Ashford REIT Finds Ripe Pickings in Napa Valley
- Jul 13, 2015
It may only be mid-summer, but Napa Valley is already ripe for investment. The local hospitality market is among California’s strongest, a fact underscored by the $85 million price that Ashford Hospitality Prime Inc. paid for the Bardessono Hotel and Spa in Yountville.
One of the area’s best-performing assets, the 62-key Bardessono was generating $554 in RevPAR on a trailing 12-month basis as of May 31. The hotel also achieved 81.9 percent occupancy and an ADR of $676 for the same period. The purchase price, equivalent to about $1.3 million per key, represents an estimated forward 12-month cap rate of 5.2 percent.
The Bardessono is one of three hotels in the United States, and the only one in California, to have earned LEED Platinum certification from the U.S. Green Building Council. Completed in 2009, the hotel offers the Lucry restaurant and bar, an on-site spa, more than 6,000 square feet of indoor and outdoor meeting space, as well as a fitness center. According to the statement announcing the sale, the Bardessono hotel is on a ground lease that expires in 2105.
Ashford Hospitality financed the purchase using proceeds from a recent preferred stock offering, $2 million in key money provided by parent company Ashford Inc. and cash on hand. Remington Lodging was appointed as the hotel’s new property manager.