YOUNTVILLE, CALIF. — Ashford Hospitality Prime Inc. (NYSE: AHP) has closed on the acquisition of the leasehold interest in the Bardessono Hotel and Spa in Yountville, located 60 miles north of San Francisco, for $85 million.
Ashford Prime completed the deal through a stock offering, cash, and $2 million in key money. Remington Lodging will manage the luxury property, which includes 62 rooms and suites.
The purchase price represents an estimated 12-month capitalization rate of 5.2 percent on net operating income and an estimated forward 12-month EBITDA multiple of 16.5x.
On a trailing 12-month basis as of May 31, the Bardessono Hotel and Spa achieved revenue per available room (RevPAR) of $554.01, with 81.9 percent occupancy and an average daily rate of $676.12, according to unaudited financial data provided by the undisclosed sellers.
Yountville Investors LLC developed the property on land owned by the Bardessono family, according to The Press Democrat, a local newspaper based in Santa Rosa, Calif.
“We are extremely excited to add this trophy asset to our portfolio,” says Monty Bennett, chairman and CEO of Ashford Hospitality Prime. “The award-winning Bardessono Hotel and Spa provides us with a foothold in Napa Valley, one of the strongest and most desirable lodging markets in the country with very high barriers to entry and minimal new supply.”
Bardessono sits near the heart of Napa Valley, with attractions such as wineries, retail centers and an abundance of outdoor activities. Built in 2009, the hotel is the only LEED (Leadership in Energy & Environmental Design) Platinum-certified hotel in California and one of only three in the United States.
Indoor amenities of Bardessono include private balconies, on-site spa, fitness center, and 6,056 square feet of indoor and outdoor conference space.
The property also features numerous outdoor amenities, including a rooftop resort-style pool, landscaping and water features, a vegetable garden, high-profile art sculptures and the availability of carbon fiber bicycles and Lexus Hybrid vehicles for guest use.
Ashford Hospitality Prime is a real estate investment trust focused on investing in high RevPAR, full-service and urban select-service hotels and resorts located predominantly in domestic and international gateway and resort markets.
Ashford Hospitality’s stock price closed Thursday, July 9, at $15.21 per share, down from $17.48 a year ago.
— Jonathan Mehall