest rooms and public spaces.