Date: November 2018
Location: Lake Tahoe, Truckee, California, USA
Name: Ritz-Carlton Lake Tahoe
No. of Keys: 170 including 17 suites
Seller: Kennedy Wilson, who bought the hotel in 2012 for, we think, $81m. KW are big in residential and commercial, with just the Shelbourne in Dublin and Fairmont St Andrews, Scotland as hotels in it’s portfolio.
The hotel has exceptional amenities including ski-in/ski-out access to Northstar Ski Mountain as well as a luxury Lake Club on the shore of Lake Tahoe.
Revenue per available room (RevPAR) of $372.35 for the 12 months ended September 30, 2018
The property is in excellent physical condition with limited capex needs.
Braemar is also acquiring a 3.4 acre plot of vacant land adjacent to the hotel that is being entitled for luxury residential town-home development.
“The acquisition of the Ritz-Carlton Lake Tahoe is an opportunity for us to acquire an iconic and irreplaceable luxury resort property with a premier location on the Northstar ski mountain in the world-famous Lake Tahoe area,” said Richard J. Stockton, Braemar’s President and Chief Executive Officer.
“This property fits perfectly with our strategy of owning luxury hotels and resorts and further diversifies our portfolio while also increasing the overall RevPAR of our portfolio, which is already the highest among our hotel REIT peers.
This will be the third Ritz-Carlton in our portfolio, and with the strong market fundamentals in the Northern California area along with our proven ability to work with Ritz-Carlton to maximise property level performance, we are excited about the future prospects for this iconic property.”
North Lake Tahoe, located approximately 45 minutes from Reno, Nevada and 1.5 hours from Sacramento, is a popular and growing upscale, year-round tourist destination.
Price per Key: US$608,235
THPT Comment: Great property in good location with gaming and skiing to make it a year-round resort. Braemar have some special hotels across the USA so this Ritz-Carlton is a good fit.
First Seen: Lodging Magazine
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