Ashford Hospitality Prime to acquire Hotel Yountville in Napa Valley for $96.5M
Ashford Hospitality Prime has entered into a definitive agreement to acquire the 80-room Hotel Yountville in Yountville, CA for $96.5M, or $1.2M per key. The company intends to finance the property with approximately $50M of non-recourse mortgage debt. The acquisition is expected to close within 60 days subject to customary closing conditions, and subject to the company's right to extend closing for an additional 60 days subject to certain conditions. The company has also signed a non-binding letter of intent to acquire a luxury resort for approximately $150M. 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 $5.9M and a trailing 12-month 14.6x hotel EBITDA multiple, according to the company's preliminary estimates based on unaudited operating financial data provided by the sellers. On a trailing 12-month basis as of December 31, 2016, the Hotel Yountville achieved RevPAR of $469.12, with 87.8% occupancy and an average daily rate of $534.30.