Ashford Prime Acquires Sofitel Chicago Water Tower for $153M
Monday February 10th, 2014 - 9:58AM EBKA
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CHICAGO—Ashford Hospitality Prime, Inc. has signed a definitive agreement to acquire the 415-room Sofitel Chicago Water Tower for a total consideration of $153 million in cash.
Ashford Hospitality Prime, Inc. expects to close the acquisition in the next 30 days. Located in the Gold Coast submarket of Chicago, the 415-room, hotel features over 10,000 sq. ft. of meeting space. The property will continue to be managed by Sofitel. The company intends to finance the property with approximately $80 million of non-recourse mortgage debt.
The purchase price of $153.0 million represents a trailing 12-month cap rate of 6.0% on net operating income and an EBITDA multiple of 14.1x. On a forward 12-month basis, the purchase price represents a cap rate of 6.8% on net operating income and an EBITDA multiple of 12.7x. In 2013, the Sofitel Chicago Water Tower achieved RevPAR of $182, with 82% occupancy and an Average Daily Rate of $222.
"We are very excited to acquire the Sofitel Chicago Water Tower as this high RevPAR asset is representative of how we envision building out Ashford Prime's portfolio. This property will increase Prime's overall average RevPAR and further diversify our portfolio by market, brand and manager," stated Monty J. Bennett, Ashford Prime's chairman and CEO.
Bennett continued, "Also, its prime location in a major U.S. gateway market fits perfectly with the investment strategy that Ashford Prime was specifically designed to capitalize on. We will look for similar characteristics in acquisition opportunities as we continue to expand the Ashford Prime portfolio."
The Sofitel Chicago Water Tower has 415 rooms, including 32 suites and one presidential suite. The hotel has more than 10,000 sq. ft. of meeting space including a 4,592-sq.-ft. ballroom, eight meeting rooms and a private dining room with open kitchen. Additionally, the hotel is home to Cafe des Architectes, which serves contemporary cuisine created with local ingredients and offers outdoor terrace dining.
Tags: Ashford Prime • Sofitel • Hospitality • Amenities • Brands • Acquisitions • F+B •
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