Ashford Hospitality Prime, Inc. (NYSE: AHP) announced that it has completed the acquisition of the 80-room Hotel Yountville in Yountville, California for $96.5 million ($1,200,000 per key), previously announced on March 1, 2017. Concurrent with the completion of the acquisition, the Company has financed the hotel with a $51.0 million non-recourse mortgage loan. This loan is interest only and provides for a floating interest rate of LIBOR + 2.55% with a five-year term. The property will be managed by Remington Lodging.
The purchase price for the Hotel Yountville represents, as of December 31, 2016, a trailing 12-month capitalization rate of 6.2% on hotel net operating income of $6.0 million and a trailing 12-month 14.5x hotel EBITDA multiple, according to the Company's preliminary estimates based on unaudited operating financial data provided by the sellers. On a forward 12-month basis, the purchase price represents an estimated capitalization rate of 6.8% on estimated hotel net operating income of $6.5 million and an estimated 13.4x hotel EBITDA multiple, according to the Company's preliminary estimates based on unaudited operating financial data provided by the sellers. A reconciliation of non-GAAP financial measures is included in the financial table below.
Ashford Hospitality Prime is a real estate investment trust (REIT) focused on investing in luxury hotels and resorts.
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