Ashford Hospitality Trust entered into a new franchise agreement with Marriott International to convert its 160-room Crowne Plaza La Concha Key West (Fla.) Hotel to an Autograph Collection property. The agreement calls for Ashford to convert the hotel by July 1, 2022, pursuant to a $13.7 million conversion property improvement plan, 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 also will create a distinctive theme and style for the hotel in line with the Autograph brand.
Post-conversion, Ashford anticipates the hotel should realize a revenue per available room premium to the current hotel and that its incremental investment should yield an approximate 19 percent unlevered internal rate of return. Remington Hotels will continue to manage the property after the conversion.
"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," Douglas Kessler, president/CEO of Ashford Hospitality, said in a statement.
Ashford Hospitality also revealed plans to enter into a new franchise agreement for the 252-room Hilton Alexandria (Va.) Old Town it acquired in June 2018. Under the agreement—which does not include a PIP—the hotel will transition from being Hilton managed to being managed by Remington Hotels.