DALLAS, Oct. 3, 2019 /PRNewswire/ -- Ashford Hospitality
Trust, Inc. (NYSE: AHT) ("Ashford Trust" or the "Company") today
announced that it has entered into a new franchise agreement with
Marriott International ("Marriott") to convert its Crowne Plaza La
Concha Key West Hotel in Key West,
Florida (the "Hotel") to an Autograph Collection
property. Marriott's Autograph Collection® Hotels feature a
diverse portfolio of approximately 180 independent hotels around
the world that reflect a unique vision, design, and
environment.
The agreement with Marriott calls for the Hotel to be converted
to an Autograph by July 1, 2022,
pursuant to a conversion Property Improvement Plan ("PIP"). The PIP
is currently estimated to be $13.7
million, approximately $7.8
million of which is incremental. The PIP includes
updates to the exterior, guestrooms, guest bathrooms, corridors,
lobby, restaurant, lounge, pool, and meeting space. The conversion
will create a distinctive theme and style for the Hotel that is
commensurate with the upper-upscale/luxury Autograph product.
Post-conversion, Remington Lodging will continue to manage the
property pursuant to the new franchise agreement. The Company
believes that post-conversion, the new Autograph property should
realize a RevPAR premium to the current Hotel and that its
incremental investment should yield an approximate 19% unlevered
internal rate of return.
The 160-room Hotel is ideally located on Duval Street in the
heart of Old Town Key West within walking distance of major
attractions, shopping, entertainment, and nightlife. A unique and
historic property, developer Carl
Aubuchon opened this luxury hotel in 1926 - the first of its
kind on Key West. Boasting marble
floors, private baths, luxurious décor, an elevator, and sweeping
ocean views, the hotel was considered to be the height of elegance
and modern convenience. Many famous guests have stayed at the
landmark hotel over the years, including literary legends and
dignitaries like Ernest Hemingway,
Tennessee Williams, and Harry
Truman.
"With its prime location in Old Town Key West and deep history,
the upbranding of this landmark hotel to an Autograph Collection
property should elevate the property into a desirable niche in the
very attractive, high-barrier-to-entry, high-RevPAR Key West
market," said Douglas A. Kessler,
Ashford Trust's President and Chief Executive Officer. "We remain
focused on maximizing the value of our assets and continue to
pursue transactions like this that we believe will create long-term
value and enhance shareholder returns."
Ashford Hospitality Trust is a real estate investment trust
(REIT) focused on investing opportunistically in the hospitality
industry in upper upscale, full-service hotels.
Ashford has created an Ashford App for the hospitality REIT
investor community. The Ashford App is available for free
download at Apple's App Store and
the Google Play Store by searching "Ashford."
Certain statements and assumptions in this press release
contain or are based upon "forward-looking" information and are
being made pursuant to the safe harbor provisions of the federal
securities regulations. Forward-looking statements in this
press release may include, among others, statements about the
Company's strategy and future plans. When we use the words
"will likely result," "may," "anticipate," "estimate,"
"should," "expect," "believe," "intend," or similar expressions, we
intend to identify forward-looking statements. Such
statements are subject to numerous assumptions and uncertainties,
many of which are outside Ashford Trust's control.
These forward-looking statements are subject to known and
unknown risks and uncertainties, which could cause actual results
to differ materially from those anticipated, including, without
limitation: general conditions of the capital markets and the
market price of our common stock; changes in our business or
investment strategy; availability, terms and deployment of capital;
availability of qualified personnel; changes in our industry and
the market in which we operate, interest rates or the general
economy; our ability to successfully complete and integrate
acquisitions, and manage our planned growth, and the degree and
nature of our competition. These and other risk factors are
more fully discussed in Ashford Trust's filings with the Securities
and Exchange Commission.
The forward-looking statements included in this press release
are only made as of the date of this press release. The
Company can give no assurance that these forward-looking statements
will be attained or that any deviation will not occur. We are
not obligated to publicly update or revise any forward-looking
statements, whether as a result of new information, future events
or circumstances, changes in expectations or otherwise.
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SOURCE Ashford Hospitality Trust, Inc.