DALLAS, Nov. 1, 2017 /PRNewswire/ -- Ashford
Hospitality Prime, Inc. (NYSE: AHP) ("Ashford Prime" or the "Company") announced today
that it has reached terms with Marriott to convert its Courtyard
San Francisco Downtown hotel (the "Courtyard San Francisco") to an
Autograph Collection property. The Company also announced
that it has listed the Renaissance Tampa for sale and has engaged
The Placenia Group to market the property to potential
buyers. These announcements bring a conclusion to determining
the Company's strategy for its non-core hotels.
The agreement with Marriott calls for the Courtyard San
Francisco to be converted to an Autograph hotel by December 2019 pursuant to a conversion Product
Improvement Plan ("PIP"). The PIP is currently estimated to
be approximately $30 million
(incremental to capital projects already underway) and consists of
updates to the guestrooms, guest bathrooms, corridors, building
facade, lobby, restaurant, and meeting space – which will create a
distinctive theme and style for the property that is commensurate
with the Autograph product. Marriott will continue to manage
the property after the conversion under a management
agreement. The Company believes that post-conversion, the new
Autograph property should realize a $50 RevPAR premium to the current Courtyard hotel
and that its incremental $30 million
investment should yield an approximate 20% unlevered internal rate
of return.
"The conversion of the Courtyard San Francisco to an Autograph
Collection property will better align the property with our
strategy of owning luxury hotels and resorts. With a highly
desirable location in the heart of downtown San Francisco and within close proximity to
the Moscone Convention Center, the upbranded property will operate
in a desirable segment of the San
Francisco market," said Richard J.
Stockton, Ashford Prime's
President and Chief Executive Officer. "This transaction,
along with the upbranding of the Courtyard Philadelphia as well as
our recent announcement of the sale of the Plano Marriott and the
listing for sale of the Tampa Renaissance, bring a conclusion to
finalizing the strategy for our non-core hotels."
Ashford Hospitality Prime is a real estate investment trust
(REIT) focused on investing in luxury hotels and resorts.
Ashford has created an Ashford App for the hospitality REIT
investor community. The Ashford App is available for free
download at Apple's App Store and
the Google Play Store by searching "Ashford."
Certain statements and assumptions in this press release
contain or are based upon "forward-looking" information and are
being made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. These
forward-looking statements are subject to risks and
uncertainties. When we use the words "will likely result,"
"may," "anticipate," "estimate," "should," "expect," "believe,"
"intend," or similar expressions, we intend to identify
forward-looking statements. Such statements are subject to
numerous assumptions and uncertainties, many of which are outside
Ashford Prime's control.
These forward-looking statements are subject to known and
unknown risks and uncertainties, which could cause actual results
to differ materially from those anticipated, including, without
limitation: timing of closing of the transaction and
satisfaction of conditions to closing, general volatility of the
capital markets and the market price of our common stock; changes
in our business or investment strategy; availability, terms and
deployment of capital; availability of qualified personnel; changes
in our industry and the market in which we operate, interest rates
or the general economy; and the degree and nature of our
competition. These and other risk factors are more fully
discussed in Ashford Prime's filings
with the Securities and Exchange Commission.
The forward-looking statements included in this press release
are only made as of the date of this press release. Investors
should not place undue reliance on these forward-looking
statements. We are not obligated to publicly update or revise
any forward-looking statements, whether as a result of new
information, future events or circumstances, changes in
expectations or otherwise.
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SOURCE Ashford Hospitality Prime, Inc.