Ashford Hospitality Prime, Inc. (NYSE: AHP) announced today that it has entered into an agreement with Marriott to convert its Courtyard Philadelphia Downtown hotel (the "Courtyard Philadelphia") to an Autograph Collection property. Additionally, the Company announced that it has begun marketing for sale its Marriott Plano Legacy hotel (the "Marriott Plano"). These announcements are consistent with the Company's refined strategy to either reposition or opportunistically sell its non-core hotels.
The agreement with Marriott calls for the Courtyard Philadelphia to be converted to an Autograph hotel by June 30, 2019 pursuant to a conversion Product Improvement Plan ("PIP") currently estimated to be approximately $23 million - including updates to the guestrooms, guest bathrooms, corridors, 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 also announced that it is listing its Marriott Plano hotel for sale and has engaged Holiday Fenoglio Fowler to market the property to potential buyers. The sales effort was officially launched at the NYU Hospitality Investment Conference during the first week of June. For further information on the opportunity please contact John Bourret at the Dallas office of HFF.
"Consistent with the announcement of our refined strategy of focusing on luxury hotels and resorts, we have been exploring opportunities to either reposition our non-core hotels to better fit that strategy or to sell them if we think the timing is right and we have visibility into an accretive redeployment of our capital," said Richard J. Stockton, Ashford Prime's President and Chief Executive Officer. "With its prime location across from City Hall and historical building designation, the upbranding of the Courtyard Philadelphia to an Autograph Collection will occupy a desirable niche in the attractive downtown Philadelphia market. As for the Marriott Plano, the property has performed very well over the last several years in the dynamic and growing Plano market and we currently see an opportunity to capitalize on the growth and investment taking place in that market."
Ashford Hospitality Prime is a real estate investment trust (REIT) focused on investing in luxury hotels and resorts.
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